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PayPal Launches Virtual Debit Card
Posted by
ScuttleMonkey
on Wed Dec 27, 2006 01:47 PM
from the good-idea-bad-testbed dept.
from the good-idea-bad-testbed dept.
IpSo_ writes "You can now use PayPal via a Virtual Debit Card when making online purchases anywhere MasterCard is accepted. Basically it generates a virtual card number each time you make a transaction online so you don't have to use your personal debit or credit card number. Will people be more comfortable making online purchases with this, or will it flop because its too much of an inconvenience?"
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Your Rights Online: Paypal Agrees to Consumer Protections 136 comments
davidwr writes "Paypal settled a suit with Maryland and 27 states. Among other things, they'll conspicuously advertise a contact phone number and staff it 14 hours a day and be much more forthcoming about when they will debit your bank account. For those of you who think Paypal Sucks, well, starting soon it sucks just a little less."
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Citibank has had this for years (Score:4, Interesting)
Re:Citibank has had this for years (Score:5, Interesting)
Parent
Re: (Score:3, Informative)
Just don't try to use Google to register a domain name. They haven't worked out the details with GoDaddy and the domain I bought as an Xmas present for a friend of mine is in limbo. GoDaddy says it's a Google problem and there's no way me or any of the supervisors at GoDaddy can get in touch with anyone at Google. Argh.
No kidding. (Score:5, Insightful)
Wait a minute. Oh-ho-ho! Nice try, Paypal! You almost got me there. Whew!
Parent
Re: (Score:3, Informative)
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PrivaCash (Score:3, Informative)
This may be what you want. [privacash.com] Look for their non-personalized cards and never reload them as you have to give personal info to do so. I heard about this on a privacy-oriented site, but I've never tried them myself, so I don't know how hard it is to avoid giving personal info.
Re: But it doesn't always work well (Score:3, Interesting)
I've stopped using it though after a rather unpleasant incident where the online vendor (ETS) did not perform the transaction immediately, but instead waited for 2 working days to debit the amount. The one time card is not meant to last for that period of time (quite obviously, otherwise there would be little safety). The transaction was denied and I was charged an additional 20$. The nice folks at ETS refused to allow another GRE registration till
So has Paypal (Score:3, Insightful)
Re: (Score:2)
Too bad CitiBank was bought out by Bank of America. Wh
Re: (Score:3, Informative)
I think you're confusing Citibank [wikipedia.org] with MBNA [wikipedia.org]. I agree that the MBNA/BoA merger was less than stellar. But that's par for
Re: (Score:2)
Re:Citibank has had this for years (Score:4, Interesting)
And Paypal said after using up 16 virtual Citi numbers:
YOUR ACCOUNT HAS BEEN LIMITED
- the reference number given in the reason did not reveal a case
- emails to support did not solve the issue
- talking to support (yes, it is possible at times) did not solve the issue
Another account needed to be created to use PayPal for business purpose
After filling out a ridiculouly long survey-like questionaire for this case and mentioning that they would have heard from my attorney would there be any funds on the account, it came to their attention that there may be something wrong and - yes you can now use an unlimited number of credit card numbers...
No, thank you very much, Pay Pal!
Parent
Discover have been generating numbers for years... (Score:5, Informative)
there's the stanadlone App, or the web-based version - the numbers are one-time use, and can be used anywhere - on or off the net.
why is the rest of the world not keeping up?
Re:Discover have been generating numbers for years (Score:5, Interesting)
Because I have very little use for one of these? My credit card already protects me from fraudulent charges and I'm not worried in the least if someone uses it two states away for gas. If Chase makes me call them when I'm going outside of my "home area" so they don't shut me off, then I'm not concerned if someone steals the card number after I make a purchase online at Newegg.
If someone uses the card locally, big deal. I call Chase and tell them that the card was stolen and the charge wasn't mine. Not many questions asked.
For *most* people, they just aren't paranoid enough to use a one time number for their purchases.
Parent
Re:Discover have been generating numbers for years (Score:5, Insightful)
You should *never* use a debit card *anywhere*. Why you might ask? "But they are so popular! Everyone is doing it!"
Just wait until a drunken bartender, rushed register clerk, or malicious waitress adds an extra digit to your transaction and you're suddenly bouncing checks or being charged fees for your overdraft protection.
Parent
This is a GREAT idea. (Score:5, Insightful)
2.) Online Buying Clarity: You'll be able to view all charges you make on the internet individually and not have it mixed in with your regular credit card bill.
1.) Privacy: You can use a Credit Card online with it it showing up on your Credit Card Bill. It will be BIG in the online porn world.
Re:This is a GREAT idea. (Score:5, Funny)
Parent
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Re:This is a GREAT idea. (Score:4, Informative)
Parent
This is a new idea? (Score:2)
Doesn't every other major credit card bank do this already? I know my AMEX, Discover and Citibank cards already let you go online and generate a one-time-use number. It's handy not only for security purposes, but in case I don't have my wallet with me and need to buy something online. I just have to log into the website and can immediately get a usable number for the purchase.
"Article" is a pop-up window (Score:4, Informative)
The link goes to the contents of a pop-up window displaying a FAQ that's intended for the BETA USERS of this service.
"Launched" isn't the word that should be used for the current state.
It's been around for years (Score:3, Interesting)
Paypal: We Suck Harder (Score:5, Insightful)
Any time someone claims "the security is very real", the bogometer enters the red.
> I missed the demo when I downloaded the PayPal Virtual Debit Card. How can I see it again?
"Downloaded"? You mean this is an application? Bogometer pegged. Spyware sensor into the red.
> How do I use PayPal Virtual Debit Card?
