Orbiscom, a Dublin, Ireland-based company, wants to dispel those worries and make the world safe for online shopping by arming the masses with disposable credit card numbers.
If stolen, the O-Card numbers generated by the company's software are about as useful as a "stolen cashed check," says Ray Sheridan, Orbiscom's chief operating officer.
That's because these throwaway digits are valid only for the particular merchant, dollar amount, or time specified by the customer. This strategy represents a technological power shift; typically, the customer is the one being restricted, by credit limits and the like.
Playing by Orbiscom's rules, the customer dictates the terms.
 How Orbiscom Works: Cardholders apply for a unique O-number (1), which they can use in any online purchase (2). The O-number is processed like any credit card (3); the number is then discarded. |
According to Naftali Bennett, former CEO of New York-based Cyota, another company deploying a similar secure payment scheme, use-it-once technology sells itself to merchants because it doesn't require changing the way business is done: These disposable numbers get processed just like regular credit card numbers. Only the customer and the bank know the difference.
This system stands in marked contrast to an alternative, Secure Electronic Transaction, backed by Visa since 1997. While secure, SET is widely regarded as too complex for painless implementation. "[SET] not only requires the banks to manage it, but consumers have to get involved in downloading a lot of software, and worst of all, merchants have to sign up for it," says Ken Kerr, a GartnerGroup analyst. "Any time you have these multiparty adoption solutions, they're kind of dead on arrival."
So far, Ireland's Allied Irish Banks and British-based HFC Bank's Marbles.com are the only two banks set to offer the O-Card. As for O-Card availability in the United States, Sheridan says Orbiscom is talking with several of the top five commercial banks to implement its software by the end of the year.
We at HDFC Bank Ltd, India have launched a similar card called Netsafe.
NetSafe, the latest technology offering from HDFC Bank, is a unique service which makes online shopping completely secure. With NetSafe you create a virtual card (NetSafe Card) from your HDFC Bank Visa Credit / Debit Card Number that provides you with complete security while shopping online. The key benefits of NetSafe are as follows:
Your HDFC Bank credit / debit card number is never used on the merchant website
The NetSafe card you create is a one time use card
You can set your own limit for the NetSafe cards you generate
You can use it on any merchant website that accepts VISA credit cards
All purchases you make with NetSafe Cards will appear on your statement, just like any other transaction.
As an added safety feature, the virtual card number is valid only upto the expiry date of the virtual card. And, the limit of the card is the amount as chosen by you.