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What is a VIRTUAL CREDIT CARD? (how to create & use them safely) - YouTube
Channel: All Things Secured
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- You see this?
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This is the credit card number I used,
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just yesterday to pay for
some landscaping work.
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Yes, that is the real expiration date
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and the real security pin.
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This credit card, well,
this is the one I use
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to pay for my Netflix subscription.
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But, before you get any ideas,
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I'll go ahead and spoil
your fun by telling you
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that I've already closed these
accounts and open new ones.
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You're welcome to try
those cards if you want,
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but they won't work.
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Now, how am I easily closing
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and opening credit card accounts
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without damaging my credit score?
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Or waiting on a bank for
weeks to send me a new card?
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Welcome to the world of
virtual credit cards.
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And if you've never used one
before, you're in for a treat.
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You're not only gonna learn
how they work in this video,
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but you'll discover how to
set them up yourself for free,
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and learn an interesting new way
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to protect your financial
transactions online.
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(mysterious sound)
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(air whooshing)
Welcome to All Things Secured.
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My name's Josh.
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And, just last week,,
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I had a lawn care company
send me an invoice
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for work done on one of
my rental properties.
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This company accepts credit
cards but they're old school,
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and they don't yet have an
online portal on their website.
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I'm located outside of the country,
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so they asked me to send
my credit card information
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via email.
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If you know me by now,
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you know that this send
up a ton of red flags,
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they're a reputable company, I'm sure,
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but sending my info over email?
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Yeah, I don't think so.
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That's just asking for some sort of fraud.
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So instead of sending them
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my actual bank issued credit card,
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I sent them a unique virtual credit card.
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This card was limited
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to the exact amount of
the invoice they sent me,
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which means the company
couldn't run the card
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for more money, even if they wanted to.
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And it was single use.
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So, the credit card was
automatically closed
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once the transaction was made.
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That's the credit card number I showed you
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at the beginning of this video.
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And that's the power of a virtual card.
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Even if the Lawn Care Company
has their database hacked,
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even if I give you and every
other viewer of this video,
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all the card info, it doesn't matter.
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And, you can't say that
about the credit card
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that's in your wallet right now, can you?
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And before I get to all the details,
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you wanna know the best part?
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The best part, is that for
most of you watching this,
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it's absolutely free to get this set up.
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Now, kick things off.
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I wanna show you my virtual
credit card dashboard.
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I'm using privacy.com, but
this isn't a sponsored video.
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And I'm also testing
another service called Blur.
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Unfortunately, at the time
that I'm recording this video,
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I don't see any other
consumer options available.
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And even these two are for US
citizens or US residents only.
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I know, that sucks for all of you
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that are my international
viewers, I'm really sorry.
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If you know good alternatives
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for those other parts of the
world, please leave a comment
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so that other people can check those out.
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Anyway, let's go back to my dashboard.
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Here, you see all the virtual cards
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I've created on the left,
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as well as any transaction
activity here on the right.
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I'm showing you on my computer,
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but they also have an iOS
and Android app I could use.
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And creating a new card is as simple
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as clicking new card here on the left,
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giving it a nickname,
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and then selecting any limitations I want.
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And this is where things
really get interesting to me.
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Unlike any other credit
card I have in my pocket,
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with a virtual card,
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I have the ability to set a
monthly limit, a yearly limit,
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a per transaction limit,
a total spin limit,
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or simply make it a single use card.
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And just a little side note here,
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you can't combine those limits.
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You can't say, a per transaction limit
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and then a total yearly transaction limit,
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which I wish you could
do, but that's for later.
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But anyway,
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so if I'm creating a card
for my Disney+ subscription,
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which currently costs me
$8.65 when you include tax,
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I will set a $9 monthly spending limit.
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I can name the card,
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I can even assign it a cute little logo.
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And then within seconds,
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you'll see that I have a
new credit card number.
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Now, I'll stop here and explain that,
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during the setup process,
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before everything you're seeing here,
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I connected my chase checking account
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via my debit card as a funding
source for privacy.com.
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So, any purchases I make
through my virtual card,
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are debited from my
bank account one by one.
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This doesn't get added
to my credit card bill,
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and I have to have cash in the
bank to make these purchases,
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and that's important to note.
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That also means that by
using a virtual credit card,
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I'm missing out on any points
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or miles that I might otherwise
be trying to accumulate.
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So, if you're one of those point hackers,
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that's obviously bad news for you,
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but privacy.com does offer
a 1% cash back option
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for it's paid pro members, okay.
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So, back to the dashboard one more time.
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I can take a look at each
virtual card in detail
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to see what transactions have taken place,
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and then easily pause or close the card.
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This level of control with my
finances and online payments,
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it gets me fired up, I love it.
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Have you ever lost your credit card,
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or had any sort of fraud before?
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If so, then you know
just how annoying it is
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to contact your bank, have
them close the account
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and then wait for weeks while they issue
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and mail you a new card, right?
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You lose a little bit of
the liability protection
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that traditional credit cards offer,
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but you make up for that
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by setting exact limits on that liability.
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In other words, sure.
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I don't have protection
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if someone steals my Disney+
credit card and uses it,
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but since I've set it
to a $9 monthly limit,
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that's pretty much the
extent of what I might lose.
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As far as practical uses go,
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I'll tell you now that I am
not using a virtual credit card
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for every single transaction I do.
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And I'm slowly moving
my subscription services
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to these virtual cards that
I have full control over
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when my subscription ends.
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If I can't easily find
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that cancel subscription button anywhere,
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I just close the card.
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Take that you online services
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that try to make it hard to
unsubscribe from your service.
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Oh, yeah, the one more thing
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that I wanna think is really super cool.
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You guys already know
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that I'm a long time user of 1Password,
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as my favorite password manager.
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Well, 1Password and privacy.com
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have integrated with each other,
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and so now they make things even easier.
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So, check this out.
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When it comes to adding
my billing information,
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because I've already
set up the integration
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between my 1Password account
and my Privacy account,
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I can have 1Password automatically create
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a new virtual card with
privacy on the spot
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when I'm trying to pay for something.
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It's a super convenient feature.
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Anyway, give virtual credit cards a try,
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and let everyone know what you
think in the comments below.
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Do you think they're as cool as I do?
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Or are you less enamored?
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Do you think there's some
sort of security risk
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I haven't found yet?
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And since you've made it this
far to the end of the video,
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go ahead and punch that like button.
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I've heard rumor that you'll
get hacked if you don't,
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just saying.
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