Banks Finally Pushing Disposable Credit Card Numbers

from the gotta-fight-fraud dept

It's only taken them a few years, but it appears that banks and credit card companies are finally realizing that maybe (just maybe) it would be smart to promote their disposable credit card number offerings. Many have offered such services for a while, but most people still don't know about them. They let online shoppers generate a "disposable" credit card number that can be used for a single-time purchase (or only in association with a single vendor), without fear that your actual credit card number will be exposed. If someone does get the number, it won't work, since it's already been disposed, or won't be in association with the specific vendor. Still, as the article points out, American Express has gone in the other direction, and has shut down its own disposable credit card number program saying there are plenty of other security safeguards (there are?). Meanwhile, others like Privacy Inc. think that it shouldn't be the banks that are managing your info anyway.

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  • identicon
    Chris O'Donnell, 10 May 2004 @ 12:10pm

    No Subject Given

    American Express just shut down their disposable credit number service. I used it frequently.

    reply to this | link to this | view in chronology ]

  • identicon
    David, 10 May 2004 @ 6:57pm

    MBNA

    MBNA has this service... I used it a lot, but recently it has been screwing up more and more, where merchants accept the card number it generates at first, but then I get a call or email a few days later saying that while the authorization succeeded, the funds capture failed. Also, MBNA provides a list of merchants that simply won't accept it - Amazon being primary on the list... how great is that?

    reply to this | link to this | view in chronology ]

  • identicon
    Nonesuch, 10 May 2004 @ 9:44pm

    Citibank

    Citibank does this, and does a fair job of it. You can generate a simple "virtual account number" good for one transaction in one month, an account number with a limit, or a number good for up to one year.

    They offer an installed application for Windows, or a Java applet for Mac (or a windows system where you are unable or unwilling to install an application). The software works with (most?) proxy firewalls.

    I've only had a couple of online merchants reject the "virtual account number", and in both cases their online payment form immediately refused to recognize it as valid.

    reply to this | link to this | view in chronology ]

    • identicon
      AMetamorphosis, 11 May 2004 @ 7:01am

      Cost of doing business



      Hey, if the credit card merchants don't seem too worried about thief's getting my credit card #'s ... why should I ?

      The truth is the credit card industry does not CARE if there is xxx amount of fraud a year. It is simply looked @ as a cost of doing business and you & I as the consumers pay for it in inflated finance charges.

      Each person posting above has mentioned that retailers either won't accept the #'s or they have had difficulties using them. The industry will continue to write off xxx amount a year as fraud & disposable credit card #'s will never take off.

      reply to this | link to this | view in chronology ]

    • identicon
      luke, 19 Aug 2004 @ 4:02am

      airsoft guns

      Can you buy airsoft guns online please reply

      reply to this | link to this | view in chronology ]


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