Security Concerns – Plastic Money!

Keeping in mind all the positive aspects involved in using credit card (shared by me in the previous article), let’s go through some of the security concerns and the ways to handle them.

As we have the internet password for logging on any website or 4 digit pin for every debit card etc, we have a CVV number – 3 digit number written at the back side – for credit cards. All that we require to purchase anything using a credit card online is the card number, expiry date and CVV number. Unfortunately, we have all the three clearly written on the credit card itself. Also, while using credit cards in shops, we do not require the CVV number. The magnetic strip on the credit card takes care of the information that needs to go into the machine, which validates your credentials with the server, and confirms the payment after you put your signature on the receipt – which again should ideally be validated by the shop owner with the ones present on the credit card. So, if you don’t have a signature on your credit card and it gets lost, the new owner has every reason to use it anywhere without any concerns. However, if you had the sign, the new owner would have been restricted to use your card only online.

Personally, I feel that CVV number should not be written on the card, and should come to our mailing address just like the pin number or the internet passwords for our internet banking account so that we can memorize it. Since that’s not the case till date, we need to make sure of two things to make sure that we live a risk free life using credit cards. First will be to put our beautiful signatures on the credit card and second is to cover the CVV number on the credit card, preferably by striking it off by dark permanent marker and then putting a piece of small paper over it – don’t forget to write down the CVV somewhere else. This way, even when you loose your card, he or she will have to do some labor to get the card work for them and in the mean time do block your card as soon as possible.

Another concern that comes with credit cards is their hidden costs which we get to know during the life cycle of the card. Hidden charges generally come into play only when you don’t pay your bill before or on the due date as there are many charges like late payment fees, interest on amount due etc, which get activated only when you default. So as a better practice, keep paying your bills on time.