Tips to Keep Your Credit Card Safe

By Randall Orser | Personal Finances

Today, more than ever it is crucial to keep your credit card information safe.  How often do you think about the safety of your credit card transactions and what you can do to guard against theft?            

Here are some precautions to consider:

  1. As soon as you receive a new card sign the back for more protection should your card ever be stolen.
  2. Make sure that you don’t let anyone see your PIN (personal identification number) when you put it into a card reader or ATM. Always choose a number that you will remember.  Do not use birthdays, phone numbers, social insurance numbers or family names, and NEVER write the number down and save it in your wallet.
  3. Do not give out your credit card information to a caller.  Make sure that you initiate the call and know that you are dealing with a legitimate business. Never give out your number over a cordless phone as these can be scanned easily and cheaply by radio scanners.
  4. Make sure that you always get your card back after you use it and that you watch the sales person as they are processing your purchase.
  5. Always check your monthly statement and make sure that the charges are all yours.
  6. Destroy any voided or cancelled sales receipts yourself and cut up expired credit cards.
  7. Keep a list of your credit card numbers and toll-free numbers and keep it in a safe place so that you have it should you need to contact the credit card company to report a lost or stolen card.
  8. If your credit card is lost or stolen report it immediately to limit your liability.

If you are using your credit card for online purchases, follow these guidelines to avoid credit card fraud and identity theft.

  1. Only use websites that you trust. Don’t click on links in unsolicited emails as they could lead you to a fake website which has been set up to steal your information.  The safest way is to go directly to the website by typing the URL in in your web browser.
  2. Don’t make online credit card purchases from public places.  As public computers are less secure there is more chance of your information being stolen.  You are not safe even if you are using your own computer in a coffee shop, hackers have access to the same wi-fi signal and can intercept your information. 
  3. Make sure that your home computer is protected by the latest up to date anti-virus and anti-spyware from a reputable company.  Do not use anti-virus software advertised in a pop-up ad or from a link in an email.
  4. Check the reputation of a business with the Better Business Bureau if you have never bought from them before.  Do not use your credit card at any website with a poor customer service record.   
  5. Never give out more than the normally required personal information such as your address and phone number. Do not give out your social insurance number. If the site seems to be asking for more than the normal amount of information log out and don’t use it.  
  6. Make sure that the credit card entry page that you are using is secure.  To do this, check the URL in your browser bar. Secure sites have addresses starting with https:// and there should be a lock or a seal in the bottom right corner. 
  7. Avoid leaving your credit card information on the website for future purchases.  Although this is more convenient, if the site is hacked then your information could be compromised.  
  8. Always print your online purchase receipts and make sure that the amount that you are billed matches the amount on your credit card statement.
  9. Think about using a credit card with a a small credit limit to buy online.  If your account is compromised criminals will not have access to thousands of dollars.

Online shopping can be a treasure trove for fraudsters as the securities that are present when you buy at a brick and mortar store are not present online, such as using your pin number to verify your purchase.   So, it is best to take precautions to avoid the hassle of fraudulent charges and your account being compromised.

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About the Author

President/CEO Number Crunchers® Accounting Inc. Learn how to just say stuff it to this bookkeeping thing with our 'Just Say: "Stuff It" To Bookkeeping program.