Paying with a card

Paying with a card

Making a complaint , Paying with a card

The front of a typical debit or credit card: 1. Issuing bank logo 2. EMV chip; 3. Hologram; 4. Card number; 5. Card brand logo 6. Expiry Date 7. Cardholder’s name

The reverse side of a typical credit card: 1. Magnetic Stripe; 2. Signature Strip; 3. Card Security Code.

Types of credit card:

• Credit card

  – a card that allows holders to buy/pay even if they do not have enough funds in their bank account at the time. You are actually borrowing money from the bank to effect payments or to withdraw money. The bank will send you a monthly statement, showing what you have borrowed using your card. This total will include transactions with your card from the last statement, any balance carried forward from the previous month, and any interest charged.

• Debit card

  - a card that allows holders to buy/pay only if they have enough funds in their bank account at the time. In the case of the debit card, one is actually making purchases or cash withdrawals from one’s bank account. So, it is more a means of payment than a credit instrument. Usually both credit and debit cards allow users to withdraw money from ATMs, even though in the case of the former a charge may be imposed. You will not receive a seperate statement for using your debit card - instead your transactions will be included in your bank statement

Choosing between a credit card and a debit card

If you don’t want to incur any debts, a debit card is the suitable card for you. It is safer than carrying cash around, and the amount in your bank account is basically how much you can afford to spend.

When choosing a credit card, you must consider if it will be a temptation to spend beyond what you can afford. You must keep in mind that in the end you must always pay your bill, and the more you delay paying the more interest you will be charged on any outstanding balance.

How to use credit cards through internet

Technical and legal advice:

• Right visualisation of the padlock in the browser bar;

• The direction of the page web (URL) that appears in the navigation bar must begin by “https”, not “http”;

• Important to read and verify the privacy policy of the web through which the transaction is being conducted;

• Read the credit card contract very carefully to know your rights and liabilities that would arise from an unauthorized use of your credit card;

• Review your credit card statement monthly to verify that all the charges are correct;

• Procedure - see Module 2 for more information Reference to Module 2 - Unjustified Debit transactions

• Introduce the name of the person who is buying (and other contact information if needed);

• Introduce the name of the holder of the credit card who is going to pay (not always is the same; parents buying for their children, for instance);

• Give the number and the expiration date of the card;

• Additionally, in order to increase the transaction safety, two more data could be requested: 1. Security number from the back of the card; 2. Before ending the transaction, the web page will ask for your mobile number. An additional code will be sent immediately to your mobile, code that you have to include in order to finish the transaction. This system reduces the possibility of fraud.

Where can I use my credit/debit card?

You can use your credit card in any establishment where its use is accepted as means of payment. The key point is the exhibiting of the card logo and not necessarily the Bank that issued it you. So, you can use your credit card in several shops, restaurants, etc; around the world, even if your credit card is linked with a local bank.

Just in case you had problems with transactions made in foreign countries, you can be helped first by your Bank and, if it does not work, by the existing national complaint schemes for financial services, joined together in a cooperation network: the cross-border out-of-court complaints network for financial services (FIN-NET).

If you own a credit card or debit card keep the following points in your mind:

• Sign the card as soon as you receive it.

• Try to memorise the PIN and never write on the back of your card or keep it in your wallet.

• Keep the card in a secure place and never leave it lying around when using it in shops.

• Keep a photocopy of your card in a secure place at home. You may find the photocopy useful if your bank is investigating unauthorised use of card by other persons.

• Never lend your cards to others.

• When using your card at an ATM, always take ATM receipts with you. Never dispose of them near the bin adjacent to the ATM.

• When you use your cards to make a purchase, make sure that the amount on the transaction voucher produced by the shop for your signature matches the amount of purchase.

• Never give card account numbers over the phone unless you are certain that the person on the other side of the line is reputable.

• Never respond to e-mails requesting your credit card details. Reputable banks and organisations do not request your personal details by e-mail

• When providing your card details over the internet make sure that the site is a secure site (the site address should start with https:// and a padlock will appear on the bottom of the browser). The website owner will have a certificate of security.which you can click on and see.

• Settle any credit card bills monthly and if possible avoid accruing bills because interest is charges on any outstanding amounts. If this is not possible, you should ensure that the minimum repayment amount displayed on the statement is paid on time.

Glossary

APR - Borrower - Budget - Cash - Cheque - Credit - Credit Card - Creditor - Debit Card - Debt - Debtor - EMV Chip - Financial Planning - Hire-purchase - Holograms - Interest - Interest-free credit - Interest rate - Loan - MFSA - Penalty - Repayment plan - Repayment schedule - Security - Smart card - Store charge card

Link to other fact sheets

Making a complaint

Other Links:

• Information on credit cards and debit cards

• Comparative Tables of tariffs and charges of a number of financial products and services

• Paying by card fact sheet