What to Do When Your Credit Card Goes Missing

You’re likely to lose track of a credit card at some point—many people do. You’re standing at the checkout counter, you open your wallet and it’s not there. What you do depends on how prepared you are and whether you think the card was lost or stolen.

How to Prepare for a Lost Credit Card

Losing a credit card doesn’t have to be something that turns into a nightmare. You can manage the situation more effectively if you’ve taken these three steps to prepare in advance.

1. Choose Your Financial Institutions Wisely

Do you often think your bank could improve its customer service? Have you had past problems getting unauthorized charges removed from a credit card statement? If your bank or credit card company has failed you in the past, it’s more likely it will do so in the future when you need help the most.

Of course, it’s easier to just coast along with whichever company you have been using to meet financial goals. But it’s worth the time to think of worst-case scenarios and make a change to the financial institutions you use before you need emergency services.

Take a few minutes to think how you would rate the services offered by your banks and credit companies and compare policies for lost or stolen cards. Little things can make a big difference, such as a company guarantee to get you a replacement card within a specific time frame.

2. Keep Your Contact Information Up to Date

Imagine you need a replacement credit or debit card, but the agent tells you he can’t send it to your current address because the company has an old address on file. Or imagine trying to activate a card via text or email while you’re traveling, but you can’t get it to work because the company has old numbers and addresses on file.

Unsurprisingly, financial institutions are hesitant to make any changes to an account while it’s flagged for possible fraudulent activity. If you want to get a replacement card in hand as quickly as possible when you need it, make any updates to your contact information now.

3. Keep Your Credit Card Contact Information and Account Number Handy

This one is easy. Record the toll-free support number for each card’s financial institution in your phone’s contact book. Though you could probably track down the number fairly quickly with internet access, time is often of the essence when reporting a lost or stolen card, so make it easy for yourself. Having your account number ready can also save valuable time verifying your identity with the customer service rep.

What to Do When a Credit Card Goes Missing

In general, you should treat a lost credit or debit card as if it was stolen. There’s no major downside to reporting it stolen, other than having to replace the card.

Obtaining the highest level of protection against fraudulent use of your card is based on how quickly you report the incident. Federal law says you have zero liability for any charges made on your card after you report it’s gone, but you may be liable for charges made before you do so.

If You Think Your Card Is Lost

1. Retrace your steps.

You may be lucky. Your card or wallet might be waiting for you right where you left it.

2. Cancel your card, and request a replacement.

Even if you’re lucky enough to find your lost card or it’s returned to you by a good Samaritan, your financial information may be compromised. Someone may have copied all the information needed to process a transaction. It may be best to err on the safe side and get a new card.

If You Think Your Card Was Stolen

1. Report it immediately

Call the financial institution that issued the card using the 24-hour support phone number for fraud prevention and report the card as stolen. If your entire wallet was stolen with multiple cards and pieces of identification in it, call every financial institution as soon as possible.

2. Keep records

Make a record of the time and date of your call and who you spoke to. Since your liability for unauthorized transactions is tied to speedy reporting, plan to prove you were diligent just in case.

3. File a police report

Another way to demonstrate your due diligence and avoid any liability for unauthorized charges is to show you made an official report regarding the incident.

4. Notify the credit reporting agencies

It’s a good idea to put a security alert on your credit reports. Although this may be overkill for the loss of a single card, it can offer an extra layer of protection if the theft evolves into full-fledged identity theft. Victims of identity theft can sometimes have a hard time proving that negative credit reporting was the result of an impersonation. An immediate alert regarding the initial incident can go a long way when you want negative information removed.

5. Watch your account activity

Take advantage of online access to your account to monitor activity. Check your monthly statements immediately upon receipt and not months later. If you see anything strange or unauthorized, contact your financial institution. Don’t assume that because you canceled the card everything is under control. Thieves develop new ways to take advantage of access to even the smallest bit of your financial information all the time.

6. Update your auto payments

Try to remember to do this before the auto payments bounce back for nonpayment. Don’t let the theft of the card derail your good credit.

FAQs

What do I do if I lost my credit card?

To ensure maximum protection against having to pay for unauthorized charges, call the credit card company’s 24-hour support line and report the missing card right away at any time of the day or night. Try retracing your steps if you think you can find the lost card, but even if it’s returned to you by a third party, you may want to request a replacement card to be safe.

Can I track my credit card if I lost it?

New ways to track personal belongings are being developed all the time. Check with your financial institution to see if it has a way to locate a missing card by its internal chip. Some companies offer other features, such as the ability to turn the card on and off with an app if it’s temporarily misplaced.

How long does it take to get a replacement credit card?

Typically, it takes seven to 10 days to receive a replacement card. However, each company has its own policies regarding turnaround time, which can range from overnight to weeks.

Why is my credit card not working?

A credit card can stop working for any number of reasons, including damage to the card or a negative credit balance. Occasionally, a credit card company places a hold on a card if the security agents see a suspicious transaction or a transaction with details that lie outside of your normal spending habits. In these cases, you can usually reactivate your card by calling the credit company and verifying your identity and recent transactions.

