Credit cards have become the most convenient means of making payments whether you are in a store or shopping online. Although credit card payments are very advantageous and convenient, the procedure is also fraught with many dangers which can cause a substantial loss to the card holder. Identity theft and unauthorized charges are the main two dangers that a card holder will face. In view of this it is necessary to have some kind of credit card protection plan.
Credit card protection involves certain measures which you can yourself observe to make your transactions safer and avoid identity theft. You can also buy certain credit card insurance plans that will cover the risk of any loss due to fraud and identity theft.
Credit card protection involves some simple procedures and observances. Make sure that you have put your signature on the back of your credit card along with the letters CID (see ID). This prompts the merchant to verify the signature against an Identification. Always store your credit card in a safe place and do not loan it out to anybody. If you find that your card is missing, immediately report it to the credit card company and give instructions to stop its validity.
Credit card protection involves your alertness while making a transaction. Make sure that the clerk swipes your card in front of you and does not make repeated swipes. If he has swiped more than once always ask the reason for it. Most frauds can happen when you are using your credit card online. To prevent any dangers always use your credit card only on websites which are secure. You will see a lock icon on the bottom line of your browser which indicates a secure site. A better way of credit card protection online would be to buy a prepaid credit card for a certain amount. In this way you have a chance of losing only the amount you have prepaid and not your credit limit.
It is important that you never divulge your credit card information over the phone to unsolicited callers. This is one of the most prevalent ways of identity theft and one should always be vary when someone is asking for your credit card details, when you are not shopping.
There are many different types of credit card protection insurance plans and you can choose the one which best suits your need for risk coverage. It is important to read all the terms and conditions thoroughly before opting for these plans.