Credit Card Tips

Michael Russell asked:




In this series we are going to cover one of the biggest problems all over the world. Credit card fraud.

For those who may not exactly know what credit card fraud is, a simple definition. Credit card fraud is the act of making a purchase using someone else’s credit card information. Sounds like something that should be difficult to do. Unfortunately, it’s not.

There are many types of credit card fraud, the most common we’ll cover in this article.

First there is what is called “mail non-receipt fraud” which is when a new or replacement card is sent by the bank and never received by the person it was supposed to go to. This has been mostly combated by the banks sending out inactive credit cards where the person has to make a phone call in order to activate the card. Otherwise it can’t be used. Unfortunately there are some banks that do not do this and still send out cards that are already activated.

Then there is what is called “chargeback fraud” where a legitimate cardholder uses the card to purchase goods or services. Then when the statement comes they call the credit card company and claim they never received the item or service or that they never authorized the transaction.

Another type of credit card fraud is called “skimming” where an employee or merchant makes a second copy of the person’s credit card details before processing the payment. This copy is then sold on the black market to professionals who clone illegal copies of these cards. Fortunately, skimming has become less of a problem since the introduction of CVV and CVS codes. These are not encoded on the card strip but are physically written on the back of the card. This is a required three digit code to finalize all transactions. Without this code even a cloned credit card will not work.

Skimming at ATMs has also been a problem. What the illegally set up ATM machine does is place a skimmer device somewhere in the machine that reads the magnetic strip attached to the card. This is used together with various devices that monitor the keypad of the ATM by attaching a fake fascia over the original keypad. Fortunately, this is not as common today as it was years ago when ATM machines were relatively new.

Then of course there is “online credit card fraud” which is the most common type of credit card fraud today with all the transactions that people do each day. This type of fraud gets a little complicated but simply stated, when a person uses their credit card online, hackers monitor the person’s entry into the merchant’s system and essentially steal the credit card information without the person having any idea this is happening. Another way to get a person’s credit card info online is to send an official looking email telling the person that they have to update their credit card info. They are sent a bogus link to go to where the info is collected and used for whatever purpose the scammer wants, whether to sell the info or use it to make purchases himself.

In the next article in this series we’ll go into credit card fraud into more depth.

Greg

JNate asked:


I own a small business which often takes credit card numbers over the phone as a deposit. We recently had a customer no show, and she contested through her credit card company when we charged her (she claims it wasn’t explained when she gave us her #). The credit card company took her side and said it is policy to allow anyone contesting to get their money back if there is no signature. How can this be? So many hotels and services take card #’s as deposits!

Ella

John F Smith asked:




American Express was ranked as one of the best credit card issuers whether it is for corporations, professionals and students. It provides great financial advantage to its client making sure they are well provided with their needs. For those college students who are eager of getting a credit card, the American Express student credit card must be on their top choices. With its high credit limit assessment, you can surly get the card that has full potential to buy all the things that you need in your academics and extra curricular activities. It will never fail you; it is accepted in almost all establishments in your area. You can use it almost anywhere so you will never be afraid going out even without cash. This credit card is good as cash and it can maintain your financial capacity to afford anything that you want.

The internet is one of the best advertising medium that can be used to reach the market that’s why the American Express credit card offer can be found online. Once you check the official website of American Express, you can immediately find it after some clicks. When you’re their and you are decided to apply, you can fill out the application form. There are only couple of questions that you have to answer so spend some minutes completing the application. It’s made fast and convenient to suit the busy schedule of a college students. What are you waiting for, apply now top get your credit card approval within the day or the next.

Philip

Brandi asked:


I just turned 18 and I am trying to get my own place but they said I need to have good credit. To have good credit, they said I have to build good credit, but the only way to build good credit is to have good credit. Why is that? I was looking at credit cards and purchases become way more expensive when you buy them a credit card. So why use one? But to build credit you need to use one. Am I mistaken? Could someone explain how a credit card works please?

Alexander

Crazy Joe Davola asked:


I am an 18 year old student looking to establish credit. I know all the responsibilities of having a credit card, im just wondering if it would be acceptable for me to call a credit card company and ask them to give me a credit card.

I can do that, correct?

Shirley

Jon Arnold asked:




At almost all colleges and universities these days, there is a ready supply of college student credit cards. But the sad fact is that most students going off to school in today’s world do not understand how to handle financial responsibilities like having a credit card. In the past when they wanted money for something, they either called and begged you for it or they earned it from a part time job they were doing. But outside of you perhaps keeping track of those loans in a notebook, they do not have experience with real credit cards.

