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