Credit Card Debt Management

In the interests of protecting against fraudulent credit card usage, many banks are getting proactive. Overseas, where the crime has apparently run rampant, banks are now blocking legitimate cards at even a hint of suspicious activity, according to an interesting new article on British financial site ThisIsMoney.

International credit card fraud has been a tremendous problem, and it’s not getting better anytime soon. Reports say the problem seems most significant in the United Kingdom — we’re talking about hundreds of millions of dollars. There are entire crime rings dedicated to this around the world, and international enforcement is difficult, to say the least. Hopefully, by the banks taking matters into their own hands, it will deter criminals somewhat. However, it can also create serious headaches for travelers.

The following steps can provide smooth overseas financial transactions:

Talk to your credit card issuer. Let them know you will be traveling and making purchases overseas. This way, they won’t be caught off guard and become unreasonably suspicious.

Mix it up. Pack a variety of debit and credit cards, and mix it up with cash for a backup plan. You might even consider a prepaid card loaded with the currency of the country in which you will be traveling, ThisIsMoney advises.

Write down phone numbers. Just in case you and your credit/debit cards become separated, write down the customer service phone numbers and keep them in a safe place. These numbers can be found on the backs of the cards or on your monthly bill. You might also want to write down the three-digit security code found on the back of your card for verification purposes, should you need to call customer service. Most should be okay with just hearing your social security number, however.

Research your company. Make sure you know your credit card issuer’s policies on card replacement and other fraud issues. It’s certainly nice to have 24-hour emergency card replacement, in the event your card is stolen or swallowed by an ATM machine.

Summer is a time for visiting family and friends, going on missions trips, traveling to faraway destinations and dream vacations, or enjoying a wedding followed by a honeymoon. In short, there’s a lot of traveling going on during these few months.

It can be easy to get caught up in the trip planning and the awe and wonder of sight-seeing, but vigilance is a must when it comes to your credit cards. So how does a person protect their information when jet-setting around the world?

The Kansas City Star has a few good tips, and below are some of the highlights:

-Report lost or stolen cards immediately. Most misuse of your card(s) will occur within a few days, so time is of the essence.

-Memorize your PIN. It may seem like a no-brainer, but there are those unfortunate few who choose to write their PIN down and keep it in a “safe place” in their wallet. Choose an unobvious PIN (i.e. not your birthdate) and try to change it up for each different card.

-Check your card after transactions, particularly in busy locations like restaurants. This will help you ensure, first of all, that you didn’t leave it on the counter/table/floor and, second of all, that the employee helping you handed you the correct card.

-Keep track of your trash and receipts, particularly when they contain personal information and/or account numbers.

-There may be card restrictions for traveling overseas, so call your credit card issuer beforehand to be sure. This will also warn them to expect to see international charges on the card so it won’t be a red flag.

Overall, traveling with credit cards in tow are just like traveling with cash in tow. Keep it close to the vest and use common sense. Your travels will be happier, and your credit report will thank you for it.

Bank of America, with its Visa partnership, was one of the pioneers. Discover and MasterCard debuted theirs in 2002 and 2003, though those products appear to be defunct now. It’s the keyring credit card, a miniaturized version that consumers have the option to receive in addition to their regular credit card. A Boston Globe article tells the tale of one suburban mom who loves the keyring card for its convenience, allowing her to leave her purse and wallet in the car.

The article also tells the tale of Bank of America’s estimates on the profit increases linked to keyring credit card use. Of course, consumer studies have shown that shoppers tend to spend more when swiping plastic instead of using cash. Amazingly, according to the Globe article, further studies have shown that consumers with the miniature plastic will spend 2 to 3 percent more than regular credit card users.

But, customer convenience and increased corporate profits aside, is this really a good idea? Hello, identity theft? Anyone? Call me crazy, but am I the only one thinking this could be a problem? The miniature credit card has apparently given way to the Speedpass, a miniature keyring device that works with the radio frequency-enabled system allowing consumers to pay with a mere swipe of their card in front of a card reader.

A lot of people already considered the RFID-enabled credit card unsafe. Despite the card’s very low frequency, some feared the emissions could be picked up any nearby identity thief with an RFID card reading device. Nevertheless, many credit card companies are making their new or replacement cards RFID-enabled, whether the cardholder knows it or not. And now that little RFID device can be on your keyring, too. According to MSNBC columnist Gary Krakow, Mobil and Exxon gas stations are on this miniature Speedpass bandwagon, and McDonald’s will also soon join in.

Remember those needlepoint keychains that said “Jesus” in a sort of puzzle form that looked like Oriental writing at first glance? They were everywhere in the 1980’s — at least in the Bible Belt, where I was raised. I’m going to go make one of those for my keychain, only it’s going to feature my social security number and birthdate in neon green. It will be safe and undecipherable because it’s a puzzle, an illusion, trickery of the eye. Probably nobody will figure it out. After all, these identity thieves aren’t too smart, you know.