Is Paying With A Credit Card Safe?
There has been a consistent increase in data breach cases related to credit cards in India which raises the question of whether it is safe to pay using your credit card. This has created a lot of uncertainty when it comes to credit cards. You can certainly protect your financial information with awareness, maintenance, and additional layers of protection. In this article, we have tried to answer whether it is safe to pay using your credit card.
Is It Safe to Pay Using Your Credit Card?
There is always a certain amount of risk or uncertainty associated when using a credit card to make purchases through online payment gateways or POS terminals (Payment on Sale). However, if you are cautious and use your credit card wisely then these chances of theft or fraud can be decreased.
To keep your financial data safe and secure credit cards use encryption, chip-and-pin technology, and fraud monitoring. This offers an added layer of security to the customers using their credit cards.
Furthermore, when you use a credit card to make a purchase, the amount payable to the merchant is not being deducted from your bank account. In addition to this banks offer zero liability protection cover for the customers. The zero liability protection cover offered by the banks states that the cardholder shall not be held liable for any fraudulent transaction made using his credit card.
The credit card also offers purchase protection cover to the customers on their purchases. The banks tend to extend the warranty period to the customers when they make purchases using their credit cards. This offers an added layer of security to the customer on their purchases using their credit card.
Therefore, it can be said that paying with a credit card is a safe and secure option for day-to-day transactions.
Tips to Improve your Credit Card Safety
Below are some essential tips to keep your credit card transactions safe and secure.
Secure Connection
When you make a purchase online using your credit card, it is recommended that you should avoid using public networks. Most online frauds take place on public networks shared by the general public. The majority of online frauds occur on networks that are freely accessible to the general population. Therefore, you should avoid using public wifi when shopping online to protect your account from online threats and fraud.
Change your PIN in Regular Intervals
Always remember to change your PIN at the appropriate time intervals. Make it tough for anyone other than you to access your credit card account by making it unique. Moreover, avoid using your date of birth or address as your PIN.
Avoid Sharing Your Credit Card Details
Do not divulge your credit card information, such as your PIN or CVV number, with anyone, including your bank's customer service representatives. Remember that the fraudster will phone you on your registered mobile number and ask for an OTP. Beware of such calls and report them to the bank right away.
Examining Your Credit Card Statement
Now and again, review the monthly statement that your bank provides you via email. Every transaction made with a credit card must be carefully scrutinized. The examination will assist you in determining whether any fraudulent transactions have occurred on your account.
Enable Two-Factor Authentication Code
The two-factor authentication code just adds a certain degree of security when using your credit card. Anyone attempting to access your account using your identity will be required to go through a verification process. A security question or an OTP received through SMS or email is used to verify the account.
Bottomline
Every minute, new hacking tactics are being found. Having said that, if you follow these procedures, you can protect your credit card. Moreover, these days banks also tend to offer protection covers to safeguard the cardholder against online threats and frauds.
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