Virtual Credit Cards
While virtual credit cards have been around for several years, many people are unfamiliar with them. Also known as a substitute credit card, a virtual credit card allows the user to generate a new number for each online transaction. Doing so makes it much more difficult for anyone to steal the number and use it without your permission, simply because each newly generated number is intended for a single use only.
To establish a virtual card, you must first submit an application to a provider that offers this type of program. If your credit card application is accepted, you are assigned a credit limit and given instructions to download software that allows you to generate the new number for each purchase. The software automatically ties the purchase back to your main account so that all of your purchases still appear on one easy-to-read monthly statement.
The single greatest advantage to virtual cards is the level of consumer protection they offer. With most programs today, each new number is good for one use only. That means that even if someone intercepts the number at some point in the future, they can do little to nothing with it. In addition, the card number cannot be used to access other key financial data about you, which in turn decreases the potential for identity theft.
Because some programs are operated using software that is housed on your computer hard drive, they must be password protected in order to prevent unauthorized access should your laptop or other computer be stolen. Different software packages include additional security measures, which only adds to the overall security available with a virtual card solution.
Despite this level of protection and the fact that the best credit card companies offer virtual credit cards, the program has not attracted much attention. Part of the reason may be that some users consider it redundant, since most credit cards come with a limit on liability anyway. Another possible reason is simply the need for instant gratification that many consumers want with their purchases. Taking even the few seconds necessary to download software and generate a new number for an online purchase is not worth the delay in their eyes.
However, the continued development of more sophisticated methods of stealing credit information, along with the growing popularity of online shopping, may lead to more people searching out virtual credit card offers and applying for them. Fortunately, critiques by consumers who already use these types of cards are posted online, making it easier for potential clients to read and evaluate credit card ratings related to the different virtual programs.
In fact, you may find that your current card provider already offers a virtual solution. If that is the case, it is usually a simple matter to ask for credit card reviews related to their program, and compare them to the data you find online about other programs. Since you already have an account established with the provider, it may be possible to simply overlay the virtual option on your current account plan. When this is the case, you can download the necessary software and begin to use your virtual account immediately.
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