Keep Your PIN a Secret to Prevent Credit Card Fraud

May 31st, 2010

It is essential to keep your PIN a secret. This helps to prevent card fraud, and ensures that you are protected by the Zero Liability Guarantee. Read on to learn all about the chip and pin system.

The chip and pin system has been introduced in recent years to combat credit card fraud, and has been very effective so far. However, writing down your credit card pin number negates the benefits of this anti-fraud mechanism.

Secure Credit Cards

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Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	13.24%	0.99% for 12 months	$55	21.49%

Benefits of the chip and pin system

The chip and pin system is a credit card anti-fraud mechanism. It was first introduced in the UK. Experts found that this system reduced credit card fraud by up to 80%, and since then this mechanism has caught on as a popular method of preventing or reducing credit card fraud.

The chip and pin system has already been introduced in Australia, both for debit cards and for credit cards. Many issuers do not issue a card without a credit card pin number these days.

Writing down the pin number

Many people find the credit card pin number quite difficult to remember, so they write it down.

If they rarely use the pin number, except for online transactions, they keep the pin written somewhere at home. However, if they use the pin number for face to face transactions, they may have it written on a piece of paper they carry in their wallets, or in their phone memory.

Writing down a credit card pin number is a very dangerous thing to do, since it leaves your card less protected. Writing down the pin number is akin to hiding your house key under a rock – your whole house is vulnerable, if someone knows where to look. Your pin number is the key to your bank account.

Sharing your card details is also a problem, since you are liable for any misuse of your card when it is shared.

Violation of the zero liability guarantee

Both MasterCard and Visa offer a Zero Liability Guarantee. This guarantee means that cardholders are not liable for any unauthorised transactions made using their card. However, if you share your card, or write down your pin number, then you violate the terms and conditions of this guarantee – which means that it no longer holds, and you will in fact be liable for any unauthorised use of your card! As you can see, writing down your pin or sharing your card leaves you vulnerable for any misuse or fraud that might occur with your credit or debit card.

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Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%