Credit card transaction
A thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that is issued by a bank or business allowing the user to do the transaction of goods and services on credit is called credit card. Credit cards contain identification information such as signature or picture, and authorizes the person named on it to charge purchases or services to his account-charges for which he will be billed monthly. Credit cards have become an important source of recognition, for example, if you want to rent a house, car, etc, you need to have a credit card.
While doing the credit card transaction the issuer lends money to the holder and it authorizes the user to revolve his balance for which the issuer charges some amount in the form of interest. Every month, the holder receives a statement indicating each and every credit card transaction for the last 30 days. In todays time when theft and other crimes are on the rise, the credit card transaction is often more secure then other forms of payments like cheques, cash, drafts, etc. A credit card transaction can provide convenience and allow you to make purchases with approximately a month to pay for them before finance charges kick in.
Features
Credit card transaction is very convenient and can be made either on phone or internet. Offered in a huge variety, credit cards are easily accessible and an easy way to track expenses with the help of which the consumer can monitor his/her personal expenditures and keeping the track of his/her work-related expenses. Today, there are many credit cards that have no annual fees but for those with poor credit. Credit card transaction also helps you get the rebate on the purchased items. With the help of credit card transactions, businesses can improve the cash flow as the payments times go from 30, 60 and 90 days down to three to five days. In addition to this, botheration of sending late payment notices will also be minimized. It is been noticed that the companies that use credit card transactions have showed good amount of sales in comparison to the companies not using this type of transaction.
Warning!
Theoretically, it is sounding good but in reality, many consumers keeps on carrying the balances on their credit card from month to month and thus are unable to take the advantages of these benefits. They finally have to pay finance charges that can go up to a whopping 23 percent. Many card holders cannot resist themselves while making credit card transaction and start purchasing even those items which they really cannot afford. They usually forget that they have to pay the money at last.
Although the numbers are rising, the card holders are still not using their credit cards on the internet nearly as much as the retailers would like. In order to maximize the credit card transaction on internet, many cyber-merchants have started offering a toll-free order number so that the shoppers have the choice of calling their order in. No doubt the cyber-shopping is very convenient -- and some people do all of their shopping online -- but credit-card fraud is always a threat, both on the internet and out in the real world. Hackers have found ways to steal credit-card numbers from web sites.
How to avoid fraud
Fraud during credit card transaction is on the rise, so you need to handle your credit card transaction with extreme care. Here goes few tips to help insure you're not the victim of thieves and fraudsters.
1. Always sign your credit card as soon as you receive it.
2. While using your credit card at an ATM, enter your PIN code in such a way that no one can easily remember the strokes of the keys.
3. Normally the card users leave the receipt behind at the ATM after using it which can lead to credit-card fraud as one can easily get your PIN and account number from the discarded receipt. If you want to throw your credit card transaction statements, or receipts then first shred them into small pieces.
4. Avoid giving your credit card number over the telephone and via fax as the faxed document could remain in sight at the other end for long periods of time. Relating to this one common scam is when someone calls you back right after you placed an order, claims to be from the merchant and tells you that there was a problem with your card number and would ask you to give the number again.
5. Always destroy any carbon paper if it is used as part of the credit card transaction. Anybody can grab it and forge your signature.
6. If you get any credit card offer saying that you can spend money up-front or in any case you are not able to make out the identity of the card issuer then never respond and always ignore them.
7. Never respond to any e-mail asking for your credit card number as it may be a scam mail. And also do not send your credit card number via e-mail to anyone.
8. Make it your habit to leave your wallet open in your hand until you get your credit card back because it is normally seen that after making a credit card transaction one forgets taking back his card. Also, make sure that you personally rip up any voided or canceled sales slips.
9. Always keep a list of all the numbers related to credit card transactions in order to avoid harassment in case you lost your card.
10. The card user gets a monthly statement of all his credit card transactions. Always check that statement thoroughly so that you can compare them with your actual transactions and can identify any errors or unauthorized charges, if any.
11. If you want to minimize the theft then always choose a credit card that contains your photograph and signature.
12. In case your card is lost, stolen, or you suspect fraudulent use, call at your company's number immediately to prevent your card from being used as little as possible. The company will immediately block its use, and you won't be responsible for any charges made by thieves.
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