How Can Credit Card Information Be Kept Safe?

Credit cards offer convenience for daily transactions, but their widespread use requires safeguarding personal financial information. Implementing security measures is important for protecting against fraud and unauthorized access. This article provides strategies to help consumers keep their credit card information secure.

Physical Card Security

Protecting the physical credit card begins with keeping it in a secure location and ensuring it remains in sight during any transaction. After receiving a new credit card, sign the back immediately with a permanent pen. An unsigned card can be considered invalid by card networks.

When a credit card expires or is replaced, properly destroying the old card is important to prevent information compromise. For plastic cards, this involves cutting through the magnetic strip, the EMV chip, and the account number, then disposing of the pieces in separate trash receptacles. Metal cards often require returning them to the card issuer for secure disposal.

At automated teller machines (ATMs) and point-of-sale (POS) terminals, check for any unusual attachments or devices, known as skimmers, on the card reader or keypad before use. Covering the keypad with your hand while entering your Personal Identification Number (PIN) adds an extra layer of protection against hidden cameras. Handling transaction receipts carefully, either by retaining them for reconciliation or shredding them before disposal, also helps prevent unauthorized access to sensitive purchase details.

Online Transaction Protection

When making online purchases, always verify that the website is secure by looking for “https://” in the web address and a padlock icon in the browser’s address bar. Creating strong, unique passwords for all online accounts that store credit card information is a fundamental security practice. These passwords should be complex and not reused across different platforms.

Avoid conducting financial transactions when connected to public Wi-Fi networks. These networks are often unsecured, making it easier for cybercriminals to intercept sensitive data. Instead, use a secure private network or a mobile data connection for sensitive activities. Remain cautious of phishing attempts, which often arrive as suspicious emails, text messages, or unsolicited phone calls requesting credit card details. Legitimate financial institutions will rarely ask for sensitive information via these unsecure channels.

Consider using virtual card numbers or secure payment gateways for online transactions. Virtual card numbers are temporary, unique numbers linked to your actual credit card account that mask your real card details from merchants, adding a layer of security. Digital wallets use tokenization to encrypt and replace your actual card number with a unique token, protecting your information even if a merchant experiences a data breach.

Ensure that all devices used for online transactions are protected with up-to-date antivirus software and firewalls to defend against malware and other cyber threats.

Monitoring for Fraud

Regularly reviewing credit card statements and bank account activity is a primary method for detecting unfamiliar charges. Many credit card issuers offer transaction alerts, which can be set up to notify you via email or text message about purchases exceeding a certain amount, international transactions, or online purchases, allowing for immediate identification of suspicious activity.

Understanding how to check credit reports is also important, as fraudulent new accounts or inquiries could indicate identity theft. Consumers are entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months.

If a credit card is lost or stolen, or if fraudulent activity is detected, immediate action is necessary. Contact the credit card company as soon as possible to report the incident and have the card deactivated. Federal law, specifically the Fair Credit Billing Act (FCBA), limits a cardholder’s liability for unauthorized charges to $50, provided the loss is reported promptly. Many card issuers also offer zero-liability policies, meaning you may not be responsible for any fraudulent charges.

When disputing a charge, gather all relevant information, such as transaction dates, amounts, and any communication with the merchant. The FCBA provides a mechanism for disputing billing errors, requiring credit card companies to acknowledge disputes within 30 days and resolve them within two billing cycles, typically no more than 90 days. While some companies may accept phone disputes, sending a written dispute to the billing inquiries address on your statement ensures your rights under the FCBA are preserved. Promptly reporting and disputing unauthorized activity is important for mitigating financial losses and protecting your credit standing.