Re: what is the advantage of using one time transaction card ?
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Posted by Bob on August 04, 2001 at 22:26:41:
In Reply to: what is the advantage of using one time transaction card ? posted by linu Mishra on August 04, 2001 at 02:06:27:
It sounds like you are referring to the one-time online payment numbers issued by American Express? I think a couple of other issuers have started those, too. The purchase is charged to your regular card, but the number that you enter into the merchant's payment page is different. The idea is that the number is only good for that one transaction, so if some fraudster obtains it (e.g. by hacking the online merchant's database), they can't make any new purchases with it. Note that there has never been a confirmed case of a credit card number being stolen while being transmitted across the Internet through a legitimate merchant's secure shopping cart system. The high-profile thefts have involved the thieves getting into merchant's customer/order databases. Theft by insiders (e.g. employees of a merchant) is a much higher risk than credit cards being stolen over the Internet. Credit cards always have risks, no matter where they are used. However, if a victim notifies the card issuer of a stolen card or suspicious transactions on their statement which turn out to have been made by thieves, the cardholder's loss is typically limited to $50. (Although there is obviously some hassle with reporting/disputing, and getting a new card.) So the main functions of these one-time use credit card numbers are to help people feel more comfortable making purchases online, and to help the card issuers reduce their own fraud losses. Another alternative is the use of pre-paid transaction cards, which you can buy with a regular credit card, or with your checking account. The maximum amount that can be charged to the prepaid card is however much or little you put into it. When making purchases, you would use the number just like a normal Visa or MasterCard. Here is a list:
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