Everything you need to know about Security of your DEBIT / CREDIT CARDS

April 11, 2009 4:17am CST
Hello Mylotters , Most of you must have used your Debit Cards / Credit Cards for shopping online or shopping physically at stores . Many of you must be aware of all necessary security precautions, but I would like to mention a few of them for our new friends here , who may not be aware and might end up getting into trouble. Firstly , its a misconception that using your card online is risky . Infact , statistics say that its safer to use your card on the internet instead of physically at a store or a restaurant . Let me explain why ... When ever you use your credit card online , you have to provide all details such as card number , date or expiry , Name on card , type of card and CVV . This CVV is a 3 digit card verification code , which ensures that the user of the card actually has his card in his possession at the time of making an online payment . The CVV is present on the back side of the card (debit or credit). All information sent over the internet is encrypted using 128 bit algorithms which are extremely hard to crack . So , basically , your data is well protected . However , if your card is actually stolen or misplaced , anyone who can make a descent forgery of your signature , can your use credit card for shopping (many credit cards dont ask for PINs at the time of making a purchase at a store ) In contrast , If you use your card in a restaurant , where the card is taken inside for swiping , its very easy for the restaurant staff to copy all the information on your credit card on a paper in less than 1 minute . He can then use all the details to use your card online , without any problems ! Moreover , there are machines , which a magnetic reader , which can store all your card details as soon as the card is passed through them and can be used to produce 10~15 copies of your credit card in less than 5 minutes ! The illegitimate use of your card online can be avoided , if you memorize your CVV number (its only 3 digits ) , and strike off the CVV from the card using a permanent marker , so that no other person can know what your CVV was . That way , if a person copies all the information of your card , he wont be getting the CVV code and will not be able to use your card online. Since you already remember the CVV code , you can use the card at your convenience when you shop. This ensures that your card is not misused online . Additionally , Visa has developed "Verified with Visa" and Mastercard has "SECURECODE" which is an added security measure . You have to setup a password initially with your bank which has issued you the credit card . Whenever you use the Card online ,before confirming the transaction , you will be asked to enter this password. Only the legitimate owner will have the correct password and only upon entering the correct password with the transaction be processed . This was , frauds are prevented as only the legitimate owner will have the password which he has registered with the bank . Whenever you sign the Credit Card and Debit card receipts , please spend an additional 5 seconds , to check for the details . The receipt should have your name on it , the correct amount and the merchant details . Only sign the receipt when these details are correct and accurate . One last thing .. If you have to use a card , use a credit card instead of a Debit Card . If there is a fraud , the money is instantly debited from your account , and fighting a claim is painful . However , if you use a credit card , the payment is made by the bank to the merchant , and until you make the payment for outstanding credit charges to your bank , you still have the option of contesting fraudulent charges on your credit card which is a far easier procedure . Most banks now have SMS service , once you have registered your mobile number with them . Upon using your card for Withdrawal at an ATM , or using your card for shopping , the bank immediately sends out an SMS when ever there is a transaction on your card . Its a good tool to check fraudulent activity . If you receive an SMS indicating a transaction , but you havent initiated one , immediately contact the back for explanation and if deemed necessary , block your card. I hope all these details will help all mylotters to ensure that they are not victims of credit card fraud either during online shopping , or physical shopping. I personally think paypal is the best way to make payments online . If you like this discussion , do respond with your comments on this. Cheers and Happy Mylotting :)
1 response
@flowerday (322)
• Singapore
11 Apr 09
ohhh..thanks for such an important imformation! i always have doubts about purchasing online especially on sites that do not look very safe. but i think now i should feel safer!
• India
11 Apr 09
Hey ! I am glad I was of some help to you :) Enjoy your shopping online and have fun mylotting