You should consider getting a college student credit card for your child when they go off to school. If you have already gone through the financial pain of having had a child in college before, you understand what I am referring to – you can plan and budget for hours at a time, but there is always something else that the school is holding out their hands to be paid for, whether a text book, a study guide, a parking permit, etc. Think about it, you are sending your son or daughter to college to be educated and learn, not to be stressed about trying to

figure out how to pay for this new expense that they had not budgeted for, which seems to hit them at least every week if not every day. There are also certain distinct advantages to getting a college student credit card for your son or daughter. In addition to the lack of stress about those unexpected expenses that are almost certainly going to pop up, they will be learning about fiscal responsibility. Up to this point in their young lives, the possibility is great that you just did not take the time to teach them about “Basic Finance 101″ in terms of having a credit card and taking responsibility for it every month. Who has the time? You and your spouse are probably both working full time in today’s world to make ends meet. When your child is in high school, with all the meetings and practices and club gathering and studying, there was precious little time left over for other stuff. Do not berate yourself about that, that is just the way it is in most households in today’s world, and the vast majority of students are in the same boat.

You want to provide for your child every opportunity and advantage that they could have when they have graduated from college, and this is normal. So why not get them a college student credit card so they will have also learned about financial responsibility, since after graduation, they will likely be stressing out about finding a place to live, finding the right new job, making tough decisions about their social life, and so much more. If they have had a college student credit card while in school, they will have learned about the responsibilities that accompany having such a card, like how even minute charges add up at the end of the month, the magic of how much interest can accumulate if they do not pay the balance in full, and perhaps even the embarrassing phone calls from the card issuer when they are overdue with a payment. This is a part of the overall education process as they become acclimated to the real world, and something they need to learn as it will be a part of their world for the rest of their life.

Be careful when establishing a credit limit on that college student credit card. Most card issuers will not give them a huge credit limit, but it should not exceed a few hundred dollars, just enough to cover the incidentals that you did not plan for. You cannot allow the student to be tempted by the aspect of “free money” from a cash advance on their credit card when they are considering a spring break trip to Florida, which is yet another reason to keep the credit limit reasonably low.

You should know that the interest rate that will be assessed on the college student credit card will reflect the fact that the card issuer is taking a chance. A college student typically does not have experience with credit card responsibilities, so the interest is going to be reflective of that risk. But after 6 to 12 consecutive months of timely payments where the minimum due or more has been paid, the student is now in an excellent position to request a reduction in the interest rate, or to shop for a different college student credit card.

Mike

Omar Vega asked:




For all the advantages that you are offered by using prepaid credit cards, there are some disadvantages you need to be aware of. In this article I will go over these, and this should help you make better decisions when using these cards.

When using prepaid credit cards online, it is important to be aware of where you are shopping. Some sites will scam you, and you may find yourself paying for products or services which you never receive. Shopping online with a prepaid credit card can put you at risk for these types of scams.

When you go out shopping, it is important to check the balance of your card to make sure you have enough to get what you’re buying. You don’t want to stand in a long line waiting to buy something just to get to the cashier and realize you don’t have enough money.

This will frustrate and humiliate you. One of the disadvantages to using prepaid credit cards is unlike cash, there is no way for you to look in your wallet to figure out how much you have to spend. It is important go online and check your balance and transactions.

Another disadvantage to using prepaid credit cards is that many places and shops do not accept them. This is especially true when traveling to other countries, which may have cash based societies. Small restaurants and shops in foreign countries may only accept the local currency.

Because of this, it is important to carry around small amounts of cash at all times when traveling. Another problem with prepaid credit cards is the potential for abuse by merchants. Many people have complained that when they make a purchase at a restaurant or store, the merchant takes out more money than they’re supposed to.

This doesn’t happen with cash, because when you pay with cash merchants aren’t allowed to have access to your account. The best way to avoid this is to only shop at reputable locations, and check your balance immediately after making transactions. Sometimes mistakes do happen, and it is important for you to catch them as soon as possible.

The last issue that could be a problem when using a prepaid credit card is not being able to access your own money. Some people are frustrated to find that they are not able to withdraw their money from ATM machines when they need it the most. While this doesn’t happen often, it is another good reason to carry some cash at all times.

Joseph