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?"

This is a GREAT idea.

[Twixter]

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.

Paypal: We Suck Harder

[Tackhead]

> 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]

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]

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?"

So has Paypal

[Marxist Hacker 42]

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.

Well... this sucks.

[mark-t]

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?

Paypal itself is virtual

[tsstahl]

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!

You could always do that with PayPal

[ahecht]

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.

Re:Discover have been generating numbers for years

[garcia]

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.

No kidding.

[Valdrax]

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!

eBay and PayPal

[szembek]

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.

Re:Paypal itself is virtual

[Cederic]

You've described the "everything works as expected" use case.

It's the other routes through the paypal value chain that scare me senseless.

Re:No kidding.

[StikyPad]

I just use credit cards. It's not exactly difficult to get a fraudulent charge reversed by the credit card issuer in most cases, and then they can sort out the mess on their own. In any event, your maximum liability under federal law is $50 per card. Maybe $50 is a lot to you, but it's certainly better than getting your bank account cleaned out (assuming the balance is over $50) and/or having PayPal as your only recourse, since a bank won't usually (and isn't required to AFAIK) do anything about an electronic transfer. Obviously since you go through the trouble of using a second account, that wouldn't be a problem for you, but for others...

It's worse than that

[metamatic]

It used to work in any browser. The change they've made is to make it so it only works in IE on Windows. Major downgrade.

Not that I can find any kind of feedback address...