PayPal Tests Virtual DebitCard
PALO ALTO, Calif. - (07/10/06) PayPal is test-piloting aMasterCard-branded virtual debit card that could expand the numberof merchants accepting its payments. JPMorgan Chase & Co.issues the card, and First Data Corp. is the transaction processor,according to PayPal, a unit of eBay. The card only exists inelectronic form, using technology supplied by New York and Dublin,Ireland-based software firm Orbiscom, Inc. The card's purpose is toenable PayPal stored-value account-holders to use their PayPalfunds to pay for purchases at online merchants who do not acceptPayPal but take MasterCard. To use the card, you need to have fundsin your PayPal account. You then download software fromPayPals web site, which asks you, when visiting an onlinemerchant, if you would like to use the PayPal virtual debit card.After logging in to your PayPal account, you are given a one-timedebit card number which is only valid for one transaction. The cardnumber also comes with a card validation code. If users want tomake a purchase with their card but lack sufficient funds in theirPayPal account, they transfer money from their bank account. PayPalreported transaction volume worldwide of $8.8 billion by 105million customer accounts in the first quarter.