Single-Use Card

A single-use card is a payment card number that is valid for just one transaction, or for one specified merchant and amount, and becomes unusable once that payment has been made. Almost all single-use cards are virtual cards: the number, expiry date and security code are generated electronically and sent to the payer or supplier, with no plastic issued. They are widely used by businesses to pay suppliers and by consumers who want to shop online without exposing their main card number.

Single-use cards are a subset of virtual card products. They differ from a multi-use virtual card, which can be used repeatedly, for example for a subscription or a department's ongoing spending. They also differ from network tokens, which substitute for an existing card number inside a wallet or merchant system rather than creating a new card account. The card runs on normal card network rails, so the supplier processes it like any other card-not-present transaction.

The issuing bank or card platform creates a new card number for each payment, often through an API or an accounts payable system. Controls are attached at creation, such as:

• Amount. An exact amount or a maximum, sometimes with a small tolerance for tax or currency differences.
• Validity period. A short window in which the card can be used, after which any unused authorisation expires.
• Merchant restrictions. A specific merchant or merchant category code where the card can be accepted.
• Number of uses. One authorisation, or one authorisation and its capture, after which the card is closed.

The card details are delivered to the supplier by email, a secure portal or a direct integration, together with remittance information identifying the invoice being paid. The supplier keys the card into its terminal or gateway, and the issuer approves the transaction only if it matches the controls.

The largest use of single-use cards is in commercial payments, where they form part of virtual card programmes run from accounts payable. A company's payables system issues one card per invoice and sends it to the supplier, replacing a cheque or bank transfer. Benefits for the buyer include:

• Rebates. Issuers share part of the interchange fee on commercial card spending with the buyer, turning payments into a source of income.
• Working capital. Card settlement gives the buyer extra days before it repays the issuer, while the supplier is paid quickly.
• Control and reconciliation. Each card is tied to one invoice, so payments reconcile automatically and cannot be reused if intercepted.
• Fraud protection. Unlike bank account details, a leaked single-use card number cannot be charged again.

Suppliers gain fast, guaranteed payment but pay card acceptance fees, which can be significant on large invoices because commercial card interchange is generally higher than consumer card interchange. Some suppliers decline cards or add surcharges where allowed, which limits adoption.

Some banks and fintech apps let consumers generate single-use card numbers for online shopping. If the merchant is breached or the number is stolen, it cannot be used again, which reduces the impact of card fraud. Such cards are also used to sign up for free trials without risk of being charged later, although merchants can decline them when they need to make future charges.

Single-use card programmes are run by issuing banks, often with fintech program managers or card issuing platforms providing the technology. Real-time authorisation controls rely on an issuer processor capable of checking each request against the card's parameters. Because many cards are created and closed each day, issuers need robust lifecycle management to retire unused cards and handle refunds, which must be credited to a card that may already have been closed.

Issuers also have to decide how a single-use card behaves when a supplier charges slightly more than the invoice, for example to add shipping or a currency difference. Some reject any excess, while others allow a small tolerance, and programmes typically let the buyer set this rule per supplier.

Single-use cards are unsuitable for recurring payments, hotel or rental bookings that require later charges, and merchants that need to keep a card on file. Partial shipments and split captures can conflict with one-use restrictions. Supplier acceptance remains the main barrier in commercial payments, since many suppliers prefer bank transfers to avoid card fees, and buyers must manage supplier enrolment campaigns to grow their programmes.