Controlled payment number
| Company type | Private |
|---|---|
| Industry | Payment processing |
| Fate | Acquired by MasterCard in January 2009 |
| Headquarters | Dublin , Ireland |
| Parent | MasterCard (since 2009) |
A controlled payment number, also known as a disposable credit card or virtual credit card, represents an alternative credit card number designed for limited use, featuring an expiration period ranging from two to twelve months after issuance. This alternative number operates similarly to a conventional credit card number, but the user's genuine card details remain hidden from merchants.
Primarily developed to combat fraud, virtual credit card numbers allow authorized users to create distinctive numbers tailored for specific transactions and precise dates. This approach significantly lowers the risk of fraud compared to physical cards, which are vulnerable to theft, loss, or duplication.
These numbers are generated through a Web interface or client software connected to the issuer's system. Typically, they permit multiple transactions but restrict usage to a single merchant. If the number is compromised, the transaction limit and merchant-specific constraints help reduce potential fraudulent losses.
The phrase "controlled payment number" is a trademark owned by Orbiscom. This technology is also referred to as "substitute credit card number," "one-time use credit card," "disposable credit card," or simply "virtual card number" (VCN).
Mastercard
In January 2009, MasterCard acquired Orbiscom, a Dublin-based payment processor known for its controlled payment number system. In the United States, issuers employing this technology include Bank of America's former "ShopSafe" program (originally from MBNA) and Citibank's "Virtual Account Numbers." On the international front, Portugal's MBnet provides comparable virtual payment numbers linked to various debit and credit cards.
Orbiscom's patented solution has been incorporated into MasterCard's worldwide processing platform called "inControl."
By 2013, Royal Bank of Scotland MasterCard holders gained access to MasterCard's "enhanced Central Travel Service" (eCTS), which utilizes VCN technology for streamlined corporate travel payments.
In 2015, a collaboration between Etisalat Egypt, NBE, and MasterCard resulted in the launch of Flous, a service delivering Virtual Card Numbers accessible via any mobile phone. Each VCN generated triggers an SMS alert sent directly to the user.
Discontinued programs
On February 7, 2014, the US Discover Card terminated its Secure Online Account Numbers service due to losing access to the underlying technology. All active numbers were deactivated by March 16, 2014.
In the United Kingdom, Ivobank provided a similar "virtual card" until its bankruptcy in 2009, while Cahoot discontinued their Webcard offering in October 2009.
American Express operated its "Private Payments" service from late 2000 until 2004.
PayPal ceased its virtual credit card service on September 22, 2010.
UK-based Neteller offered Net+, a "virtual debit card" featuring transaction-specific details from 2008 until it was discontinued on February 29, 2012, due to insufficient customer demand.
Bank of America ended its ShopSafe program on September 5, 2019.
Virtual credit card
A virtual credit card (VCC) refers to a virtual credit card number (VCN) primarily intended for online shopping and frequently designed for single-use transactions. Unlike physical cards, VCNs cannot be utilized for in-person purchases and require funds to be preloaded into an associated account before use.
VCNs are provided by online platforms, financial institutions, and certain Visa and MasterCard affiliates. Providers usually impose fees that cover expenses paid to banks, card networks, and credit companies involved in issuing and maintaining VCNs.
A virtual credit card comprises three key elements:
- Credit card number
A sixteen-digit sequence resembling standard Visa or MasterCard numbers.
- CSC/CVC/CVV/CVV2
A security code used to verify ownership and authorize transactions; this functions identically to codes found on physical cards.
- Date of expiration
Virtual cards typically have much shorter validity periods than physical cards—for example, expiring within about 60 days—thereby enhancing security by limiting the window during which compromised funds may be exploited.