Discover® Card’s recent move to eliminate randomly assigned special security numbers to facilitate online purchases without use of actual account numbers may leave some Discover cardmembers questioning potential vulnerability in online credit card purchases.

Although the Secure Online Account Numbers program was set to discontinue on Sept. 8, 2011, it will not end abruptly. As of Sept. 8, Discover cardholders will no longer be able to create new virtual account numbers. However, Discover Card’s website explains that long-time Secure Online Account Numbers users will be able to continue to use already created numbers until the expiration date displayed on their Discover Card. The already existing virtual numbers will be able to be used both for new purchases as well as established automatic payments. Cardmembers are advised to contact merchants receiving automatic payments once the card’s expiration is reached or in case of Secure Online Account Number deactivation for any other reason.

Over a decade ago, Discover’s launch of Secure Online Account Numbers came on the heels of a similar program created by American Express®. These two card issuers were soon joined by other major credit card companies, including Citi® Card and MBNA with virtual numbers to protect consumers using the internet to make purchases or payments.

When the Secure Online Account Numbers program first began, Discover promoted its use by stating it was more secure because merchants never had access to a cardmember’s real account information. Prior to making a purchase online, a cardmember simply had to login to Discovers’s website, or use an application downloaded onto their desktop and request a temporary number. Cardmembers even had the option of requesting merchant specific numbers. With Secure Online Account Numbers, Discover Card holders could have peace of mind knowing that their account information never traveled over the internet nor was it stored on any merchant’s computer, network, or server.

Nearly weekly, the news media reports information breaches containing personal identity information, including financial information. These breaches reach every sector of the business world from retailers to financial institutions to insurance companies to hospitals and other medical facilities to city offices and state agencies to universities and public schools. The breaches are attributed to everything from accidentally making sensitive files accessible to loss or theft of computers housing account information to employee information theft to skimming devices to hackers. In the light of reports of consumer fraud, how can Discover Card discontinue its Secure Online Account Numbers program?

According to the Discover Card website, “Since Secure Online Account Numbers launched over a decade ago, we’ve continued to add layers of fraud detection and prevention, authentication and ID verification to protect your account information.

“We have made the decision to discontinue Secure Online Account Numbers as of Sept. 8, 2011 because the above comprehensive security measures help protect your card from unauthorized use online, offline, anytime, anywhere.”

In the last decade, great advances have been made in online protection, one of which is relied on by Discover Card, 128 bit Secure Socket Layer (SSL) encryption. This level of encryption is nearly impossible to break as all the secure information contained in your card is broken into tiny bits, encoded, and sent over the internet.

Additional layers of protection used not only by Discover Card but also by American Express, MasterCard®, VISA® and most other major credit cards can include the Customer Identification (CID) code on the back of the card, allowing online merchants to verify you actually physically have possession of the credit card being used, address verification, which checks to see the address given matches the address on your credit card account, and possibly password protection. Discover Card, like most other major credit card issuers, protects their cardholders with zero percent liability on fraudulent purchases.

Protecting account holders from identity theft or credit card fraud is a priority at Discover Card. The website offers other safety tips as listed below.

• Sign the back of your credit card – it is easier for a thief to create a fake ID than it is to forge a signature.
• Sign up for free fraud alerts – delivered via phone, email, or text message.
• Enroll in Discover’s Identity Theft Protection Program – a paid service.
• Check your Discover Card Statements regularly.
• Never give out your user ID or password for your online Discover account access.
• Change your online account password regularly.

To further protect cardmembers, Discover Card has beefed up security on its website by the following:

• Multiple layers of firewall.
• System Monitoring that includes real-time intrusion detection devices throughout the website.
• Enhanced individual account security accomplished through user id, password, and security questions asked upon login and periodically during user sessions.

In its commitment to customer satisfaction, Discover encourages cardmembers with further questions about the discontinuance of the Secure Online Account Numbers program to call 1-800-DISCOVER (347-2683) to speak with an account specialist.

There has been a lot of skepticism about this year’s holiday shopping season. Skepticism has come from retailers and consumers alike. But, the outcome from Black Friday and Cyber Monday should put every one’s fears at ease.

