Why the CVV code is important. At a time when everything is so digitized and data theft through internet scams is something that is the order of the day, security is a key factor in all our banking operations.
Data theft through fraud through the network, is something that happens constantly every day, and unfortunately there are not few users who fall into this type of deception. From SMS that urge us to enter links, e-mails supposedly from our bank that ask us to fill in personal data or fake access pages, are just some of the most common examples of scams that users tend to fall into.
Therefore, security is a key and indisputable factor that should not be missing in absolutely any of our financial transactions, whether online or offline. In our credit cards, a method of payment increasingly used nowadays, we find various methods to avoid identity theft or any kind of vulnerability to our plastics. The one we are all undoubtedly familiar with is the security code, known as CVV.
As we all know, it is a series of numbers that we use to validate our purchases, either through the Internet or in any physical store. It is a very short code of numbers, usually no more than 3 or 4 digits, and it should be noted that it is not exclusive to credit cards, but can also be found on debit cards or even prepaid cards.
The purpose of the CVV is to increase the security level of our plastic to prevent anyone else from using the card illegally. In addition, it is important to bear in mind that we are going to find this type of code in different ways, depending on the operation we are going to perform. For example, if we pay in a physical store, we will have to enter the 3 or 4 digits in the card reader to complete the purchase. However, if we make an online purchase, normally this digit will be found on the back of the card, and it will be the last 3 numbers on the card.
The CVV is used, as we have already said, with the main objective of keeping our transaction secure, so that only we will be able to confirm it by means of the introduction of this series of digits. For example, if our credit card were to be stolen, they would not be able to complete any transaction without knowing the CVV of the card. In any case, at the slightest suspicion of theft or disappearance of our plastic cards, it is vital to go to our bank and ask for them to be blocked to prevent fraudulent transactions from being carried out with them.
Although it is not a 100% infallible security method, it is one of the most effective to avoid identity theft and, therefore, our money.
Credit card or virtual card, which is better for online shopping? In an era so dominated by technology, we can make any type of purchases through the network. But, in addition, we have multiple payment methods available, and we can choose the one that best suits our needs and personal preferences.
In fact, there are so many payment methods that there is a great lack of knowledge on the subject on the part of users, who normally tend to use only the option that seems most convenient to them without taking into account whether there are other better ones or ones that provide greater security to the operation. For example, most users tend to use their credit cards as the only option to make purchases on the Internet, without stopping to investigate whether there are much better options.
Online card payments
There is no doubt that making a payment with a card is a very simple task, which practically boils down to entering the digits of the card in the payment method to make the purchase, when in other methods you have to register or fill in much more information and it ends up being a much longer and tedious process.
Therefore, it seems to be very clear that cards are a payment element that will continue to be part of our financial operations for a long time to come. Now, to make our online purchases, we can choose between a conventional card and a virtual one. The choice depends on our needs and the level of security we want in our transactions, among other issues.
In the case of virtual cards, they have a series of pros and cons that we need to know in depth before deciding to use them. They are used exclusively for online purchases, regardless of the format in which our bank provides them. Generally, they are usually prepaid, so every time we need to make a purchase, we will have to charge the corresponding money. This is a very important pro to take into account, since the bank is the one who authorizes the movements made with this card, and in addition we only need to load it for the purchase in question, so that the rest of the time the balance remains at 0.
As for its cons, it should be noted that it works exactly like a prepaid card to use, except that in the case of the prepaid card, it offers the option of making offline payments.
Regarding credit cards, its pros and cons are as follows: one of its biggest pros is that it gives the user the opportunity to use credit, when it should not really work that way. A much more efficient way to make use of a credit card would be through the control of the payments we make, since as we know, the use of credit can generate very worrying debts for our economic stability. As for its security level, the truth is that we are much more exposed with this card than with a virtual one, since it is directly linked to our bank accounts.
Credit card purchase insurance. Credit cards are, without a doubt, the most widely used payment method by most users, especially since the arrival of the pandemic and the problem that cash presented in terms of virus transmission.
Something that many users are unaware of, is the amount of associated insurance that their credit cards have, among which we can find basic purchase protection insurance, or some much more sophisticated for higher level cards.
