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Many people store their credit card on file to make paying bills or purchasing items easier. While storing your credit card information can save time and money, you must protect your personal information.
The Advantages
We all want to simplify our lives and speed through necessary but time-consuming processes. To that end, people store their credit card on file for the following reasons:
- To Save Time – Instead of typing in your credit card number and personal information each time you make an online purchase, storing your card on file offers online consumers a way to make a purchase or pay a bill with a simple click that approves the transaction.
- Automated Payments Make Life Easier – It’s a nice feeling to know that your cell phone bill was paid this month without having to lift a finger. Many people choose to store their credit card on file to automate monthly bill payments.
- To Save Money – Why buy stamps and mail your bills when you can simply store credit card information online and pay that way?
There are several advantages to keeping a credit card on file; however, there is one major disadvantage: security. Though many online retailers claim to provide “secure shopping,” some sites contain malicious spyware and key-logging software. If this is the case, your credit card information can be copied (stolen) without you even knowing it.
If you store your credit card on file, you’ll want to routinely check balance statements to ensure that there are no overcharges or incorrect withdrawals. If there are, your credit card information could have been stolen, or the company with which you store your information could have charged you for something you didn’t purchase, or overcharged you for something you did. Protect your finances by keeping a sharp eye.
How to Protect Yourself
If you learn how to protect yourself from online thieves and fraud, storing your credit card on file can be a huge time-saver. Here are several ways to protect your identity and your finances:
- Only online shop on your personal computer.
- Never online shop in a crowded place, where someone could easily steal your credit card information by looking over your shoulder.
- Only shop online after you’ve run anti-virus and spyware scans.
- Install a Web Security Guard on your web browser, which will alert you if the website is unsafe.
- Only order products from, and store your credit card with, reputable companies. While they can still fall victim to security issues, reputable companies are more likely to be a safe haven for online consumers.
- Only store your credit card on file if the company has a phone number or other legit method of contact. Never give personal information to a company that is anonymous.
- If you really want to protect yourself, look into using a disposable credit card. You can purchase these cards from most grocery or convenience stores. Each card has a set amount, like a gift card. You may also opt for an online credit card (e.g. Discover Card offers a “Secure Online Account Number,” while other credit companies offer “ShopSafe” cards). These cards have a unique number that can only be used by one seller. The cards can also have a self-requested maximum expense and expiration date. This means that even if your credit card information is stolen, it cannot be used by someone other than the pre-determined seller.
