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Many virtual cards before you have ran into issues of being flagged as prepaid or single use cards and having their BINs blacklisted by merchants. How will you

by dsl 11y ago

Many virtual cards before you have ran into issues of being flagged as prepaid or single use cards and having their BINs blacklisted by merchants. How will you be combatting this?

jasode 11y ago
>ran into issues of being flagged as prepaid or single use cards I generate Citi's virtual credit card numbers every month for numerous online shopping payments and I haven't run into issues. It seems that it's not possible to determine if a card is a virtual number by parsing the digits.[1] Do you have other information stating that merchants know how to reject virtual cc numbers? [1]"As there is no way for a merchant to identify a card as virtual up-front," https://support.cybersource.com/cybskb/index?page=content&id=C1246&pmv=print&impressions=false https://support.cybersource.com/cybskb/index?page=content&id...
- dsl 11y ago
  Citi and BOA get away with it because they can allocate out of a large pool of BIN numbers that are otherwise regular use debit/credit cards. These guys will have to figure out how to get a similar "mix" to avoid being flagged as prepaid/single use. This was the issue that ultimately caused PayPal to kill the service they had that was almost exactly the same as Privacy.com.
  - jasode 11y ago
    > will have to figure out how to get a similar "mix" to avoid being flagged as prepaid/single use. This was the issue that ultimately caused PayPal to kill the service That's fascinating. Perhaps PayPal killed it for multiple reasons because the (possibly biased) answer from a PayPal said not enough people were using it: "The one-time card numbers -- technically they were MasterCard virtual debit card numbers -- were discontinued as a public user-facing feature because they were not generating sufficient transaction volume and revenue to warrant further development." [1]https://www.quora.com/Why-did-PayPal-discontinue-their-one-time-credit-card-numbers https://www.quora.com/Why-did-PayPal-discontinue-their-one-t...
    - harshreality 11y ago
      Those might not be distinct reasons. If a lot of merchants were flagging and rejecting transactions from Paypal's virtual CC BIN numbers, that would prevent people from using it very often, leading to "not generating sufficient tx volume", right?
  - kobayashi 11y ago
    Why do vendors want to block single-use CC numbers?
    - tracker1 11y ago
      recurring subscription websites, and purchase tracking networks.
boling11 11y ago
There's a lengthier answer to this, but long story short, yes we're aware of a lot of the common pitfalls. A big part of the challenge comes down to limiting abuse on the cards (which we're planning to do).

by dsl 11y ago

Many virtual cards before you have ran into issues of being flagged as prepaid or single use cards and having their BINs blacklisted by merchants. How will you be combatting this?

jasode 11y ago

>ran into issues of being flagged as prepaid or single use cards I generate Citi's virtual credit card numbers every month for numerous online shopping payments and I haven't run into issues. It seems that it's not possible to determine if a card is a virtual number by parsing the digits.[1] Do you have other information stating that merchants know how to reject virtual cc numbers? [1]"As there is no way for a merchant to identify a card as virtual up-front," https://support.cybersource.com/cybskb/index?page=content&id=C1246&pmv=print&impressions=false https://support.cybersource.com/cybskb/index?page=content&id...

dsl 11y ago
Citi and BOA get away with it because they can allocate out of a large pool of BIN numbers that are otherwise regular use debit/credit cards. These guys will have to figure out how to get a similar "mix" to avoid being flagged as prepaid/single use. This was the issue that ultimately caused PayPal to kill the service they had that was almost exactly the same as Privacy.com.
- jasode 11y ago
  > will have to figure out how to get a similar "mix" to avoid being flagged as prepaid/single use. This was the issue that ultimately caused PayPal to kill the service That's fascinating. Perhaps PayPal killed it for multiple reasons because the (possibly biased) answer from a PayPal said not enough people were using it: "The one-time card numbers -- technically they were MasterCard virtual debit card numbers -- were discontinued as a public user-facing feature because they were not generating sufficient transaction volume and revenue to warrant further development." [1]https://www.quora.com/Why-did-PayPal-discontinue-their-one-time-credit-card-numbers https://www.quora.com/Why-did-PayPal-discontinue-their-one-t...
  - harshreality 11y ago
    Those might not be distinct reasons. If a lot of merchants were flagging and rejecting transactions from Paypal's virtual CC BIN numbers, that would prevent people from using it very often, leading to "not generating sufficient tx volume", right?
- kobayashi 11y ago
  Why do vendors want to block single-use CC numbers?
  - tracker1 11y ago
    recurring subscription websites, and purchase tracking networks.

boling11 11y ago

There's a lengthier answer to this, but long story short, yes we're aware of a lot of the common pitfalls. A big part of the challenge comes down to limiting abuse on the cards (which we're planning to do).