Polls showed that consumers were planning on spending a lot less this year. However, polls show people’s intentions, not their actions. As a society, we often act differently (especially when it comes to spending money) than we intended. There are three main reasons why people acted differently than their intentions predicted…

1. It’s for the kids! Parents and other adults seem to deprive themselves so that they can give to the kids. It often means us going without so that the kids can have the latest and greatest toys.

2. Frugality. There seems to only be so much frugality that people can take. Consumers get tired of deprivation. This deprivation leads people to to splurge and sometimes go overboard.

3. Math skills. Many people think they are getting great deals until they stop to actually add up the math. Many consumers do the math too late and end up making mistakes when it comes to holiday shopping.

Here are some helpful tips for smarter holiday shopping this year.

1. Check it out - Retailers can be tricky and crafty. They have to be, especially in today’s economy. Be careful when doing your holiday shopping. Do your research and make sure you aren’t buying the same things over and over and over.

2. Make a list - If you tend to forget about the gifts you’ve already purchased, go ahead and make a list. Lists can prevent you from overspending and help you prioritize.

3. Cost vs. Value - Sometimes it pays off to spend a little bit more money. Check out the quality. Would it be worth it to spend $5 extra for the one you know is going to last?

4. Know your rewards - Before doing any holiday shopping, review the reward benefits for all of the programs you are a member of; MyPoints, InboxDollars, AMEX, etc. It really pays off to review the reward options for each store before making any purchases.

5. Compare, compare, compare - Just because you think something is a great deal, you should still do a little bit of research first. It is safe to assume that anything that is really cheap is the lowest-end quality. Do your research before spending any of your hard-earned money.

6. Don’t rationalize - Don’t give yourself a guilty conscience just because you bought yourself a sweater. It is also important to realize that you can’t buy everything on your list. Your loved ones can’t have EVERYTHING they want. Count your blessings instead of rationalizing.

7. Keep your perspective - Perspective is the most important thing to have this holiday season. Keep in mind that the people on your list are going to be thrilled to get whatever you got them. If you don’t buy it, they certainly can’t miss it.

These tips are sure to come in handy this holiday season. The most important thing to remember is that you can make a lot more out of your holiday shopping if you do your homework and stay informed.

Black Friday wasn’t projected to be very successful this year. Why? Because the U.S. economy isn’t doing too hot, so experts expected that sales would be down on Black Friday. However, Black Friday was not bleak at all for retailers this year.

The official holiday shopping season was kicked off on Black Friday. Retailers around the country didn’t get their hopes up. Experts predicted that the day after Thanksgiving would bring lower-than-average sales. These experts couldn’t have been more wrong.

Black Friday this year did better than it did last year, if you can believe it. Malls and shopping centers were more crowded than ever. It has been estimated that over 172 million shoppers took advantage of Black Friday deals this year. These consumers went shopping over the course of the three-day weekend.

Last year, only 147 million shoppers went out. That is more than 30 million people that took advantage of Black Friday deals this year. These shoppers didn’t go out for nothing. The average shopper spent over $370…$372.57 to be exact. Last year, the average shopper only spent $347.55. There were quite a few more shoppers this year and the average shopper spent more this year than last year. In fact, shoppers spent, on average, about $25 more than last year. Over $41 billion was spent over the course of last weekend.

These are surprising numbers, especially considering the economic crisis our country is in right now. Black Friday deals aren’t over though. Many of these excellent deals are being carried into today. Today, Cyber Monday, is targeted to benefit online shoppers. A recent survey conducted by Shop.org predicts that 84.6 million people plan on shopping online today.

Scott Silverman, the Executive Director at Shop.org recently said, “Online retailers have been planning their Cyber Monday promotions for months and are eagerly waiting to debut these deals to shoppers. Many people who didn’t want to fight the crowds or get up early to stand in line over the weekend have been waiting until Cyber Monday to start their holiday shopping.”

Cyber Monday could surely bring more good news to already pleased retailers. Over 83 percent of retailers are offering special deals and promotions. Black Friday was already successful and Cyber Monday is expected to be even more successful. Who said this economy is struggling? Numbers from the Black Friday weekend show quite the opposite.

Make you holiday shopping more enjoyable this year with credit card rewards.