How safe are credit cards?

I have always thought that credit cards were relatively safe. I guess I felt this way because before the cashier swiped the card for payment, the consumer’s signature was checked against some form of identification.

I felt this security feature made it harder for persons who steal or find lost cards able to use them and make fraudulent purchases.

I wondered though how many stores regularly check the customer’s identification to make sure it matches the name and signature on the card. I decided to test my theory by offering a few stores an identification that was that of a relative while making credit card purchases.

In many cases, it was only after I informed the management, so that I could present my correct identification, that they realized that the name and signature did not match those on the card.

After I explained my ‘mistake’ they were quite understanding and seemed to dismiss the incident.

What seemed worse was that some cashiers I gave the credit card did not even ask for identification, they just took the card and proceeded to deduct the cost of the purchase.

There were however, some conscientious persons at some stores who carefully examined the card and ensured that the card’s signature was legitimate.

So my little experiment proved that there are no guarantees of safety, so if your card is stolen or lost it can be used by unscrupulous persons to make purchases. If the loss of the card is promptly reported to the bank, a stop order can be put into effect which will prevent anyone from accessing your funds. Card centres lines are open for 24 hours so they can provide you with assistance until you are able to speak to a banking representative.

Unfortunately, in the digital world even the safest banks are vulnerable and can have their systems compromised. When this happens, the bank will promptly locate the affected customers. In some cases they will re- issue cards to customers to prevent any access to their account.

So are credit cards safe? I think they can be if used responsibly.

What do you think? Let me hear from you!

Tags: card, credit, protect, rates, safety, security