Virtual Credit Cards

MasterCard International is marketing a credit card restricted to use on the Internet. It is designed to have a separate credit line so that it does not absorb a credit line on an existing MasterCard. Further, a cardholder that has credit problems with his Virtual card will not jeopardize the usefulness of his "real" credit card. Further, it addresses some of the security concerns that consumers have about shopping online. (See next article.) It does not have a magnetic stripe and cannot be used in face-to-face purchases at retailers. For example, parents might give Virtual cards with limited credit lines to their children to provide a reasonably safe introduction to the world of credit cards. The card is becoming very popular outside the U.S. Credit Card News reports that the card is also popular with card issuers. Its availability encourages online shopping, which provides higher interchange income than sales made on "real" credit cards.