Neo could have several types of virtual cards you can create instantly and delete whenever you want to:
I mentioned this before they would be totally helpful..
I’m also a fan of virtual cards. The proliferation of numbers under a single account probably creates some complexity in the UI and things. Also, free trial cards might now work as they could be used to fraud places like gas stations and hotels, where they place a hold and finalize the charge later.
This would be really helpful! Some fintech companies already offer this feature, and it’s something I really appreciate.
Regarding the fraud concern you mentioned—people using a card for an authorization and then cancelling it—that doesn’t necessarily prevent further charges. I manage a car rental company, which I won’t name for security reasons. In my experience, depending on the merchant account setup, rental companies can process charges up to 90 days later, even if the card or the entire account has been closed.
We have that ability to collect outstanding charges when customers leave unpaid balances or damage a vehicle after declining insurance, then stop responding.
I think free trial cards should have a merchant restriction so gas stations and hotels don’t get defrauded. They should be strictly for online free trials only so they cannot be added to a mobile wallet.
These Virtual cards should be debit/prepaid like Neo Money.
Yeah, I think you and I are on the same track. For a card to only work for a free trial, it has to be authorized for the transaction, then reject that same transaction a month later. If we figured out that system, we’d basically be systemically frauding merchants. Not easy to do, and maybe not possible within the payment network.
To limit exposure?