Systems and methods for transaction-triggered issuance and automated rotation of virtual payment cards to prevent payment fraud

A computer-implemented system for preventing payment fraud through transaction-triggered virtual card rotation, comprising:

• a processor;
• a non-transitory memory storing instructions that, when executed by the processor, cause the processor to:
• maintain a secure association between a user master account and at least one original payment credential issued by a financial institution;
• generate, prior to initiation of a payment transaction, a randomized virtual payment card credential distinct from the original payment credential, the randomized virtual payment card credential comprising at least a virtual card number and a security code;
• associate the randomized virtual payment card credential with at least one transaction constraint selected from a transaction amount or a usage count;
• transmit the randomized virtual payment card credential for use at a point-of-sale or digital payment interface;
• detect execution of the payment transaction and automatically invalidate the randomized virtual payment card credential responsive to satisfaction of the at least one transaction constraint indicating completion of an authorized transaction, thereby preventing reuse;
• and
• automatically generate a replacement randomized virtual payment card credential without requiring user intervention,
• wherein the system reduces exposure of the original payment credential by limiting validity and reuse of the randomized virtual payment card credential at a system level.