Abstract: Methods and systems are disclosed for enabling participants to generate, use, and transfer virtual financial instruments. The account holder requests the generation of a virtual financial instrument. The account holder selects a financial instrument to use as the source of funds for the virtual financial instrument, configures the use of the virtual financial instrument to be limited by a set of user-defined rules and expiration date, and selects a user of the instrument. The virtual instrument is transferred to the user. On request to perform a financial transaction, the user is authenticated, the transaction is validated that it is in within the limits of the user-defined rules, an authorization code is request if it is not, and the transaction is allowed. If a chargeback is necessary, the virtual financial instrument and the account is updated if the instrument has not expired, just the account otherwise.