Understanding Credit Cards

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Forums › Finance and wealth management › Understanding Credit Cards

Possum

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#67304 30-Aug-2010 21:43

Hi

I did some business with a overseas web host which I left. I just received an email from them explaining that my card was about to expire even though I do not use them anymore..

Is there a New Zealand Forum where I can get advice about money and credit cards.. I think I need to know more about how these things work..

Thank you..

uDoPage

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#374543 30-Aug-2010 21:52

I am sure we are able to offer some useful advice. What would you like to know?

Ragnor

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#374582 30-Aug-2010 22:51

If you used your credit card to pay for hosting it was probably setup so they automatically charged your credit card each month. They would have recorded the expiry date so they know not to try and charge an expired card and they can notify you to enter your new card.

When you cancelled/closed your account they probably forgot to remove the record that is used for the expired card notifications or their system has a bug where they didn't remove your details from their credit card expiry notification system.

Possum

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Master Geek

#374595 30-Aug-2010 23:25

thx heavenlywild. Yes Geekzone is a great place for advice..

Ragnor Yes.. you are right. They didn't bill me when I would have been due. So all is well. But I do worry that my credit card number is out there.

I wonder if I should change my number once a year perhaps. Just so I can sleep better..

Thank you..

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Ragnor

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#374606 30-Aug-2010 23:46

Credit cards are generally very good at protecting you from fraudulent use

eg: http://www.visa-asia.com/ap/nz/cardholders/security/zero_liability.shtml

Couple of personal examples

Last year when Wilson Parking (I used to park in the Wilson Car Park in Newmarket) had credit card numbers stolen from their database I had a call from Visa informing me they were cancelling my card and sending out a new one before the breach was publicized in the news and before any fraudulent charges were made using my #

When I was on holiday in Egypt I ran out of cash one day with no where nearby to change a travellers cheque so I used my Visa for a few purchases. I received a call within a day that there was suspicious activity (they have systems that monitor this stuff) on my # unless I happened to be in Egypt which I was heh.

It's good to be careful, but it's a waste of effort to be too paranoid imo.

richms

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#374634 31-Aug-2010 02:38

why would having it out there affect your sleep, the bank is the one that loses out not you.

If it was a debit card, then sleep loss is highly recommended, but for a credit card, no who cares, the more that fraud happens the sooner banks will have to bring out something that is actually secure. Not that I am condoning not caring about the number.

Richard rich.ms

Possum

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Master Geek

#374635 31-Aug-2010 02:54

I listen to a podcast called Security Now. It's scary what happens to people who let there guard down.

I check my cash about 3 times a week so I will quickly know if my card has been accesses.

Also recently there have been cases of iTunes accounts being accesses and this has effected NZers. With no come back. But I don't know if that involved credit cards.

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richms

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#374639 31-Aug-2010 03:14

If its on your credit card and you didn't make the purchase, you don't have to pay any more than $50 - that's in the contract. I have never heard of anyone even having to pay the $50 in any case.

Until the losses from fraud exceed the cost of replacing a system only needing a 16 digit number and a date to charge a credit card, banks have no incentive to replace it.

Have many cards, so if something happens to one you still have others to use while the sloth like banks sort themselves out, other than that stick with paypal online since you are not giving your card number to third parties, dont leave your card with shop attendents. Make a scene if a place has a non self swipe eftpos terminal and that should make you safer than most people out there.

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Bung

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#374665 31-Aug-2010 08:08

richms: Until the losses from fraud exceed the cost of replacing a system only needing a 16 digit number and a date to charge a credit card, banks have no incentive to replace it.

Why would the banks replace one of their excuses for the high interest rates

"Banks are making a killing on credit cards. Mortgage interest rates have edged down but interest rates on credit cards have barely moved. Banks are now receiving a bigger margin on credit card interest than at any time in the past 10 years."

mentalinc

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#374722 31-Aug-2010 09:48

I recently made 6 purchases for exam fees on my card 2 in the morning and then 4 in quick succession in the afternoon for myself and some friends at work.

ASB bank called me to check they were legit purchases within 20 minutes of the 4 I purchased in the afternoon.

If something funny or not in your normal spending pattern with your credit card the bank will know about it well before you do and should call to confirm they are legit purchases.

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eracode

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#374738 31-Aug-2010 10:20

mentalinc:
If something funny or not in your normal spending pattern with your credit card the bank will know about it well before you do and should call to confirm they are legit purchases.

