Virtual Credit Card

Using a virtual credit card is one way to help prevent falling victim to debit card fraud.   There are various ways of using this type of system. Which way is best for you will depend on how often you wish to use the card and where. 

For example, if you have a one off large purchase that you wish to make but feel unsafe using your regular credit card, you could use a prepaid virtual credit card. This type of virtual card works exactly like any other VISA or similar credit card apart from you pay for your card in advance. You simply decide how much you want your card limit to be and then buy it via paypal, alert pay or western union. The card will be accepted anywhere a normal VISA card is accepted and it doesn’t matter where you live.  You can only use this card once so in a way it works very similar to a gift card.

The second form of virtual credit card has been around for years but for some reason has never really become that popular.  You will need to download a piece of software to your computer which is one reason why people may be put off. People generally mistrust software unless they are very IT literate.  This software will work in conjuction with your real credit card. Every time you wish to use your credit account to pay for something online, you can ask the software to give you a virtual account number.  This account number will either have a set spending limit, have a very short lifespan or be able to be used at only one particular merchants depending on which program you are enrolled with.  This means that should someone steal this credit card number, it will either be useless as it has already expired or your total losses will be capped at whatever predetermined credit limit you have set.

The virtual credit card system could really help reduce the impact of identity theft as it is often your credit card information that is initially used by the identity thieves to access other personal information. If they were to steal the details from your virtual card, it would be completely useless to them as the virtual card number and your real credit card number are not linked in any way. Only your bank can see both.  So the thieves would be unable to uncover any personal information of any real value to them.  But the ordinary person on the street doesnt see this benefit. They believe that in the event of their credit card being stolen, they are usually only liable for a small amount if the card is used fraudulently so they are not bothered with the hassle they believe using a virtual credit card will cause.

It will only be when people realize that their credit card details could open up their entire lives to be exploited by identity thieves that a virtual credit card may become more attractive.