Credit Card Safety Tips

Credit card safety begins with knowing yoru consumer protections under the law.credit card and hand image by Warren Millar from Fotolia.com

Learning how to safely use your credit card will protect you and your family from negative financial consequences. When you use a credit card, you can become the victim of crimes, such as identity theft and fraud. The U.S. Federal Trade Commission is one public agency that provides tips for using your credit card safely, such as what to do with lost or stolen credit cards, how to prevent credit card fraud and how to avoid identify theft. (See Reference 1)

Card Protection

According to the FTC, consumers can reduce the chances of credit card fraud and other problems like identify theft by signing the credit card as soon as it arrives in the mail. Once the credit card is in your possession, you should store the credit card number and expiration date in a safe place. You should also record the contact information for the credit card company, i.e. the address and phone number. If your credit card is lost or stolen, this information will assist you in contacting the credit card company immediately.

Consumers must also protect their credit card information in paper form. In addition to stowing safely the record of credit card information described above, you should also use other precautions. Shred your old credit card statements before placing them in the trash, and store credit card receipts in a secure place with other credit card records. Destroy any carbon receipts and incorrect receipts.

To protect your credit card information, you should also take care to engage in safe transactions. For example, do not give out credit card information over the phone or online without proper precautions. Online Onguard is another government website featuring tips for safe use of your card when you shop online. This website recommends never paying by email and researching the reputability of an online vendor before supplying credit card information online.

Online Onguard notes using your credit card or charge card to pay for online purchases includes protection under the Fair Credit Billing Act. If you use your credit card to pay online, you enjoy the right to dispute charges for certain situations. (See Reference 2) Filing a dispute with your credit card provider means the provider must withhold payment until the charge is investigated. You may also receive further protections from the online vendor's website and from your credit card company.