Whatever our case may be, it is important to know and claim the use of these insurances, since in this way we will be offering an extra protection to our cards, as well as to the financial operations we carry out through them. Without going any further, by having a purchase protection insurance, we will have the opportunity to recover the money in the event of a fraudulent purchase, something that we would not be able to do without such insurance.
As we have been saying, credit cards are a payment tool to which we give a greater use on average. In fact, studies show that in country, most users have more cards than they should. The ideal is to have one or two cards, for example a credit card and a virtual one. However, most users have so many different cards that many of them do not actually use them.
Another of the most common mistakes related to credit cards is that we tend to choose them because of the advantages they offer in terms of payment deferment, cost reduction when withdrawing money from the ATM, or even the bonuses and discounts we can enjoy when we have them.
We pay attention to all these things, long before even paying attention to much more important elements, such as knowing whether the card in question is associated with some kind of insurance and whether it can be effective or not. For this reason, we should be much more conscious with the choice of our plastics, and pay attention to what really matters.
One of the most common insurances associated with cards, as we have already mentioned, is the purchase protection insurance, and we should be aware of certain questions about it. To begin with, it does not have the same coverage in all cases, but they all agree that they protect our card against unforeseen events, theft, fraudulent use, etc.
In order to be able to claim the use of this insurance, the bank will require you to comply with three conditions. The first one is that you must make the total payment with the card associated to the insurance, something that is vital if we want the insurance to really protect us, although it is true that there are exceptions in which we can use the card to pay partially.
The second condition is that the claim times of the particular conditions of the insurance must be respected. It is really a period of time more than high to be able to make the claim, since it usually oscillates between two and three months, generally.
The last condition is that the insurance will cover in most cases for theft, but not usually in case of theft. This means that purchase protection insurances work almost exclusively in the case of theft, so if it is theft, we will not be well protected. Therefore, we must know how to differentiate between what is robbery and what is theft. Robbery is usually a violent act in which force and intimidation are used. So, if we are robbed but these elements are not used, the insurance will not protect us against the incident.
Cards for cryptocurrencies. At a time when technology has become an almost indispensable tool in our daily lives, it was not strange to think that cryptocurrencies could go a step further and show themselves as a fully functional option to make our daily purchases through cards.
Given the importance that cryptocurrencies have been acquiring in recent years, the most important companies of the moment have decided to increase their potential. To this end, they have created various cards with which to make any type of purchase, not only on the Internet but also in a physical store.
How cryptocurrency cards work
This is possible because the cryptocurrencies will be transformed into traditional money, in addition to the fact that the coins are stored in their wallets and allow us to change currency at any time to suit our needs. The conversion system that these new plastics have is very simple: through an application that we will control from our smartphone, we can change from cryptocurrencies to traditional money or vice versa, depending on the need or the type of currency with which we want to pay.
The application of course has many more features in addition to allowing us to convert our money. Through it we will be able to control all our finances, since it allows us to link our bank details. And not only that, but it will also be possible to store in it the currencies we have available through wallets.
For all these reasons, the application is fully complete and functional for the daily use of users, since all the information is stored in one place, it will not be necessary to go to different applications constantly to check our available balance or see the status of our bank account.
In addition, it is important to note that we will be able to make payments with these plastics in any business where credit or debit card payments are accepted. Therefore, at the time of payment is to choose the type of currency with which we want to assume the payment of the product in the application with our mobile, and bring the card to the terminal to complete the action.
The key to success with this type of card is to choose an entity that has them and that is totally reliable. We cannot forget that it will be the one who will handle all our personal data and our accounts, as well as being in charge of carrying out the money conversions we wish to make. That is to say, the entity must be duly regulated by the pertinent authorities of the country to which it belongs, since only in this way we will be sure that our money is protected at all times.
If we wish to obtain one of these cards and we have found an entity that complies with the pertinent legal requirements, the time will come to share certain personal data to be able to carry out the contracting. At this point, it is advisable to review the data that are usually necessary to make the contracts, because there will be cases in which the bank wants to take advantage and obtain much more information than it should have.
As we say, it is usually necessary to give our name, our address, e-mail or our telephone number. In the case that the entity demands more information and it seems to us a suspicious act, the most appropriate thing will be to cancel the operation with this bank and to go to another one that really is reliable.
Nowadays, the vast majority of users have credit and debit cards. However, not all users know how to make proper use of them, so they end up acquiring a significant debt throughout the year with their bank, a not very pleasant situation for anyone. For this reason, below we propose a series of tips to improve the use we make of our plastics.
