Over recent years credit card fraud has become a major problem, and the level of card fraud, particularly CNP fraud, which is card not present fraud, has been rising.

Card not present fraud is, as the name suggests, fraud that affects transactions where the card does not have to be physically presented such as with telephone and online purchases, where the card details are provided but no card is actually seen by the seller.

Because credit card fraud with CNP transaction has become so prevalent more and more people are becoming nervous about shopping online with their credit cards, according to recent reports. The research showed that one in every three people knew someone that had been the victim of card fraud, and this increased their wariness when it came to making credit card transaction online themselves.

In fact, it has been found that over half of the population is nervous about using their credit cards online, and given this information some officials are questioning whether those that are wary about online credit card transactions could benefit from using a prepaid card rather than a regular credit card.

One official said: “Prepaid cards allow such people to be part of the modern day ‘plastic culture’ which allows you to take advantage of online shopping discounts as well as access to hugely popular sites such as eBay.” He added: “The risk with a credit card is that the fraudsters will be able to max out your card, where a prepaid card is almost like a pay-as-you-go mobile phone. The only money that can be stolen, is the money you have loaded on. And unlike a debit card, a prepaid card does not have any link to your bank account or address, so the chance of fraud is next to none.”

You can compare prepaid cards to find those that offer lower or waive the usage and loading fees.

However, there are also disadvantages to using prepaid cards over credit cards. Firstly, you may find that you have to pay charges for using your own money, which can be somewhat offputting. Another downside is that with prepaid cards you do not get the benefits that you get with many credit cards such as section 75 purchase protection (which can be protection from fraud if you are missold an item or it never gets delivered), the interest free credit that you can get on credit cards or the rewards that can be earned on some cards.

For those that do not want to give up these benefits the key to avoiding fraudulent activity may simply be to ensure that you are careful about your credit card details, and this means not saving account details and passwords on websites, not saving account information on shared computers, and not falling for phishing scams, where you link to a website or bank via an email that has been sent to you.

You should also never give out your card details to someone on the phone if the call was not initiated by you, and don’t give your card details to strangers who stop you in the street or come to your door claiming to be selling something, as you never really know who you are giving your details to. With some simple and sensible precuationery steps you could minimise the risk of card fraud without having to opt for a prepaid card and lose the benefits of a traditional credit card.

Credit cards are all the rage these days but it can be dangerous if you keep spending and spending while not knowing that you will end up paying really high bills each month. So that you can manage your money better, you might want to look into prepaid options instead.

Prepaid cards are simple to use in that you just have to load the card up with cash and then use up that cash using the card just like any other credit card. It works by debiting the balance that you put in it and once it’s finished, just load the card up again. This is effective because you won’t end up with monthly bills from the credit card company and that means you are never in debt.

Other reasons for getting a prepaid card include not having to carry around so much cash with you. A credit card prepaid option means that even if you lose the card, you can replace it with another one and you won’t lose any of the money that you have in the account. Also, since it is a prepaid card that holds your cash, you don’t have to worry about being charged any interest rates. That is a really big advantage since you can spend your money in the card to the very last cent. And, of course, you can use this card to buy things on the Internet and wherever else you feel a card will be best to use instead of cash.

In today’s society the convenience of credit cards are making them more and more popular, this means that more people are apply for a card to make purchasing both goods and services much easier. This can actually be a difficult task because you generally need to have good credit and a reasonably high and stable monthly income so the bank will be confident with your ability to pay back your debt on time. Unfortunately, there are people that do not meet these requirements and get rejected by the financing companies. For them there is an alternative to a traditional credit card in the form of a prepaid visa. This can be used as practice to owning a more traditional card and will teach you the right way to use credit without any negative effects when you make a mistake.

Maintaining Good Credit Standing

In today’s world of finances it is vital to keep your credit rating as high as possible so lenders will be confident in your ability to own and use a credit card responsibly. It is actually better to begin making good financial decision early in your adulthood so when it comes time for you to own a card you will have the proper understanding of your finances and can make responsible financial decisions. A good way to practice this is by using a prepaid visa; it will allow you to make mistakes when it comes to figuring out your budget without having a negative effect on your credit. That way you will be more confident in your abilities when it comes time for the more traditional lines of credit.

