How to Buy Online Without Giving Out Your Credit Card Number

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Technology is continuously advancing and naturally, that has dramatically changed the way we make purchases. Credit and debit cards remain the most convenient and popular choices for making payments. Consumers are generally pretty aware that they need to keep their card information safe and exercise due diligence when sharing that information with a merchant.

Credit Card Data Security

Before we talk about online shopping, it’s important to understand the security of your physical credit and debit cards. The theft of credit and debit card information has been slowing during in-person transactions when a physical card is used. This is due largely in part to the relatively recent roll-out of chipped cards. Before chip cards were widely implemented here in America, we relied on magnetic strip cards.

The magnetic strip on your credit or debit card contains the details required to make a purchase. For example, when the card is swiped, the computer reading it picks up the card number, cardholder name, expiration date and other pertinent data for processing a transaction. The problem with this system was that all someone needed to do to steal that information was to get you to swipe your card through a skimming device unknowingly. Fraudsters could hide these skimming devices on gas pumps, ATMs or anywhere else they could inconspicuously set one up. Once you swipe, these skimmers transmit the card data to the thieves. The thieves could then use the card data for online purchases or often load the data on to the magnetic strip of a dummy card to make an in-person purchase.

What’s more, using the magnetic data strip for purchases creates a record of your card’s information in the merchant’s processing system. The dangers of this system were famously exploited in 2013 when hackers broke into Target’s servers and stole customers’ credit card numbers and credentials.

Chip Cards

Cards with chips work a little bit differently. When you insert your chipped card, a one-time use code is explicitly created for that transaction. If hackers were able to obtain this code, it would be useless to them. There is still some risk when you use your chip card, however. Because of the high cost for merchants to switch over to the new chip reading system, the majority of cards issued with chips, also still have a magnetic strip containing all of your card’s data which makes that part of the card vulnerable.

Virtual Account Numbers

The increased burdens for thieves to obtain credit card data through physical magnetic strips has forced them to re-concentrate their focus to stealing your card data when you use it online. Criminals can swipe your card numbers in a variety of ways online, from hacking websites, to servers, to your own computer. The best way to keep criminals from getting your card information online is to avoid entering your card data in the first place! Enter virtual account numbers.

Virtual account numbers work a lot more like the computer chip in your cards. Depending on your card issuer, they can be set up to be used at a single merchant, for a specified amount of time, for specific amounts or even for a single transaction. If hackers obtain a virtual card number set up for a single purchase and you’ve made the purchase already, it’s useless to them.

A virtual account number looks just like a regular card’s would, but the details, such as card number, expiration date, and security code will be different. Not everyone offers virtual account numbers, but Bank of America, Capital One, and Citi are three of the major virtual account number issuers.

Where to Use Virtual Account Numbers

Virtual account numbers can only be used for online or over the phone purchases. They’re especially smart to use on sites where you’re less confident about the security. Other great uses for virtual account numbers are for setting up trial memberships that you won’t want to renew. Just use a virtual account number that expires before you’ll be charged a renewal fee. A virtual account number is also a good choice if you want your child to be able to make an online purchase, but don’t want to give them your real credit card info.

Using a virtual account number can be a little tricky at first, but they are a terrific security measure against having your card data stolen.