Credit Card Quick

Should You Sign the Back of your Credit Card?

Card Security

All credit card companies tell us to sign our credit cards as soon as we receive them. But what really does a signature mean when it comes to fraud? Is it really ever necessary to sign the back of our card?

Although signing the back of a credit card does not usually stop a credit card thief from successfully using our credit card, it does serve a legal purpose in the eyes of the retailer and the credit card company.

Read the Fine Print

All credit card companies address the issue of signing a credit card in the terms and conditions of the card. If you read this fine print, you will likely notice that the credit card company specifically states that you must sign your card or you cannot use it. If a retailer takes your credit card payment and does not check to see if the back has been signed, they will be legally liable for any charges on that credit card.

You will therefore likely see a retailer asking an individual to sign their card if they have failed to do so. In a perfect world, every retailer would check that signature against the signature on the credit card receipt to make sure it matches, but that just does not take place a good portion of the time.

The retailer may also ask you for additional identification if the signatures don’t match or to ensure that you are the rightful owner of the card.

Protect yourself with your Signature

Signing the back of your credit card protects you, as well. If you sign your credit card and it is lost or stolen, you are not legally liable for the charges. If the credit card company does not take care of the unauthorized charges, you can actually take them to court under breach of regulations. In other words, you did your legal part by signing the back of the card, which then transfers the responsibility to the credit card company.

In short, it is always a good idea to sign the back of your credit card so you can be sure you are fully protected against any unauthorized charges or activity on your credit card.

How to Dispute a Credit Card Debt Mix-up

Card Security

With the sheer number of credit card users throughout the world, it only makes sense that mix-ups occur. However, what you choose to do when you are pinpointed with credit card charges that don’t belong to you will make a big difference when it comes to your credit score.

If you notice charges on your credit card that don’t belong to you, here’s what you need to do:

• Carefully review your credit card bill to make sure that the charges are correct. Often times, the name listed on the credit card bill may not look familiar because it is the name of the parent company of the business.
• If you have any doubts about the purchase, immediately contact your credit card company to confirm the charges. The credit card company can also provide you with more information regarding the charge, thereby allowing you to confirm whether the charge is yours or not.
• If the amount of the credit card purchase is in question, pull out your receipts and go back to the retailer to clear up the charges. If you get nowhere with the retailer, immediately contact your credit card company, who will then dispute the charges on your behalf.
• If you find an error or unauthorized charge on your credit card, don’t wait to set the record straight. Most credit card companies will give you just 60 days to file a credit card dispute; any longer than that and you can be sure you will end up paying the debt, whether it’s yours or not.
• Always, always, always make it a point to check your credit report, at least on an annual basis. Often times the things we don’t see have the biggest impact on our credit score. In other words, don’t let mistakes on your credit report wreak havoc on your credit score. If you notice any errors or discrepancies on your credit report, immediately contact the proper credit reporting agency so that you can file a dispute and have the matter resolved.

International Credit Card Scam Busted by the Federal Trade Commission

Card Security

The Federal Trade Commission has once again thwarted a multi-million-dollar, international credit card scam.

This long-running international credit card scam was estimated to have net more than $10 million; but the interesting part is that credit card customers were charged no more than $10 in fake credit card charges, thereby allowing the thieves to get away with the scam for such a long period of time.

For four years the perpetrators charged unsuspecting credit card customers small amounts on their credit card and debit cards. It is still unclear how the thieves got the credit card customers, but the FTC thinks that they may have even gone as far as done credit checks on their victims to make sure the credit cards were legitimate.

This scam, along with the countless scams being busted nearly every day by the FTC, is a clear example of the extent to which credit card thieves will go to steal money. It is also a good time to alert credit card customers to these credit card scams so that we can all be more aware of our credit cards and how we can protect ourselves:

• Check your statement carefully, each and every month. Many of us get into the habit of paying our credit card bills each month and we don’t even take the time to really examine our statement. However, this case is a perfect example of ripping credit card customers off because they simply didn’t take the time to carefully read the charges on their statement.
• Understand credit card scams so that you can be better equipped to fight them. Credit card thieves, unfortunately, are staying one step ahead of the FTC and other cyber-crime-fighting organizations, so it is best to understand the lengths at which thieves will go to bilk people out of millions of dollars.
• Keep your receipts so you can compare them with your credit card statement each month. You may be charged a few dollars extra by a company and not even be aware of it unless you check the amount carefully against your receipt.

