Preventing Credit Card Frauds

Credit card as the name suggests is a way of payment by using the plastic cards, which are issued to the individuals for making the payment. A credit card enables the individuals to buy anything without having to pay in cash. The individual does not need to carry on cash in their wallets. A credit card also allows an individual to get out of the emergency situations. Thus, we can say that in today's fast moving world, it is almost impossible to conduct a business in a very competitive business environment.

There is no doubt that the credit card has made the life of the individuals a lot simpler than what it used to be many years ago. The credit cards have now become an essential part of the individuals. However, the low security of the credit cards has given rise to the credit card frauds. Nowadays, in modern world there have increase in number of credit fraud cases. A credit fraud is basically an act of making the purchases by using the credit card information of another person. A credit card fraud costs millions to losses to the credit card providing companies. It is in the hands of the individual, how he prevents his credit card from the fraud. He has to take proper care while using the credit cards. Therefore, it is only in the hands of the credit card holders the safety of their credit cards.

One of the most common type of credit card fraud that is more prevalent today is Internet order or online credit card fraud. When an individual uses their credit card online then there are chances that your credit card information can be stolen by the hackers. Sometimes, a fraudulent mail is sent to an individual asking them to update their credit card information. This fraudulent mail is prepared in such a manner that it looks like an original and official mail. The hackers in this way acquire the credit card information and use it for selling the information or for making any purchases. The individual must make proper enquiry before passing on the credit card information to these sites.

The cases of skimming are also growing in large numbers. There are millions of credit card fraud skimming cases all over the world. Credit card skimming is a worldwide problem. When an individual makes the purchases in shops, stores, etc they hand over the card to the store employee for the purpose of paying the bill. The store keeper besides swiping the credit card for your payment may also swipe the card on a very small device known as skimmer. A skimmer is basically a device that can easily store hundreds of credit card information.
The credit cards can also be misused if they are stolen. The individual in the event of the stolen credit cards must immediately call the card issuing company and report the event. Nowadays, many banks have their own call centers to prevent credit card fraud wherein the individuals can call anytime for the free credit card fraud help in the event of stolen credit card fraud.
Credit Card Fraud Tips

Here are some various tips for the credit card fraud protection:

• Do not lend your card to anyone.
• Do not sign a blank charge receipt.
• Do not leave your card or receipt lying around.
• Do not pass on the credit card PIN number to anyone.
• Do not write down the PIN number on your credit card, memorize it.
• Do not give your credit card number to the telemarketers unless you are sure they are a reputed company.

Frequently Asked Questions - prepaid credit cards

Question 1: What do you understand and mean by prepaid credit cards?
Solution: The prepaid cards are most widely used cards in which a limited amount of money is loaded on them. An individual can only spend the amount money that has been loaded in his prepaid card. An individual has to again reload the money in the card by depositing a certain amount of money in his prepaid account.

Question 2: How can an individual get a prepaid credit card?
Solution: It is very easy for an individual to get a prepaid credit card. All he has to do is to open a prepaid credit account with the bank. After opening a prepaid credit account he has to deposit a certain amount of money that he intends to spend. The bank issues a prepaid credit account to the individual after he has deposited the money in his prepaid account.

Question 3: Are the prepaid credit cards safe from theft or fraud?
Solution: Yes, the credit cards are normally completely safe from theft or fraud. The prepaid credit card can be blocked if any instance of theft has been reported. In some of the acute cases the card providers refund all the money to the prepaid credit card holders if in case the thieves manage to use the card of the individual.

Question 4: Can an individual with bad credit history with the bank get the prepaid credit cards?
Solution: Yes, it is very much possible for an individual with not so very good credit history with the bank can acquire the prepaid credit cards. For this purpose he has to open a credit account with the bank, deposit money and use the prepaid credit card.

Question 5: How do the prepaid credit cards work?
Solution: When an individual purchases anything from any store or shop then he gives the card to the cashier of that particular shop. The cashier in turn asks for PIN number of the card from the individual. After getting the PIN number the cashier swipes the card and returns it to the card holder along with the payment slip.

Question 6: Can the prepaid credit cards can be used to buy the products online?
Solution: Yes, the prepaid credit cards can also be used to purchase the products online. For this purpose an individual has to fill in a form known as check out with the important information related to the prepaid credit card. However, it is very much required that an individual must have enough money loaded in prepaid credit card if he has to shop online.You should check first if you are buying a airline ticket as some airlines ask for Credit card proof when boarding.

Question 7: What are the benefits of using prepaid credit cards?
Solution: There are various benefits of using a prepaid credit card. An individual can buy anything with the help of his credit card. Also he can create and control his budget since he can spend only a limited amount of money.

Question 8: Why do the parents use the prepaid credit cards?
Solution: The parents use the prepaid credit cards so that they can control the spending habits of their children. Sometimes, they provide prepaid credit cards to their children's in order to teach money control lessons.

Choosing a Prepaid Credit Card

Choosing a Prepaid Credit Card

An individual before choosing a prepaid credit card must keep certain factors in mind. First of all he must analyze the option of reloading. He must check whether he can reload his prepaid credit card from the bank or he can do it online. Secondly, if he can keep a check of his credit card transactions online or not. Thirdly, he must see if the bank provides a twenty four hour service for reloading money in case there is an emergency. Lastly, what type of protection does the bank provides to you when it distributes the credit card.