The truth is that there is no doubt that most users do not use their cards correctly, since, for example, they tend to abuse credit and end up acquiring a significant level of debt with their bank from which it seems almost impossible to get rid of. In order to make good use of this type of financial tool, we must be aware of its advantages and disadvantages.
Before signing up for a new credit card, you should find out which one is best for you, taking into account your financial and personal situation. That is to say, if we have found a card that meets our needs, before anticipating to its immediate hiring, we must study carefully the conditions that the entity imposes us to be able to acquire it.
This is really important, since many of them we will not even understand at first, that is why it is better to consult about them to the entity before signing anything, so that they explain everything to us and we have clear to the level that we expose ourselves with this future contracting.
As we have already mentioned, our personal situation is key when it comes to knowing the type of interest we can afford, as well as the late payment commissions we can acquire, the possible associated insurance, discounts… All these aspects must be clear to us before contracting the card, because no matter how ideal it may seem at the beginning, if we have not been properly informed, it is very likely that we will have unpleasant surprises in the future.
Once we are completely sure that the card we have found meets our needs and we can assume the obligations that the entity imposes on us, it is time to contract it. Two very basic mistakes that users often make at such a decisive moment as this is not to ask for a copy of the contract they have signed, nor to sign the card itself.
In spite of the little importance that is usually given to them, they are two very important aspects in case the plastic is stolen or some type of fraud is committed, two events that unfortunately have been increasing in country for years.
As with everything in life, it is preferable to take as little risk as possible, and although it may seem impossible that someone will steal the card or commit fraud with it, it is necessary to claim a copy of the contract and sign the plastic itself, since we do not know what problems the future holds, and in this way we ensure that we are well protected.
A widespread mistake in which almost all credit card users fall into, is to live off the credit that the plastic offers them. This is a blunder mainly because of two aspects. The first one is that by pulling the credit, in the end we assume exorbitant costs, since the card has a series of interests to be taken into account. And secondly, it is a financial tool with very little flexibility with respect to non-payments, so it will undoubtedly end up causing an over-indebtedness that is very difficult to assume for any average family.
Therefore, the use of these cards should be moderate and conscious. The user must be properly informed about them, both for better and for worse, so that an unforeseen event does not pose a long-term problem in any case.
Theft or loss of a credit card: What to do? In fact, a good part of the frauds committed with credit card come precisely from this situation, therefore, it is necessary to take into account basic questions about what to do in case of losing our card or in case of theft of the credit card.
In the last years, and fundamentally due to the improvement in the protection systems of credit and debit cards, the frauds have diminished in a sensible way, although, it is necessary to indicate that these continue being by far one of the worst problems as far as misuse and fraud financial co-producer is concerned.
Year after year hundreds of thousands of people around the world are affected by theft or loss of their credit cards which, in the best of cases, is reduced to a period of time without being able to use the card, as well as the blocking of the same, and which in other cases leads to more or less serious fraud.
The loss or theft of a debit or credit card, mainly in the second case, is a situation against which we, as users, cannot maintain full control. There are those and some recommendations that we will see later to try to prevent these situations.
Preventing the loss or possible theft of our credit card involves things that we as users can do, some of which are very simple and which only mean incorporating a series of routines when using this financial product which, on the other hand, is so commonplace for all types of users.
In the first place, when we make payments with the cards, we must not accept at all to lose sight of its use. This is basic, giving the card to a third party to pass it through a T PV is never a good idea, but it is even less so if we also lose sight of the process.
Of course we should always keep the tickets issued for the purchases or services we pay for with the cards. This is essential in case we have to make future claims against possible frauds made with our card by third parties.
Of course, the first action we must take into account is the immediate communication with the issuing entity of our cards in case of loss or theft. In many of the cards we find the telephone number to which they called already directly printed, in any case at the end of the article we provide you with a battery of contact telephone numbers according to the different card issuers.
When we take the step to communicate a lost or stolen credit card, we contact the issuer and automatically block the use of the lost or stolen card. After the step of canceling the lost or stolen card we can request the replacement of the same, here it is rare that this happens immediately, and more common that it is done after a certain period of time.
