Credit card users generally do not suspect the safety and security of their cards, and this is mostly based on some myths they hold.
With the credit card being one of the most accepted monetary inventions to be used in contemporary times, it is vital for every user to be completely alert of its working and repercussions. Though people spend substantial amount of time researching on getting a good credit card, very few really take the time to comprehend the safety sides of a credit card.
Credit card users generally do not suspect the safety and security of their cards, and this is mostly based on some falsehoods they hold. Below are some of the most popular credit card myths which an individual be watchful about-
Nobody knows my CVV number; so my card is protected
This is an accepted falsehood held by people that if they keep their CVV number secure then their card is protected. But wait and think again. Some online sites do not ask for your CVV number when you make online payment. It is not made compulsory and thus, only by entering the card number, the expiry date and name of the card holder, the transaction can be finished successfully. One way to protect your card in offline transactions is to rub off the CVV number which is generally at the back of the card. You must also make sure that you are physically present when the card is swiped. This is particularly essential in petrol pumps where the swiping machine is generally some distance away.
My credit card cannot be duplicated; therefore it is protected
A magnetic strip-based credit card stores a lot of data on the magnetic strip. When your card is swiped, the data is ktaken out for authentication reasons. It is probable to clone your card using this data and make a duplicate one, hence putting your card at danger. EMV (Europay, Mastercard and Visa) chip based cards are safer in this respect and banks are now giving this at the demand of the customer. Therefore stop presuming that your card cannot be duplicated and it is secure.
Nobody knows my PIN and code word; so my card is secure
This is another myth associated to credit cards. Online transactions made on Indian sites call for you to put a safe PIN as the finishing verification to the transaction, after you input details like your name, card number and CVV number. This is a new move by RBI to improve the safety of the transaction. Still, transactions on international sites do not make ‘this extra layer of safety obligatory. As a consequence, if somebody gets all the details of your card other than the safe PIN, he/she can still use it on international sites.
My signature at the back of the card is not very important
The signature at the back of the card is frequently not given the significance it ought to have. Many people overlook signing at the back of the card, considering that it is not very vital. Yet, keep in mind that if a credit card does not have a signature at the back, it is just an invalid card. The card issuer and the merchant get into an agreement, which states that every time the merchant swipes a card, he is assumed to check the signature at the back of the card with reference to the signature on the bill. Only if the two signatures are same, the merchant has to accept the card. But, most merchants easily overlook this aspect. As a consequence, the user also does not comprehend its significance. As long as you have your card, this issue does not become important.
But suppose you lose your unsigned credit card, and it gets used in a store. It plainly implies that the person who has stolen your card has signed at the back of the card and has used it. In this case, the shop owner also cannot be held responsible. In contrast, if you lose a credit card you have already signed, and if it still gets swiped at any store, you can ask for a comparison of the signatures, and decline to pay the amount, as the shop owner would not have done a signature comparison. Therefore it is crucial to sign at the back of the card.
The credit card is a very prevailing monetary innovation, which if not used with heed can put in danger your economic position. Set free the above falsehoods to become a more powerful and knowledgeable credit card user.