What Is a Privacy Card and How Does It Work?

A privacy card provides a way to safeguard financial information in the digital age. It functions as a secure intermediary between your actual payment method and online merchants, protecting sensitive data during transactions. This tool is useful for anyone concerned about data breaches or unauthorized charges online.

Understanding Privacy Cards

A privacy card is a virtual, randomly generated card number that masks your actual credit or debit card details during online purchases. These cards typically come with a unique 16-digit number, an expiration date, and a security code (CVV), mirroring physical cards. When you use a privacy card, the merchant processes the transaction with this virtual number, never seeing your primary card information.

The virtual card number links to your chosen funding source, such as a bank account or main credit card, and transactions are debited from that source. Some privacy cards are single-use, expiring after one transaction, while others can be “merchant-locked” to a specific vendor for recurring payments. This system ensures that even if a merchant’s system is compromised, your real financial details remain protected, as only the temporary virtual card number is exposed.

When to Use a Privacy Card

Privacy cards enhance financial security and control in various online scenarios. For online purchases, especially from unfamiliar or less trusted websites, a privacy card reduces the risk of credit card fraud or data breaches. If the virtual card number is compromised, you can cancel it without affecting your primary bank account or other cards.

They are also effective for managing free trials and subscription services. By setting a spending limit or using a one-time card, you can prevent unwanted recurring charges after a trial period ends, as the card will decline further transactions. These cards also allow for better spending management by enabling users to set specific limits for different merchants or categories. This provides a clear overview of spending and helps identify unauthorized activity.

Getting and Managing Privacy Cards

Privacy cards are obtained through financial technology (fintech) services or banks offering virtual card features. Providers like Privacy.com allow users to generate virtual cards after linking a bank account or existing debit card as a funding source. The sign-up process includes Know Your Customer (KYC) verification, requiring personal information like name, date of birth, and sometimes a Social Security number, to comply with anti-money laundering regulations.

Once established, users can generate virtual card numbers with customizable features. These include setting spending limits (daily, monthly, or per-transaction caps) that automatically decline attempts to exceed the amount. Users can also assign cards to specific merchants, ensuring the card only works with that vendor, or create single-use cards that expire after one transaction. Services also provide tools to pause, unpause, or permanently close cards, offering immediate control over unauthorized activity or unwanted recurring charges.