That's correct - and for that reason, if you are planning to travel overseas (whether holiday or business) you should let your bank know in advance where you are going and when. Reason is that if you are using the card in NZ one day, and the credit card gets used in Bangkok or somewhere the next day (by you), if the bank can't get hold of you to confirm that it's you using the card, they are very likely to 'block' your card, rendering it unusable. Banks have quite sophisticated software that detects that a card is being used outside of its usual location.

Once a card is blocked, it can't be unblocked. This is a very good reason for taking a spare 'el cheapo' card with you when you travel, and keep it in a different place to your main card, so that you don't lose both at the same time. If your preferred card gets blocked or lost, you still have another card to fall back on.

Sometimes I just sit and think. Other times I just sit.

PenultimateHop

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#374742 31-Aug-2010 10:30

Possum: But I do worry that my credit card number is out there.

I wonder if I should change my number once a year perhaps. Just so I can sleep better..

Thank you..

Personally I wouldn't worry, although I have a few colleagues who do something similar: all recurring bills are on a card which is not used for in-person or online transactions, and every few months the used card is cancelled and replaced this minimizes any risk and removes the inconvenience of having to change card numbers all over the place. Potentially a good idea particularly if you travel all over the place.

Amex makes this setup quite easy by issuing two cards to you for your account.

PenultimateHop

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#374743 31-Aug-2010 10:33

eracode:
mentalinc:
If something funny or not in your normal spending pattern with your credit card the bank will know about it well before you do and should call to confirm they are legit purchases.

That's correct - and for that reason, if you are planning to travel overseas (whether holiday or business) you should let your bank know in advance where you are going and when. Reason is that if you are using the card in NZ one day, and the credit card gets used in Bangkok or somewhere the next day (by you), if the bank can't get hold of you to confirm that it's you using the card, they are very likely to 'block' your card, rendering it unusable. Banks have quite sophisticated software that detects that a card is being used outside of its usual location.

Once a card is blocked, it can't be unblocked. This is a very good reason for taking a spare 'el cheapo' card with you when you travel. If your preferred card gets blocked or lost, you still have another card to fall back on.

On the other hand, I travel constantly and never tell my banks where I'm going. They also never call me....

Temporarily blocked cards can almost always be reactivated later, unless they were cancelled as a bulk cxl due known compromise.

eracode

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#374764 31-Aug-2010 11:10

PenultimateHop: On the other hand, I travel constantly and never tell my banks where I'm going. They also never call me....

Temporarily blocked cards can almost always be reactivated later, unless they were cancelled as a bulk cxl due known compromise.

Yeah - well perhaps you have just been lucky to date. I know lots of people who have had happen what I describe above. Just because it hasn't happened ... etc - a bit like insurance.

Regarding reactivating blocked cards, your important words are 'almost always'. It's not always true and and a blocked card is a royal PITA because a new card with a new number needs to be issued. I know people who have had cards blocked, then contact the bank after the event and reactivation was not possible.

Sometimes I just sit and think. Other times I just sit.

PenultimateHop

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#374780 31-Aug-2010 11:22

eracode:
PenultimateHop: On the other hand, I travel constantly and never tell my banks where I'm going. They also never call me....

Temporarily blocked cards can almost always be reactivated later, unless they were cancelled as a bulk cxl due known compromise.

Yeah - well perhaps you have just been lucky to date. I know lots of people who have had happen what?I describe above. Just because it hasn't happened ... etc - a bit like insurance.

Regarding reactivating blocked cards,?your important words are 'almost always'. It's not always true and and a blocked card is a royal PITA because a new card with a new number needs to be issued. I?know people who have had cards blocked, then contact the bank after the event and reactivation was not possible.

Or perhaps it simply doesn't happen as often as people speculate. I live almost entirely off my credit cards and travel more than 200 days a year and have done for the last 6 years. I can think of only one occasion in that time where a credit card was questioned by an issuer, and it wasn't blocked.

I've had reason to temporarily block cards (misplaced wallet, etc) and no issuer has had issue with placing a temporary block and then reversal. Amex did get angsty about this once but they dealt with it.

PenultimateHop

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#374783 31-Aug-2010 11:23

P.S. The most common form of credit card fraud in my experience is taxi drivers, especially in Australia.

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