Credit cards are the most popular instruments of finance among people. However, you must have a thorough knowledge about its pros and cons. You spend enough time to search & get a fine credit card. Similarly, you must invest quality time to understand all the security features of your credit card. You should not risk the security of your credit card based on some myths.
In this article we present to you certain myths which you must stay away from. Further you can browse through the credit card myths you should be careful about.
Credit card myths you should be careful about | My card is safe as no one knows my CVV number
It’s a myth that if your CVV number is safe then your credit is also safe. If you are aware, certain websites don’t ask for the CVV number during online transactions. Therefore, a person can simply enter the credit card number, its expiry date & the card holder’s name to complete the transaction. Hence, you should ensure your credit card’s complete safety. In order to secure your credit card in an offline transaction, you can scratch off your CVV number behind your card. You must be physically present when your card is swiped especially at petrol pumps; there the swipe machine is usually located at some distance away.
Credit card myths you should be careful about | My credit card is safe because it cannot be duplicated
Credit cards store a lot of information on its magnetic strip. When the credit card is swiped, extraction of data occurs for verification. Therefore, it’s possible to create a duplicate credit card using the extracted data. Therefore, you should opt for EMV (Euro pay, MasterCard & Visa) cards which are chip based cards. These are more secure & banks now issue these cards at the customer’s request.
Credit card myths you should be careful about | My credit card is safe as nobody knows my PIN & password
Recently, RBI made a move. It requires all the Indian websites to demand for the secured PIN of the customer during online transactions. This is along with the person’s name, card number & CVV number. However, it does not apply for transactions done on international websites. Therefore, if a person knows all your credit card’s details except for the PIN, he can still do transactions from your credit card.
Credit card myths you should be careful about | My signature behind my credit card is not important
This is a common myth where many people don’t consider their signature behind their credit card as important. You must remember that a credit card which is not signed is considered invalid. When a merchant and a card holder enter into a transaction, the merchant must check for the signature of the card holder against the signature in the bill. This would clarify whether the person is the actual card holder of a particular credit card or not especially if the person has robbed other person’s credit card.
On the contrary, consider a person ‘A’ loses his signed credit card. Other person ‘B’ finds it. B therefore uses A’s credit card to buy things. In this case A must demand for the comparison of signatures on the credit card & the bill. You must not pay if the merchant fails to compare the signature. However, if you fail to sign your credit card then you may land in trouble. Hence it’s important to sign behind your credit card to ensure the safety of your account.
Hence, now you are aware of the credit card myths which you must prevent yourselves from. The credit card invention is surely a convenient financial option but should be used with proper care. Otherwise it can land you in financial troubles.