The post What to Do When Your Credit Card Goes Missing appeared first on Credit.com.

Source: credit.com

What Is Cash Back?

What Is Cash Back?

Cash back is a rewards benefit that many credit cards offer to cardholders. By taking advantage of it, you’ll receive back a prespecified percentage of certain purchases you make. Many credit card companies will provide higher cash back rates on certain types of purchases, such as airfare, gas, food and more. Cash back is just one way that credit cards offer rewards, as mileage and points are some alternatives.

Before you spend too much money with your credit cards, make sure you have a financial plan in place. Speak with a financial advisor today.

What Is Cash Back?

The most commonly recognized style of cash back is what you have likely seen advertised as cash back credit cards. This specifically refers to earning a certain percentage of your credit card purchases back as cash rewards. However, cash back rates vary widely, as do the categories that they apply to.

You usually won’t see credit card cash back rates higher than 5%, while 1% is the typically minimum you will earn. Cash back categorization is significantly more complex though, with a merchant category code (MCC) system being the main organizing force.

MCCs run the entire cash back industry, as they ultimately decide how each purchase you make is classified. These designations coincide with cash back rates set by the issuer of your card. For example, you could use your card for a $50 dinner at a steakhouse, which has a “restaurant” code. If your card offers a 2% cash back rate on all spending at restaurants, you’d earn $1 cash back.

Familiar alternatives to cash back include point- and mile-based programs, though many cardholders are partial to cash back. Cash back affords cardholders an independence that is ideal, since you can redeem it for nearly anything.

Popular Cash Back Credit Cards

What Is Cash Back?

Discover, American Express, Mastercard and Visa all have cash back rewards credit cards available for prospective cardholders. Each abide by their own set of regulations, though card issuers decide on cash back rates, promotions and bonuses. Chase, Wells Fargo, Citi and Capital One represent some of the most active card issuers on the market today.

Below are a few examples of what you can expect to earn when looking for a cash back credit card:

Cash Back Credit Cards Card Name Cash Back Rates Cash Back Bonus Costco Anywhere Visa Card by Citi 4% cash back on eligible gas up to $7,000 per year, 3% cash back on eligible travel and restaurants, 2% cash back in-store and online with Costco and 1% cash back elsewhere None Bank of America® Cash Rewards credit card 3% cash back in a category of your choosing, 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases (up to a quarterly cap of $2,500 in combined grocery/wholesale club/choice category purchases) $200 bonus cash back for spending at least $1,000 over your first 90 days Capital One® Quicksilver® Cash Rewards Credit Card Unlimited 1.5% cash back everywhere $150 cash back bonus when you spend $500 during your first three months Citi Double Cash Card 1% cash back on your purchases and another 1% cash back when you pay your bill None Capital One® Savor® Cash Rewards Credit Card Unlimited 4% cash back on dining and entertainment, 2% cash back on groceries and 1% cash back elsewhere $300 cash back bonus for $3,000 spent over your first three months TD Cash Visa® Credit Card 3% cash back on dining, 2% cash back at supermarkets and 1% cash back on everything else Earn $150 cash back when spending $500 within the first 90 days (See Terms) USAA Preferred Cash Rewards Visa Signature Unlimited 1.5% cash back on everything None Blue Cash Everyday Card from American Express 3% cash back on up to $6,000/year at U.S. supermarkets (then 1%), 2% cash back at U.S. gas stations and select U.S. department stores and 1% cash back on other purchases $150 bonus cash back for spending $1,000 over your first six months Getting Cash Back at Retailers

What Is Cash Back?

Picture this: you’re buying some groceries on a Sunday morning, but know you’ll need $40 cash to fill up your car with some gas later. You could swipe your debit card at the supermarket and then head over to the ATM. Or you could ask for cash back right from the cashier, eliminating the extra errand.

The above situation represents the alternative definition of cash back. It’s ultimately the use of a cash register as if you were swiping your debit card at the ATM. When you request cash back from a cashier, your bank account will be charged the amount you asked for. This enables the funds to be pulled from your account so the cash can be placed in your hand.

Although this generally only applies to debit cards, there are a few exceptions for credit cards. Discover® allows cardholders to ask for cash back at more than 50 large retail stores without a transaction fee.

Bottom Line

There are many benefits to utilizing credit card rewards programs. But spending money that technically isn’t yours will always involve some level of risk. If you’re in good financial shape, though, cash back and other types of credit card rewards can help you take more vacations, save money on purchases and more.

Credit Card Tips

  • Managing your credit cards and any debt you accumulate using them is a major part of your long-term financial outlook. Consider working with a financial advisor to make sure you’re managing your money with your goals for the future in mind. SmartAsset’s free matching tool can connect you with up to three advisors in your area. Get started now.
  • If you’re someone who wants freedom when spending credit card rewards, you may prefer cash back to a points- or mileage-based reward system. However, keep in mind that cash back rates are sometimes less than those in point-centric programs.

Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

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