It is very likely that we may have to make some kind of documented statement about the loss or theft, in fact, the second action to take into account is to report to the police the fact, since this report will also serve us for future complex situations in case someone uses our card fraudulently.
Nowadays there is only one reality: the inhabitants of this planet depend more and more on plastic cards for their convenience, versatility and speed. This situation is accentuated during the holiday season, when we probably only carry cards in our pockets.
But it is precisely at this time of the year when the chances of having our wallet stolen or lost increase, because no matter how careful we are, sooner or later this happens. The important thing in case of theft or loss of the card is to try to keep calm and act as soon as possible. To do this, it is essential to be clear about the steps to follow, so this guide aims to clarify certain basic aspects.
The first thing to do as soon as you realize that your cards have disappeared is to cancel them or at least report their loss. It is essential to act promptly, since the longer the cards remain activated, the greater the chances that they will be used for purchases or cash withdrawals at the ATM.
To do this, do not make the mistake of going to the commercial office of the financial institution with which we have contracted the card, which will probably be closed at the time of your visit, due to its business hours. Simply put, the vast majority of financial institutions and banks offer a 24-hour customer service, often free of charge and very fast, that will be able to assist you and guide you through the process.
In case you cannot reach a manager of your own bank, go directly to the issuing company (Visa, Mastercard, American Express). If you do not have a number handy, remember that at ATMs you can find this information on their screens without having to insert the card.
You should try to remember exactly the time and of course the date when the card was lost or stolen, in order to be able to report it properly and thus limit our liability in case the card is misused at a later date. In addition, it is necessary to take note of the time and date when the call was made to the entity to request the cancellation of a card, as well as the name and surname of the person who answered the call. This information will be very useful if we need to make a claim.
If it is a robbery, it is convenient to report it to the authorities.
Remember that in these cases the most important thing is the speed with which the report is made. Once the report has been made, the free insurance included in most of the cards will be responsible for the expenses fraudulently incurred with our money.
It is important to bear in mind that most institutions can offer, in fact they do offer, insurance when contracting credit cards. However, these insurances do not always respond to the same coverages.
Insurance for theft or loss should cover any charge made to our account up to 72 hours before the notification we make to the bank after such theft or loss, but for this we must always comply with the communication in a timely manner so that the insurance assumes any expense that has been made without our consent.
In the event of card theft, summer is one of the most likely times of the year. For this reason, there are a series of measures that you should have clear and execute them to be able to prevent this problem. Keep in mind that in the case of card theft the prevention measures are the same as for any theft or robbery, here the cards, although they are a good loot for the hulls, are only a part of that loot.
The basic questions have to do with, for example, trying not to expose the cards unnecessarily, that is to say, cutting them up only when we are really going to use them and never grouped together. If possible keep this lack of grouping constant, i.e. never carry all your cards together in the same wallet. Never lose sight of your cards, not even when you pay for a service or purchase, i.e. require that the card is always swiped at the POS in front of you…
It is a matter of common sense, a bad use of the cards does not only refer to a bad use of their conditions, in general you will have to apply to the care of these products the same precautions that you would put in practice if it was a question of cash.
Credit cards are a financial product that suffers more risks and greater exposure than other products. Let’s get to know the main risks of credit cards.
If there is a financial product that has suffered an exponential growth in fraud and crime in recent years, it is certainly that of the different branches of credit cards. Although it is true that the application of new security measures has been noted for all purposes in this product, it is no less true that fraud models and technological implementations in this sense mean that the user must take special care in their relationship with the cards and their use.
In our country, which is by no means unaffected by the growth of these crimes throughout Europe, there are certain threats that are more present than others, but which ultimately require the same precautions. We will try to identify the main dangers to credit cards, as well as possible solutions and prevention models to avoid fraud.
The main card risks
In addition to the above, it is necessary to take into account crimes such as the substitution of ATM access systems as an instrument to obtain the necessary data for any of the above mentioned dangers, this is a method not so frequent, but also quite widespread during the last years.
How to protect yourself from card risks
All credit cards today have better levels of security than in the past. From the incorporation of the so-called smart chips to the immediate card blocking systems after the communication of the incident by the user. However, it is the latter, the speed of response in the event of an incident, which is particularly relevant. We must bear in mind that by applying all the security measures, if we carry out the protocol of immediate communication of a disappearance, theft or possible fraud, the responsibility derived from the misuse of the card is limited in a very notable way for the user, which can suppose a serious risk against our patrimony.
