Getting to know Your Card’s Security Features
If you could pinpoint the single biggest fear all credit card owners have, it is the idea of their card or their card number being stolen. It isn’t just the feeling of being violated and the thought of charges being rung up in your name (that you probably won’t have to pay for if you report your card stolen quick enough) it is that a single stolen card can lead to identity theft, which can be a life-altering problem. Let’s take a look at some of the security features your card has on it and see how much they help you keep your card number safe.
The original security feature on a credit card is the white strip on the back that is for singing your name. Credit cards have come with this signature strip for decades, and attentive sales clerks have foiled millions of unauthorized transactions by checking the name on the front of the card, checking the signature strip on the back and then comparing the signature to the one on the receipt that the customer has to sign. The major problem with the signature stripe is that for every one transaction that we perform where the sales clerk actually checks the signature, there are probably 10 where they don’t. Most clerks are making minimum wage (or close to it) and have to deal with people all day long that want instant service. If the clerk doesn’t check the signature, that security feature is essentially useless. And it also doesn’t prevent a card being used over the phone or online.
The card industry has confronted this challenge and they have come up with the CCV number. CCV stands for Credit Card Verification and it is a three digit number that appears on your credit card that most online and over-the-phone retailers now ask for as part of your credit card transaction. For users of Visa and MasterCard, the CCV number is the last set of numbers on the white signature stripe on the back of the card. If you use American Express, the CCV number is on the front of the card, usually underneath and to the right of the actual credit card number. The CCV number was instituted to stop people from stealing credit card numbers. This way, having the number and the expiration date isn’t enough to complete a transaction over the phone or online, you would need the additional three numbers. The CCV numbers, however, don’t impact an actual stolen card being used in person, it would only stop online and phone theft.
There are other security features on your credit card, too. The credit card company will assign you a four digit PIN to use if you want a cash advance off of your card. The card company will take special care not to mail you your cash advance PIN with your credit card. The number is mailed separately, usually a week or two after your card is mailed. You can call your card company and change your PIN to something that would be easier to remember once you get it, but it does a great job of preventing someone from getting cash from your card if you lose your wallet or purse. You should never, ever have your debit card PIN or your credit card PIN written down anywhere near where you keep your cards. If you can’t remember the PIN the card company gives you, change it to something you will.