One Time Credit Card

With the prevalence of credit card thievery nowadays due to hacking of credit card numbers online, credit card companies are now offering specialty products such as the one-time credit card for safer online transactions.
 

   
Typically, a one time credit card would have a set of one-time use credit card numbers known as substitute credit card numbers or controlled payment numbers.

The one time credit card or single use credit card is offered by most banks as protection from credit card fraud. It has been called the disposable card since it can only be used once because of its computer-generated designated account number. Most banks offer this as a free service to their consumers. These computer-generated numbers may be used for a single vendor or for a single purchase on a periodic basis for certain items such as paying for one's utility bill. The best part of this card is that the vendor never acquires your real account number at all, so in case credit card fraud occurs, the privacy of the consumer's real account number is maintained.

The one time credit card number is known as the controlled payment number (or substitute credit card number), generated through a specialized client program. It is tied up with the consumer's real credit card number. This controlled payment number has an expiration date and a limit, which are generally chosen by the customer. It can only be used for a single vendor, even though it can be arranged to permit multiple transactions. This number is usually identical to an ordinary credit number, and provides protection to the consumer's real credit card number.

The benefits of using a one time credit card for online transactions are as follows: the consumer's true account number is never shared with the merchant; the consumer's real account number is never retained in the merchant's database; the consumer sets an expiration date; and the consumer sets a specific limit on how much can be charged on his account. Thus, your one time credit card payment for certain bills and purchases provide a certain amount of protection from online thievery. There are certain instances when making payments with this card may not be a good idea; specifically, when the merchant requires you to provide or present the card itself as proof of purchase. Since it is a "virtual" card, you do not have anything concrete to show.

One time credit card processing involves the following steps: the consumer downloads a program from his bank or card issuer; the downloaded program will allow the consumer to generate the virtual card number; then the consumer will list the intended vendor; and finally, the consumer will set the expiration date and limit of amount of purchase. All of these steps can be done in the comfort of one's home computer. Hence, most consumers prefer using a one time credit card when accomplishing financial transactions online for its convenience and safety.


  

Source: Credit Cards For People With Bad Credit Rating


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