Credit cards have helped make life easier, especially with the convenience they offer in acquisition of goods and services. Most purchases today have been restricted to payments only via credit cards. As a result, an overwhelming increase in credit card transactions have been experienced in the world over. However, this has placed credit card users as potential victims of credit card theft. Advancement in technology among other things have sophisticated credit card theft and fraud to another higher level. Therefore, many players in the sector have been trying to come up with ways to enhance credit card protection, in an attempt to curb the vice once and for all. Theft and fraud happens at different situations depending on the use of the credit card.
To start with, credit card theft is most common at the point of purchase and payment of goods and services. Either by error or otherwise, it is very easy to lose money in your credit card at this critical point of using your credit card. The cases mostly reported vary in terms of complexity and intent of theft. As a result, credit card purchase protection has really stood out as a remedy to save the situation. Efforts by the sellers of products, credit providers and security agencies have really been of so much benefit.
For instance, credit providers and financial partners such as banks have developed their systems such that, after paying your bills using your credit cards, the money does not directly get transferred to the sellers' bank immediately. However, it is held in a suspense account for at least 24 hours. During this period of time, you can make any payment reversals if anything including fraud is noted in completed transactions. Through the above mechanism, credit card payment and purchase protection is assured to the users, reducing the cases of loss of money through fraud and theft at points of purchase and payment.
Credit cards insurance
Insurance companies have also not been left out in enhancing credit card defense. As an additional service to customers, they have come up with credit card protection plans. In these plans they offer cover for any loss associated with your credit cards either partially or wholly. Like any other type of cover, life or general, clients pay monthly premiums for their credit card defense insurance covers and receive compensation in case of loss as agreed on in the insurance contract. This is common especially with the big corporates or individuals with high cash liquidity. It is a very expensive method of credit card protection, but totally worth it incase of threat.
Goverment provides security for your credit card
The government being the overall security provider, is tasked with the burden of ensuring safety of you and your property. Finances being a pertinent issue on the subject, the governments in the world over have legislated consumer credit protection laws, which offer a state backing on the safety of your money. These laws range from description of different forms of credit frauds and the consequences there after, responsibilities and rights just to mention but a few. These laws are enforceable in a court of law offering supporting to the victims in instances of dispute. In addition, infrastructural security mechanisms such as complex security systems offered, security personnel, cyber theft police special departments, all there are measures by governments to improve credit card protection.
Card consumer protection should also be taken as a personal responsibility by everyone. Ensuring you have secure and unique authorization passwords returning expired credit cards, checking to confirm payments et cetera, are some of the ways that you can ensure that credit card protection becomes a collective responsibility.