by Camilla Persson

Created on: March 12, 2009

In times when credit card fraud, card cloning and skimming is on the raise, credit card companies are trying to keep one step ahead of the game. As shopping on the Internet is increasing rapidly it is vital that there are secure ways of purchasing on-line. One successful attempt to make transaction over the Internet more secure is the virtual credit card.

There are a few different ways of acquiring this facility. The best way is to speak to either your bank or your credit card company and see what options they have. Although there might be a few different choices around, the principle of these cards is the same. Rather than entering your standard credit card number, you will have access to a virtually generated number every time you want to make a purchase.

If you are using Internet banking, the best option for you is probably to speak to your bank about virtual credit cards. Many banks have this facility incorporated in their Internet bank. You will in a way use your standard credit card but rather than punching in that credit card number, you will be able to download a program that will allow you to generate credit card numbers every time you want to buy something on-line.

What happens is that this program will generate a new card based on your standard one. You will see this virtual card on the screen and it will have the same features as your normal card. There will be a credit card number, an expiry date and a CCV2 code. Before the card is generated you will be asked to enter an amount, this way the card will have a certain limit. If you are making a purchase of US 48, you might set the limit to US 50. That way you are sure that the card cannot be used again. These cards are in fact made for a single purchase.

An alternative option is to talk to your credit card company and sign up for this facility. The credit card company will then generate single transaction cards for you, which will have a credit limit and an expiry date, the same way a standard credit card has. The validity of these cards ranges from a few weeks to a few months depending on the credit card company. As these cards can only be used one time, the risk of someone else getting hold of your credit card number and using it is slim.

There is an additional option which is slightly different. With a secure card, you sign up to a web site and deposit funds into an account. When you are purchasing an item, the money will come from the account rather than a credit card. Pay-Pal is probably one of the most recognized web sites for handling transactions this way. You can then transfer your own funds into this account and there is no need for a credit card.

All of the above aim to make payments less likely to be used in a fraudulent way. If you are thinking of purchasing items on the Internet, you should look into these options and decide what would suit you. The important thing is that you protect yourself and your funds.

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