What you've described there is similar to an effect known as the "Locked Deck" where a card is selected from a pack that's held together by a padlock in one corner. The deck is riffled and a card is peeked without ever removing the padlock and after some presentation, the card disappears.
You can dress up the same principle however you like (and many have). It's been reviewed here:
http://www.talkmagic.co.uk/viewtopic.php?t=2605
Note that you can show that the card is really gone by fanning, ribbon spreading and dealing each card individually front and back. In the original locked deck, I think the spectator can even spread through and examine the cards. It's very clean, and it's possible to go on using the same deck for other tricks with some simple clean up you could do in your sleep. However, if you want some misdirection ideas why not discover the card in a lemon, in your shoe, hanging on the wrong side of a window of a moving train that's on fire.