Discover has ended its “Secure Online Account Numbers” program, which offered disposable debit card numbers for safer online shopping. This service was initially created for customers who were hesitant to use their real credit card details online. Discover informed customers through an email that the program officially stopped on September 8.
Media outlets, including The Consumerist and the Chicago Tribune, reported that the sudden end of this program is due to the adoption of more advanced security measures that protect against card fraud both online and offline. As a result, Discover appears to have moved away from using disposable debit card numbers.
Even though Discover’s program has ended, it’s important to note that they weren’t the first to introduce this safety feature. American Express began a similar program in 2000, followed by Discover, Citibank, MBNA, and others adopting their versions. Despite MBNA’s acquisition by Bank of America, the “ShopSafe” program is still available for those worried about credit card theft. Citibank’s equivalent service, the Virtual Account Number program, is also still running.
Consumers using these safety features have valid concerns since credit card and identity fraud continue to pose significant risks, especially for online transactions. According to Javelin Strategy & Research, while fraud levels dropped in 2010, the associated financial risks increased. The annual fraud cost fell from $56 billion to $36 billion, but consumer expenses surged by about 63%. This decrease in fraud is attributed to better consumer awareness and enhanced security measures by credit card companies.
In its email to customers, Discover reassured them about their $0 Fraud Liability protection, emphasizing that cardholders are never held responsible for unauthorized purchases, whether online or offline. Discover thanked customers for their ongoing trust and assured them they can continue to use their cards confidently, knowing they are protected at all times.