Credit Card Protection

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Credit Card Protection

Credit Card Protection


Updated: December 25, 2012

By
Add to Favorites:
Credit Card Protection
October
26

Probably, the most annoying thing about credit cards is an increasing number of fraudulent activities. Despite all the efforts of credit card companies, identity fraudsters somehow contrive to find ways to do their dirty deeds. Making our credit card application, it's really essential to think about the safety of our deals. And credit card companies are ready to protect us even when the worst has happened. The damages of credit card theft may be eliminated if your plastic implies zero liability policy. What is it? And how does it protect credit consumers?

Applying for a credit card, most of us don't pay special attention to the possibility of identity theft. We are likely to fix our eyes on those zero percent card rates and generous rewards credit cards. Somehow, we overlook various dangers. Fortunately enough, credit card companies try to soothe the damages of identity theft for their customers.

It's worth saying that this program is not rare. And nowadays it is offered by major credit issuers. Let's assume the worst scenario. Your best credit card has been stolen and a thief charges thousands of dollars on your dear plastic without moment's hesitation. Thanks to zero liability policy, you are normally liable only for a very small portion of these unauthorized purchases.

"Making my credit card applications, I feel quite safe," says Karen Rodgers, 32. "I have peace of mind knowing that my credit cards are protected. At least I don't have to pay those enormous sums that were spent without my consent. Otherwise, it would be catastrophically unfair!"

Actually, much depends on your credit card company. And details may vary with the specific credit issuer. You'd better look through these peculiarities in your credit card agreement. Interestingly, the main purpose of this zero liability was to motivate credit consumers to make more purchases online. However, these days this policy works perfectly for online shopping as well as for deals in physical world.

In truth, you are not the only one who is affected by the identity theft. Just imagine the losses for retailers who accept stolen cards. It is no wonder, for they have no idea that some particular plastic is stolen. They will lose the price of the merchandise. So, it's also a kind of theft for them.

According to statistics, the annual loss for American retailers amounts to about $35 billion. Shoplifting and disastrous administrative errors lead up to unfortunate results. So, the problem of identity theft appears to be a dilemma for traders as well.

Taking into consideration the fact that identity thieves are rarely caught, one may put a reasonable question, who will pay then? This problem turns out to be a vicious circle as merchants and credit card issuers are to find extra money to cover their expenses.

And consumers appear to be those very people who pay for it. In what way? Retailers will raise the prices to recover from their losses. And credit card companies will raise interest rates to compensate for those stolen cards.

But pretty soon this problem will be solved. A secure online database will allow tracking such cases nationwide. So, victims of fraudulent activity will pool their interests in order to catch thieves. And local law enforcement will handle the prosecution. This way, credit cardholders as well as businesses and credit companies will hopefully be protected from the damages of identity thieves.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading
Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading