A simple idea to bring the web to millions of people who may be wary: a credit card with a low limit. I know I *could* get a low limit credit card, but it would take some effort and I'm not paranoid enough to go about it. Here's my idea:
From a bank you already have a credit card with. They give you another account, with a limit that you can set yourself online on their website (or that you can't change online at all for the really paranoid). So I can set my other credit card number to a max amount of $100. At any time, I can go to the bank's website, review the charges, and move them over to my real credit card. If I see something suspicious, I can cancel the limited card, apply for a new limited card online, and voila, no possibility of more fraudulent charges, I haven't had to cancel my real credit card, and I have a new number to use for web purchases. Like so:
CC#1: my real card, I get a paper bill for this, credit limit $2500, current balance $450
CC#2: first low limit account, saw fraudulent charges after using it to verify my age on... umm... nevermind what kind of site, canceled account, will be disputing those $70 in charges with my bank
CC#3: replacement low limit account, reviewed charges, transfered the $40 purchase at amazon.com to CC#1
Details to work out yes, but this could help get a lot of people who are reluctant to buy online more comfortable with the idea.
From a bank you already have a credit card with. They give you another account, with a limit that you can set yourself online on their website (or that you can't change online at all for the really paranoid). So I can set my other credit card number to a max amount of $100. At any time, I can go to the bank's website, review the charges, and move them over to my real credit card. If I see something suspicious, I can cancel the limited card, apply for a new limited card online, and voila, no possibility of more fraudulent charges, I haven't had to cancel my real credit card, and I have a new number to use for web purchases. Like so:
CC#1: my real card, I get a paper bill for this, credit limit $2500, current balance $450
CC#2: first low limit account, saw fraudulent charges after using it to verify my age on... umm... nevermind what kind of site, canceled account, will be disputing those $70 in charges with my bank
CC#3: replacement low limit account, reviewed charges, transfered the $40 purchase at amazon.com to CC#1
Details to work out yes, but this could help get a lot of people who are reluctant to buy online more comfortable with the idea.
Consumer reports says that citibank and some other providers already have this. They call them "virtual" card numbers. Too late again.