It may seem second nature to give your credit card number over the phone.
But whether it's because you are making a purchase or just simply verifying card information for the person on the other line, it's worth taking some precautions beforehand.
Below, CNBC Select reviews the four tips you should consider when providing your credit card number over the phone.
Our 4 tips for giving your credit card over the phone
There's a reason why businesses often add on a convenience fee to your purchase when you make it over the phone. For them, there's higher risk that the consumer on the other end is a fraudster using a stolen credit card, and it's harder to verify your identity when you are face-to-face at the cashier checkout.
But as the consumer, you should have ways to protect yourself as well. Here are some things to consider before and after you give your credit card number over the phone.
- Unless you initiated the phone call, never give out your credit card number: This may seem like common sense, but it can happen all too easily and quickly. No matter how legitimate the call may seem, you should verify who the caller is and, if you want, hang up and call that organization back to see if they did in fact call you.
- Find a private space to make your call: When you do make a call and are expecting to provide your credit card number over the phone, go to a private area where no one can overhear you. If you are in a public space and can't find a quiet area, wait it out or see if you can instead transact the purchase online. Check out CNBC Select's tips for safely using your credit card online here.
- Have the merchant confirm your purchase at the end of the call: Before hanging up, have the merchant on the other end confirm the amount of your purchase. When booking a reservation with your credit card over the phone, have the merchant read back to you the itinerary, such as when booking airfare or a hotel stay.
- Review the charges on your account immediately after: It's smart to habitually review your credit card charges, but even more so after you've given your credit card number over the phone. Make sure you look over your account to see your purchase was charged properly and that there are no unrecognizable transactions.
What to do if you see an unauthorized charge on your account
The first step you should take when you see an unfamiliar charge on your credit card account is to immediately call your card issuer so you aren't responsible for it. Credit card transactions that you make over the phone have the same protection as those you make online or in person at a store. The law limits cardholders' liability to $50 under the Fair Credit Billing Act (FCBA) for any unauthorized transactions on your account so you will want to make sure you report them.
Cardholders of the Alliant Cashback Visa® Signature Credit Card, rated our best cash-back credit card, receive Visa's $0 fraud liability guarantee. Likewise, the Blue Cash Preferred® Card from American Express, rated our best grocery rewards credit card, offers fraud protection on top of zero liability. Terms apply.
Many of the best credit cards offer security in times of unusually high concern like the current coronavirus pandemic. And currently the three maincredit bureaus— Experian, Equifax and TransUnion — are offeringfree weekly credit reportsto American consumers. You can access yours atAnnualCreditReport.comthrough April 2021.
Information about the Alliant Cashback Visa® Signature Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
The four steps involved in a credit card transaction are authorization, authentication, batching, clearing and settlement, and funding. How to use a credit card for an online transaction? There are a few simple steps that you need to follow to do an online transaction using your credit card.
What are the 4 things to consider when looking for a credit card? ›
Here's a checklist of some things to look at when you choose a credit card:
- Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don't pay the whole balance off each month. ...
- minimum repayment. ...
- annual fee. ...
- charges. ...
- introductory interest rates. ...
- loyalty points or rewards. ...
- cash back.
The four steps involved in a credit card transaction are authorization, authentication, batching, clearing and settlement, and funding. How to use a credit card for an online transaction? There are a few simple steps that you need to follow to do an online transaction using your credit card.
What rule should you follow about giving your credit card number out over the phone? ›
Our 4 tips for giving your credit card over the phone
Here are some things to consider before and after you give your credit card number over the phone. Unless you initiated the phone call, never give out your credit card number: This may seem like common sense, but it can happen all too easily and quickly.
Should you give credit card security number over phone? ›
Don't provide your CVV when using your credit or debit card in person. Don't make payments over the phone with your credit card, unless you make the call directly and know it's a trusted vendor. Scammers have been known to cold-call victims to perpetrate financial fraud.
What are the 4 C's of credit are? ›
Character, capital, capacity, and collateral – purpose isn't tied entirely to any one of the four Cs of credit worthiness. If your business is lacking in one of the Cs, it doesn't mean it has a weak purpose, and vice versa.
What are 5 tips for effective credit card use? ›
- Pay on time. Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. ...
- Stay below your credit limit. ...
- Avoid unnecessary fees. ...
- Pay more than the minimum payment. ...
- Watch for changes in the terms of your account.
What do the first four digits of a credit card mean? The first four digits are part of the BIN or IIN, a six-digit number that identifies the card issuer. These numbers contain valuable information about a credit card. The first digit of a credit card specifies the card's payment network and industry.
How to process credit card payments over the phone? ›
How to accept payments from customers over the phone
- Set up your account. ...
- Use a virtual terminal. ...
- Take payment details over the phone. ...
- Enter the payment information. ...
- Process the payment. ...
- Provide a receipt. ...
- Maintain proper records. ...
- Secure data handling.
Never give out your CVV when using your credit or debit card in person. Anyone asking for your CVV during an in-person transaction could be trying to steal your information. It's only safe to give your CVV number over the phone or on a secure site. Never give out your CVV when paying in person.
If you need to send credit card information to someone, you should do so using a secure method such as a secure file sharing service or encrypted email.
What to do if you give your card details to a scammer? ›
Cyber criminals may contact you via email, text, phone call or via social media. They will often pretend to be someone (or an organisation) you trust. If you've been tricked into sharing personal information with a scammer, you can take immediate steps to protect yourself. Contact your bank and let them know.
What card details should you never give over the phone? ›
Never make your card details shown in public. Never provide your cvv number when asked on the phone or when processing a card payment in person. This is a sure sign of an impending fraud! CVV numbers are for online purchases only!
Can someone steal your credit card info from your phone? ›
Installing malware or spyware on your device
This harmful software can steal sensitive data from your devices and share it with hackers. One common type of criminal software — called a keylogger — records everything you type. This includes credit card numbers, passwords, emails, and more, and sends them to the hacker.
Is it safe to put your credit card on your phone? ›
Digital wallets like Google Pay and Apple Pay are generally considered safe because they follow the global security standards set by the PCI. In fact, they're often considered safer to use than physical cards.
What four questions should you ask yourself when considering getting a credit card? ›
To help you decide if you should opt for a card that comes at a cost, ask yourself these key questions.
- Can I afford the fee? ...
- Do the perks justify the fee? ...
- Will I use the perks? ...
- Do I already have a card with similar offerings?
When applying for a credit card, you'll need to fill out personal information that credit card companies use to check your creditworthiness, including:
- Full name.
- Social Security number.
- Birth date.
- Address (and how long you've lived there)
- Annual income.
- Current employer (and how long you've worked there)
Examining the C's of Credit
For example, when it comes to actually applying for credit, the “three C's” of credit – capital, capacity, and character – are crucial. 1 Specifically: Capital is savings and assets that can be used as collateral for loans.
What factors should be evaluated when selecting a credit card? ›
Keep these six factors in mind when you're choosing a new credit card.
- Credit Score Requirements. ...
- How You Plan to Use the Card. ...
- Fees. ...
- Annual Percentage Rates (APRs) ...
- Rewards. ...
- Credit Limit.
