Questionable credit charges
People love to use credit cards because of the convenience they offer. Thieves find them attractive for the very same reason. There are definite ways to protect your cards, and should they be lost or stolen, or to contain billing errors and questionable charges, including unauthorized charges, and problems from cybershopping, you do have recourse.
The first thing that you will want to do is to protect yourself against loss or theft of credit, is to sign your credit card immediately, and this way no one else can use it. File the papers that come with your card in a safe place.
• You must protect your credit cards in the same way as if they were cash. Just like cash, credit card numbers are targets and stolen.
• When your credit card has a PIN (personal identification number), keep your PIN separate from your credit card and file it separately.
• Do not give your account number to anyone else. If you choose to give your credit card number or expiration date over the telephone be certain that you are dealing with a reputable company.
• Do not write your account number on the outside of an envelope or on a postcard.
• Draw a line through blank spaces on charge slips above the total so the amount cannot be changed.
• Keep a copy of sales slips and compare your credit charges when you receive your monthly statements. If you should find any questionable charges or errors, report these, in writing, to the card issuer, within 60 days, otherwise you will have no recourse.
• Keep a detailed record of your credit card numbers, their expiration dates, and the telephone number for each credit card company in case of an emergency such as reporting lost cards.
• Carry only the credit cards that you use on a regular basis, especially when traveling.
• Never give out additional personal information when you use your card for purchases. Merchants cannot ask for a driver's license number or phone number as a condition for accepting your card. All that is required by law is your signature.
• Never use a credit card as personal identification. Your credit privileges and history should be kept private and not placed at risk.
To dispute a charge: • Write to the creditor, immediately and include your name, address, credit card number, and a description of the billing error. Follow the instructions as they are given on the back of your billing statement.
• Send your letter as soon as possible. You must notify the card issuer in writing within 60 days after the first bill containing the error was mailed to you. In your letter, include your name and account number, the amount of the error, and the reason you believe there is an error. The card issuer will then investigate the problem and either correct it or explain why the original bill was correct. The issuer's response must occur within two billing cycles but no later than 90 days after the issuer receives your billing error notice. While you are not responsible to pay the amount in question during the investigation, you are still responsible for payment on the remaining balance.
Unauthorized Charges
If your credit card is used without your authorization, you can be held liable for up to $50 per card. If you report the loss of a card before it is used, the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you will owe is $50.
Cybershopping—Protect Yourself Online
Whether you're interested in clothing, electronics or any other purchase, online shopping can give you the ultimate in convenience and choice. Should you decide to pay by credit card, your online transaction will be protected by the Fair Credit Billing Act just in the same way as any other transactions are. But before you visit your favorite online store, be certain that you are protected.
Your first cause for concern will be with the security of your connection and your browser. Unsecured information sent over the Internet can be intercepted by virtually anyone. That's why a secure browser—one that encrypts or scrambles purchase information—is important. If you're unsure if your browser is secure, check with your Internet service provider.
When you're ready to place your online purchase, be careful to understand the information you are asked to provide. Information such as your Social Security number or your mother's maiden name are not required by law and so you should be skeptical if asked. Cancel any shopping orders immediately if you doubt your security level. Better safe than sorry.
Signing Up for a Card Registration Service
Take good advantage of offers for credit card registration services. These are a good idea and are offered either for a fee or as a customer benefit. When you do suffer a loss or your card is stolen you will have a good recourse. Simply calling the service, and each issuer of your credit cards will be notified. When you do look carefully at the benefits and terms you can opt for the one that will best suit your needs. Remember to carefully read the service contract. At this time you can check the company's obligations as well as your potential liability to them.