Controlled payment number was introduced primarily as an anti-fraud measure so that a virtual unique credit card number may be generated to settle a specific transaction, on an exact date by an authorized individual, making the possibility of a fraud occurring significantly less than a traditional physical card, which can be lost, stolen or indeed cloned.
A controlled payment number (a trademark of Orbiscom), also called by generic names "substitute credit card number", "one-time use credit card", "disposable credit card" and "virtual credit card number", or "Virtual Card Numbers (VCN)" is an alias for a credit card number. It is generated through the use of either a Web application or a specialized client program, interacting with the card issuer's computer, and is linked to the actual credit card number.
Typically, a controlled payment number had a limit, and an expiration date between two and twelve months from the issue date, both chosen by the account owner, and while it could usually be set up to allow multiple transactions, it could only be used with a single merchant. This "alias" number is indistinguishable from an ordinary credit card number, and the user's actual credit card number is never revealed to the merchant. Consequently if it is compromised a fraudulent user can usually not steal money, and the limit reduces how much a dishonest merchant can steal.
This technology has been evolving for some time and goes under several different names.
Technologies
Conferma
In 2006, a UK based Company Conferma created software that operates as a payment platform, enabling the creation of single use, unique virtual credit card numbers, specifically for use in the corporate travel and hospitality markets.
Conferma-powered partner solutions for corporate payments with virtual card numbers:
- Barclaycard Precisionpay In 2008, the leading UK credit card issuer, became Conferma's first banking partner.
- HSBC "MiBooking"
- Mastercard "inControl".
- Abacus Global Distribution System in the Asian Pacific region.
- Visa Virtual Travel account platform, is made available to Visa Europe member banks and other payment service providers from 37 countries across Europe and their commercial customers.
Mastercard
January 2009, Mastercard and Cyota Inc acquired the controlled payment number system developed by Orbiscom, a Dublin-based payment processing company. In the USA, the system is used by the following credit card issuers: Bank of America "ShopSafe" (inherited when it acquired MBNA) and Citibank "Virtual Account Numbers". Examples from other countries are MBnet, which can create a payment number linked to virtually any credit or debit card emitted in Portugal.
Orbiscom's patented payment technologies has been integrated with MasterCard's global processing platform, "inControl".
In 2013 Royal Bank of Scotland MasterCard customers became eligible for MasterCard's enhanced Central Travel Service (eCTS), which uses VCN technology. This service is intended to provide companies currently paying for travel through multiple accounts with a centralised travel payments system.
CSI globalVCard
In 2009, CSI Enterprises launched its globalVCard brand, enabling corporate customers to issue single or multi use virtual credit card numbers for their payables. CSI introduced a mobile version of globalVCard in 2011, enabling the creation of single-use virtual card numbers from a mobile device. In 2013, CSI and MasterCard publicly announced an alliance that would bring a joint virtual card solution to banks and corporates. The agreement leverages CSI's proprietary technology and enablement services to help customers capture more payables spend on virtual cards. The company launched its globalVCard travel solution in 2013, enabling corporate travel managers to book air, hotel and car reservations through a single-use virtual card.
Abine
Abine offers a service called MaskMe which for a monthly subscription allows users, as of October 2014 in the USA only, to create what they call "masked credit cards" for a user-specified amount and using a specified Abine billing address.
Discontinued programs
On February 7, 2014, the US Discover Card discontinued its Secure Online Account Numbers service, saying that Discover no longer had access to the underlying technology. All existing Secure Online Account Numbers expired on March 16, 2014.
In the UK, Ivobank offered a similar "virtual card" until it went bankrupt in 2009, and Cahoot withdrew their Webcard in October 2009.
American Express's "Private Payments" was available from late 2000 to 2004.
Paypal discontinued their virtual credit card service on September 22, 2010.
UK-based Neteller offered Net+, a "virtual debit card" with card details generated uniquely for each transaction, from 2008 to 2012; it was discontinued on 29 February 2012, citing lack of use by customers.
References
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