One of the current trends in shopping is doing it online. The Internet provides us with a way to shop from the comfort of our homes — and we often don’t even have to worry too much about high shipping costs.

However, there are some issues with shopping online, including security. One of the ways you can keep your information safe when shopping online is to use temporary virtual credit card numbers.

What is a Virtual Credit Card?

Some credit card issuers, knowing that you want to improve your security when shopping online, offer you the ability to generate a virtual number. These numbers might good for a single purchase, or you can choose to “approve” them for a certain amount.

Temporary Credit Card Number for Online Purchases

Your virtual card number is attached to your regular account, so the money comes from your credit card account. However, it makes it difficult for identity thieves to steal your credit card number online. Even if the would-be thief gets a hold of the temporary virtual number you used, it will do no good. Since you’ve already used it, or reached the total amount authorized for that number, it comes up as invalid. So, you can make your online purchases, but a shady character can’t use the number to run up huge bills on your account.

Even though you aren’t liable for most fraudulent purchases made with your credit card, it’s still a hassle when your identity is stolen. You need to identify which transactions are fraudulent and take other steps. Using a virtual credit card online can help you avoid this hassle since a thief never got access to your “real” account number.

Other Advantages of Virtual Card Numbers

A virtual credit card can also be helpful in other circumstances. In many cases, when you sign up for a “free” product or service, you are supposed to provide a credit card number. Often, you agree to sign up for an auto-renew or something else. You get your free product or service, and then you are supposed to remember to cancel. But what if you forget? You start getting charged for it.

Providing a temporary virtual number can help you avoid this issue. You provide your number, and at worst, one charge appears. However, after that, any attempt to charge your card or auto-renew will be rejected. (Realize, though, that you might need to read the cancellation policies carefully. In some cases, having the payment rejected can actually result in a negative effect on your credit score since it might be viewed as a “missed payment.”)

Many credit card issuers won’t charge you when you have a virtual card created. Some third-party payment providers, like PayPal, will also help you generate a “credit card number” that can be used at sites that don’t accept third-party payment providers. Check with your issuer to see what the policies are, and determine whether or not you can benefit from a virtual credit card.

It can protect your identity and keep you from paying more than you wanted to.