|
Credit Card Technology Flourishes - But So Does Fraud
Credit cards have become an increasingly integral part of our financial system over the last century. Types of credit cards and consumer credit choices have continued to flourish across the world and, while many credit card companies have come under fire for misleading consumers and encouraging consumers to get into debt, new credit card innovations mean constant changes in the financial market.
For example, if you're one of the millions of people who hate accumulating loose change in your pockets or your wallet every day, a new payment system devised by Visa could change your life. Under the new 'wave and pay' system, customers would be required to pass a credit card in front of an electronic reader in order to make little payments, but wouldn’t actually need to remove the card from their wallets. The system would, however, be limited to monetary transaction amounting to less than £10 in total.
Visa's financial chiefs estimate that demand for this 'wave and pay' system will expand in the future, thus promoting more efficient low-cash payments and stimulating a move away from loose change. Visa Europe spokesperson, Sandra Alzetta, stated:
"With over 75 percent of all cash payments being less than £10, the introduction of contactless payments will play a major role in encouraging the use of cards over cash for low value transactions."
It is expected that 'wave and pay' readers will be introduced into London by the end of 2007, and then spread across the UK afterwards. In fact, people who live in London will be more familiar with the technology, since it is already in widespread use for Oyster cards.
However, while credit card innovations constantly progress, so do methods of credit card fraud. In 2005, studies done by the British Bankers' Association (BBA) have shown that credit card fraud amounted to over £439 million - although this figure was actually 13 per cent lower than the previous year. As a result, consumers in Britain are being encouraged to take full responsibility to fight this menacing threat by being extra careful with their credit cards and their credit card practices.
There are however, many tips you can follow to successfully avoid credit card fraud: for instance, make sure you don't keep personal financial details like PIN numbers or confidential information written down. Also, make sure that when you're making a financial transaction, you do not let your card or card details out of your sight.
There are a variety of sources that consumers can turn to for advice when choosing a credit card; financial comparison sites, for example, allow you to view a selection of credit card offers before you make your decision. After all, if you use your credit card wisely and take measures to ensure that you're not a victim of credit card fraud, you're less likely to become a statistic.
Martin McAllister is an online freelance journalist. He lives in West Lothian, Scotland and is interested in politics and personal finance
|
