Credit Series:
The Plastic Dilemma
Dr. Jo Turner
Professor, Family and Consumer Economics
How many credit cards do you carry in your wallet or purse? According to a recent American Bankers Survey 8 out of 10 US Households own one or more credit cards with the average family owning nine credit cards. Bank, stores, airlines, oil companies and travel and entertainment companies issue credit cards. Only one-third of card users pay off their balances in full each month.
New on the market is the "SMART CARD" which is a combination of a credit card, driver's license, health care ID, telephone card, etc. At the University of Florida students are using the smart card to pay tuition, borrow books from the library, rent videos, buy meals in the cafeteria, and gain access to dormitories and online study groups.
The credit card and smart card are different from the debit card. The debit card electronically subtracts from your account at the moment you buy goods and services. Debit cards are becoming popular. Last year it was estimated that 9.4 million transactions using 353 million debit cards was worth $368 billion.
The following tips will help you protect your cards (debit and credit) from theft or fraud.
Never leave your cards unprotected on a counter, in a hotel room or in a car glove compartment. A card lying around is equal to a $50 bill or a signed $50 check.
Wait to present your card until the sale or service has been completed. And always be sure that it is your card that is returned. Read the receipt slip carefully before you sign. Be sure the total amount equal what you actually purchased. Never sign an incomplete or blank sales slip.
If an error was made on a sales slip, be sure it was destroyed before you sign another.
Save the receipt to compare with your monthly statement. When the statement comes in, go over it carefully with the receipts in front of you. Are there charges you did not make? Is there a billing error? If there is, follow the directions for a contested bill and immediately contact the card issuer explaining what you believe to be wrong.
When you pay your monthly bill, write your card account number on the check. Otherwise, if your name is common, your check could be credited to the wrong account.
Keep a list of all your card account numbers in a safe place at home along with the phone numbers of the issuers. Periodically check your cards to be sure they are where they should be. When carrying your cards, keep them separate from your personal identifications if possible.
If you move, give the issuer your new address promptly. If you don't, renewal cards could be sent to the wrong address and could be lost or stolen.
Always notify the card issuer if a renewal or new card doesn't come in a reasonable time.
If you lose a card or if it is stolen, report it to the issuer by telephone. Follow immediately with a written notice. Keep a copy of the notice for yourself. Include your card number and when and where you think that you lost it.
Should you find your missing card later, promptly report this to your issuer. Ask whether you could continue to use it or destroy it and wait on a new card.
For more information contact your local county Extension office.
Reference: Kapoor, Dlabay, Hughes. Personal Finance (6th edition) 2001
Note: This information is primarily intended for FCS County Faculty use in Newsletters and other media.