Credit Card Peace of Mind – Tips for Card Security

Card Security

If you have a credit card, you know it will cost you some of your hard-earned money. You don’t want some scammer stealing your information or some thief walking away with your card, leaving you to pay for it.

Here are a few tips and tricks to help you keep your card safe and secure:

Report It Immediately!

In the case that your card does become lost or stolen or you see some suspicious activity on your account, call the credit card company and report it immediately. Do not wait. Your company can not do anything about it if they don’t know about it. Most companies have policies and procedures in place to handle this kind of unfortunate event in your favor. You can be protected and released from taking the financial responsibility of someone else’s wrongdoings, however, there is often a set limit of time for reporting the problem. If you wait, you may have to swallow your pride, as well as the charges.

Always Know Where Your Credit Card Is

If you keep your card in a purse or wallet, know where those things are at all times. If you hide it somewhere in your home, make sure it is a place where no one else can find it. Of course, it never hurts to check these things on a regular basis to ensure that the card is still there. If something does happen to your card, be sure to report it immediately, as mentioned before.

Never let your card out of your sight. It’s a nice gesture to offer to use your card to pay for something a friend or loved one might need, however, don’t hand over the card. Go with them and make the transaction yourself. In some restaurants, you get to swipe your own card or they do it right in front of you. In others, they ring your check to the table and traditionally, you slide your card into that thick little folder and they go make the transaction for you, out of your sight, before returning the card. Know that you have the right to go along with them or to request to pay it yourself. It’s nothing personal (against them, anyway) and the restaurant staff is likely to not only understand, but to accommodate your wishes. After all, it is your credit card and your money.

Pin Numbers

Everyone knows the rule: don’t write the pin number on your card. Well, in this day and age, we carry a lot of credit cards, ATM cards, and debit cards, among others, that require a pin. Memorization of all these numbers can get confusing. However, there are a few tricks to pin numbers that can make this easier for you and can also keep your card secure.

Never choose numbers that would be obvious to those who know you, such as birth dates and addresses. Choose a number that holds some meaning for you; something only you would know, and memorize it. Some credit card companies will automatically issue a pin number. Don’t keep that page with the number on you. It would be too easy for a thief to identify the card that it is associated with.

If you do carry several cards and do not want to memorize a dozen numbers, you can always streamline your pin by using the same one for all of them. However, you must memorize the number and never let those cards out of your sight. If you must write it down somewhere, code it. It sounds funny, but it can work. Put the number into a series of numbers and symbols and letters and memorize which four belong to your pin. That way, only you will know what that code really is. These are good tips, however, ultimately, your best bet is to remember every pin that comes with every card. So keep the number you carry rather minimal.

There are plenty of other ways to keep your credit cards safe. These are just the basic tips to help you be aware and more diligent about your financial security.

What you need to Know about Traveling and your Credit Card

Card Security

Traveling with a credit card provides us with many conveniences and advantages. It eliminates the need to carry a large amount of cash; it protects us against fraudulent spending; and it even provides us with purchase protection insurance. Best of all, most major credits are accepted at destinations all over the world.

It is therefore important to always plan accordingly so that your travel plans won’t be interrupted by credit card problems.

• Call the company ahead of time – It always a good idea to call the creditor before you depart on your vacation to let them know that you will be traveling and perhaps charging more than you typically would. Many creditors, when they see a great deal of credit card activity, especially in a different location, will flag a credit card for fraud. It is therefore important to inform them, ahead of time, so that you won’t have to deal with a frozen credit card account while you are on holiday.
• Check your balance – There could be nothing more impractical than not having enough credit on your credit card while away on vacation. Therefore, it is best to check your balance before you leave and, if necessary, contact your creditor and request a credit line increase to accommodate your travel expenditures.
• Beware of using your credit card at suspicious locations – Use your credit card only at trusted locations while traveling, if possible; especially while traveling abroad.
• Always carry a backup credit card – If you experience problems with your credit card, it is always a good idea to carry another, major credit card as a back-up.
• Keep the credit card phone number in a safe location – Write down your credit card’s phone number and store it in a safe location while on vacation in case you need to contact the creditor. You may choose to keep it in a separate piece of luggage, or you may ask your travel companion to carry the number. Of course, you don’t want to carry the number in your wallet or purse, as it won’t do you much good if it is stolen, too, along with your credit card.

