Paypal Launches Virtual Debt Card.
http://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/account/VDCFrequentlyAskedQuestions-outside
If there is uptake on this it will really change online commerce. You generate a new CC for each purchase you make. This means most types of CC fraud found online are now impossible as the credit card is invalidated after every use.
The theory is that more people will feel comfortable buying stuff online because now there is no chance of someone stealing your card. This should increase conversion rates all over the web and raise PPC prices. Google will have to do something to respond…
December 26, 2006 at 11:10 pm
Markus,
I already have this kind of Visa Debit Card from Banca Intesa from Italy three years ago, and it rocks! It has some glitches but it’s fine.
What i would actually like to see is that ALL banks offer this kind of services, and with the PayPal on the wagon we will surely see them coming soon!
December 26, 2006 at 11:13 pm
Only mine was in the form of paper card :), with on-line interface to issue new CC numbers.
December 27, 2006 at 12:18 am
Citibank has offered something similar for years. I used it a few times, but it was glitchy - many times the vendor wouldn’t recognize the number as a valid CC.
Ironically, since most CCs don’t make their customers pay for bogus purchases already, the real beneficiary of this is the CC companies. Since it involves a hassle for the consumer, I doubt they’ll be very motivated to use it.
December 27, 2006 at 1:08 pm
Kevin,
The Citibank virtual card number has worked for me perfectly ever since i started using it for the past year. Also the Paypal beta has been in the works since July.
-V
December 27, 2006 at 9:06 pm
Imagine the effect this would have (if it became widespread) on every subscription based service, whether personals, magazines, gyms, phones, TV, or any other service which charges your card every month.
VISA/MC et al are in the business of taking a cut out of every transaction. I highly doubt they want to mess this up for their hundreds of thousands of merchants in the above categories. It would cost everyone, never mind inconveniencing all those consumers who use the various services out there. Imagine every month having to remember to renew your cell phone service with a new card or your dating membership or TV service, etc.
December 27, 2006 at 9:55 pm
Uhh, I consider that an advantage to the consumer, not a disadvantage. Take Match.com for example and their “Get the first month free” then they automatically charge your card if you don’t cancel. If you used a one-time use credit card it would save you from having to cancel.
If the consumer knew it was a recurring fee and they actually wanted to pay it, they could easily use a regular credit card number.
December 27, 2006 at 10:38 pm
Sure, in the specific case you just mentioned, esp. on a site with a misleading “free” trial (I thought this was against card company regs?).
However, I was referring to this practice becoming widespread (however unlikely that will ever happen) and the ramifications for all types of services that use recurring billing, where the consumer *would* be severely disadvantaged.
December 28, 2006 at 4:43 pm
Hmmm…
No, you can actually make CC valid for up to ONE YEAR (at least in my case), or you can make CC valid for one day.
BTW i had to write down the CC number on the sheet of paper or in the file so i believe there will be wide spread need for CC number accounting and safe house encryption for ones not using PayPal Virtual CC (hehe
… new problems… new solutions - although i believe there are already established similar solutions this will require new ones).
January 4, 2007 at 3:36 pm
For us this would be particularly interesting if implemented in those parts in the world with currently a low(er) credit card penetration. Especially Asia, since this is an emerging market with growing Internet connectivity but still limited online payment options.
January 10, 2007 at 5:06 am
I think the recurring payment issue would be the biggest hurdle, as others have mentioned above.
If this were implemented widely, there would probably need to be some sort of verification method for the merchants to check how long the card is valid for.
Without some sort of verification, it would create a lot more administration for merchants, the cost of which would ultimately be passed on to the consumer.
January 12, 2007 at 3:28 pm
Paypal virtuelle Kreditkarte
Paypal will das Onlineshopping mit ihrer neuen virtuellen Kreditkarte weiter vereinfachen. Die Idee ist simpel- anstatt die eigene Kreditkartennummer anzugeben, generiert man schnell seine persönliche virtuelle Kreditkartenummer und dies für …
May 31, 2007 at 9:17 pm
good work, will back soon, great site congratulation!!
October 30, 2007 at 6:05 pm
I’d just like to thank you for taking the time to create this internet website. It has been extremely helpful
November 5, 2007 at 1:45 pm
Citibank has offered something similar for years. I used it a few times, but it was glitchy - many times the vendor wouldn’t recognize the number as a valid CC.