Posted by Peter Brady on Wed 30th August 2006 at 07:00 AM, Filed in Credit Tips, Fraud
There are over a 100 million debit, credit, and store cards in circulation around the UK. Therefore opportunities for fraud are huge. Chip and Pin is having an impact but fraudsters are beginning to fight back with ever more elaborate scams.
One well known trick is for fraudsters to copy a card when they swipe it through a bespoke card reader. Criminals are then able to reproduce the card. There have been a number of reported cases recently of card readers being fitted to ATM’s in combination with a small camera so that your card cannot only be replicated but used with it’s Personal Identification Number (PIN).
Various initiatives are launched each year to make counterfeiting more difficult but nothing can ever be full proof.
A few simple measures you can take to help prevent fraud are:
1. Never lose sight of your card.
2. Never write your PIN down.
3. If you have trouble memorising your PIN a useful trick can be to create a story around the numbers. Alternatively, you can simply change your PIN to a year in your life that has significance - not your birthday or wedding anniversary!
4. Always make sure no one is watching when you enter your PIN - however difficult or embarrassing it maybe.
5. Always corroborate your receipts with the card statement, then destroy them using a cross shredder.
6. This is easier said than done, but you should always report lost or stolen cards as soon as possible.
Posted by Peter Brady on Tue 29th August 2006 at 07:00 AM, Filed in Credit Tips
Checking your statement is a pretty boring job and can be difficult to fit into a busy schedule. However, errors do occur, fraud is on the up and double billing does happen, so it is always worth giving your statement the once over. Nowadays, online statements make this task a little easier. If you are suspicious of certain transactions on your account, always corroborate their authenticity with the credit card company.
Always thoroughly check your statement after a holiday. Tourists are natural targets for fraudsters so it pays to be vigilant.
The other thing to keep an eye on is your credit card’s interest rate. Subtle increases can really begin to add up over several months and banks tend to feed on apathy, so be on your guard.
Posted by Peter Brady on Mon 28th August 2006 at 07:00 AM, Filed in Credit Tips
Credit cards have long offered you a little more protection than your average debit card - but why is this?
Quite simply Section 75 of the Consumer Credit Act is the statutory instrument that specifically gives you added protection when paying with a credit card. Under the law you can make purchases between £100 and £30,000 on a credit card and claim from the credit company if something goes awry. Pre paid deposits on your credit card can even entitle you to a refund of the entire cost of the goods from the credit card company. This offers unrivalled protection against goods failing to arrive, damaged goods and non functioning goods.
In essence, the Credit Card company is compelled to act as a protective buffer, should the supplier not fulfil their side of the bargain. This provides important protection/extra comfort when buying significant purchases like holidays or cars.
Many credit card companies offer various types and levels of free insurance on purchases. These can include:
- Price protection - if you buy something that is later reduced in a sale or you find it cheaper elsewhere, you can claim back the difference, within a specified time period.
- Purchase protection - if you buy something on your card that is lost, damaged or stolen at a later date, you can reclaim some or all of the cost from the card company. This can be useful extra cover for fragile or high-value goods.
- Travel accident insurance - this pays out lump-sum benefits if you are killed or seriously injured while travelling in transport paid for on your card. As there is no medical or baggage cover, don’t confuse this with full travel insurance.
- Online fraud guarantees and Internet delivery protection - stops you from being liable for any fraudulent spending on your account while ‘distance shopping’ via mail, telephone or the Web.
It can vary, but some credit card companies charge an additional fee for insurance cover. Bear in mind that any additional fee devalues the worth of the insurance.
As always, thoroughly check the insurance policy small print for any loopholes or restrictions.
Many credit card offers incorporate complex loyalty reward schemes. However, fathoming how that really translates into value overall can be literally impossible.
Nonetheless, points, cashback, VIP perks and Air Miles are increasingly offered in an effort to attract customers. It’s not surprising that this is happening when you consider all the research pointing towards customers prioritising loyalty rewards as one of the principal factors influencing their choice of card.
Many cards are starting to link up with store cards such as Nectar, Tesco Clubcard and Boots Advantage Card which can really help rack up some worthwhile rewards. Incidentally, Boots Advantage has long been demonstrated to offer the best loyalty rewards, so combining that with a credit card could be a shrewd move.
Common sense tip with all this is that you ensure the monthly credit card bill is reimbursed in full. If you don’t you can forget making any serious gain in either cashback or loyalty rewards.
