VIRTUAL CREDIT CARDS ARE SAFER THAN PLASTIC
Shopping online is safe but it could be even more secure. To that
end, a major bank has created what can best be described as a virtual
credit card. Just like the cards you carry with you, these cards
display your full name, have a unique credit card number, expiration
date, and even the CVC number that merchants now require as a form of
validation. But this card can only be seen on your computer's screen,
as it does not exist in the physical world.
This virtual credit card is a creation of MBNA America Bank, N.A.
and it could save you lots of online grief by circumventing one of the
basic inherent weaknesses found in most other secure credit card order
sites. The basic flaw is that you must give out your credit card
number. But with MBNA's ShopSafe, that flaw is eradicated because you
don't give it to them. What you do give them is the information on a
virtual credit card that's created by you for that one particular
online merchant.
In order to create a virtual credit card, you must have at least
one real credit card with MBNA. To create a virtual card, you go to
MBNA's ShopSafe web site at
www.mbnashopsafe.com to set up the virtual card. When I say you
set it up, that's exactly what you do. You set up the credit limit on
your virtual credit card. You also set the card's expiration date. If
you find you want to make additional purchases from the same merchant,
you can continue to use whatever funds you have left on the card.
However, if you find you need to spend more than you allocated, all
you have to do is create another virtual card. And there are no
service fees or charges associated to the creation of a virtual card.
But as with a real card, do make sure you have enough funds allocated
for your purchases and give it enough time for the transaction to
clear before the card expires. If you don't, you will still be liable
for any charges you made, just like on a real credit card. In some
cases, MBNA in its sole discretion, may increase the total dollar
limit you set on the card to allow for shipping, handling, and taxes,
which may not have been taken into consideration at the time of the
purchase.
So for example, let's say you want to buy a widget from XYZ Online
Company. You log onto the MBNA ShopSafe web site with your name and
password. You will see a platinum colored credit card sized window
appear with several choices. Selecting "Generate ShopSafe Account"
prompts you to set a dollar limit for the virtual card along with how
long a duration it should be valid. You can select any amount up to
your credit limit on your real MBNA credit card. The card's expiration
can be set from one to twelve months.
After making your selections, you actually see an animated display
of credit card numbers being created until the system generates a
complete number. At that point, you'll see what looks like a platinum
credit card on the screen with your name and all the needed numbers to
perform any credit card transactions. Even though the numbers are not
the same as your real credit card, this virtual card is tied to your
real card's account. Any online transactions made using the virtual
card will be charged to your real card's monthly statement. Now you're
set to go to the merchant's web site. When you are prompted to enter
in your credit card information, just use the virtual credit card's
numbers you see on the screen. Once you use that card at a merchant's
site, you will not be able to use it at any other online location.
When you want to shop somewhere else, just create another virtual
credit card. The service keeps track of the merchant assigned to each
virtual card, and will display all of them at your request.
The beauty of this system should be apparent but as a further
example of how nice this is, say you have subscribed to a service or
magazine that bills you monthly, quarterly or even annually. Sometimes
these companies will try to automatically renew your subscription even
if you don't wish to continue. With a normal credit card, you have no
way of knowing they have done the nasty deed until you get your next
statement. Then you have to deal with the troublesome matter, calling
the credit card company, contesting the charges, etc. But with your
virtual, self-expiring credit card, there are no worries. You have set
the expiration date on the card so when the merchant tries to sneak in
a renewal, guess what? The card number is no longer valid and you have
escaped the misery of having to deal with the whole mess. It's truly a
wonderful thing. Plus if your virtual card number is stolen by
whatever surreptitious means, you're still safe because that number
can only be used for purchases from the merchant where you first used
it. The thief can't identify that merchant from just the card number.
And even if they could, setting the card's limit to the value of your
one purchase renders it useless anyway. And all the time, your real
credit card number remains safe because you never put it online.
Remember that you only have to set an expiration date to be long
enough to clear the merchant's charge. In my subscription example,
even if it was an annual subscription, their charge to your account is
typically made within the first month so you would still set your
virtual card to expire in 30 days.
You can use the ShopSafe card to view the status of your current
and past online purchases, and even select another credit card to use
if you have more than one credit card with MBNA. One short note:
According to MBNA, there are a few online merchants such as Amazon and
Barnes & Noble that will not accept the virtual credit card, but they
are in a small minority. Hopefully these companies will eventually
realize the merits of the virtual credit card and allow their use.
The safety of a virtual credit card is a clever idea. MBNA should
be applauded for implementing a process that helps to make online
shopping a safer and more secure experience.
www.mbnashopsafe.com |
