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1.8. Anti-Fraud Security

Credit cards come with a range of security features to help keep your account safe whenever you use your credit card. Let’s take a moment to review the most common security features and how they help keep your card safe.

Common Credit Card Security Features

  • Security Chip: Microchipped credit cards have encrypted data that makes it harder for hackers and fraudsters to get your details when you use a card at the checkout or an ATM.
  • PIN: Your card’s Personal Identification Number is used to verify transactions made in person. Only you should know your card’s PIN.
  • Signature panel: The signature panel of your credit card authorises you to use the card. Sometimes it is used to verify your identity (mostly overseas).
  • Hologram: The hologram on your card helps merchants verify that the card is authentic – the same way watermarks are used on cash.
  • Fraud monitoring services: Most issuers use software to analyse credit card accounts and alert them to any suspicious activity. For example, if you always use your card around Sydney, Australia, and a transaction pops up for New York, the fraud monitoring system will flag the transaction as suspicious and your issuer will take steps to protect and authenticate your account.
  • Fraud hotline: A lot of issuers have dedicated anti-fraud customer service teams in place, so that you can call them if you suspect your card is compromised.
  • Chargebacks: This is when you or your credit card issuer successfully disputes a transaction and the money is credited back to your account.
  • Zero liability policy: This policy protects you against unauthorised and fraudulent transactions, so that any money taken from your account is refunded to you.