A method for processing a financial transaction funded via a virtual payment number includes: receiving, by an input device of a merchant, product details for at least one product to be purchased in a financial transaction; receiving, by the input device, a virtual payment number; receiving, by the input device, an indication of the virtual payment number as being a limited use number associated with a payment account, wherein said merchant can recognize said virtual payment number as a limited use number; generating, by a processing device, an authorization request for a financial transaction, wherein the authorization request includes at least transaction data, the virtual payment number, and a data element, wherein the data element indicates the virtual payment number as a limited use number; and transmitting, by a transmitting device, the authorization request to a payment network.