July 30, 2009

• Protect Yourself From Debit Card Scams, Pt.4
    Virtual Cards.

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  Virtual cards were introduced about five years ago in response to the increasing number of online credit card thefts. Most major lenders offer their own version of the virtual card free of charge including Citi, Discover, JPMorgan Chase, Bank of America, and PayPal offer a virtual card version. The virtual card is an alternative method of payment for internet purchases that protect consumers who are concerned about getting scammed. It allows consumers to generate a one-time card number or a maximum limit which prevents companies from adding additional charges or recurring charges. Not only does the virtual card protect your debit or credit card information, it also has a zero liability. What's more, the virtual card is recognized as a regular debit or credit card.

  Each financial institution has their own unique system; but generally, they function in the same way. You can sign up for the program on financial institutions web site. You download a simple program to your computer, and get ready to shop. When you're ready to make a purchase, just click and the system generates a random one-time use 16 digit virtual credit card number. Depending on the limits set by the consumer, the number is either used again at the same online store or is thrown away. It's important to note that virtual cards don't work for purchases where you'll be required to show your credit card at pickup such as a movie theater ticket.

  The bottom line - be aware of what's going on with your bank and card statements. Check all transactions closely and on a regular basis. Notify your bank of any unauthorized transactions immediately. Be conscious of any suspicious individuals lurking around when using your debit and credit cards at ATM's. There is no substitution for the peace of mind in knowing you are protected against the predatory actions of unscrupulous individuals and companies.
  
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