No matter how smart credit card thieves get, it’s important for all cardholders to practice some basic credit card safety habits to avoid credit card fraud.

How to Avoid Credit Card Fraud

Don’t loan your credit card to anyone. First, you can’t be sure they’re only going to charge what they say they will. If they overspend with your credit card, you’re ultimately responsible. Second, no one will be as careful with your credit card as you will. It’s never a good idea to let someone else use your credit card.

Always make sure you get your credit card back from cashiers and waiters. Double check your purse or wallet before you leave the store or wallet to confirm your credit card is back in your possession.

Don’t give your credit card number out over the phone unless you initiated the call to the customer service number listed on the back of your credit card. Some credit card thieves trick you into giving out your credit card number, expiration date, or security code by posing as your credit card company or another business you trust. Avoid giving out your credit card number to anyone who calls saying they’re from your credit card company. Instead, hang up the phone and call your card issuer using the number on the back of your credit card.

Don’t enter your credit card information in any email link. Credit card disguise emails to make them look like they came from your creditor. These emails typically encourage you to visit your card issuer’s website to resolve an issue with your credit card. If you click on the link, the email may look just like the real thing, but it’s probably fake. A credit card thief is simply trying to steal your login information by getting you to login to a fake site. If you suspect something is wrong with your credit card, either call your card issuer’s customer service or visit your card issuer’s real website by typing in the URL yourself.

Report address changes to your credit card issuer immediately. Your credit card billing statements include your credit card number. Not only that, if you order a new credit card and it goes to your old address, the new residents (or anyone else) could use the card. Whenever you move to a new address, let all your current billers know your address is changing. You can file a change of address with the postal service to have all your mail forwarded to your new address.

Never sign a blank credit card receipt. The cashier has the ability to write in any amount and send it through to your credit card issuer. It’d be hard for you to dispute the charge because, after all, the merchant as a copy of the receipt with your signature on it. If you’re given a blank receipt, write in the total amount and draw a line through any blank spaces. Ask for a copy of the receipt for your records, just in case you’re billed for a different amount.

Watch your credit card during transactions. Cashiers sometimes use a credit card skimmer to capture your credit card information. The device can easily be hidden, so if you look away for even a moment, your credit card number, security code, and expiration date can be stolen.

Shred any credit card applications you receive. Don’t simply toss them into the trash because dumpster divers can get them and apply for credit in your name. You should also shred your billing statements before putting them in the trash.

Keep your credit card number hidden when you’re using your card in a public place to keep thieves from taking a picture of your credit card with a camera or camera phone.

Never write your credit card number on the outside of a postcard, envelope, or any other piece of paper that will leave your possession. If there are documents with your credit card number on them inside your home, store them in a safe place, or shred them immediately.

Recovering From Credit Card Fraud

If you think you have been a victim of credit card fraud, contact your credit card issuer immediately. The sooner you let your card issuer know your credit card information has been stolen, the less financial responsibility you’ll have for fraudulent charges.

Monitor your billing statement closely and report any errors as quickly as possible. If you have the ability to check your credit card transactions online, login every few days to make sure no one is using your credit card.

While you still have your credit cards, write down your credit card issuer’s phone number and your card number for each of your credit cards. Store this piece of paper in a safe place and refer to it if your credit cards are ever lost or stolen.

Related posts:

1. How to Respond to Credit Card Fraud
2. 10 Ways to Avoid Credit Card Debt
3. 9 Smart Ways to Use Your Credit Card

Disputing a Credit Card Billing Error

The Fair Credit Billing Act, FCBA, is a Federal law that gives you the right to dispute credit card billing errors with your credit issuer. To exercise your rights, the purchase in question must be for more than $50 and it must have been made in your state or within 100 miles of your current billing address. Before you submit a billing error dispute, first try to settle the issue with the seller.

To dispute a credit card billing error, you must send a letter to your credit card issuer 60 days after the billing statement with the error was mailed to you. The credit card issuer must receive the letter within the 60-day window.

When your letter disputing the billing error, make sure you include your name, credit card account number, the date and amount of the charge you’re disputing, along with a description of your dispute.

Your billing statement typically includes two addresses, one for sending payments, another for correspondence. Send your letter to the address marked for correspondence. Your dispute letter may not be processed if you send it to the payment address. If you can’t locate an address for correspondence, call your card’s customer service and ask for it.

You don’t have to pay the disputed amount while it’s in the dispute process. Your credit card issuer can’t take adverse action against you including charging a late fee, raising your interest rate, or reporting late payments to the credit bureau. The credit card issuer can, however, add a statement to your credit report indicating you have disputed your billing statement. Under the Equal Credit Opportunity Act, other creditors can’t deny credit because you’ve disputed a bill.

Sample Billing Error Dispute Letter

Date

Your Name
Your Address
Your City, State Zip Code

Creditor’s Name
Creditor’s Address
Creditor’s City, State Zip Code

Dear Sir or Madam:

I am writing to dispute an error on my billing statement in the amount of $_______. This amount is incorrect because {give an explanation of why there is an error.}

Please correct this error and any related charges and send a corrected statement to me.

I have included copies of {include a description of any documents you’ve included to prove the disputed item is in error.}

Sincerely,

Your Name

Send your letter via certified mail with return receipt requested so you have proof that the letter was mailed and received within the 60-day window. Keep a copy of the letter for your records. If you send any supporting proof, like receipts or cancelled checks, make sure you send copies and keep the originals for yourself.

What Does Credit Card Issuer Do Next?

Once your credit card issuer receives your billing error dispute letter, they’re required to write back within 30 days letting you know your letter was received. Then, the credit card issuer will do an investigation to determine if the item you’re disputing is actually an error.

The credit card issuer has 90 days to give you a final answer, which could be one of these things. First, your card issuer could correct your bill by removing the charge you disputed and any finance charges or fees associated with the disputed item. Or, they could tell you the bill is correct and let you know why. You’ll be responsible for paying the charge and any finance charges.

Can I Dispute the Error Over the Phone?

You can call your credit card issuer to resolve the error, but to protect your rights under the FCBA, you must follow up in writing. Otherwise, if the dispute time limit passes and your card issuer doesn’t correct the error, you may have no recourse. Your credit card issuer will still be able to charge you for the error. If you refuse you pay, you could be penalized with late charges, an interest rate increase, and a negative credit report entry.

What Types of Errors Can Be Disputed?

There are several different types of errors that can appear on your credit card statement. Here are the ones that are protected by the Fair Credit Billing Act.

• Any unauthorized charges made on your credit card. You could be liable for up to $50 in charges if your credit card was stolen. However, if only your credit card number was used, you will not be liable for anything.
• Any charges that were sent through with the wrong amount.
• Any charges for good or services that weren’t delivered at all, weren’t received as promised, or that you didn’t accept. You cannot dispute credit card charges because of the quality of goods or services received.
• Any math errors, like fees that were added incorrectly.
• Payments, credits, returns that weren’t posted to your account correctly.
• Failure to send billing statements to your current mailing address as long as you sent an update of your address in writing 20 days before the billing period ended.
• Any charges that you’ve asked for an explanation or proof of purchase.

Related posts:

1. How to Handle Credit Report Errors