Abstract: The present invention provides a system and method which allows a primary instrument holder to allow limited and secure use of a payment instrument by a third party. The primary instrument holder is not required to communicate with the third party during a transaction and is not required to carry any specialized hardware to be notified of a transaction, authorize a transaction or deny authorization for a transaction. Pre-established business rules are used to determine the conditions under which the primary account holder is notified of a particular transaction. According to an illustrative embodiment of the present invention, a virtual payment instrument is provided to an authorized third party. The virtual payment instrument acts as a proxy to a primary payment instrument held by the primary instrument holder. The virtual payment instrument may be used by the third-party instead of the primary payment instrument that is held by the primary instrument holder.