Putting an end to credit card fraud seems like an impossible mission nowadays, but this solution could actually be the one to seriously do something in this direction: use disposable credit card numbers!
According to LA Times, a couple of start-ups are specializing in offering so-called virtual cards, which are basically credit or debit card numbers that link to an actual, real payment account. However, they can be used while making transactions with a single merchant and will expire as soon as they’re used. Thus, the potential damage which hackers can create if they get hold of them is seriously diminished.
The numbers can’t be used by anybody else
“It’s a way of muddying the waters,” said Boling Jiang, chief executive payments start-up Pay With Privacy. “Fraudsters get these numbers, but they’re useless.”
Pay With Privacy isn’t the only company offering this service, as NY-based Token Payments offers the same thing. Specifically, we’re talking about online services which can be used to pay with your existing checking, debit or credit card accounts. It doesn’t cover rewards credit cards or similar services though.
Even more, an Oakland-based start-up, Final, offers a different solution: a credit card of its own, with an included rewards program. However, the features are similar, allowing users to feel more safe with providing sensitive payment information to online merchants.
Credit cards which expire after one use? They got them!
Final allows its users to generate an unlimited number of virtual cards, which act exactly like an ordinary credit or debit card, and also include an expiration date and the three-digit security code. But just like the disposable credit card numbers, they expire after the first use or after a certain amount has been charged to them.
It’s also worth mentioning that anybody steals your disposable credit card numbers you used on Amazon and tries to use it an another retailer, the transaction will be immediately blocked.
Looks like more than just a great way of dealing with credit card fraud, if you ask us!