Companies Providing Prepaid Credit Cards

There are many companies, which provide prepaid credit cards. Some of the companies are listed as follows:

* Green Dot Corporation : It is one of the largest corporations of America that provides prepaid credit card products to the millions of people.
* FNDS3000 Corporation : It is one of the reputed corporations of American whose only purpose is to provide prepaid credit card and various other facilities to the people. Till now it has provided prepaid credit card facility to over one billion people.
* Western Union Prepaid Visa Card (http://www.westernunion.com/info/osPrepaidMC.asp): It is a corporation that provides money transfer services and prepaid visa card services to the people.
* American Express Merchant Services : It one of America's most renowned corporations that provides prepaid credit cards, prepaid gift cards, etc to the people.
* PrivaCash : PrivaCash is also an American corporation that is affiliated with one of the largest corporations of America known as GreenDot. Just like GreenDot its main function is to provide prepaid credit card services to the people.
* Ecount : Ecount is a debit account that comes preloaded with the prepaid MasterCard. It allows the prepaid credit card users to send and receive cash with the help of Email and shop safely online.
* Wired Plastic : WiredPlastic is a Visa prepaid credit card. It is one of the fastest means of acquiring money through any of the financial institutions of the world.
* Westfield Gift Card : It is a gift card that is provided through the American Express. One of the significant advantage of Westfield gift card is that it can used in any of the geographical nations of the world.
* International Money Transfer (http://www.imtcard.com/): It is a worldwide leader in providing the prepaid credit card services to the people. It has his own card known as IMT card that can be used anywhere in the world. One of the main motive of this corporation is to provide world class and high standard of prepaid credit card services to the people.

Prepaid Credit Cards

Prepaid Credit Cards

A prepaid credit card is a card that contains an amount of pre-loaded value. In other words, a prepaid credit card holder can only spend the amount or balance that has been preloaded in the card. It is also most commonly known as stored-value card. He cannot spend beyond the preloaded value. The facility of credit and overdraft is not provided on these types of prepaid credit cards. An individual can use the prepaid credit card for buying the groceries, paying bills, transferring money to the family and friends and withdrawing cash from the ATM.

How to Get Prepaid Credit Cards

An individual interested in getting a prepaid credit card must first open a prepaid credit account in the bank by depositing some money into that account. The process of opening and depositing the prepaid credit account with the bank is same as opening the savings account in the bank. The individual is issued a prepaid credit card once he has deposited the money in the prepaid account. The prepaid credit card account holder can use the card anywhere. It is just same as using a regular credit card. The prepaid credit card holder cannot spend any more until he makes further deposits into his prepaid credit account into the bank.
Working of Prepaid Credit Card

The money is loaded on to the prepaid credit card by the bank. When a prepaid credit card holder uses the card to purchase something then he has to hand over the card to the cashier of the particular shop. The prepaid credit card holder is then asked to enter the PIN number of the card or he is made to sign the payment slip. With the help of the signatures in the payment slip the signature of the prepaid credit card holder is matched that is on the back of the prepaid credit card.

If an prepaid credit holder wants to shop online with the help of prepaid credit card then he has fill a form or popularly known as check out page with the essential details related to prepaid credit card. The website checks if there is adequate amount of cash with the prepaid credit card holder. However, the website must be authorized if it wants to check the availability of balance of prepaid credit card.

Benefits of Prepaid Credit Card

A prepaid credit card provides various benefits to the individuals. One of the greatest benefits of the prepaid credit cards is its availability. It means any individual get the prepaid credit card if it does not have a very good credit record also. It also helps the individual to control his daily spending since he has only a limited amount of money that he can spend. Also one of the significant benefits of prepaid credit card is that an individual can use at any ATM's of the world.

Types of Prepaid Credit Card

The prepaid cards are gaining popularity nowadays because they are safer than cash, quick to use, etc. There are also a various types of other prepaid products that the prepaid credit card includes. Some of them are:
· Prepaid Gift Cards: Prepaid gift cards are those cards, which can be gifted to someone else by reloading some amount of money in it. Some of the banks also provide the facility of customizing the prepaid credit card designs so that they can look more attracting when gifting it to someone else.
· Prepaid General Purpose Cards: Prepaid general purpose cards are those cards through which an individual can use it for purchasing any type of products. He can also use the card in order to pay his bills also.
· Prepaid MasterCard: The prepaid MasterCard's are those cards that enable the individuals to share the money with family and friends, both here and abroad.
· Business Credit Cards: The business credit cards are those cards that are issued to large corporate houses and business people so that they can easily manage their business expenses.
· Anonymous Credit Cards: Anonymous credit cards are those credit cards that are issued by the bank to those individuals who want to shop privately on the web or make any transactions online.
· Secured Credit Cards: The secured credit cards are those cards, which guarantee a definite approval of prepaid credit cards even if an individual does not have a very reputed credit history with the bank.
· Prepaid Debit Cards: The prepaid debit cards are that type of cards in which the balance of the individual is drawn out for the every purchase made by him.

Who Needs a Prepaid Credit Card?

There are several sections of people who need a prepaid credit card. Some of the people who need a prepaid credit card are:
· Parents: Nowadays, the parents use the prepaid credit card facility in order to teach children's how to manage money, create budget, etc. Parents also provide prepaid credit cards to their children's in order to ensure that they will overspend as they will only be able to spend the amount of money that their parents have deposited in their prepaid credit account into the bank.
· Budget minded people: Obviously, there are large sections of people those who want to control their spending in this rapidly growing inflation. With the help of credit card the people can control their spending because they can spend the money that they have deposited in their prepaid account.
· Students: The use of student prepaid credit cards is generally very prevalent among the students nowadays. The students use the prepaid credit cards to learn the credit building ability and also learn good money management skills.
· People with poor credit record: An individual with not very good credit history with the bank can also apply for the prepaid credit card. All an individual has to do is to open a prepaid credit account in the bank, deposit money into it and use the prepaid credit card up to the amount loaded on to the card.