How to Use your Credit Card for Safer, Online Shopping

Card Security

Online shopping is enjoyed by millions of Americans each year, and is a great way to purchase the items and services you need or want without heading out to the store to do so.

However, along with the convenience of online shopping come the risks; in particular, the risk of fraud, theft or identity theft. Although there are no safeguards that can protect you 100 percent, there are many things you can do to ensure that your next online shopping experience is a safer one:

• Only shop at retailers with which you are familiar. If often just does not pay to shop with an unfamiliar online retailer.
• Never conduct business with a website that doesn’t have a permanent address and phone number.
• Look for the encryption symbol at the bottom of the webpage. The encryption symbol usually looks like a padlock; if the padlock is closed, the website is secure; if it is open, the website is not secure.
• Look at the website’s address. If the address begins with “https” then the information you provide should be secure; however, if the address begins with “http” then the information you provide may not be protected.
• Before shopping, carefully read the terms and conditions of your credit card, as to make sure that you are protected in the case of credit card fraud. Your card’s language should include information about your liability in the event of credit card fraud. If you can’t find the language in your card’s terms and conditions, call the creditor and ask for an explanation of your rights regarding credit card fraud.
• Consider purchasing from website’s that ask for your CVC2 code (they may call it a security code), which is a three-digit code located on the back of your credit card.
• Always read your statements carefully, and report any suspicious activity or unauthorized charges on your credit card immediately.

Scam Alert: Beware of Companies Promising to Reduce your Credit Card Interest Rates

Card Security

If you receive a phone call from a company promising to lower your credit card’s interest rates, beware: the promises made may simply be full of hot air.

Solicitation from companies promising to lower consumers’ credit card interest rates has been on the rise from as far back as 2007, according to the Better Business Bureau. It certainly comes as no surprise that a host of unscrupulous companies would begin to come out of the woodwork as the recession took its hold throughout the country. However, what is surprising is how many consumers have fallen victim to it.

Does it mean that there are many consumers out there looking for relief – any relief – from their credit card debt? Or does it mean that these fraudulent companies are getting better and better at doing what they do best: fooling consumers and taking advantage of them at their weakest moments?

The answer is, unfortunately, probably yes to both of these questions.

Details of the Scam

The scam usually goes something like this: a credit card holder gets a phone solicitation from a company promising to lower the interest rates on their current credit cards, thereby saving them hundreds, if not thousands, of dollars in interest rate fees every year.

The company then asks for an upfront fee to do this – usually between $1,000 and $2,000. The problem starts when the company does nothing to lower the interest rate on the credit cards. Some companies simply do nothing after charging the fee, while others simply transfer the balance on the credit cards to another credit card with an equally high interest rate.

The scam is easy to pull off because the company asks for your credit card information upfront so that they can contact your credit card company to get the fees lowered. Of course, it goes without saying that this is something any credit card holder can do themselves.

What you can do

The best defense against fraudulent companies is to stay informed, stay educated and ask questions. If the company’s claims seem too good to be true, they probably are. Aside from accredited consumer counseling services, companies in general can not make claims to fix your credit or change the terms of your credit cards.

If you suspect fraud, immediately contact the Federal Trade Commission to report the incident.

Skimmer Credit Card Fraud on the Rise

Card Security

Did you know that a thief can be using a credit card in your name, with your account number, right now?

Don’t think you’re at risk? Think again.

Have you ever handed your card over to a waitress, store clerk or hotel staff member when making a credit card purchase? If you answered yes, then you are at risk of being a victim of credit card “skimming.”

A skimmer is a small, hand held device (often as small as a pager!) which enables a thief to immediately obtain your credit card information in just seconds.  The scenario usually plays out like this: the employee takes your card and leaves to run your credit card for your purchase. With just an extra swipe of your card into the skimmer, the thief now has your name and credit card information.

The thief then usually downloads this information onto a computer and uses it for a variety of fraudulent activities. Many thieves are able to duplicate counterfeit cards and then distribute them for use worldwide.

This problem is huge and getting bigger by the day. In fact, it is estimated that skimming costs consumers more than $1 billion each year.

