Finding the Best Credit Card Fraud Protection

Often when there are fraudulent charges on a credit card, it is the credit card company that absorbs the loss, so it is not surprising that they offer some security options.  Not all companies offer the same security options, so do your research on credit card fraud protection and read the fine print before you choose a card.  You want a card that can be relied for prevention, detection, and resolution of fraud.

Prevention

Increased prevention methods can pre-empt a fraud event.  Look for a credit card that offers education to improve customer’s understanding of fraud prevention measures.  They should provide information about safety both online and off-line.  Cards with the best preventative measures will offer a two-factor authentication for your online account.  In addition to your password, a second authentication (usually a one-time use code sent to your phone) is also needed.

Chip-enabled cards can also help provide protection from credit card fraud.  Traditional cards use a magnetic strip with unchanging information, but chip-enabled ones generate a unique transaction code every time the card is used.  If the data is stolen from a transaction it cannot be used in another.  All credit cards should be using this technology by October 1, 2015.

Detection

Look for a credit card that lets you set up alerts for both large amounts, and when the card is used in an unusual location.  Find one that lets you customize the alerts for your lifestyle.  Some automatically decline a purchase if it is over a certain amount, others may let the transaction go through, but notify you immediately with a phone call or email.

Credit card companies can offer protection from credit card fraud by flagging suspicious transactions immediately, but you still want to check your account activity on a regular basis for anything that slips through the cracks.

Resolution

You can always call a company with questions before you start doing business with them to see how helpful their customer service is.  A company that offers good protection from credit card fraud will offer reversal of charges or a line of credit in 24 hours.  They should also have 24/7 account suspension available, and a follow-up from a customer service representative.