Disposable Credit Card Numbers: A New Reality

by Michelle Strait

We live in a disposable society. People often throw away relationships and material things without a second thought. But disposable credit card numbers? Surely, that’s a mistake? No, it isn’t a mistake. Disposable credit card numbers do exist. They are also known as virtual credit card numbers.

Disposable credit card numbers are an effort to fight identity theft. They aren’t widely used, and very few people actually know about them. This is because they’re new, and aren’t available from all credit card companies. But a few well known credit card issuers, such as American Express, offer disposable credit card numbers.

How Do They Work?

Disposable credit card numbers work similar to regular credit card numbers. One of the most notable differences is the disposable numbers expire after a few months.

When you’re issued one of these disposable numbers, the clock starts ticking. Failure to use the number before the expiration date means you won’t be able to use it at all.

Credit card companies hope the disposable credit card numbers will reduce online identity theft. One feature is they can’t be used just anywhere. For example, if you place an order on Amazon using a disposable credit card number, you can’t use the number to place an order anywhere else.

Once the number is used that’s it. This is to protect consumers from hackers and identity thieves who would steal their information.

More Online Shopping 

Millions of people already shop online, but a million more refuse to shop online because of identity theft concerns. Credit card companies and online store owners expect the disposable credit cards to make people feel safer.

There is one major flaw associated with using a disposable credit card number. If you need to show your credit card to a merchant, you won’t be able to do it.

Here's an example:

Imagine that you booked a train ticket online using a disposable credit card number. But instead of having the ticket sent to your home, you opted to pick it up at the station. This would be fine, except you might be asked to present your credit card before getting your ticket. Then what? If you used a disposable credit card number, you won’t have a card to present.

Avoid this by only using disposable credit card numbers to buy certain things. Items like books, DVDs, or anything shipped to your home should be fine.