QuickTips: How To Protect Your Plastic

Safeguard your cards. As soon as you receive a new debit or credit card, sign it and record your account number, expiration date, and the phone number for reporting lost or stolen cards. File this record in a safe, accessible place. To save yourself a lot of hassle if your wallet is lost or stolen, carry only the cards you need, and keep the others in a secure place.

Other cautions: Don’t give your credit card number to anyone over the phone unless you placed the call, and only if you’re sure you’re dealing with a reputable company. Be especially wary of callers who say they need your credit card or checking account number for "verification" or security purposes. And don’t loan your cards to anyone you don’t trust, since you’ll be responsible for anything they use it for. This includes a member of your immediate family who uses your card with or without your knowledge.

Keep track of your purchases and plastic. When you use your cards, make sure the total purchase amounts are correct before you sign sales slips, draw a line through any blank spaces above the totals, and don’t sign blank receipts. Furthermore, don’t let your cards out of your sight, and once you get them back, double-check that they’re yours, and take your receipts. When using a terminal, remember to remove your card along with your receipt.

Know your rights If merchants ask for personal information as a condition for accepting your card, such as your address or phone number, don’t give it to them. According to credit card regulations and some state laws, merchants are only permitted to require your valid card and your signature. Likewise, don’t give your credit card number to validate your check. A credit card number added to the personal information on your check gives thieves all the information they need to create a counterfeit card or to commit telemarketing or mail fraud. That’s why it’s illegal in many states for merchants to even ask for this information.

Save your receipts. Don’t leave receipts for thieves to find in places such as gas station self-serve machines, or in empty bags that get tossed in the trash. Similarly, if your card purchase is processed with an older machine that still uses carbon authorization forms, ask the salesperson to tear the carbon up before you leave.

When you get home, put all your card receipts in one place so you can easily find them when you get your monthly statements. When your bill arrives, compare your receipts against your statement for accuracy, and keep receipts for major purchases in case there’s a problem with your merchandise. Before you discard any receipt, first black out or tear through the account number, and shred anything with your account number on it, such as your monthly bill and the form your card came with, before throwing it away.

Protect your PIN. When you receive an ATM card, you’re assigned a personal identification number (PIN) that allows only you to access your accounts. Treat it as the key to your deposit account. If you’re allowed to choose your PIN, don’t choose something obvious like your birthday, street address, or phone number. Memorize your number, don’t write it on your card or anywhere in your wallet. Other cautions: Don’t share your PIN with others, and shield the keypad when entering it so no one can see you punch it in.

Be alert whenusing ATMs. To avoid foul play, heed this advice: Use only well-lit, well-situated ATMs, and avoid using them at night. If you feel threatened or uncomfortable by the surroundings or any people in the area, trust your instincts and find another ATM. Minimize the time you spend at an ATM by having your card ready, filling out all forms in advance, and putting your cash and card away immediately after your transaction. When using a drive-through ATM, lock your car doors and roll up all the other windows. If you use an indoor ATM that requires your card to open, don’t let any strangers through the door with you. And always remember to take your receipt and your card from the machine.

Report lost or stolen cards immediately. If your credit or debit cards are lost or stolen, or you find an incorrect or unauthorized transaction on your statement, notify your card issuers immediately. Likewise, if you don’t get your statement or card when expected, notify the card issuer right away. If you think your cards have been stolen, also promptly contact your local law enforcement agency.

If your credit cards are lost or stolen, you’re not liable for any unauthorized use that occurs after you notify your card issuer. In any case, your maximum liability is $50.

As far as your debit cards, under current federal regulations, your liability for unauthorized charges is capped at $50 if you report the loss within two business days of discovery, $500 if you don’t report it for 60 days. If you don’t report it until after that, your liability is technically unlimited. However, most debit card issuers recently voluntarily limited your liability for unauthorized charges to $50, with zero liability if you report the loss within one or two business days. The rules vary, so check with your financial institution for details.