SIGN UP TO RECEIVE THE LATEST POSTS VIA EMAIL!Use Virtual Account Numbers to Fight Fraud
June 19, 2008
Not many people realize that their credit card may offer a good type of fraud protection called Virtual Account Numbers. Virtual Account numbers are a one time use number that points back to your main credit card number. The main use of this is when buying things over the Internet. When you check out, you use a virtual card number which can only be used once. So not only are you not giving out your real credit card number, you are also giving out a number that can be used once for charges. Once the charge hits your credit card company, that same number can never be used again, except to issue a credit if you needed to return the item.
Many credit companies claim that you are not held liable for unauthorized charges to your account so many people don’t bother using Virtual Account Numbers. But if your card number was lost or stolen and you are issued a new number then you have to update that new number with every merchant that may have it stored. Using Virtual Account Numbers you can only give out your real credit card number to trusted merchants and give other not so trusted merchants a virtual account number. This way you have the security of knowing that even if someone did get that virtual account number they couldn’t do anything with it.
Some banks like Bank Of America have sophisticated virtual account number programs where you can get numbers that can be used multiple times for recurring purchases. Other banks like Citibank have a more basic program where you can get a number for a one time use.
I use a virtual account number for all my online purchases. With the way credit departments are getting hacked into, I think this provides me a little more security to not having my main credit card number exposed to possible fraud.
Here are the banks that I know of that have some type of Virtual Account Number feature:
Bank of America / FIA Card Services – ShopSafe Numbers
Citibank – Virtual Account Numbers
Discover – Secure Online Account Numbers
Banks I know that do not have some type of Virtual Account Number feature:
America Express (They used to have one but stopped it 2 years ago)
Chase
HSBC
Please leave a comment if you know of other banks that provide this valuable service.
My CitiBank Virtual allows me to add money to an open account number (for recurring bills, like Comcast each month). It took me a while to learn this trick: If you want the account number to stay active, leave a penny in it. If I write a limit for the exact amount, the number closes itself upon completion of the transaction. As long as the virtual account end-date isn’t expired and a penny remains, I can use the same virtual account forever, adding more time and/or money limits.
Citi is discontinuing their service as Bank of America is taking over Citi Cards. No one seems to know if the existing virtual card numbers will be honored for recurring payments or not.
The 2nd comment from Jake Klutch which says Citi is discontinuing their Virtual Account Numbers does not seem to appear anywhere on their web site? My ATT Master Card has evolved into a Citi Master card and I have used the Citi Virtual Account Number facility without any problem up to now. This CITI web site talks about Virtual Account Numbers and doesn’t say anything about them discontinuing this service?
https://www.citicards.com/cards/wv/detail.do?screenID=700
You can get to this page following these links:
Citicards.com > Benefits & Services > Built-in Benefits > Citi Identity Theft Solutions