“How Virtual Credit Cards Enhance Your Online Shopping Security”

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Consumer Credit and Finance Education

At O1ne Mortgage, we prioritize consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

What Is a Virtual Credit Card?

A virtual credit card is a temporary generated number linked to your regular credit card. You can use it to make purchases online without entering the number printed on your credit card. The transaction will go through normally, and your credit card will be charged, but your real card number will never be exposed.

Do Virtual Credit Cards Help Keep Your Information Safe?

Virtual credit card numbers can help keep your information safe by protecting your account information from fraudsters—and making it harder for them to access your account. If a virtual card number gets in the wrong hands, it’ll be worthless if it’s already been used and deactivated.

Even if someone makes unauthorized charges, you won’t have to go through the hassle of replacing your credit card and updating your payment information with accounts or merchants that have your card on file. All you have to do is report the unapproved transactions to your credit card company. You’ll never be responsible for more than $50 in fraudulent credit card charges, thanks to the Fair Credit Billing Act. Your liability may be less than that, depending on your credit card issuer.

Pros and Cons of Virtual Credit Cards

Pros

• You’ll have added security when shopping online. This can help protect your personal information.
• It’s easier to combat unauthorized charges. If your regular credit card number is stolen, it could result in a much larger financial headache.
• Creating a virtual credit card number is relatively easy. Apps and built-in web extensions can make it automatic.

Cons

• Not all credit cards are eligible for virtual numbers. You may have to contact your issuer to see if it’s an option for any of your existing credit cards.
• Virtual credit card numbers can have limited usefulness. They are generally limited to online or phone transactions, not in-person purchases. Digital wallets can be used in person, however.
• Getting a refund might be more complicated. If you’re seeking a refund on a purchase you made with a virtual credit card number that has since expired, you may have to settle for store credit.

Additional Ways to Protect Your Information When Shopping Online

Here are some other ways to keep your information safe when shopping online:

• Don’t shop on public Wi-Fi networks. These unsecured networks make it easier for fraudsters to tap into your personal information. Do your online shopping at home, or use a virtual private network (VPN) connection in public places.
• Pay with your credit card. Debit cards tend to offer fewer fraud protections. If there are unauthorized charges, you may not be reimbursed for 100% of your losses.
• Only shop with secure websites: Be sure the website starts with “https” (not “http”). That indicates that you’re using a secure connection. You can also look for a lock icon in your web browser that signals you’re using a secure website.

The Bottom Line

Virtual credit cards are designed for online shopping and provide an extra layer of security—making it harder for cyber attackers to gain access to your personal information. You can contact your credit card issuers to see if it’s an option for any of your accounts.

Virtual credit cards are designed to prevent fraud, which can help protect your credit health. Free credit monitoring with Experian has the same end goal. You’ll get an alert whenever something new appears on your credit report. That could give you a heads up if you’ve been the victim of identity theft.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you make the best financial decisions!

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