Single-use Credit Card Number Help Prevent Identity Theft

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