There are a few things you can do prevent a skimmer from damaging your credit:

• Never let a clerk, waitress or other type of employee walk away with your credit card. Pay cash at restaurants and other venues where your credit card must leave your site.
• Keep a close eye on your credit card bill so that you can catch fraudulent activity before it gets out of hand and ruins your credit score.
• Immediately contact the credit card company in question if you notice any unauthorized charges on your credit card.
• Immediately contact the three, major credit reporting agencies – Equifax, Experian and TransUnion – if you suspect any fraudulent activity and ask them to put a fraud alert on your credit report.

It is important to remember that, as a consumer, you must remain on high alert when it comes to your credit. Stay informed, read your credit card statements carefully, and immediately contact the appropriate sources if you suspect any kind of fraudulent activity on your credit card.

Credit card Insurance – The Basics

Card Security

Nearly every credit card holder has been asked to take out additional credit insurance. Most of us simply decline this insurance, but is it really in our best interest not to carry insurance with our credit cards?

Although credit insurance varies between credit card companies, the majority of credit insurance plans involve protecting you and your credit in case of unemployment, disability or death. The credit card company essentially continues to pay your credit card bill every month until you are able to start paying again.

If you lose your job tomorrow, or become disabled, will you have the money to continue paying your credit card? If not, you can quickly fall behind on your credit card payments and just as quickly ruin your credit. Are you willing to take that chance?

In addition, if you die tomorrow, will your spouse have the funds to pay off your credit card debt? The last thing many of us want to do is leave our loved ones the responsibility of paying for our debts.

The credit insurance offered by many credit card companies is usually referred to as credit life insurance, credit property insurance, credit disability insurance and involuntary unemployment credit insurance.

Credit life insurance – This consists of life insurance that is designed to pay off your credit card balance in the event of your death. The lender is the beneficiary of your policy; in other words, the life insurance policy is automatically paid to the credit card company. Some credit life insurance policies have a fixed value, while others will not.

Credit disability insurance  – Another popular option which is often sold with credit life insurance, is designed to pay your monthly credit card payments for a fixed period of time and while you continue to prove your medical disability. It is important to remember, however, that most credit disability insurance policies will not pay your bill forever and will not pay off the balance of your credit card.

Involuntary unemployment credit insurance – Similar to disability insurance, as the credit card company pays your minimum credit card payment every month until either (a) you become employed once again, or (b) the policy ends. Just like disability credit insurance, involuntary unemployment credit insurance has a fixed time frame.

Credit property insurance - This  is a bit different than other types of credit card insurance, as it is designed to pay off your credit card debt for items that were destroyed in certain situations, such as a fire or earthquake. For example, if you purchased a new, flat screen television on your credit card and it was then destroyed during a fire, your credit property insurance policy would pay off that debt.

For most credit card holders, it makes sense to purchase credit card insurance, unless of course the costs outweigh the benefits. For example, many consumers already hold life insurance policies that would cover their credit card debt, and some consumers already have disability policies that would cover their living expenses while disabled.

If you are considering credit life insurance, remember to read the terms and conditions of the policy carefully and to weigh both the advantages and disadvantages of the policy before committing to any type of insurance policy.

How to Protect your Credit Card from Credit Card Thieves

Card Security

On any given day there seems to be a news story or two about credit card thefts and scams. We all know that protecting our credit cards and personal information has become very important, yet few of us really know what we need to do to fully protect ourselves.

What can you do to prevent yourself from becoming yet another credit card theft victim?

1. Never leave your credit cards unattended at any time. Many studies have found that the highest incidences of credit card theft occur at an individual’s place of employment. It is therefore important to not only keep your purse or wallet with you at all times (or locked up), but to also avoid placing your credit card in your desk or other area where others may see it.
2. Immediately report a lost credit card. Most of us would report our card to our credit card company if it were stolen, but not many of us would think to report a lost credit card. The time it takes to search for your misplaced credit card is all the time a credit card thief needs to obtain your credit card information.
3. Always check and double check your monthly credit card statement. Many of us who make multiple purchases on our credit cards on any given month do not take the time to study our credit card statements and the purchases that appear on them – and credit card thieves are counting on it. Did you know that many credit card thieves will make sporadic purchases in the hopes that the credit card holder will not notice the charges?  Remember that next time you receive your monthly credit card statement!
4. Never give your credit card information over the phone unless you initiate the phone call. If you receive a phone call or email from your credit card company asking to verify your personal information, do not give it out! Instead, immediately contact your credit card company to report the communication.
5. Don’t keep the pin number of your credit card in the same place as your credit card. This is simply an invitation for a credit card thief to obtain cash from your credit card!