Virtual Credit Card Numbers
By Valerie S. Johnson
In an effort to combat credit card theft and identify fraud, credit card issuers created virtual or disposable credit card numbers. The user gets a number to use for a single transaction. This number expires after a short period of time, and neither the user nor anyone else can ever use it again.
Most major credit card issuers have a “zero liability” policy, meaning if your card is stolen and you report it promptly, you will not have to pay for the thief’s charges. The disposable credit card numbers are a good option for those customers who are still nervous about shopping online. Their concerns are not unreasonable; even if a credit card issuer removes the fraudulent charges, it may take a lot of time and trouble for the innocent cardholder to get their credit report cleaned up.
If you get a disposable credit card number, you do have to remember that there are circumstances when you cannot use them. For example, some credit cards provide, as an extra benefit, insurance for rental cars. You must use the same card to reserve the car and to pay for it. If you use a virtual credit card, it might expire too soon. Another disadvantage of disposable credit cards is that you cannot use them for recurring expenses or automatic bill paying.
Disposable credit card numbers were introduced as far back as 2000. Yet they have not proved to be as popular as the credit card issuers hoped.
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