Credit Card-Some Safety Tips

One of the important components of EPayments world-wide is Credit Card. The word credit comes from Latin, meaning "trust"
Credit is a method of selling goods or services without the buyer having cash in hand. A credit card is only an automatic way of offering credit to a consumer. Today, every credit card carries an identifying number that speeds shopping transactions. Imagine what a credit purchase would be like without it, the sales person would have to record your identity, billing address, and terms of repayment.
Concept of credit card:
Progress in civilisation in its turn has brought out radical changes in the manner of trading. The need for something intrinsically useful and easily applicable in everyday dealing is clearly felt. Cash in the form of currency notes and coins makes up just one form of the payment system. Development in banking while also giving inputs to the further development of cash brought about a second phase in payment namely paper instructions such as cheques and credit transfers. The requirement for greater flexibility and convenience has led to electronic payments, and this is where plastic cards have proved their worth. It allows the card issuers to limit the sum of money the card-holders wish to spend. The spending of card-holders who have defaulted on payments or who are over their credit limit can be restricted until the balances are cleared.
The credit card market in India, which started out in 1981, is on the verge of an unprecedented boom. Credit Card usage is a recently new phenomena in India, and it is only in the last decade, that the Industry has seen a explosive growth. This can be attributed mainly to the growth of India as a IT Superpower.
Credit cards are one of the great conveniences of modern life. They eliminate the need to carry around large amounts of cash for large purchases or emergencies. All of this power creates new risks to your finances. Fortunately, it’s easy to protect yourself with just a few simple steps.
The risks from Credit Cards can be divided into two parts
01) Online Usage at various Internet Portals
02) Offline usage at shops/petrol stations/hotels etc.
Apart from the above, the major risk is through lost /misplaced cards.
It can therefore be said that the biggest risk for credit card frauds online is not from online security problems but from the possibility of the credit card data being offline in a hotel or a shop where the user parts with the card for sometime.
Today I am highlighting few basic tips to keep your Credit Card safe and to prevent its misuse, when the information/credits card falls into wrong hands.
Ultimately keeping you credit card safe is you responsibility. Indeed, in a worst case scenario, if it can be proven you may have been negligent in keeping your credit card safe, you may find yourself liable for the cost of all transactions made fraudulent on your account should you lose the card. To help you avoid this, here basic credit card safety tips:

01) The three Important things necessary to execute a valid Credit Card Transaction on the Internet, are 01) Card Number 02) Expiry Date and 03) CVV Number. On receiving your new Credit Card, affix your signature; Photocopy it, both the sides on a single page. Delete the CVV number. This prevents misuse, when the credit cards are lost, and the thief will not be able to use on Internet Portals, as the CVV number is not there.

02) It is better to have two different cards, one for Internet Transactions and the other for Physical transactions. The CVV Number on the Physical Transaction Card can be deleted, as while physical shopping, the CVV Number, will not be essential It is prudent to keep the two cards separate, as it will be a rare occasion, when both the cards will be required simultaneously.

03) Never have more cards than you need. While it is always advisable that you have more than 1 credit card, in case it gets lost, you should never have more credit cards than you actually need to use. The principal reason why this is the case is because it becomes harder to keep a track of which cards you have and where you have kept them with the more cards you have.

04) Always keep a photocopy of your cards. How many times have you been asked what you card number is only to find yourself looking for your card to get the number? Now, what happens if you have a card stolen and no credit card statement to-hand? You have a problem! For this reason, it is always best practice to take photocopies of you credit cards to so that always know where to find the number should anything unfortunate happen to your card. Keep a copy of your credit card number and the issuer’s phone number somewhere safe – i.e. not in your wallet. This is in case your credit card is lost or stolen you can report it quickly. This is especially important when you go on vacation as you won’t have easy access to a copy of your billing statement. Also, make sure that strangers will not have access to this information – i.e. keep it locked up.

05) Always keep your receipts separate. Among the most important of the basic credit card safety tips you’ll receive is never to keep your credit cards and credit card purchase receipts in the same place – because likely as not if you have lost your card, or if it is stolen, then you’ll have lost or stolen the receipts as well. Now there is no way for you to vouch which transactions were yours and which where not – or, there is no way to tell which was the last genuine transaction you made.
Moreover, never keep a record of your PIN with your card, this is only asking for trouble!

06) Never give your account number to someone you don’t know. If you are ever asked to give your credit card details to someone you don’t know, or who as initiated a discussion with you (rather than the other way round) over the phone or via email, you should always refuse. Worst come to the worst, phone the card issuer and ask them if it is okay for you to divulge the information or phone the enquirer back. If the enquirer seems reluctant to accept this, you have to ask yourself why!

07) Never leave your account details open to public viewing. It may sound rather basic to say you should never let ‘aam janta’ see your credit card account details, but ask yourself this question: “How often have you received a publication subscription form in postcard format?” Now, suppose you complete this with your credit card details filled in. Suddenly half the world has access your credit card number, expiry date and signature!

08) When you use your card in public try to keep the number hidden. Thieves will try to get your credit card number any way they can. That includes looking over your shoulder and memorizing it while you are in line at the store. An easy way to keep the number hidden is to keep your finger over the numbers on one side and keep the other side close to your body. A better way is to keep the card in your wallet as long as possible and put it right back in your wallet as soon as you can.

09) If your credit card is lost or stolen, report it to the issuer immediately. Yes, your credit card agreement probably says you are only liable for Rs.1,000/- of any charges the thief makes, but this is usually contingent upon you reporting the loss in a timely manner. Besides, you cannot use your credit card in physical stores unless you have the actual card and your card issuer will not send you a new one unless you report the loss.

10) Monitor your statement closely. Look for any charges that you did not make. If you are sure you did not make them, report them to your credit card issuer. This is similar to the recommendation to monitor your credit report once or twice per year, but you can and should check your credit card statement every month. Shred your statements and receipts when you dispose of them.
It may sound like a lot of work, but it boils down to keeping your credit card number out of the hands of people who have no legitimate need to have it. Of course not. Treat your credit card number the same sort of protection. With these few simple steps, you can protect yourself and your credit from thieves.

Although the above may sound like 10 basic credit card safety tips you already know, you would be surprised to see how many people fail to follow one or all of them!