Virtual Credit Card Numbers – Helpful or Harmful?

The virtual credit card has been around for some time.
Remarkably, few consumers use them. American Express discontinued
virtual credit card service in 2004 and
Discover followed in September, but Bank of America and Citi
still offer it.

Virtual credit card numbers
were created to avoid giving out your credit card information. They
are used when the credit card can not be physically produced to
complete the transaction. These are typically purchases made on the
phone or on-line. It is called “a card not present” or CNP
transaction.

To create a virtual credit
card number, you will need to log into your credit card account to
generate a new one-time 16 digit number. The card owner can set a
limit on the virtual credit card number. It creates an extra layer
of financial protection. Additionally, you can still receive the
miles or rewards on your regular credit card account.

There is debate, thought, as
to whether this virtual credit card creates extra security or extra
hassles. The card is helpful for card issuers because monetary and
time limits for its usage. This helps the card issuer because the
maximum liability per card is limited to $50. That is also a reason
card users have been reluctant to use virtual numbers. To read
more, click here.

SmithMarco,
P.C.,  is a law firm that helps consumers who have had their
identity stolen. We can also help with defaulted
credit cards, harassing
collection calls and credit
reporting issues. Call now for a free review.