Near the end of the CH podcast from today, the last caller mentioned virtual credit cards, and using them for automatic payments. I’ve never heard of these. Anyone use them?
I have a bunch of automatic payments–certain bills and monthly donations, so every time my CC is hacked, it’s a royal pain to get them all changed.
Do you pay these via CC and pay them off right away to build points?
I pay my CC bill 100% every month, so interest isn’t an issue. Points is a nice bonus. I mainly do it for convenience. Netflix for example, but also some recurring donations.
I haven’t tried with my fidelity but I just used this with my citi card the other day. I can generate virtual number and set an expiration date and purchase limit. It is not a one time use. I generated and used it for a questionable purchase on the internet. I bought a 15,000# truck lift over the phone from a broker. It seemed sketchy as hell and I used a virtual account number with current month expiration date for $1 more than the purchase (~$5,200).
I don’t see why you couldn’t generate several and then give them out to the companies that have recurring charges. If they get hacked, you just terminate the number and no need to reissue cards.
Makes sense
I use them for websites that I am concerned about. Basically, I login to my CC account online and generate a new virtual CC and specify the spending limit and expiration date. Then I use this new virtual number when I purchase online. It shows up as a transaction on my statement just like any other.
My experience comes from Citibank and I know each CC issuer might implement it different ways. I think there are also 3rd party services that will integrate with your card if your issuer doesnt support it.
I do it for points but also so I don’t miss a payment or allow someone to drain my bank account