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I started this thread 4 months ago. Booking.com ended up paying me the amount into my bank account after I gave them my bank details. On calling them, they were unable to explain why I was not able to process the Virtual Credit Card. I advised Booking.com I no longer wanted to participate in that method of payment as it caused too much grief / frustration.
In answer to Nancy's comment above, I too use a Square POS. I don't think it had anything to do with Square why we couldn't process with VCC.
I use Expedia as well and had 3 bookings using VCC. I also had problems with their VCC and once it was revealed which code was used (Merchant Category Code), they ended up changing their code to allow me to process the VCC payments. Once that was done, I was able to process and collect the funds owed.
Virtual Credit Card is good and easy .......... when it works and all teething problems are sorted out.
Nancy, ask Booking.com to check which Merchant Category Code they are using. It should correlate with Square and then should work, otherwise, ask them for payment into your account.
Square Support got back to me and advised I was set up with a MCC of Individual Use 7299. Advised Expedia of this and a day later they had changed the 3 bookings that owed me to 7299. I then successfully processed the 3 payments via VCC.
Hope this helps. Regards, Glenys