Diapers, cameras, and now credit card numbers are all made to be thrown away. In the business world, they are called "virtual credit card numbers," and most of the major credit card companies offer them right now.
Virtual credit card numbers are numbers that can only be used once and expire within a month or two. They are used when shopping online instead of the number that is printed on your credit card. What does it matter? The number only works at the one website where you make your purchase, and only for a certain amount of time. This means that if hackers get your credit card number during an online purchase, they won't be able to use it again the next time they try.
When a customer gets their credit card statement, the purchases made with virtual credit card numbers show up just like any other purchase. Some card companies will include the virtual number used to make the purchase with the charge, so you can keep track of it.
Why do credit cards have virtual numbers?
Some people don't shop online because they are afraid of having their credit cards stolen or their identities stolen. Personal information could be found online, which is a real worry. In September 2002, over 7% of online shoppers who took part in a survey said they had been victims of credit card fraud.
Even though almost all credit card companies say that they won't be responsible for unauthorised charges or online purchases, people are still worried because more damage could happen. Even if your identity has been stolen, it can be hard to get mistakes taken off of your credit report, for example. If you use virtual credit card numbers, hackers won't be able to use your card information to make purchases or find out more about you.
Virtual credit card numbers have some bad sides.
There are many benefits to using a virtual credit card number instead of your real credit card number when shopping online. However, there are also times when using a virtual card number is not a good idea.
When you buy theatre tickets, airline tickets, hotel reservations, or rental car reservations online with a credit card number, you should bring that credit card with you when you pick up your tickets, check into your hotel, or get your rental car. If you use a virtual number, you won't be able to give the clerk a credit card with a number that matches the one you used.
Using a virtual credit card number also makes it hard to pay for recurring costs. When the next time to buy comes around, your number may have already been used up.
Be careful about identity theft and fraud.
If you shop online, with or without a virtual credit card number, you can take some steps to help reduce your chances of becoming a victim of online fraud.
Before you buy something online, make sure that your payment information is going through a secure or encrypted site. Most sites use SSL (secure socket layer), which is easy to spot because the URL starts with "https" instead of "http" and there is often a small locket symbol on the screen.
Always check your credit card statement to make sure all charges were made with your permission. If you think something is wrong, you should contact your credit card company right away.
Use a paper shredder to destroy credit statements, bills, and anything else that has personal information on it before you throw it away. Even though a lot of identity thieves are tech-savvy and use the internet to find their victims, some still go through trash to find their information.
