Discover has discontinued its “Secure Online Account Numbers” program, which provided customers with disposable debit card numbers for a safer online transaction experience. Initially devised as a precautionary measure for apprehensive customers reluctant to use their actual credit card details online, this program was terminated on September 8, Discover informed customers via an email.
According to media outlets like The Consumerist and the Chicago Tribune, the sudden discontinuation was credited to the implementation of advanced security protocols aimed at safeguarding customers against fraudulent card usage both offline and online. Consequently, the disposable debit card concept has apparently fallen out of favor with Discover.
Although Discover has discontinued its program, it is worth noting that it was not the pioneer of this safety measure. American Express was the forerunner in establishing such a program back in 2000, with Discover, Citibank, MBNA, and others later implementing similar features. Despite MBNA being acquired by Bank of America, its “ShopSafe” initiative remains in place for customers concerned about potential credit card theft. Also, Citibank’s equivalent, the Virtual Account Number program, is currently operational.
Customers who elect to use these safety features have valid concerns, as both credit card and identity fraud remain significant risks, particularly with online transactions. According to Javelin Strategy & Research, despite a decline in credit card and identity fraud in 2010, the monetary risks associated have seen an increase. The annual cost of fraud has decreased from $56 billion to $36 billion, but consumer expenses have spiked approximately 63%. Javelin attributes this decline to enhanced consumer vigilance and the implementation of stronger security and verification measures by credit card companies.
In its widely circulated e-mail, Discover reassured customers that they are always safeguarded with $0 Fraud Liability protection stating, “Please remember, you’re always protected whenever you use your card with $0 Fraud Liability. Hence, you can continue using your card confidently, knowing you’re never held accountable for any unauthorized purchases – online or offline, anytime, anywhere. Thank you once again for your continuous trust.”
