PayPal Launches Virtual Debit Card

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?"

Citibank has had this for years

[TooMuchToDo (882796)]

Citibank says, "Been there, done that."

Re:Citibank has had this for years

[prof_peabody (741865)]

I don't trust paypal one bit and would be more inclined to get a citibank account to do this. Every person I know who has had a bad transaction has had their account frozen... Terrible customer support also.

Re:

[chimpo13 (471212)]

Google Pay is way nicer than Pay Pal, only eBay recognizes that, and won't let you use Google Pay on eBay. They're not charging a fee until Jan 2008.

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.

[Valdrax (32670)]

Yeah, I can see myself signing up to give Paypal access to my credit cards or bank accounts just for the privilege of keeping my credit card number away from untrustworthy, unscrupulous merchants who are out to steal my mon....

Wait a minute. Oh-ho-ho! Nice try, Paypal! You almost got me there. Whew!

Re: But it doesn't always work well

[AnaemicVampire (970295)]

Citibank and HSBC both have had this system for a while.

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

[Marxist Hacker 42 (638312)]

They took it away for a time, but apparently now it's back. The only difference I can see between the old Virtual Debit Card and the new one is the random account number generator.

Re:Citibank has had this for years

[no-body (127863)]

Citibank says, "Been there, done that."

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!

Re:

[AKAImBatman (238306)]

Too bad CitiBank was bought out by Bank of America. When that happened, for a while the website didn't work at all - which meant I wasn't able to pay my bills online (and customer service wouldn't do squat to help me out, since my information somehow disappeared during the migration); now they have resorted to some lame iframing around the original site so they can brand it with BoA's logo.

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

Discover have been generating numbers for years...

[mdaitc (619734)]

Discover Card have been generating numbers for years...

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

[garcia (6573)]

why is the rest of the world not keeping up?

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.

Re:Discover have been generating numbers for years

[garcia (6573)]

There's a huge difference between a credit card and a debit card. A debit card transaction affects the balance of your bank (or paypal) account.

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.

This is a GREAT idea.

[Twixter (662877)]

A lot of people will use it for two reasons:

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.

[frostyboy (221222)]

Well, it'll still show up on some bill (whatever account you have your paypal linked to), just as a "paypal" transaction and not as a "ccbill" or "paycom" or whatever porn-site cc processor the site uses. If you want real privacy, you would have to go to the mall and buy one of those visa gift-cards with cash. Totally untraceable and you can "assign" any address/name info to them for online merchant use. (Note: Of course I've never actually done this, but hear about it all the time from others.)

Re:This is a GREAT idea.

[ShaunC (203807)]

You can't use your PayPal account directly to subscribe to (or receive funds for) adult websites, but your PayPal debit card is just a regular Mastercard, as far as purchases go.

"Article" is a pop-up window

[by Anonymous Coward]

The editors really don't look at this stuff, do they?

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

[Colin Smith (2679)]

Smile did/do it.

Paypal: We Suck Harder

[Tackhead (54550)]

> The Card Is Virtual - The Security Is Very Real

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.

It'll flop, but for different reasons

[slughead (592713)]

will it flop because its too much of an inconvenience?

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.

accountability

[Speare (84249)]

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?"

Well... this sucks.

[mark-t (151149)]

From their QA about the virtual debit card [paypal.com]:

Q: What are the system requirements for PayPal Virtual Debit Card?

A: PayPal Virtual Debit Card is compatible with Microsoft Internet Explorer 5.01 or later. Other system requirements include:

Operating System: Windows 98, ME, 2000, NT, or XP
CPU: 133 MHz or higher
Memory: 128 MB RAM
Hard Disk: 2 MB space available
Internet Connection: 56K modem (Broadband recommended for optimal performance)
Web Browser: IE 5.01 or later

Need I say more?

Similar to a OTP

[bluefoxlucid (723572)]

This is like PAM-OTP, which I like very much. One-Time-Passwords would be an awesome way to manage credit card purchases; like say, you need to be certified to handle a credit card, but you can withdraw X dollars max no matter who you are via a OTP. If this was implemented I could tell, say, Mastercard, "Generate 15 passwords for me: 5 $5, 5 $50, and 5 $100," and then use those to OTP out purchases. If I use a $100 password to buy a $75 item, $75 is charged and that password is invalid; if I try to use it to buy a $110 item, $100 is charged and I owe $10 to the seller.

Paypal itself is virtual

[tsstahl (812393)]

Paypal is not a bank.

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!

Re:

[LunaticTippy (872397)]

I agree that paypal should be subject to laws. It is somewhat unsettling to think that there is little recourse should things go against my best interests. I have made hundreds of paypal transactions without problem, though. I continue to use it. The handful of boundary cases (not receiving an item, falsely accused of not sending an item) were all resolved in my favor, but I made sure to do everything properly. If you miss a deadline you are screwed. If you don't have proof of delivery you are screwed

You could always do that with PayPal

[ahecht (567934)]

Paypal has had that feature working with any browser, without installing any BHOs (or whatever the IE only software is they require now), and without having to be invited to the beta. Just go to https://www.paypal.com/cgi-bin/webscr?cmd=p/shop/v debit [paypal.com]/

This feature has been around for years and years.

eBay and PayPal

[szembek (948327)]

So eBay refuses to accept payments from Google Payments because they own PayPal. How long will their "it's not proven to be secure" argument hold up before they are slammed with a lawsuit. I'm no lawyer but it sounds an awful lot like the stuff Microsoft got in trouble for in the past, except worse. At least with Windows you *could* download and install a third-party browser. With eBay they are choking off a specific form of payment, and you know it's because it would clearly damage PayPal.