When online shopping has become a living habit of contemporary people. At home, people can buy clothes, groceries and even cars with just a click of a mouse. However, all these conveniences come with a series of risks.

While many online purchases are made on well-known sites like Amazon or eBay, just about anyone can set up an e-commerce site and start selling, and these merchants collect millions of credit card numbers every year, legal or not. Even honest businesses aren't always safe: In 2013, Target suffered a data breach in the U.S. that "affected more than 41 million of the company's customer payment card accounts," according to USA Today.

If you want to take advantage of the convenience of online shopping, but don't want to risk falling victim to credit card fraud, a virtual credit card number might be what you're looking for.

What is a virtual credit card

Each credit card in the wallet has the card number, expiration date and CVV security code on the back. These three card details make your card valid; if someone could steal them, they could use your card fraudulently by authorizing purchases in your name. Virtual credit cards work a bit like Apple Pay and Android Pay.

A virtual credit card number is to a credit card what Google Voice is to a phone number. It allows you to create a digital representation of your credit card that can be used to make purchases online without giving the merchant your actual card number. It's almost like a secondary credit card number associated with your real account. A virtual credit card number can be used once, but it can also be used multiple times - it's up to you as the cardholder.

It's useful when shopping online or over the phone, especially if you're on a smaller site. If you want, you can even set individual spending limits for each virtual card you generate.

Benefits of Virtual Cards

The biggest benefit of using a virtual card is that if your credit card information is stolen by a crooked merchant or there is a data breach on the website you purchased from, the thief won't be able to access your real credit card number.

In fact, if your virtual card is somehow compromised, you can simply delete the number and generate a new one without getting a new card or changing your account number. The one-time virtual card will be destroyed; your real number is still safe.

Security isn't the only benefit of virtual cards, however. You can also use the virtual card as a temporary credit card if you are just opening an account. Some banks will issue you a temporary virtual number if you need to make a purchase before you receive your physical card.

Disadvantages of virtual cards

Not everything about virtual cards is perfect. They do come with some major drawbacks that you should be aware of.

If you need to return an item you purchased online, merchants will usually return the card you originally used to pay. It's a little trickier if you use a virtual card, as the number may not be valid when you return the item. If this happens, you may have to settle for a gift card or store credit instead of getting your money back.

It's also not wise to use them for every type of online purchase. For example, if you purchased concert tickets online but had to show your actual credit card at the reservation window, the number you purchased the tickets with will not match the number on your card.

You'll also want to start keeping all your receipts, as they'll provide information about how long your virtual card will last. This might help if someone tries to reuse the number. 

How to deal with a stolen virtual credit card number

Perhaps the biggest benefit of a virtual credit card number is that if it's stolen or used fraudulently, you don't have to destroy your card, renew any automatic payments, or otherwise inconvenience. With a virtual card number, you just delete it and get a new one.

Virtual credit card supplier

Fincon is a company that specializes in providing financial services to startups. This includes opening a bank account, obtaining a business credit card and making cross-border payments, helping startups navigate the financial woes they face. Compared with existing traditional banking processes, interfaces and underwriting methods, our fintech solutions are more secure and convenient, and can provide you with more professional services. If you also need similar services, please contact us by calling +86-16266316316 or emailing evan.fan@fincone.com, we will serve you wholeheartedly.