A dishonest clerk makes an extra imprint from your credit or charge card and uses it to make personal charges.

You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You’re told you must join a travel club first and you’re asked for your account number so you can be billed. The catch! Charges you didn’t make are added to your bill, and you never get your trip.

Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.

It’s not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.
Guarding Against Fraud

Here are some tips to help protect you from credit and charge card fraud.

Do:

* Sign your cards as soon as they arrive.
* Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch.
* Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place.
* Keep an eye on your card during the transaction, and get it back as quickly as possible.
* Void incorrect receipts.
* Destroy carbons.
* Save receipts to compare with billing statements.
* Open bills promptly and reconcile accounts monthly, just as you would your checking account.
* Report any questionable charges promptly and in writing to the card issuer.
* Notify card companies in advance of a change in address.

Don’t:

* Lend your card(s) to anyone.
* Leave cards or receipts lying around.
* Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.
* Write your account number on a postcard or the outside of an envelope.
* Give out your account number over the phone unless you’re making the call to a company you know is reputable. If you have questions about a company, check it out with your local consumer protection office or Better Business Bureau.

Reporting Losses and Fraud

If you lose your credit or charge cards or if you realize they’ve been lost or stolen, immediately call the issuer(s). Many companies have toll-free numbers and 24-hour service to deal with such emergencies. By law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.

If you suspect fraud, you may be asked to sign a statement under oath that you did not make the purchase(s) in question.

Even if you write the check while waiting in line, it will take you forever to pay by check in most stores. They have to see your drivers license, write down all of your info, circle your address and then run it through the system. It isnt the stores fault. The need for all of the double-checking is caused by check fraud and identity theft.

Many shoppers, myself included, have turned to debit cards. Debit cards arent really like credit cards, they are an electronic check. But some banks are starting to offer frequent flier miles, rebates and cash rewards to regular debit card users. The lines are blurring for some consumers.

When you shop with a debit card, you need to know how it works and the drawbacks.

There are two types of debit cards: PIN cards and signature cards. With a PIN card, the money is automatically deducted from your account. You must use your PIN number to use the card. Sometimes you can even get cash back from a merchant.

Signature cards are often called check cards. The money is deducted from your checking account within usually two or three days. You dont have to enter a PIN, you simply sign the receipt.

Most cards today will perform as both types of cards. You can use it as a PIN card and receive money back or as a signature card. Both types will work in an ATM machine. With a PIN card, the money comes out of your account immediately. With a signature card, you have to keep track of your receipts, because, like checks, the money will not come out for a few days.

Debit cards are a good alternative to credit cards. You have the convenience of a card with a limitation to the money that is in your checking account. While you cant go on a spending spree, you must keep track of when you use the card. It can be quite surprising how it all adds up.

Debit cards dont have some of the legal protections that credit cards have. Credit cards give you the right to withhold payments on an item that is defective. Debit cards dont allow this, so you would have to try to get a refund or replacement item. For large purchases, you are often advised to use a credit card. Then simply sit down and make the payment to your credit card company that same day.

Debit cards require that you report a theft of your card within two days of discovering the loss to recoup some of your stolen money. If you follow all guidelines, you will only be liable for $50. After two days, you are liable for $500. After 60 days, you are left holding the empty bag.

Credit cards often will offer more protection than the law allows. Several cards offer zero liability for unauthorized use of a debit card.

While a debit card often gives you the ability to use it in place of a credit card, say for telephone or internet shopping, there are times that you should use a credit card instead. Hotels, rental-car companies and even gas stations will place a hold on your account for a certain amount of money until you check out or return the car. The practice ensures them that you have the money to pay the bill.

If you use a card with the available credit, you probably wont have any problem. But when using a debit card, be careful. The amount they place on hold is exactly as if it has already been spent. This could prevent you from having checks go through or withdrawing money from your account.

The best advice for using a debit card is to be meticulous about keeping your receipts and writing them down in your register. It is so convenient, often we loose track of how and where we have spent the money.