| Almost everyone understands the benefits of a | | | | liability policy for unauthorized charges and |
| single-use camera when on vacation- you have | | | | for online purchases, consumers are still |
| a camera that lets you capture the memories, | | | | concerned about shopping online because of |
| but you aren't stressed about ruining or | | | | the potential for ongoing identity theft |
| losing the camera on adventurous trips. A | | | | problems that can occur. For example, it is |
| single-use credit card is designed to help | | | | sometimes extremely difficult to repair a |
| prevent identity theft, and they are | | | | credit report and credit score after becoming |
| typically referred to as "virtual credit card | | | | the victim of an identity theft crime. |
| numbers". | | | | |
| | | | Disadvantages of Using Virtual Card Numbers |
| Virtual credit card numbers are used when | | | | |
| shopping online, so that you never actually | | | | Even with all of the advantages provided by |
| enter the number found on your credit card. | | | | using virtual card numbers when shopping |
| How does this help? The virtual number can | | | | online, virtual credit card numbers do have a |
| only be used at the web site where you make a | | | | few disadvantages over using your physical |
| purchase, and only for a limited amount of | | | | credit card number for making online |
| time. This protects you in the event that | | | | purchases. |
| hackers have obtained your credit card | | | | |
| details during the submission process, as | | | | It may be impossible to use virtual card |
| they will not be able to use that number | | | | numbers when reserving theater or airline |
| anywhere else in order to make a purchase. It | | | | tickets online, or when reserving your car |
| also protects you when shopping with online | | | | rental or hotel accommodations. When you |
| merchants who may not be trust-worthy. The | | | | arrive for your tickets or reservations, |
| only merchant's credit card processing system | | | | often these establishments require to see the |
| typically sends the details directly from | | | | credit card used to make the transaction. If |
| your screen to the credit card processor- but | | | | you've used a virtual credit card number, |
| in some cases, an untrustworthy merchant may | | | | handing them the credit card isn't going to |
| have set it up to enable themselves to get a | | | | confirm you are in fact the cardholder since |
| copy of each person's credit card details. A | | | | the physical number doesn't match the virtual |
| virtual card number makes it impossible for | | | | number used to make the reservations. |
| the retailer to take the number and go | | | | |
| shopping elsewhere, as well. | | | | It's also not possible to use a virtual card |
| | | | number when shopping for recurring |
| When virtual credit card numbers are used in | | | | subscription programs. By the time your next |
| place of the physical credit card number, the | | | | payment is due, the virtual card number will |
| credit card statement will show the purchases | | | | have expired and your payment will not go |
| made with virtual numbers in the same manner. | | | | through. |
| Some card issuers will even provide you with | | | | |
| the virtual number used when making the | | | | Precautions Against Identity Theft & Fraud |
| purchase along with the charge- for your | | | | |
| information. | | | | While a virtual credit card number can |
| | | | eliminate many concerns regarding online |
| Advantage of Using Virtual Card Numbers | | | | shopping, it's always a good idea to take |
| | | | precautions on a regular basis against |
| Many people decide not to make purchases | | | | identity theft and fraud. |
| online because they are afraid that their | | | | |
| credit card numbers will be stolen and they | | | | When shopping online, always confirm the site |
| will become victims of identity theft. | | | | is secured to handle the transaction of your |
| Approximately 7% of online shoppers claimed | | | | personal payment information. Most sites are |
| to be victims of identity theft, according to | | | | secured with the SSL system and is recognized |
| a survey conducted in September of 2002. | | | | by web site addresses beginning with "https" |
| | | | rather than "http", and sometimes there is an |
| Almost all credit card issuers provide a zero | | | | image of a little lock on the screen. |