Virtual BINs Detection
Do you sometimes feel unsafe while handing over your debit or credit card number when shopping online? Well, feeling apprehensive about electronic payment methods is not uncommon. Considering the risks that online payment methods entail, such as clone credit card and online frauds, credit card users want permanent solutions. The good news is that now there is a proper security option credit card users can choose to protect their money from online theft.
Many people still don’t know about the option of Virtual Credit Cards. These little chip credit cards’ play a critical role in making financial information more secure. Not only do they help you decrease the risk of online theft via cloning credit cards but also improve the online shopping experience.
However, there is a flip side that is necessary to consider before opting for this solution. Switching to virtual credit cards doesn’t eliminate the risk of fraud completely. If there is no appropriate payment or time limit on the virtual credit card, your vendor can put fraudulent charges.
That is to say, considering the possible challenges and problems that may arise when accepting virtual credit cards is of paramount importance for merchants and their account receivable (A/R) departments.
If you want to move from paper-based process to an advanced electronic card system, read on to learn more about this concept:
What is a Virtual Credit Card?
A virtual credit card or a controlled payment number is a disposable version of a static credit or debit card. People use it for online purchases. Plus, it is used to minimize the likelihood of online hacking and credit card fraud. The usefulness and efficacy of virtual credit cards lie in the way it shares your card data. The imprinted data on your card, such as BIN, expiration date, address, and security code are not only the same but also are often subject to misuse by online hackers.
Virtual credit cards (VCC) are a source of dynamic information for online retailers. Every time a customer pays using his/her virtual credit card, retailer receives a different verification. That is one of the reasons why VCC is a safe and secure online payment method. In other words, VCC functions like your disposable representative of original credit card. You can easily delete it in case of an online theft.
Following are some defining features of VCC:
o VCC protects card information, improving card security
o You can use it only for online purchases
o Each VCC has a different security code, expiration date, and security code
o VCC’s features may vary and depend on card issuer
o VCC can have multiple or single transactions
o VCC may have spending limits
o All purchases via VCC show on your account
Does VCC Protect Credit Card Users?
One reason why an increasing number of people and retailers are switching to virtual payment systems is the security features. Generally, retailers store payment information of their customers to use in the future. But there is no denying that convenience comes at a cost, which means if hackers gain access to retailer storage, the sensitive and confidential information of customer can be misused. So, if you paid for purchases online with your static credit card, technically you are at risk. In short, VCC mitigates that risk and allow customers to experience a unique transaction method.
This reason is why many companies making a shift from labor-intensive, processes to efficient electronic systems. The option of paying with VCC will help retailers simplify the payment process while bringing several benefits. A number of visa payment companies, in this regard, are making their Visa payments via VCC credit cards to help corporations streamline their accounts with smooth payment processing. At the same time, these companies avoid the upfront and current costs associated with the payment process.
Challenges in Accepting VCC
VCC may not have the same impact for everyone. There is no doubt that it offers a plethora of benefits for consumers and buyers but accepting it can be daunting for merchants, A/R department and suppliers. Here are some key factors;
o Suppliers, typically manually retrieve credit card numbers. As VCC provides different virtual BIN code every time, information remittance from emails becomes hectic.
o Suppliers key the payments paid through virtual credit cards, which usually takes time
o The next step is to look up the invoices in ERP to apply different payments
o Suppliers store the credentials of all virtual cards of different buyers in the system, which often raises PCI concerns
o Suppliers repeat the same process for each VCC payment made in stores, even if the same buyer made the payment
o A virtual credit card carries a high acceptance rate, approximately 3% per transaction
The mentioned issues may sound trivial in the grand day-to-day business challenges but if you are a part of the A/R team, sorting out hundreds of credit card payments everyday and processing them in order to keep the cash flow of your company flowing and green may cause delays.
In addition, VCC has a far way to go to become a perfect solution to the problems like online fraud and theft. This reason is why it is essential for merchants to detect VCC challenges before accepting it for the businesses.
VCC comes with limited availability. The card is offered by only Citibank, Bank of America and Discover. Other major card services including American Express, PayPal and CapitalOne don’t offer VCC services. Plus, if there is no payment or time limit, you may be at the risk of fraudulent charges.
Overall, virtual credit cards are useful but only in some specific situations, especially if you are a supplier or merchant. That is why exploring the possible challenges in using an electronic card system is important before accepting them.
Our database offers a relible detection mechanism for VCC. Below is the sample from our database:
529172,MASTERCARD,”CAPITAL ONE BANK (USA), N.A.”,DEBIT,VIRTUAL,UNITED STATES