>
> When you are ready to make a purchase on a website that accepts MasterCard, a notifier appears asking if you'd like to pay with PayPal Virtual Debit Card. You can click on the notifier to use PayPal Virtual Debit Card, and you can also always access PayPal Virtual Debit Card from the icons located on your browser's toolbar and system task tray.
Ah, it's not just a separate application, it's an (IE-only, presumably) Browser Helper Object and/or background service. Not only is the bogometer needle is bent, but the spyware sensor is on fire, and I'm reaching for my wallet, where my small fistful of weathered Federal Reserve Notes is looking mighty comfortable right about now.
Even by PayPal's standards, this is looking like a galactic-central-black-hole-through-buckytubes pile of suck.
Re: (Score:2)
You've hit the nail on the head here. The more I learn about PayPal, the less I like them, but the alternatives aren't compelling either. Damn.
It'll flop, but for different reasons (Score:3, Insightful)
It'll flop because paypal is the worst 'bank' to have to deal with. They have poor customer service, the fees are outrageous, phishing is out of control, and the Bank of America already has something like this.
Ever get accused of not delivering something on E-Bay? It works out pretty well because paypal will just automatically steal the money out of your account, or send debt collection on your ass if you don't have the balance.
This all happens before they even talk to you. This is why I use neither E-bay nor paypal.
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I'm not a big fan of this one myself. Mainly because the funds are withdrawn from Paypal balance or chequing account. Paypal gets their 2%-3.5% from the merchant and I don't see any of that. With a regular credit card, I can get 1% cashback on the transaction as well as 30 days interest free before I actually have to pay. These vurtual cards unless offered directly by the card issuer (I believe Amex does this) don't offer the same consumer benefits.
Besides, if by chance an evil website logs my cc numbe
accountability (Score:5, Insightful)
How about asking, "Will it finally force PayPal to follow US Federal Law regarding financial institutions, or will it continue to act as with capricious disregard for facts and evidence when there's a payment dispute?"
Re: (Score:3, Informative)
I just filed a paypal dispute (seller "shipped" but I never received anything). The seller never responded to the dispute in the 30 days they had, and paypal ruled thusly:
"We have decided in your favor, however, we were unable to recover any funds
from the seller's account. As stated in the PayPal User Agreement, recovery
of funds associated with a Buyer Complaint cannot be guaranteed."
That sure is some great buyer protection they have. Thank goodness my credit card company is actually a bank, and
Well... this sucks. (Score:5, Insightful)
From their QA about the virtual debit card [paypal.com]:
Need I say more?
It's worse than that (Score:3, Insightful)
Not that I can find any kind of feedback address...
stop beeing so US centric (Score:2)
Liability? (Score:2, Informative)
Hasn't Paypal done this for years? (Score:2)
I seem to also remember there being issues with lots of places not taking these cards due to extreme fraud.
-Cliff
Re: (Score:2)
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With the paypal system, it is supposed to be safe because the number is only usable *once* before you have to get a new one.
Of course, if somebody can get your paypal password, then all bets are off...but that's just a small problem, right?
If you ever contacted PayPal you know the answer (Score:2, Informative)
I will never use PayPal for anything other than cheap crap (less than $100) I buy occasionally on ebay.
Dear A.C.,
Due to an increase in seasonal email volumes, we may not have been able to
answer your email.
If your inquiry has not been resolved or you have further questions
regarding your PayPal acc
Similar to a OTP (Score:3, Interesting)
Paypal itself is virtual (Score:4, Insightful)
Paypal is not a savings and loan.
Paypal is not a retail store.
Paypal is not an insurance company.
Paypal is not a manufacturing company
Paypal is not an exchange of any kind.
Paypal is not a foundation committed to a cause.
What argument could then persuade me to trust them with money that is most certainly NOT virtual?
I'm not someone with a cross to bear. Paypal has never screwed me over, and the idea of paypal is very appealing. However, the practices of Paypal have been and are egregious for very little benefit to the average consumer. Even as a small business owner, the appeal of Paypal as it currently operates is scant.
Just mod me as flamebait, I guess. In the immortal words of Tom Hanks in Big, I don't get it!
Are you my mother? (Score:2)
Still, you're correct. Paypal is about the last corporation I would trust with my money. I have an account which I use for ebay purposes, and it's liked to a small, lightly used checking account separate from my "real" account. I never pay with instant transfer, always using a CC as an intermediary.
As for OTU numbers - I loved them when I had them. Amex canned their program years ago. Visa/MC don't have a system wide program, and my card of choice - Chase -
Re: (Score:3, Interesting)
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You've described the "everything works as expected" use case.
It's the other routes through the paypal value chain that scare me senseless.
You could always do that with PayPal (Score:3, Insightful)
This feature has been around for years and years.
Re: (Score:2)
Old news? (Score:2)
The throw away credit card number (Score:3, Interesting)
I used to have an actual credit card that had this feature (MBNA bank if anyone is interested, highly recomended.)
They had it where you could use the app on the webpage, or download what appeared to be a flash standalone app that did the same thing.
It would generate a credit card #, exp date (of your choosing, min 1 month in advance rounded to the end of that month) and the 3 digit code. You could also set a limit on that card.
Once it was charged to by someone, the number was locked to that vendor, and only they could make future charges to it.
You can also go in and shut it off at any time prior to the expiration.
The idea is, in the automated way a charge is made to the card, and even if it is stored, stolen, or sniffed along the way, anyone ELSE trying to use that number after the automated charge would get denied.
Also the store itself would get denied if it tried to charge over the limit, or past the expiration or when you disabled the number.
It was a feature I used quite alot.
The only downside here is the fact its PayPal and not a real bank. So kudos for them adding a good feature, but booo for them still being paypal and all the downsides that entails.
eBay and PayPal (Score:4, Insightful)
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