December 28, 2024
Thanks to evolving technology, credit cards have levelled up big time and now come packed with features that protect your money. These security measures work in the background to keep your personal and financial data safe from cybercriminals and fraudsters. Let’s explore the key safety factors that make credit cards a secure way to pay.
EMV Chip Technology
The small chip on your credit card isn't just for show – it's EMV technology. Unlike magnetic stripes, which transmit the same data each time, EMV chips generate unique codes for every transaction. This feature makes it harder for fraudsters to clone your card.
Example: When you pay at a restaurant using an EMV chip card, it creates a one-time code, keeping your card info safe from theft.
Tokenization
When paying online, tokenization substitutes your actual card number with a “token,” hiding your real details from merchants and hackers.
Example: Just like giving a fake phone number to protect your identity, tokenization guarantees your actual card data remains secure during transactions.
Two-Factor Authentication (2FA)
2FA adds an extra layer of security by requiring a one-time password (OTP) along with your card details. Even if someone gets your card information they won’t be able to use it without the OTP.
Example: You’re buying something online, and an OTP is sent to your phone. Without that, the transaction can’t proceed.
CVV Code
The three-digit CVV code on the back of your card is crucial for online payments. Even if someone has your card number, they can't complete the purchase without the CVV.
Example: A hacker with only your card number can’t proceed without the CVV. It keeps your card safe from unauthorized use.
Real-Time Alerts
Real-time transaction alerts keep you updated on any purchase made with your card. If you see something suspicious, you can report it immediately and freeze your card.
Example: If someone tries to use your card for something like a flight booking, you’ll know instantly and can act fast to block the card.
Fraud Monitoring Systems
Banks use sophisticated systems to detect unusual activity, like sudden large purchases or transactions in different locations. If suspicious activity is detected, your card may be blocked automatically.
Example: If your card is used in another country for instance, your bank may block it for your protection.
Zero Liability Protection
Many credit cards offer zero liability. This ensures you aren’t responsible for unauthorized transactions and gives you peace of mind.
Example: If your card is stolen and used without your permission, the bank will refund you for any fraudulent charges.
Transaction Limits
Majority of the banks offer a valuable feature that allows you to set transaction limits on your credit card. Through your bank’s app or online portal, you can easily set and modify these limits based on your comfort level.
Example: Imagine setting a limit of ₹5,000 for online purchases. If someone tries to make a ₹10,000 transaction using your card details, the bank’s system will block the transaction, stopping fraud before it happens.
Every time you swipe, tap, or enter your card details online, layers of security are activated to safeguard against fraud and unauthorized use. So, the next time you use your credit card, feel confident knowing that it’s equipped with advanced tools designed specifically to keep your money and personal information safe.
