Learn how to secure online shopping and protect your credit card info with Private Payments.

If you're an American Express cardholder and plan on doing a lot of online shopping this holiday season, you'll definitely want to investigate Private Payments. Introduced in September, this new feature will allow you to make online purchases without worrying about credit card fraud.

To ensure credit card security, American Express' Private Payments system will issue you a unique virtual credit card number each time you want to make a purchase on a Web site. This virtual credit card number has a short-term expiration date and is only good for one transaction. This means that you won't have to give out your actual credit card number while shopping online. Not only does this mechanism protect you from online credit card fraud, it will also safeguard your personal privacy.

In this article, I'll take a look at American Express' Private Payments system and explain in more detail how it works. Then, I'll show you how you can sign up for and use Private Payments to make online purchases.

Who can use Private Payments?

To use the Private Payments system, you must be an American Express Consumer or Small Business cardholderââ,¬"unfortunately, American Express Corporate Cards, Lines of Credit, and FSA cards are ineligible.

Furthermore, your card must have been issued inside the United States. Private Payments is a free service offered to American Express cardholders.

If your American Express card applies to the Private Payments system, all you have to do is sign up for the service, download the small software application, and then begin shopping online. It's that easy!

How does Private Payments work?

Once you sign up for the Private Payments system, you can use it just like you use your American Express card. Furthermore, you can use Private Payments as frequently as you would use your card. Of course, any spending limits you have on your American Express card will also apply to Private Payments.

Whenever you're ready to make a purchase online, request a Private Payments virtual credit card number; you can use this virtual number in place of your actual card number. Any purchases that you make with Private Payments will show up on your American Express bill just as if you had used your card to make the purchase.

Private Payments numbers expire in either 30 days or 67 days depending on the time of the month during which you're issued the number. You'll know exactly what the expiration date is when you receive your number. However, when you use the number to make a purchase, the number will expire as soon as the merchant authorises the purchase.

Private Payments are only to be used for one-time transactionsââ,¬"you shouldn't use them for any type of recurring charge. In addition, you should not use Private Payments for transactions involving reservations.

For more detailed information on Private Payments, you should check out the FAQ page on the American Express Web site.

What are the software requirements?

Designed to be integrated with your operating system and Internet browser, Private Payment automatically issues you the virtual credit card numbers when you're shopping online. As such, there are certain software requirements that must be met in order to use the system.

• Operating System Requirements
  First, the Private Payments software is designed for use with Windows 95, 98 and 98SE, as well as with Windows NT 4.x with SP3 or higher. Unfortunately, the software isn't yet compatible with Windows 2000.

  American Express customer service informed me that they don't have an official release date on the software update for Windows 2000, but hope to have it completed sometime around the first of the year.

• Browser Requirements
  Second, you must also be running Netscape Navigator 4.x and up or Internet Explorer 4.x and up. There's an optional "drag and drop" feature that requires Internet Explorer 5.x.

  However, if you're using AOL or some other browser, or if you're using Windows 2000 or a Mac, there is an alternative method of getting Private Payments numbers. With this method, you'll need to manually access the Private Payments Web site each time you need a new number. (I'll explain how to do so later.)

  Signing up for an account

  Signing up for a Private Payments account is easy.

  Just point your browser to the Private Payments page on the American Express Web site, click the Go button and follow the online instructions, which will guide you through the sign-up procedure. Basically, you'll go through the steps of choosing an account name and password, and entering your American Express card number.

  You'll then be prompted to download the Private Payments software, which should take under two minutes. This little program will then be used to issue you your Private Payments numbers, as we'll see in a moment. When you see the American Express icon in the system tray, you're all set to go shopping with the Private Payments feature.

  Keep in mind that if you can't use the Private Payments software with your current operating system or browser, you can still use Private Payments system. You'll just have to manually get a Private Payments number each time you need one, which will be discussed soon.

  Shopping with Private Payments

  Once you have the Private Payments software installed on your computer, you'll see the American Express icon in the system tray.

  Now, when you're making an online purchase and reach the checkout page on the merchant's Web site, one of three things will happen:

  1. The Private Payments dialog box pops up automatically. The Private Payments login dialog box will automatically appear, and you'll be prompted to enter your username and password that you created when you signed up for the Private Payments acccount. You'll then be prompted to select your card from a drop-down list box and click the Continue button.

     In a moment, you'll be issued a Private Payments number and an expiration date to use in place of your credit card number on the merchant's checkout page. You can then copy that information from the Private Payments dialog box. If you have Internet Explorer 5.0 or higher, you can simply drag the information from the Private Payments dialog box to the appropriate boxes on the Merchant's checkout page.

  2. You are automatically issued a Private Payments number and expiration date. At some of the most popular online shopping sites that are specifically participating in the Private Payments program, the whole process will occur automatically with no intervention from you. In other words, the Private Payments number and expiration date will be automatically entered into the appropriate boxes on the Merchant's checkout page.

  3. Nothing happens. If you don't see the Private Payments login dialog box nor the number appearing on the Merchant's checkout page, you must click the American Express icon in the system tray. When you do so, you'll see the Private Payments login dialog box and can sign in and get your Private Payments number.

     Manually requesting a Private Payments number

     If you weren't able to install the Private Payments software, you'll need to manually request a Private Payments number when you need it.

     To do so, simply point your browser to the Private Payments page on the American Express Web site and click the Request New Number link. When you do, you'll see the Private Payments login dialog box and will need to sign in using your account name and password. You'll then be issued a Private Payments number and an expiration date, which you can copy and paste into the appropriate boxes on the Merchant's check out page.

     Once you enter your Private Payments number and expiration date, you simply complete the transaction as you normally would. If you want to make an additional transaction, you'll need to get another Private Payments number.

     Greg Shultz is a Senior Editor with Element K Journals. He writes the monthly tips and techniques journals, Inside Microsoft Windows 98 and Windows Professional.
     

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