[Muncle]

Believe it or not, the credit card companies are addressing this problem. Many, if not most, of the big guys have not come up with the single use or limited time credit card specifically aimed at such things as online purchases and companies that try to automatically rebill. I heard about in on the Kim Komando radio show --- great show, by the way. The Digital Goddess explained the use of virtual card numbers. Sounds like a good solution:

Shop online the safe way

11/10/2007

A big time-saver in my life is online shopping. I can find almost anything imaginable with just a few clicks. I'll probably get my Christmas shopping done on my lunch break!

It's important to be safe when shopping online. You don't want your financial information falling into the wrong hands. But how can you best stay safe?

Your credit card issuer probably has a great option-"virtual card numbers." These numbers are temporary. So you don't have to put your real number at risk. And they are intended specifically for the Internet.

These programs are either downloaded or run online. You use them at the checkout page.
Once signed in, the programs generate temporary card numbers. If someone steals the number, damages will be limited.

Let's look at three programs.

Bank of America

Bank of America offers ShopSafe free to its online banking customers. You have to have a Bank of America credit card. Just sign in to your online banking account to access ShopSafe.

When ready to make a purchase, switch over to ShopSafe. Enter a spending limit and expiration date for your temporary card number. It will generate a new 16-digit number. At the checkout screen, use this number like a regular credit card.

Your ShopSafe number can only be used with a single merchant online. But it may be reused at that same merchant. Once expired or at the spending limit, it is no longer valid.

Discover

Discover cardholders can use Secure Online Account Numbers. You can download a program to generate the virtual numbers for PCs. Or, you can run it through the browser on a PC or Mac.

The downloaded program pops up a window on a retailer's site. If you use the browser process, open a second browser window. Use it to sign in to Discover and generate a number. Either way, the number is copied and pasted into the retailer's checkout page.

A virtual number from Discover is valid at only one retailer's site. It can be used multiple times at that site. If you buy something elsewhere, you must generate a second number.

You can't set spending limits on Discover's temporary numbers. Nor can you set an expiration date. The temporary number has the same expiration date as your real card. To deactivate a virtual number early, you must call Discover.

Citibank

Citi credit cardholders use Virtual Account Numbers. This service can be downloaded to your PC. Or, it can be accessed through a secure log-in in your browser.

Like the other cards, the number is generated at checkout. You can set an expiration date between 1 and 12 months. But the spending limit will be that same as your real-world card. The virtual number is good for only one online store. But you can use it at that merchant until the number expires.

Virtual card numbers are a great way to stay safe online. But you can't use them for every purchase. Sometimes you have to give your real card number. Some pickups or deliveries require you to show your actual card. If you used a generated number, it won't match the card.

Be sure to report stolen cards, real or virtual, to your issuer. If your card number is stolen you are protected under federal law. The Fair Credit Billing Act says you're liable for $50 in unauthorized charges. And credit card companies will often wave that liability.