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Why the war on virtual cards? My bank lets me create infinite "throwaway" credit cards that work for a single payment or up to a certain expiry date. They're g
by laurentdc 7y ago
Why the war on virtual cards?
My bank lets me create infinite "throwaway" credit cards that work for a single payment or up to a certain expiry date. They're great for never having to expose your real card number and keeping track of maximum spend. Are these classified as virtual cards? I use them all the time for Facebook ads and was planning to set up a AdWords campaign too, but now I'm worried
- iampims 7y agoWhich bank if I may ask?
- X-Istence 7y agoBank of America allows me to do this for my credit card with them.
- laurentdc 7y agoIntesa (Italy). Deutsche Bank offers them too iirc
- desigooner 7y agoCiti
- joncrane 7y agoCapital One definitely does this (I used to work there and when we rolled it out it was considered quite innovative).
- cortesoft 7y agoThe issue is that this is bypassing one of the things some companies use your credit card as - collateral. For example, if you rent something, the credit card is used as a guarantee that you will return the item. If you don't, they can charge the card for the full price. If you use virtual cards, they can't do that.
- MereInterest 7y agoWhat is preventing them from placing a hold for the full price, then charging the card if the item is not returned? They get the same verification that they can be reimbursed if the item is not returned, but cannot make an arbitrary charge later on.
- ar0 7y agoI would guess that for a large set of combinations of loaned items and customers’ typical credit card limits this would probably lead your customer to quickly hit his card limit and thus to a lot of frustration. (Also, in many cases the potential ex-post charges are unknown and theoretically unlimited at the time of purchase, think e.g. of a car rental company wanting to charge you for your speeding tickets.)