Although credit card fraud is certainly on the rise — and credit card fraud on the Internet is rising even more dramatically — many savvy Internet shoppers know that the reality is that it’s actually much safer to enter your credit card number generator on a secure online order form than it is to give your credit card to a waiter at a restaurant.

After all, what’s to stop the waiter from writing down your credit card number and placing orders on the phone with it later?

And research shows that the rate of fraudulent purchases made by cell phones is much higher than credit card fraud on the Net.

Nevertheless, we encourage you to take precautions when giving out any confidential information (including your credit card number) over the Internet, over the phone… or anywhere else for that matter!

Always use common sense — it is the best rule of thumb.

Nonetheless, we’ve created 21 tips to protect yourself from credit card fraud — which you’ll find below.

Internet ScamBusters’ 21 Credit Card Fraud Prevention Tips:

1. Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. Try not to let your credit card out of your sight whenever possible.

2. Be very careful to whom you give your credit card. Don’t give out your account number over the phone unless you initiate the call and you know the company is reputable. Never give your credit card info out when you receive a phone call. (For example, if you’re told there has been a ‘computer problem’ and the caller needs you to verify information.) Legitimate companies don’t call you to ask for a credit card number over the phone.

3. Never respond to emails that request you provide your credit card info via email — and don’t ever respond to emails that ask you to go to a website to verify personal (and credit card) information. These are called ‘phishing’ scams.

4. Never provide your credit card information on a website that is not a secure site.

5. Sign your credit cards as soon as you receive them.

6. Shred all credit card applications you receive.

7. Don’t write your PIN number on your credit card — or have it anywhere near your credit card (in the event that your wallet gets stolen).

8. Never leave your credit cards or receipts lying around.

9. Shield your credit card number so that others around you can’t copy it or capture it on a cell phone or other camera.

10. Keep a list in a secure place with all of your account numbers and expiration dates, as well as the phone number and address of each bank that has issued you a credit card. Keep this list updated each time you get a new credit card.

11. Only carry around credit cards that you absolutely need. Don’t carry around extra credit cards that you rarely use.

12. Open credit card bills promptly and make sure there are no bogus charges. Treat your credit card bill like your checking account — reconcile it monthly. Save your receipts so you can compare them with your monthly bills.

13. If you find any charges that you don’t have a receipt for — or that you don’t recognize — report these charges promptly (and in writing) to the credit card issuer.

14. Always void and destroy incorrect receipts.

15. Shred anything with your credit card number written on it.

16. Never sign a blank credit card receipt. Carefully draw a line through blank portions of the receipt where additional charges could be fraudulently added.

17. Carbon paper is rarely used these days, but if there is a carbon that is used in a credit card transaction, destroy it immediately.

18. Never write your credit card account number in a public place (such as on a postcard or so that it shows through the envelope payment window).

19. Ideally, it’s a good idea to carry your credit cards separately from your wallet — perhaps in a zippered compartment or a small pouch.

20. Never lend a credit card to anyone else.

21. If you move, notify your credit card issuers in advance of your change of address.

If you suspect credit card fraud:

If your credit cards are lost or stolen, contact the issuer(s) immediately.

Most credit card companies have toll-free numbers and 24-hour service to deal with these emergencies — they are eager to avoid credit card fraud.

According to US law, once you have reported the loss or theft of your credit card, you have no more responsibility for unauthorized charges. Further, your maximum liability under federal US law is $50 per credit card — and many credit card issuers will even waive that fee for good customers.

If you follow all these tips, it will go a long way in protecting you from credit card fraud.

Be Bold!

Herschel

Did you know the credit card companies’ rules are changing?

Credit card companies have always had tricks for capturing fees and extra interest from the unknowing card user. Recently, legislation was passed on how credit card companies handle the hikes in interest rates and fees. Much to the credit card industries dissatisfaction, big changes are coming!

Let’s take a look at how these can effect you.

Credit card companies will now have to give cardholders forty-five days notice before their interest rates are raised. What does this mean? Well, those days of opening your statement and seeing interest rates jacked up 5 or 10 or 15% and more because of you being one day late are over! Now, if there is a rate hike you’ll have time to pay off or transfer the balance to another card before getting cracked on the wrist, or rather dinged in the wallet, for being late. 

Banks are now required to mail your credit card statements no later than twenty-one days before they are due. In the past, some credit cards standard operating procedure was to send their statements just a few days before they were due. Why? It’s all about money! A late charge here or a late charge there throughout the year, and you’ve added an extra $100 or $200 to the credit card companies coffers. Multiply that, by a few million cardholders and suddenly late charges are an income on their profit and loss statement that will make your head spin!

These same credit card companies try and tell you that this is not their intent. Believe me, this 21 day change alone will cost them millions in unjust charges and save you perhaps hundreds of dollars a year just because they give you ample time to mail your payment in.

Speaking of late fees, if you get your payments in by 5PM on the due date you will no longer incur a late charge. This eliminates that 12:01 AM deadline joke! This is something I never understood. Why have a deadline, of let’s say the 25^th of the month at 12:01 AM? If you want it in at midnight then just say the deadline is the 24^th. In addition, if the deadline falls on a holiday or a Sunday when the bank is closed the new law allows your payment to be processed the following day without incurring a late charge.

Another big change in the new law is to credit your payments to the balance with the highest interest rate rather than the balance with lower interest rate. In the past it was common practice if you owed say $5000 of which $2500 were misc charges at 8% and another $2500 was cash advance at 18%, to post your payment to the balance at 8% interest. This would mean your overall balance would be charged at the higher rate, thus it became much more difficult to pay off.

In addition, on cash advances the banks require your explicit permission in order to go over your providian automatic credit limit increase. This means no more check postings that you would be hit for an “over credit limit” charge which could also trigger a hike in the interest rate.

Overall, these changes will make it harder for the credit card companies to hold you in financial bondage by hindering your ability to pay off your accrued debts.  Keep in mind that this doesn’t mean you’re in the clear. You still need to be a good money steward, staying within your budget and making your payments in a timely manner. 

Be bold!

35% of your score is attributed your bill payment history, this includes paying your bills “on-time”

Be punctual – Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score. But let’s talk about “Late Payments” for this week.

Late payments cost you in points, big time, because of what they mean in increased credit risk to the credit bureaus. Higher credit risk means loss of points and lowered credit score.

OK, so you make your payments on time and your scores are still low. What is causing this to happen? Let’s look at what is happening with your payments. Let’s say you have a credit card that is over the 45% debt to credit ratio. You make your payment on the due date but when you pull your credit report, your points have dropped. What is happening is that the credit card is getting your payment “on time” but the recording date when they determine your interest charged can actually to before the due date. This creates more revenue for them as well as causing your balance to be recorded higher to the credit bureaus thus causing your scores to drop. When you think your payment has lowered your balance to less than 50% by the due date, they have already charged you interest and already your scores have dropped. Surprising, but true.

So, the solution is to look over your credit card statement and find when the interest is entered onto your statement. Then make your payment be sure to arrive before the interest is applied to your statement.

Lower balance, lower interest, lower risk, and higher credit score! Ahhhh…