Kiss your plastic goodbye: Visa offers "virtual" card numbers

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David Flynn16 November 2007, 5:14 AM

New 'Pre-paid' Visa cards are intended to reduce scams such as credit card fraud and boost confidence in online shopping by doing away with the real-world plastic cards altogether.

In a smart move to slap down online scammers and card thieves, Visa is now offering a ‘virtual Visa card' which exists only as a string of numbers on a pre-paid voucher. It's just like Visa card but without the card - or even a bank account, for that matter.

Australian customers will be able to buy the ‘VCard' in the same way as a pre-paid mobile phone account, by handing over cash at a retail outlet. VCards can also be bought using a debit or credit card, for those who want to keep their plastic in the real world and use only the virtual cards online. They can also be purchased online (through www.virtualvcard.com) using BPay.

Who needs reality?: we reckon pre-paid 'VCards' are the perfect complement for those who prefer the virtual world to the real thing Who needs reality?: we reckon pre-paid 'VCards' are the perfect complement for those who prefer the virtual world to the real thing

Each card has a pre-determined value of up to $1000, to which customers need to add $5.50 in processing fees (that's a bit of an ouch factor, we admit). The card is activated by entering the account's reference number (provided at the time of purchase) through a secure Web site, which generates a one-off Visa account number, expiry date and three-digit security code. These are sent to the customer via email or an SMS message. The VCard can then be used online as if it was a real Visa card, up to the limit of its pre-paid value.

However, unlike pre-paid mobile accounts there's no top-up arrangement: once you hit the limit of the VCard you need to buy a new one, which means you get a new card number, expiry date and security code.

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Anonymous6457568578:

do you have to be over 18 to get this? and what happens if you over draw it?

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Anonymousi:

Nope, you can be any age.

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Phil:

Any idea which retail outlets?

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Jarrod Spiga:

To the first two comments on the article:

It appears that you can acquire a Vcard if you are under 18. In fact, the usage example I've read is for Mums & Dads to pop $50 on a card for the kids to download music from iTunes.

If you hit the limit, the transaction is declined.

As far as retail outlets, any Mobil/Quix outlet should offer the cards. Other retailers can be found at http://www.virtualvcard.com/StoreLocator.aspx

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SnookieWookie:

No top up is a major disappointment, leaving you with useless funds on the card. Web sites wont allow you to make two payment for one items - so the funds are useless. It has a high initial fee, high foreign rate conversion fee (3.5 %) and no top up ! Come on Visa, you can do better than this.

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ramrod:

Geez your a whinger. $5.50 initial fee........big deal. Dont you realise this opens up the web universe of adult entertainment for those of us who are afraid to use a real credit card to pay for access. Get with the program ass clown

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FostWare:

This idea sounds dead in the water...

bopo cards are making a killing in the U18's market as they advertise to the sat morning music video generation.

Those who are older usually have a visa debit tied in to their existing accounts. My bank allows me to transfer money (for free) between accounts, so the *only* time there's money there is between me moving in 105% of the amount and when the purchase is made. Straight after, it's emptied again.

This stuff isn't new, gees, even the company credit cards are managed in the same way.

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Todd:

It would sound dead in the water for someone in an anal retentive routine such as yourself, this way you dont have to transfer funds to and fro between accounts, and also if someone, somehow does get a hold of your number, they cant just sit there trying to put stuff through on your card number, waiting until you put money there and then its gone, its a great idea I think, I use my Visa card all the time for various purchases, and being that some times you have to buy some software from some dodgy looking sites this would be an decent alertnative. Bopo are pre paid cards, these are just numbers that have a certain amount of money and its from Visa, not Bopo..... whats wrong with competition, u go to Coles, Ill go to Woolies.....

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n-blue:

I have this for years in Thailand with Kasikorn Bank. It's call web card. The difference is Kasikorn's web card is needing to have bank account and money on it.

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Elantrix:

Technically this article is incorrect to say it will "Kiss your plastic goodbye" because you still need visa cards for use in shops, hotels etc.

There are plenty of similar cards is already available, in most banks as a gift card and in some shops,

I like the idea of having a separate card for the internet, but having it sent and stored in your mailbox, phone etc makes it ALOT easier for malicious users to get the vcards and harder for them to be tracked down (especially for large sums of cash like $1000).

Having another card doesn't solve the problem, user knowledge is the best way to combat the problems faced.

I think the best way to exchange money is by using payment gateways such as Paypal because it allows the seller to get money from buyers without ever needing to see your bank details with 100% protection against fraudulent transactions.

In a nutshell, don't give bank details to anyone BUT trusted payment gateways and respectable companies, Make sure the URL of the trusted website payment form starts with https and has a closed padlock with no certificate errors, use unique hard to guess but easy to remember passwords for accounts that contain any bank details such as your online bank, trusted payment gateways.

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