Credit Card Quick

The Top Four Reasons why Debit Cards may not be so Convenient After All

ATM

It may seem like the best thing to do in this economy is use your debit card instead of your credit card. Although debit cards serve a useful purpose, it is important to understand that they may not be the best choice in every situation. And here’s why:

• Debit cards, although they provide protection from fraudulent purchases, may end up giving you a large headache because your checking account can be drained in the process.  Waiting for your bank to investigate a case of fraud and replace your checking account balance can be difficult because you may not have access to cash during this time, which means you could have bounced checks and the like.
• Often times, if you use a debit card at hotel and gas stations, they impose debit card blocks, which means they charge anywhere from $1 to $100 for up to a few days, which means your access to cash in your checking count could be compromised during this time.
• The use of skimmers by credit card thieves has put many debit card users at risk for fraud. Skimmers, small devices placed over standard card readers, allow thieves to steal debit card numbers and pin numbers and quickly drain individuals’ accounts.
• Debit cards don’t help build your credit score. You may think you’re doing yourself a favor by using debit cards over credit cards, but in the end you haven’t done your credit score any favors.

Credit cards, instead of debit cards, provide individuals with a number of financial protections, and are a great way to begin building a strong credit score. Provided you use common sense and practice responsibility when it comes to using a credit card, it can be quite advantageous to use one. In addition, credit cards can provide consumers with a number of perks, including rewards, travel protection, rental car insurance and discounts, just to name a few.

If you want to begin building your credit, then it pays to start exploring the many benefits of credit cards over debit cards. IYoYouYou

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.

Important Facts about Fighting Fraudulent Credit Card Charges

Identity Theft

Most creditors offer some protection against fraud and identity theft, but this protection is not all-encompassing. In other words, there are a certain set of rules to which you must abide to be covered by your creditor for fraud and identity theft.

For example, there is a recent story about a Denver man that paid on his credit card religiously, every month, for the same amount. Because of this, he rarely looked at his monthly statement; he just simply sent in his fixed payment. That’s all fine and dandy, but what he failed to do was realize that a credit card thief had managed to charge upwards of $11,000 on his credit card. Because the Denver man failed to realize these charges in 60 days, as required by the creditor, he was, in the end, responsible for all those charges.

Although most fraudulent charges or mistakes to your credit card account will be considerably much less than the Denver man’s $10,000 bill, they can still sneak onto your bill when you’re not looking. Don’t be caught paying for someone else’s mistake or fraudulent activity. Take charge now and fight back against fraudulent charges!

What you can do to protect yourself against paying for fraudulent charges on your credit card:

• Always, always, always carefully read your monthly statement. Just the like above story, if you fail to notice fraudulent charges on your card in the time frame set forth by your creditor (usually 60 days) then you, too, could be responsible for any charges on your card.
• Contact the merchant directly if you notice a discrepancy on your credit card bill. Often times, discrepancies on your credit card are simply mistakes. If you are unable to find a resolution to your problem with the merchant, contact your credit card company.
• If you find yourself in a situation where the merchant is denying a mistake, you will want to provide documentation to plead your case. Keep all receipts, email and tracking numbers and submit them with your dispute to your credit card company.

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.