Finally, any anomalous circumstance, either at an ATM or when faced with a payment at a POS that we find dubious, it is preferable to opt for other options or even to contact the authorities if we are really convinced of the possibility of card fraud, in any case, whenever our card has suffered any incident that leads us to think of possible fraud, it is preferable to automatically contact the issuing entity and block the product.
Are free credit cards really free? Free of charge in financial products is a relative issue, a very relative issue. We would dare to say that there is nothing free in financial products, and yet we are constantly offered free credit cards. It is necessary to stop and think about what this freeness really consists of, if, we repeat, we take into account that there is nothing free in financial products.
From the outset, it must always be clear that when we talk about free of charge, we are talking about certain particular aspects of the product, generally commissions or associated expenses. This is important because no credit card offers free of charge, for example, in all its credit operations, cash withdrawals, etc., i.e. the interest, commissions and expenses associated with the operation of the card are hardly going to be part of that free of charge.
Free cards without commissions
Therefore we come to the heart of the matter, what we are usually offered as free cards are really cards to which a bonus is applied on the commissions or expenses.
Generally we will find three different models within this free card:
We will be able to find any of these options although, probably the most present in the market is the second one, that is to say, the one that proposes its contracting without issuance cost, a period without application of maintenance commissions, and the subsequent annual maintenance commission.
We can also find within this last format some exceptions or bonuses, for example those that offer us the possibility of not paying a maintenance cost for the card as long as it involves a certain number of uses, of a certain amount in a specific period of time.
Free cards and their use
We can distinguish two very different types of dynamics of use of these cards without commissions.
The first is the linked card. This is a product that is part of a set of products and, generally, its bonus in the form of the absence of maintenance and issue fees is related to this linkage. In this model we can perfectly well find the non-requirement of use to maintain the gratuity, since this is obtained through the general linkage of the user and not only for the card.
The second model, as might be expected, is the one that associates the use of the card with its free use. In other words, for the card to be used free of charge, it will have to be used either a certain number of times within a specific range of transactions, or on a specific amount set by the bank.
It is true that, on some occasions, on the contrary, it will be the card and its use that will determine the bonus on other products, for example, in mortgages where we can obtain a modification to the differential with a certain amount of money, linked through the credit card, however, this is not the case here.
Reasons to use virtual cards. Internet payment methods have multiplied exponentially with the Coronavirus crises. This is a normal response to the growth of e-commerce and its acceptance by the user. Within these payment methods, the virtual card continues to gain a very important share of the market.
It is a product that offers great advantages when making purchases on the Internet, although it is true that not all cards work in the same way.
It is really a very simple mechanism of operation. A bank card is created with all the usual data for this type of product, identification numbering, expiration date, CW2… in some cases it will be a physical card, with just one basic difference, it does not have a magnetic strip, in other cases the card will not even exist other than having the aforementioned data attributed to it.
In any case it is a product of exclusive use for purchases through Internet or remote payments, since, for example, it can also serve perfectly well for a payment via telephone of a bill.
These are prepaid cards, i.e. cards in which there will only be the available amount that we had previously charged, and therefore, in the worst case, it will not have any impact on the balance or credit of our accounts in which it is associated.
Generally it is going to be a free card, or the one that will not be charged neither maintenance cost nor subscription cost. However, at the time of requesting the contracting of one of these products, we must bear in mind that some entities charge commissions on the operations of load of the card, that is to say, every time that we recharge our card we will pay a commission offered by operation, this, we repeat, is in some offers since we will also find in the market proposals that do not require us any commission for the operations and are totally free to all effects.
Undoubtedly this is a very cheap card model, if not the cheapest. You must think that this card only works through the recharges it makes, these recharges in turn are made against your bank accounts or credit cards, but initially there is no cost or commission for the recharge so, really, you will only assume the expense you make, nothing more.
On the other hand they are not cards that come to present costs of maintenance nor of initial hiring, for which, neither in this sense they contribute more expense than any other type of card, in fact they generally contribute less.
Finally, if we think of them as an important element to be able to control our expenses much better, and therefore, to save being beneficial for our pocket, the circle closes and effectively we can speak of being in front of a cheap product and with benefits, even above the traditional debit card, since in this case the expense is exclusively limited to what is foreseen.