SolveYourProblem Article Series: Online Shopping
Teach Me To Shop Smarter Online

Virtual Credit Card - What is it? Should I Have One?

Shopping online can be convenient for many consumers, but there are some risks when using your credit card online. Today, consumers are concerned about identity theft and credit card fraud; this makes many consumers wary of shopping online. A solution to using your credit card for online purchases is the virtual credit card. The virtual credit card is has been available for many years, but many consumers don’t know what it is, or how to get one. Using a virtual credit card number provides consumers with more security, and enables more consumers to shop online.

Approximately 95% of Internet merchants accept credit card payments. The virtual credit card can be used as a substitute for your regular card, when shopping online. MBNA is one of the top issuers of virtual credit cards. Consumers wanting to obtain a virtual credit card simply log onto their web site and requests one. There’s no need to use your social security number; they simply ask for your name, address and phone number. The virtual card is prepaid so you control your budget. Virtual credit cards are used only for online purchases, and if you don’t want to give this number online, the number will work for paying via the phone, mail, or fax. The virtual credit card can’t be used for in-store purchases like traditional plastic cards.

Virtual credit cards are designed for use at one specific online merchant. For example, virtual card numbers issued for eBay purchases may only be used on eBay. Consumers have the option of using “single use” virtual cards for online stores, so when consumers sign up at the credit cards web site, they receive a randomly generated substitute 16-digit number that they can use at the online store. But, most of the virtual credit cards can be used repeatedly at the same online merchant. Virtual credit cards can be used on eBay, clickbank, Paypal, Yahoo, Amazon, and anywhere Visa is accepted. Virtual credit cards are accepted worldwide throughout internet merchants, and web sites.

Virtual credit cards are perfect for consumers concerned with identity theft. They are not linked with your personal bank account or credit card, so it keeps you safe form fraud, thieves, and hackers, and guarantees protection of your personal credit cards and your financial information. Consumers can use virtual credit cards with ease, and without the worry of a hacker stealing your identity, or running up charges on your credit card. So, if there’s a breach of security for one merchant, and your virtual credit card number is revealed the person who obtains the number will not be able to charge anything. The virtual credit card number will also prevent the hacker from finding and using your personal information.

Preventing credit card fraud is the main reason many consumers use virtual credit cards. Despite the safety it provides the use of virtual credit cards haven’t really caught on. Some credit card issuers say credit card use “increases” online with each report of identity theft. According to a study by the research firm Gartner Inc., 3.9 million Americans were victims of credit card fraud, in the year that ended in May. Actually, credit card is down by 1.6 million from the year before. The study found that 46 percent of victims didn’t know how the fraud occurred, but 21 percent said they thought their credit card numbers were stolen from the Internet. The year before, 18 percent blamed the theft on the Internet. Use of the virtual credit card could drastically decrease the number of credit card fraud victims.

Consumers considering shopping online should consider using a virtual credit card. It’s safe, dependable, and the perfect solution for wary Internet shoppers. If shopping online is a convenience for you, but you’re afraid of identity theft, then you should strongly consider using a virtual credit card. More consumers should use the virtual credit card, because it makes shopping online safer. If more consumers knew about the virtual credit card, then the amount of online spending would rise dramatically. Consumers will find the virtual credit card is their best bet for safe shopping online. The virtual credit card can be used for anything, ranging from clothing, to video games. Virtual credit cards makes shopping online even more convenient, and has the potential to help millions of wary consumers.

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SolveYourProblem.com : 2008

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