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Comment by scrabble | Hacker News Reader

Other cards might do chargebacks and fraudulent charge recovery, but I look at online services like Playstation Network. If your account is compromised, and you do a chargeback, they will ban your account and you lose access to all your digital content. On top of this, they often will not even provide a refund for content purchased by someone who has compromised your account.

Having the ability to give them a completely different card # with a monthly limit for just them really provides an additional layer of protection without the threat of losing access to goods you legally acquired.

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> On top of this, they often will not even provide a refund for content purchased by someone who has compromised your account.

That would be the CC company's job, not? IIRC, at least in US law, if you dispute a charge they can't make you pay for it and they can't also add interest to it. And in practice, no signature dispute is almost always decided for the consumer. That's why merchants are so drastic with compromised accounts - otherwise people would just buy stuff, use it and then claim fraud, and merchants would lose tons of money. They have to create disincentive to cheat.

this is correct, its called a chargeback.

"disputing a charge" is the chargeback mentioned by OP. Yes, you can dispute the charge, but only if you are willing to risk losing your account entirely.

Wouldn't they also be likely to lock you account or ban you for non-payment when you cancel the Final generated credit card number?

More likely they would lock your account until you pay up, which is different from the digital equivalent of confiscating all your stuff ie, getting banned.

Your account is charged when purchases happen. So your account would not be locked. You just couldn't make any additional purchases until you updated your account.

Chargebacks are the big problem for companies that operate like this.

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