Increasing your Debt History

When it comes to debt in general life will inevitably get in the way which may force you to increase the amount of debt that you owe. Things such as purchasing vehicles, homes, or emergencies that may arise can all lead to a very large amount of debt that can become overwhelming if you let it get out of control. This can also have a negative impact on your creditworthiness which will make it more difficult when you need access to more funds. If you have more debt than you can pay back it will make you life more stressful and it will be difficult to get your finances back on track quickly.

This is why it is important to begin with a good credit score and to maintain it religiously. This is also where they lessons learned from having a prepaid visa card will come in handy, because it will have already taught you what you will need to know when it comes to budgeting your finances. A good credit rating is a must if you want to get a credit card or any other type of loan that you may need. This also means that you will be able to get better rates or even a higher credit limit on your credit card as opposed to someone who has less than perfect credit.

Be a Responsible Credit Owner

It is no secret to have a better credit rating you need to be responsible when it comes to your finances. A prepaid visa credit card will give you the tools you need to learn how to manage your money better, so that when it comes time to get a credit card you will not become overwhelmed. Being responsible when it comes to managing your money will allow your lending institution to see that you are a credible individual and that you will have the money or resources that you will need to pay back your debt on time.

It is no secret that a visa card can give you limitless possibilities or purchasing power, but with that comes a great responsibility to manage your debt wisely. If you do not want to constantly see debt in your future then it will allow you to consider what you are spending more carefully, which will allow you to maintain a good credit score. This will give you far more advantages in the future than one credit card can, but it is a starting place for everyone.

In this series we are going to cover one of the biggest problems all over the world. Credit card fraud.

For those who may not exactly know what credit card fraud is, a simple definition. Credit card fraud is the act of making a purchase using someone else’s credit card information. Sounds like something that should be difficult to do. Unfortunately, it’s not.

There are many types of credit card fraud, the most common we’ll cover in this article.

First there is what is called “mail non-receipt fraud” which is when a new or replacement card is sent by the bank and never received by the person it was supposed to go to. This has been mostly combated by the banks sending out inactive credit cards where the person has to make a phone call in order to activate the card. Otherwise it can’t be used. Unfortunately there are some banks that do not do this and still send out cards that are already activated.

Then there is what is called “chargeback fraud” where a legitimate cardholder uses the card to purchase goods or services. Then when the statement comes they call the credit card company and claim they never received the item or service or that they never authorized the transaction.

Another type of credit card fraud is called “skimming” where an employee or merchant makes a second copy of the person’s credit card details before processing the payment. This copy is then sold on the black market to professionals who clone illegal copies of these cards. Fortunately, skimming has become less of a problem since the introduction of CVV and CVS codes. These are not encoded on the card strip but are physically written on the back of the card. This is a required three digit code to finalize all transactions. Without this code even a cloned credit card will not work.

Skimming at ATMs has also been a problem. What the illegally set up ATM machine does is place a skimmer device somewhere in the machine that reads the magnetic strip attached to the card. This is used together with various devices that monitor the keypad of the ATM by attaching a fake fascia over the original keypad. Fortunately, this is not as common today as it was years ago when ATM machines were relatively new.

Then of course there is “online credit card fraud” which is the most common type of credit card fraud today with all the transactions that people do each day. This type of fraud gets a little complicated but simply stated, when a person uses their credit card online, hackers monitor the person’s entry into the merchant’s system and essentially steal the credit card information without the person having any idea this is happening. Another way to get a person’s credit card info online is to send an official looking email telling the person that they have to update their credit card info. They are sent a bogus link to go to where the info is collected and used for whatever purpose the scammer wants, whether to sell the info or use it to make purchases himself.

In the next article in this series we’ll go into credit card fraud into more depth.

Most people got accustomed to use credit or debit cards in daily life. But very often things happen when you need cash and no card can help you. Let’s say you are going to visit a veterinary clinic with your dog and, of course, need to pay for the consultancy of a veterinarian. But you know that credit cards are not accepted at the place. So, you should think about payment beforehand. What to do?

