Virtual Account Numbers and eCommerce Fraud Prevention

The very thing that makes credit cards so easy and convenient to use in so many different situations is the same thing that makes them so vulnerable to fraud. You only need to have a few key numbers to complete a credit card transaction, and in the age of ecommerce those numbers are being stored and shared constantly.

From one small act of data theft, a fraudster can potentially steal thousands of dollars. But credit card numbers don’t have to be permanent. Could the virtual account numbers that some banks are offering help to prevent ecommerce fraud and chargebacks?

A virtual account number is a lot like a tokenization scheme, but it gives the cardholder more control about when and how to make use of it. When a cardholder makes a transaction with a virtual account number, their actual card number is never transmitted to the merchant, making it impossible to steal, even if fraudsters have breached the merchant’s network defenses. Cardholders may also feel more secure using virtual account numbers with newer, smaller merchants that haven’t yet earned a trustworthy reputation.

Full Text:
https://www.chargebackgurus.com/blog/virtual-account-numbers

©Chargeback Gurus 2020
Production: Courtney Freeman 
Narration: Sarah Rife