MSE News: Revolut launches disposable virtual...

Challenger bank Revolut is to let customers create disposable virtual cards to make purchases online, in a bid to stamp-out fraud...
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'Revolut launches disposable virtual card to beat online fraud'
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  • Interesting...

    "If you need a refund for something you bought using a disposable card, Revolut says it will be able to put the money back in your main account"

    But how do you explain that to the retailer you purchsed from?
  • Inigo_Montoya
    Inigo_Montoya Posts: 1,214 Forumite
    First Post Photogenic Name Dropper First Anniversary
    edited 22 March 2018 at 1:18PM
    what you fail to mention is that it looks like you have to pay £7 a month for the 'premuim' service to get the virtual cards https://www.revolut.com/ru/pricing - there are other virtual card options already available such as entropay & neteller - both of these have fees too but on a PAYG basis & dont continously charge you each month - for example entropay charge a % fee to load money into your account but you can create virtual cards free of charge - entropay is most useful for websites that just want to perform card verification only so you dont actually reduce your balance & then have to load more money & pay more fees to entropay

    I think the credit card load fee is 4% for entropay (less from bank account) so its 40p for every £10 loaded so I just use it for smallish transactions with etailers Im 'unsure' about & consider the load fee as an fraud prevention 'insurance' charge - quite often the purchaces are for deals / special offers anyway so the load fee is quite minor compared to the saving being made on the deal
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    !!! wrote: »
    Interesting...

    "If you need a refund for something you bought using a disposable card, Revolut says it will be able to put the money back in your main account"

    But how do you explain that to the retailer you purchsed from?

    Why would you need to explain anything?. When you get a refund online the retailer will automatically pay it back onto the card you used (in this case the virtual card number). Then Revolut will see the refund and put it back in your account.
  • How does that make it disposable still if it's able to accept a refund transaction?
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    !!! wrote: »
    How does that make it disposable still if it's able to accept a refund transaction?

    Well from what it says the virtual card details are generated and then you are able to use this for one transaction. After it is used once any further use to make purchases on the virtual card details will result in the transaction to be declined.
    So this means that even if these card details are leaked or shared with other people it will not be possible for them to use them to get money from your account.

    But they will obviously have to keep a record of all the card numbers that were used and what purchases were made like any other bank. So this means it's easy for them to process any refunds into the correct account.

    What would be the point of them also stopping refunds? all that would do is inconvenience people and not offer any extra security.
  • That's my point - if the card is then "blocked" from taking transactions, then it would also mean refund requests to it are refused as well
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    !!! wrote: »
    That's my point - if the card is then "blocked" from taking transactions, then it would also mean refund requests to it are refused as well

    Blocked from further debit transactions, I would guess.
    Refunds can be made onto lost cards and arrive at the correct underlying account.
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    !!! wrote: »
    That's my point - if the card is then "blocked" from taking transactions, then it would also mean refund requests to it are refused as well

    Like i said what would be the point of that? Banks are able to stop any transaction they want on a card so it's pretty easy for them to set it up so that refunds are accepted but no further purchases can be made on the card.
  • bxboards
    bxboards Posts: 1,711 Forumite
    I remember Cahoot offering one of disposable virtual card numbers, must have been 10 years ago at least.

    So this isn't anything 'new' as such, but seemed a good idea 10+ years ago, and is still a good idea now. Surprised the idea never caught on,
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