Credit card companies and banks know about these sudden needs of the consumers and offer them with the cash advance option. It allows the cardholder to convert some percentage of the credit limit to cash money. Therefore those, who need cash as soon as possible and have a credit card, can use the option of cash advance to their advantage because it is one of the fastest ways of getting money.

Cash advance is taken out on your plastic or credit limit and can be a half of it or even more. You can get cash in the nearest affiliated ATM, write special checks for cash advance, or go directly to the bank or credit company and present your card in person. What way of getting cash suits you the most is for you to decide.

This option is really a good way of getting cash but expensive. Before applying for cash, spend some time to count all the charges in order to know for sure whether or not cash advance option is beyond your purse because it includes cash advance fee, have no grace period, and higher interest rate in comparison with purchases. As for a cash advance fee, it is a fee that you pay the bank for using the plastic to get cash money. The fee can be deducted from the cash advance at the time of money withdrawal. Or, you may receive a bill with cash advance fee involved.

Unfortunately, there is no grace period feature relating to the cash advance option. So, you have to start paying interest right after you get the cash and continue until the cash advance is paid up. Interest rate is one of the most important features that we first pay attention to and wish it to be as lower as possible. In case of cash advance, interest is higher than the one on purchases.
Most credit issuers apply your payments first to purchases and only then to cash advance. And you will make payments for many years in order to pay up the cash advance, if you pay only the minimum monthly

Moreover, if you are going abroad and wish to be sure that you may apply for cash advance when needed there, learn whether or not your bank offers you such opportunity or you can only apply for cash in-town.

As you see, cash advance credit cards are usually accompanied with no free period, high rates and fees and have only several advantages. All these facts can paint a sad picture with just a few rays of light but still it has benefits and is one of the most alluring options in times of cash needs.

Although credit cards are generally used for purchasing goods in shops and online, they can also provide you with the same services as an ATM. If you are short of money and a credit card cannot be used, then you can use your credit card to withdraw money from a cash machine. If you want to know more about credit card cash advance features, then here are some tips to get you started.

What is a cash advance?

A cash advance is simply when you use your credit card to withdraw funds from a cash machine. You are in effect using your credit card to withdraw an advance of cash. This money is part of your credit limit, and will show up on your statement in much the same way as any other purchase. Cash advances also include transferring balances to a debit card or other credit card.

How to get a cash advance

Most credit cards have cash advance features, and you simply need to put your card into the cash machine just as you would your debit card. Enter your PIN and then you can withdraw cash. Some credit cards also offer the opportunity to transfer part of the balance to a debit card, meaning you can use credit and change it to cash.

What are the costs?

Of course, using your credit card for cash advance features can be expensive. Your card issuer will usually charge either a flat fee per transaction or a percentage of the amount withdrawn, which is usually between 1% and 4%. Also, if you use cash machines it is likely that the owner of the ATM will also charge you a fee for using a credit card to withdraw funds, although this does vary. Another disadvantage of cash advances is that there is no grace period for these transactions, meaning that you start paying interest the moment that you withdraw the cash. However, there are a select few issuers who do not charge fees on cash advances, meaning that you can use your credit card to withdraw money without feeling the costs.

When to use cash advances?

Cash advances should be kept to a minimum due to the fact that they can cost you a lot of money, and that you are putting yourself into debt every time you withdraw the cash. However, cash advances are a great tool for emergency situations and can give you another payment option when you are out and about. Using cash advances when you are a little short of money or when credit cards are not accepted can be extremely useful. Also, balance transfers are often charged as cash advances, so remember this when transferring a balance from one card to another.

Not all of your limit

Another thing to remember with cash advances is that you usually cannot use all of your available credit for such purposes. Many credit card companies limit the amount you can withdraw as cash advances to between 50% and 90% of your total credit limit. However, if you use cash advances wisely then this will not be a problem. Although cash advances can be costly, they are an excellent tool for emergency situations and when you are short of money.