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Virtual Account Numbers

When I was a child, we looked through mail order catalogs like Sears, Wards, etc. If we found an item that we wanted to purchase we filled out the order form, enclosed a check and mailed it away. After waiting, what seemed an eternity, our item would arrive.

Today with the use of internet we are able to browse catalogs online. Many even offer 3-D viewing. When we find something we would like to order we just add it to our online shopping chart and click checkout. At the checkout when we are asked for our credit card number, we may suddenly panic. We think “what if someone gets this number and uses it for unauthorized purchases?”

To combat your worries many credit card companies are offering Virtual Account Numbers. But what are they?

A Virtual Account Number (V.A.N.) is a temporary credit card number that is issued to be used at a single merchant and for a limited time. It is like having a whole new credit card number each time, but with all the transactions appearing on one statement.

How do they work? Your credit card issuer generates a temporary credit card number which you use instead of the regular card number. It works the same as your regular number except it is only good for a limited time and for one merchant.

Does it work? YES! Once, while making a purchase online, I was asked during checkout if I wanted to make a donation to a “charity” they were sponsoring. I did and it was added to the total. I entered my V.A.N. and completed the transaction. A couple of weeks later I received a letter from the charity stating that my credit card was denied. “WHAT – NO WAY” I wanted to yell! However, I discovered that the company processed only the order part with the V.A.N. and then passed the V.A.N. over to the charity so they could process the donation. But once the company used the number it was made void and the “Charity” (or others) was unable to use it.

What can I use a V.A.N. for? You can use a V.A.N. for most online transactions (and even over the phone), but not all. You cannot use it for purchasing items that require you to show the actual credit card when you pick it up.

How do I get started? Check with your credit card issuer and see if V.A.N. is an option. Then follow their instructions to get started.

How about returns? Even though the V.A.N. cannot be used by another merchant, the original company still has ability to make adjustments.

Features: A feature I enjoy using is when I get to the screen asking for my credit card information a window pops open asking if I want to use a V.A.N. I say yes and after passing authenticity, I am asked if I want to auto fill the information. Since I enjoy saving time. If I say yes, in a flash all V.A.N. information is filled in for me.

Another feature that your card issuer may have is the ability to set time and dollar limits. At present whenever I generate a new V.A.N. it expires at end of following month. This is great for most one time purchases, but what if you want to make a monthly donation to a charity for one year. This is where you may be able to set an extended expiration date and also a dollar amount. For example you might set up a number to be used by XYZ Charity to charge $20.00 per month for 1 year. You would set time to expire in 12 months and set dollar limit to $240.00. Thus reaching either limit will void the number. You can also use limits to register the temporary number with a trusted merchant that you use regularly. This way you can use their “card on file” feature until you reach your dollar/time limit instead of entering a new V.A.N. each time.

Your issuer may not have all these features or they may have different ones. As with all financial matters it is important to read all the details and also to see if any fees will be charged for using the V.A.N. features.