Dollars and Sense: Virtual credit cards make online shopping safer

Virtual credit-card numbers can make shopping online much safer. Also called substitute card numbers or disposable cards, they can go a long way toward protecting you against credit-card fraud.

Virtual credit cards are temporary numbers given to you by your regular credit-card company. There are different types, and they vary by company. Some will be single-use numbers, or only good at a single vendor. Most will have a very short expiration date, usually one or two months. Some will be good for a single vendor, but will match the expiration date of your regular card. With some cards you can specify a dollar limit.

These virtual numbers can be handy if you make an online purchase through a vendor you don’t know or don’t trust completely. Even “safe” online sites have had security breaches with credit-card information being lost.

Another great use of these cards is for vendors you suspect will automatically charge your card again at the end of a term, such a magazine subscription, a gym membership paid by the year, or an online service. By the time they try to put a charge on your card again, that number will be expired.

To get started, you have to log in at your credit-card’s Web site, register and download the software. Then when you make an online purchase you need to open the software, which will create a virtual number.

The purchase will show up on your credit-card statement with your regular card purchases.

There are a few limitations with the virtual credit cards. You can’t use them for advance purchases — for example, when pre-ordering merchandise. By the time the item is available and your card is charged, the temporary number will be long gone. You can’t use the numbers for travel tickets or hotels, places you’re expected to produce a card to be run. You can’t use the card for recurring payments, such as utilities. And you can’t use the card anywhere you physically go to shop, because the actual card doesn’t exist.