What is a disposable or virtual credit card Number
Everything from paper cups to cameras have become disposable these days. You can go to your local convenience store and pick up a slew of disposable products such as cameras and even cell phones. In the credit card world there are also options that are essentially disposable. Virtual credit cards, also referred to as disposable credit cards can be obtained through a variety of credit card issuers on the market today.
A virtual credit card is essentially a credit card number that will expire within a very short period of time or after just a few uses or even just one use. Virtual credit card numbers are issued for the purpose of shopping online or any form of high risk transaction. The purpose of having a disposable or virtual credit card number is being able to shop securely online or even just over the phone. Perhaps, you are dealing with a less than reputable vendor that you would not want to have your credit card number. Simply contact your credit card issuer and ask for a virtual or disposable credit card number. The other big advantage is that if anyone were to hack your number online the card number would no longer be good. This would make it impossible for someone to steal your number and go on a shopping spree with your dollar.. Purchases made with a disposable credit card number will show on your statement as regular transactions or will show separately.
The main purpose an individual or company would want to use a throw away credit card number is for shopping online. Many people still fear using their credit card on the Internet. The concern is that hackers will get a hold of their number. However, these days, there are many secure websites that use SSL technology to encrypt credit card transactions being made online. Large online retailers such as Amazon and Wal Mart spend large amounts of money every year on online security measures that will protect their customers. Consumers should also be aware that most credit card issuers have a zero fraud liability policy that protects their customers against theft. However, for those that are still skeptical about making purchases online you can always request a virtual card number from your issuer.
There are quite a few disadvantages to using a virtual or throw away credit card number. When you go to rent a car online for example, you give them a virtual number and they will only be able to verify it once. At the end of the car rental the rental agency will need to total your millage costs, fuel costs, etc and re charge your credit card. If you give them a disposable card number that can only be used once they will not be able to finalize your charges. The same hold true when you use your card to make hotel reservations or even buy theater tickets online. The other major disadvantage to using a virtual credit card number is when you need to make recurring payments online. For example you could be purchasing vitamins online that have refills sent to you every thirty days. Your online vitamin retailer will not be able to charge your card multiple times if the number is going to expire immediately.
