Let me start by saying that you must not spend more than what you can afford. Remember that credit is a loan, which is meant to be repaid. It is your responsibility to stay on top of your debts and to keep your commitment with the lenders. Maintain your control by avoiding the credit limit of your cards.
DO CHECK YOUR CREDIT HISTORY
Reality check! Credit cards with premier rewards and terms fall down to candidates with the best credit. This is why it is important to see your financial circumstance in the eyes of an issuer. Consider getting a credit report, before availing a credit card. Keep your eyes peeled to some errors!
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DO NOT PICK AN UNSPECIFIC CARD
Much like a box of chocolates, credit cards exist to embody different functions. Some are used for travel miles and others are used for shopping rebates. You must figure out which credit card suits you best! Compare credit card options from different issuers, before making a grand decision.
DO KEEP UP WITH YOUR STATEMENTS
To reap the benefits of your credit cards, you must fully pay for your statement each month. Not paying the full amount entails acquiring interest. The interest that you will be paying for will just cancel out any benefits that you are meant to receive. Moreover, paying off your statement each months ensures that you stay out of debt too.
DO NOT GIVE YOUR CREDIT CARD INFORMATION AWAY
As much as you trust a partner or a friend, you must not give your credit card information to someone else. It may entice this person to use it against the law. Say that you lent your credit card to a co-worker. While some cashiers do not check NRIC these days, you will never know when someone will ask for it. You would not want to be entangled with a “fraudulent” scene.
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DO MEMORIZE THE ISSUER’S HOTLINE
A credit card offers an additional layer of protection than a debit card. Debit cards only offer the pin numbers as protection. You see, credit card companies often have a department that follows up on reports of fraudulent charges. Things will be taken cared of, if you quickly report a stolen credit card. Thus, you must know the no-cost hotline of your credit card issuer.
Whether you are doing business online or you have a physical store, payment security is a must for you. Credit card payment is one of the popular ways for customers to pay for the goods or services that they are availing.
It is essential to your business to make sure that the credit card payment you are taking is free of fraud. Consumers who are victims of fraud purchases can file chargebacks through their credit card companies, leaving you on the losing end, especially if you have already shipped the goods.
On the other hand, you have to secure your payment system as well, so the cardholder’s information will not fall on the hands of cyber thieves.
Here are some credit card safety tips for you to minimize business’ losses:
1. Verify the issuing card company
If you are taking payments over the phone and you are unsure of the issuing card company, try a BIN lookup. Just enter the first 6-8 digits of the card number, and it will tell you the issuing card company.
Knowing the issuing card company will help you if there is a need for you to report a suspected fraud. Do not even think twice in calling the issuing bank. Fraudulent transactions will do you no good. It may look like money, but it will be reversed anyway.
2. Take advantage of an Address Verification System (AVS)
Credit card companies and issuing banks cooperate with merchants to check whether the submitted billing address by the customer matches with the address on their end. Major card companies such as Visa, MasterCard, American Express and Discover Card support AVS.
If you are using a payment processor, talk to them on how to integrate and implement AVS on your payment processing.
Briefly, though, this is how AVS works:
When you make the AV request, the first 4 to 5 digits on the street address and the zip code will be checked against the address on file at the bank. For instance: 1238 Main Street, Main USA 98763. What will be checked are “1238” and “98763.”
There will be six return codes for the check namely: full match, partial match address, partial match zip code, no match, international, and unavailable. You will receive one of these codes.
A full match is ideal as it comes with less risk. If the shipping address matches with the address on file at their issuing bank, then it is harder for the customer to dispute the transaction.
Maintain a secure network
Invest in high-grade encryption especially that you are processing payments. In doing this, you are not only protecting your business but also your customers’ information.
Apart from encryption, there are other ways to secure your network:
Install anti-malware software especially those that can run in the background.
Update your tools regularly so weak spots will be fixed.
Utilize layered security measures like using strong passwords and two-factor authentication.
Always be watchful of the different fraudulent schemes of these con artists.
Be PCI Security Compliant
The Payment Card Industry has set some guidelines on how to secure cardholders’ information. You can read the details of these guidelines on the PCI Security Standard Council’s website.
Take some time to read the guidelines so you can implement the security measures recommended. These measures suggested will keep the acceptance and transmission of cardholders’ information safe. Being compliant to these is one of the best ways to combat credit card fraud.
