Slashdot Mirror
PayPal Launches Virtual Debit Card
IpSo_ writes "You can now use PayPal via a Virtual Debit Card when making online purchases anywhere MasterCard is accepted. Basically it generates a virtual card number each time you make a transaction online so you don't have to use your personal debit or credit card number. Will people be more comfortable making online purchases with this, or will it flop because its too much of an inconvenience?"
Citibank says, "Been there, done that."
there's the stanadlone App, or the web-based version - the numbers are one-time use, and can be used anywhere - on or off the net.
why is the rest of the world not keeping up?
2.) Online Buying Clarity: You'll be able to view all charges you make on the internet individually and not have it mixed in with your regular credit card bill.
1.) Privacy: You can use a Credit Card online with it it showing up on your Credit Card Bill. It will be BIG in the online porn world.
-Todd
Put down the sig, and step away from the computer.
The editors really don't look at this stuff, do they?
The link goes to the contents of a pop-up window displaying a FAQ that's intended for the BETA USERS of this service.
"Launched" isn't the word that should be used for the current state.
Smile did/do it.
Deleted
Any time someone claims "the security is very real", the bogometer enters the red.
> I missed the demo when I downloaded the PayPal Virtual Debit Card. How can I see it again?
"Downloaded"? You mean this is an application? Bogometer pegged. Spyware sensor into the red.
> How do I use PayPal Virtual Debit Card?
>
> When you are ready to make a purchase on a website that accepts MasterCard, a notifier appears asking if you'd like to pay with PayPal Virtual Debit Card. You can click on the notifier to use PayPal Virtual Debit Card, and you can also always access PayPal Virtual Debit Card from the icons located on your browser's toolbar and system task tray.
Ah, it's not just a separate application, it's an (IE-only, presumably) Browser Helper Object and/or background service. Not only is the bogometer needle is bent, but the spyware sensor is on fire, and I'm reaching for my wallet, where my small fistful of weathered Federal Reserve Notes is looking mighty comfortable right about now.
Even by PayPal's standards, this is looking like a galactic-central-black-hole-through-buckytubes pile of suck.
why is the rest of the world not keeping up?
Because I have very little use for one of these? My credit card already protects me from fraudulent charges and I'm not worried in the least if someone uses it two states away for gas. If Chase makes me call them when I'm going outside of my "home area" so they don't shut me off, then I'm not concerned if someone steals the card number after I make a purchase online at Newegg.
If someone uses the card locally, big deal. I call Chase and tell them that the card was stolen and the charge wasn't mine. Not many questions asked.
For *most* people, they just aren't paranoid enough to use a one time number for their purchases.
will it flop because its too much of an inconvenience?
It'll flop because paypal is the worst 'bank' to have to deal with. They have poor customer service, the fees are outrageous, phishing is out of control, and the Bank of America already has something like this.
Ever get accused of not delivering something on E-Bay? It works out pretty well because paypal will just automatically steal the money out of your account, or send debt collection on your ass if you don't have the balance.
This all happens before they even talk to you. This is why I use neither E-bay nor paypal.
Latewire
How about asking, "Will it finally force PayPal to follow US Federal Law regarding financial institutions, or will it continue to act as with capricious disregard for facts and evidence when there's a payment dispute?"
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They took it away for a time, but apparently now it's back. The only difference I can see between the old Virtual Debit Card and the new one is the random account number generator.
SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
From their QA about the virtual debit card:
Need I say more?
File under 'M' for 'Manic ranting'
What happens if you are a victim of a fraudulent purchase and you need to do a chargeback? Is it even possible? I assume it's harder to do because the money has already been paid in full from your own personal account and not from the card issuer's account.
Here's how PayPal responded (after 3 business days) to my question about one of my transactions. It took me three (3) tries to get a real answer out of them, which was basically: "You'll have to contact the seller".
I will never use PayPal for anything other than cheap crap (less than $100) I buy occasionally on ebay.
Dear A.C.,
Due to an increase in seasonal email volumes, we may not have been able to
answer your email.
If your inquiry has not been resolved or you have further questions
regarding your PayPal account please call 1-402-938-3531.
Thank you for choosing PayPal!
This is like PAM-OTP, which I like very much. One-Time-Passwords would be an awesome way to manage credit card purchases; like say, you need to be certified to handle a credit card, but you can withdraw X dollars max no matter who you are via a OTP. If this was implemented I could tell, say, Mastercard, "Generate 15 passwords for me: 5 $5, 5 $50, and 5 $100," and then use those to OTP out purchases. If I use a $100 password to buy a $75 item, $75 is charged and that password is invalid; if I try to use it to buy a $110 item, $100 is charged and I owe $10 to the seller.
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Paypal is not a bank.
Paypal is not a savings and loan.
Paypal is not a retail store.
Paypal is not an insurance company.
Paypal is not a manufacturing company
Paypal is not an exchange of any kind.
Paypal is not a foundation committed to a cause.
What argument could then persuade me to trust them with money that is most certainly NOT virtual?
I'm not someone with a cross to bear. Paypal has never screwed me over, and the idea of paypal is very appealing. However, the practices of Paypal have been and are egregious for very little benefit to the average consumer. Even as a small business owner, the appeal of Paypal as it currently operates is scant.
Just mod me as flamebait, I guess. In the immortal words of Tom Hanks in Big, I don't get it!
