Understanding Virtual Credit Cards: A Secure Way to Shop Online

At O1ne Mortgage, we prioritize your financial security and education. In today’s digital age, online shopping has become a norm, but it also brings risks to your personal information. Virtual credit cards offer a secure solution to protect your data from potential breaches. In this blog, we’ll explore what virtual credit cards are, their benefits and drawbacks, and additional ways to safeguard your information while shopping online.

What Is a Virtual Credit Card?

A virtual credit card is a temporary, randomly generated number linked to your regular credit card. It allows you to make online purchases without exposing your actual credit card number. The transaction proceeds as usual, with the charge appearing on your regular credit card statement, but your real card number remains hidden.

The functionality of virtual credit cards can vary depending on the credit card issuer:

• Some virtual credit cards are restricted to specific online stores.
• Others can be used at any online retailer that accepts your regular credit card.
• Some virtual credit card numbers are single-use only.

How to Get a Virtual Credit Card

To obtain a virtual credit card, check with your credit card company to see if they offer this feature. If available, they can link a virtual number to your existing account. This might be done through a browser extension that generates a virtual number at checkout or by logging into your online account to create virtual numbers as needed.

Keep in mind that not all accounts are eligible for virtual numbers. Contact your credit card issuer to confirm if this feature is available for your account. Additionally, check if your credit cards are compatible with digital wallets, which can enhance security for both online and in-person transactions.

Do Virtual Credit Cards Help Keep Your Information Safe?

Virtual credit cards add an extra layer of security by protecting your account information from fraudsters. If a virtual card number is compromised, it becomes useless once deactivated. This means you won’t need to replace your credit card or update payment information with merchants.

Even if unauthorized charges occur, you can report them to your credit card company without worrying about significant financial loss. Under the Fair Credit Billing Act, your liability for fraudulent charges is limited to $50, and many issuers offer even lower liability.

Pros and Cons of Virtual Credit Cards

Pros

• Enhanced security for online shopping, protecting your personal information.
• Easy to combat unauthorized charges without replacing your regular credit card.
• Simple to create virtual credit card numbers using apps or browser extensions.

Cons

• Not all credit cards are eligible for virtual numbers; check with your issuer.
• Limited to online or phone transactions, not in-person purchases.
• Refunds can be complicated if the virtual card number has expired; you may receive store credit instead.

Additional Ways to Protect Your Information When Shopping Online

Here are some other strategies to keep your information safe while shopping online:

• Avoid public Wi-Fi networks: These are often unsecured, making it easier for fraudsters to access your data. Shop from home or use a virtual private network (VPN) in public places.
• Use credit cards over debit cards: Credit cards offer better fraud protection, and you are more likely to be reimbursed for unauthorized charges.
• Shop on secure websites: Ensure the website URL starts with “https” and look for a lock icon in your browser, indicating a secure connection.

The Bottom Line

Virtual credit cards are an excellent tool for online shopping, providing an extra layer of security to protect your personal information from cyber threats. Contact your credit card issuers to see if this option is available for your accounts.

At O1ne Mortgage, we are committed to helping you secure your financial future. For any mortgage service needs, call us at 213-732-3074. Our team of experts is ready to assist you with the best solutions tailored to your needs. Stay safe and shop smart with virtual credit cards!