5. Be critical of customers’ purchasing behavior
As it is essential to secure your payment system technically, it is equally important for you to be vigilant on customers’ behavior.
These are few things to be watchful of on your customers:
Multiple items in an order especially if it doesn’t make sense.
Multiple orders on the same day.
Orders coming from countries you unusually get orders from.
Big items such as tv’s or laptops.
You can require additional identity verification for unusual purchases. Customers will appreciate your effort as you explain to them the purpose of what you’re doing. After all, it is for their own safety, too.
Maintaining the safety of credit card payments and making sure that you are taking payments from the legitimate cardholders will not only ensure that your business is profit-wise, it will also safeguard your reputation.
As an entrepreneur, you cannot afford to lose some profit to con artists and tarnish the reputation you are working hard to build. Carefully examine your current payment system and make the necessary changes if needed.
There are many benefits to having and using a credit card. From enjoying cashback and discounts to chalking up air miles for your next holiday, the credit savvy are charging everything to their credit card.
When used wisely, it could actually help you save money while letting you enjoy the perks exclusive to the cardholders.
And for a limited time only, receive up to $500 cash, vouchers, cash backs and more when you apply for any of the selected credit cards before 30 November 2018.
Though created differently, all credit cards have a limit. The credit limit dictates the maximum amount an issuer allows a borrower to spend on a single card. Ideally, your balance should fall below the limit. You see, maximizing your credit card can hinder you from making additional charges.
Employ these tips to ensure that you spend less than your credit card limit.
#1: TRACK YOUR SPENDING
It goes without saying that awareness of your spending habits will help you control your credit card usage. Monitor your billing statements by checking your balance in the bank’s online app or website. Staying on top of your spending will help you foresee any event leading up to going beyond your limit. Thus, you must adjust your expenses accordingly.
#2: CHECK YOUR BALANCE REGULARLY
Before making a purchase, check your available credit balance using your bank’s mobile app. If your credit card issuer does not have an online app, call the bank instead. You can find the contact details at the back of your plastic card.
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Doing so lets you determine whether you should postpone your purchase or to pursue the checkout counter on the spot.
#3: DO NOT INCREASE YOUR LIMIT RIGHT AWAY
Say that you have been constantly spending beyond your credit card limit. You may think that the logical step to take is to ask for a limit raise. However, asking for a limit raise within six months of receiving it can indicate that you are having financial difficulties. Issuers may be less willing to trust you with more credit.
Waiting for bank to automatically increase your credit limit is the best option. This way, you will be able to employ strategies dedicated to spending within your means.
#4: STICK TO THE THIRTY PERCENT
The easiest way to stay within your credit card limit is to provide a cushion. Keeping a cushion of about 30% of your actual credit card limit helps you avoid going overboard. For instance, Mary has a credit card limit of S$5,000. She must not swipe her card after hitting the S$3,500 mark.
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This threshold must apply to all of your credit cards and not just the banks you owe huge money too.
Like a tempting box of chocolates, all credit cards are not made the same. Be sure to shop around and to compare cards of similar types. You must know the necessary requirements, sign-up offers, rewards program, and other perks that come with it. Some cards may offer free airport luggage, while others may offer car rental insurance. Choose the benefits that suit your needs.
2. ARE YOU ELIGIBLE?
Applying for a credit card is a straightforward process that requires basic information such as your NRIC and primary address. Know which information and documents are needed to apply for said credit card. For security purposes, some institutions may extend their research by knowing your mother’s maiden name.
3. IS IT BETTER TO APPLY FOR A CREDIT OR DEBIT CARD?
The most significant difference between debit and credit cards is protection against fraud. If someone makes a fraudulent charge with your debit card, the money is directly deducted out of your bank account. It may take weeks to get a refund. When it comes to a credit card, you can dispute that the charges never left your account.
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Other benefits offered by credit cards include extended warranties, rewards programs, and return guarantees.
4. WHAT ON EARTH IS A CASH BACK?
Credit card companies offer different programs for redemption. When a credit card company gives you a certain percentage of what you put into your card then, that is called a cash back. You may be able to use this as a credit toward your current statement, to purchase gift cards, to get discounts when you shop online, or to deposit the money back to your bank account.
5. WHAT IS A STATEMENT CREDIT?
The positive amount on your credit card bill is called a statement credit. If you unintentionally overpay, many credit cards will apply a statement credit toward your future purchases. The act of applying for a cash back to a statement credit may lower your balance.
