The following are some facts about Credit Cards that you may not have known.
- It really does not matter if you sign correctly on the charge slip issued to you after making your purchase. Some retailers may match the signature with that on your Credit Card but most others would ignore the same. The customer cannot even dispute the transaction based on an invalid signature. What does this imply for the customer?The customer dines at a restaurant and pays through his Credit Card. The waiter takes the Credit Card to the neighbouring Vijay Sales store and purchases a television in less than a minute. The customer is liable to pay for the television. Hence it is advisable not to let your card out of your sight for as long as possible.
- A transaction can be executed over the internet with the following data which can be captured by anyone to whom you handover the card. a.Credit Card Numberb.Expiry date c.CVV NumberHowever, unlike offline POS transactions, online transactions can be disputed via a chargeback, and in most cases they are judged in the favour of the customer.
- The first digit of the Credit Card Number and the length of the Credit Card Number depend on the Association issuing the card. All MasterCards are 16 digit numbers starting with 5, all Visa cards are 16 digit numbers starting with 4. American Express and Diners Club Cards are 14 digit numbers starting with 3.
- Several Merchants (especially merchants of consumer durables) give a 2% discount if customers pay in cash. If the customer uses his credit card, then the retail outlet will have to pay approximately 1.4% to the bank as a part of the service charges. Hence most merchants are keen on passing this discount to the customer if they pay by cash. This is illegal and action can be taken against merchants who follow this practise.
- It is advisable to ensure that your card is swiped in front of you. In the event of the credit cards being swiped out of your line of sight, there is a chance of potential fraud if multiple swipes are executed on the credit card, or if the card is taken out of the outlet and swiped at a neighbouring outlet.
For details on any of the above mentioned points, you can write to me on Ask.Pranav@Gmail.Com and I will revert to your query within 48 hours.