Paypal has had that feature working with any browser, without installing any BHOs (or whatever the IE only software is they require now), and without having to be invited to the beta. Just go to https://www.paypal.com/cgi-bin/webscr?cmd=p/shop/v debit/
This feature has been around for years and years.
There's a huge difference between a credit card and a debit card. A debit card transaction affects the balance of your bank (or paypal) account.
You should *never* use a debit card *anywhere*. Why you might ask? "But they are so popular! Everyone is doing it!"
Just wait until a drunken bartender, rushed register clerk, or malicious waitress adds an extra digit to your transaction and you're suddenly bouncing checks or being charged fees for your overdraft protection.
why is the rest of the world not keeping up? Because I have very little use for one of these? My credit card already protects me from fraudulent charges and I'm not worried in the least if someone uses it two states away for gas. If Chase makes me call them when I'm going outside of my "home area" so they don't shut me off, then I'm not concerned if someone steals the card number after I make a purchase online at Newegg. If someone uses the card locally, big deal. I call Chase and tell them that the card was stolen and the charge wasn't mine. Not many questions asked. For *most* people, they just aren't paranoid enough to use a one time number for their purchases.
I wouldn't leave home wihout it (through B of A) When I pay for something online with a virtual CC, I can turn it off at any time. So when it comes time to cancel a service that's been billing me for a while, I first turn off the credit card number, then cancel the service.
They can go pound salt if they want any "early termination fees", or plan on charging me for another six months due to "billing problems"
You can't do that with a real CC number.
Yeah, I can see myself signing up to give Paypal access to my credit cards or bank accounts just for the privilege of keeping my credit card number away from untrustworthy, unscrupulous merchants who are out to steal my mon....
Wait a minute. Oh-ho-ho! Nice try, Paypal! You almost got me there. Whew!
If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
I've stopped using it though after a rather unpleasant incident where the online vendor (ETS) did not perform the transaction immediately, but instead waited for 2 working days to debit the amount. The one time card is not meant to last for that period of time (quite obviously, otherwise there would be little safety). The transaction was denied and I was charged an additional 20$. The nice folks at ETS refused to allow another GRE registration till I paid up the extra fee.
I'll stick to the normal credit card , particularly when the purchases are valuable.
this little venture will take off like a Saturn V rocket with a barrage of strapon scramjets.
I personally support any paradigm that warrants an analogy with 'strapons'.
$30 Off All Plans: Use code TRIPLESAWBUCK
In fairness, the throw-away credit card number part should be fairly decent as far as online shopping goes.
I used to have an actual credit card that had this feature (MBNA bank if anyone is interested, highly recomended.)
They had it where you could use the app on the webpage, or download what appeared to be a flash standalone app that did the same thing.
It would generate a credit card #, exp date (of your choosing, min 1 month in advance rounded to the end of that month) and the 3 digit code. You could also set a limit on that card.
Once it was charged to by someone, the number was locked to that vendor, and only they could make future charges to it.
You can also go in and shut it off at any time prior to the expiration.
The idea is, in the automated way a charge is made to the card, and even if it is stored, stolen, or sniffed along the way, anyone ELSE trying to use that number after the automated charge would get denied.
Also the store itself would get denied if it tried to charge over the limit, or past the expiration or when you disabled the number.
It was a feature I used quite alot.
The only downside here is the fact its PayPal and not a real bank. So kudos for them adding a good feature, but booo for them still being paypal and all the downsides that entails.
I want something I can buy in a shop for cash, load up with a pre-paid amount and use online, throwing away when I'm done with it.
This may be what you want. Look for their non-personalized cards and never reload them as you have to give personal info to do so. I heard about this on a privacy-oriented site, but I've never tried them myself, so I don't know how hard it is to avoid giving personal info.
If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
So eBay refuses to accept payments from Google Payments because they own PayPal. How long will their "it's not proven to be secure" argument hold up before they are slammed with a lawsuit. I'm no lawyer but it sounds an awful lot like the stuff Microsoft got in trouble for in the past, except worse. At least with Windows you *could* download and install a third-party browser. With eBay they are choking off a specific form of payment, and you know it's because it would clearly damage PayPal.
nothing
Talk to your bank - USBank protects debit cards to the same standard that VISA does for credit cards (which, since USBank debit cards usually double as VISA-network cards, works out well). In fact, a lot of banks these days are stepping up to the plate and saying that they will not hold you accountable for fraudulent charges.
Define sqrt(x) as something really evil like (x / rand()), and bury it deep in a shared include somewhere.
It used to work in any browser. The change they've made is to make it so it only works in IE on Windows. Major downgrade.
Not that I can find any kind of feedback address...
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
I am an avid ebayer - and lets face it, without Paypal, you're not going to get very far trading on ebay. So I use Paypal out of necessity (yeah, I know i'm sad) and yes, I feel sick just thinking about it!
Putting ridiculous fees, poor customer service, and numerous loop holes aside - I just don't trust them! From my experience, you are never actually 'covered' as they keep telling us, and when you do get bitten by a scammer - you may as well just bang your head against a brick wall instead of trying to get your money back from them!
I for one, would never CHOOSE to use them. They are another one of these big corporations who just don't care about the little people, but expect everyone to log on and happily give over all their credit card details.... and then charge them for the privilege.
http://www.paypalsucks.com/ anyone?
Without ebay, Paypal would come tumbling down in seconds. No wonder ebay are making excuses to block google payments and alike!
morehawes