The cash is on the march. Card payment is now part of everyday life. More and more people hold their credit card in their hand more often than a banknote. It’s last but not least: the growing market for online shopping has favored the triumph of the credit card. Therefore, it’s time to take a look at how a credit card works.
Cashless Payment
Cashless payment – whether with EC or credit card – is now possible almost everywhere. While the customer’s account is debited immediately when paying with an EC card, credit cards work on a different principle and grant their owner a kind of short-term credit. This applies at least to credit cards in the traditional sense. However, the term “credit card” is not used uniformly, especially in this area, but also includes cards that are not credit cards in the classic sense, such as debit or prepaid cards.
Like this, it enables payments or cash withdrawals from machines that exceed one’s own credit balance, similar to an overdraft facility, since it grants its owner a certain credit each month. Unlike an overdraft facility, a credit card provides interest-free credit for a fixed period. However, if the repayment is not made on time, interest will also be charged here. Gold, platinum and black, these so-called premium credit cards can sometimes cost a little more. Still, consumers shouldn’t blindly jump on a free credit card. For the higher fees, it gets many, many additional services in return. A credit card belongs in almost every wallet these days. Even trends like mobile payments are not possible without a credit card. Their costs are often calculated in the form of an annual fee. Nevertheless, there are also cards that do without it and are free of charge. Here it is important to pay attention to other fees and to check additional services. For example, free credit cards are often linked to opening a checking account. Also, you can find out the necessary information here.
Online Shopping
For a long time, you didn’t even need the credit card itself to shop online or book a trip. It was enough to have the card number, security number and expiry date ready to pay at the virtual checkout. However, credit card data can fall into the hands of criminals, for example through a hacker attack or security gaps at the online retailer. They can then go on a shopping spree with the stolen customer data. There are now rules for online money transactions that also apply to credit cards. The aim is to reduce the risk of fraud and misuse. The card data alone is no longer sufficient for online shopping.
3D-Secure Procedures
When shopping with a credit card, so-called 3D-Secure procedures come into play, which have been adapted to the new guidelines. At Visa, the procedure is called “Visa Secure”, at Mastercard “Mastercard Identity Check”, at American Express “Safekey”. As a rule, customers must authorize payments with a one-time valid transaction number. Banks offer various procedures, most of which run via mobile phone. The common 3D Secure processes are also known under other names. SMS-Tan is also called MobileTan or mTan, AppTan is also offered as VR-SecureGo, EasyTan, Tan2Go, PushTan and SpardaSecureApp. Customers usually have to register for the 3D Secure process on the banks’ websites, enter their name, address and credit card number there and request an identification code. This can be done in different ways. Set up your cash username and password in your online banking and enjoy buyer protection with a money-back guarantee. In addition, you can access exclusive discounts and special offers. Alternatively, you can also log in without activation with the access data from your online banking. Then, however, there is no buyer protection. Read about it here: payments.
- Firstly, you should make sure that you could find all the important information about the retailer on the website. This includes the name of the company, address, telephone number, an e-mail address, tax and registration number. If you can only find a mailbox and no contact option, this is a first indication that something is wrong. The imprint with all information or a link to it can usually be found at the bottom of the homepage. Is the provider reachable? If you notice before placing an order that inquiries about the service or a product are in vain, there is a high probability that an exchange or refund will also be difficult. If you have doubts about the seriousness of an online shop, take the test and try to reach them.
- Security means clarity. About how expensive the order you want to place is. Prices should therefore always be understandable and complete. Doing this, it must be visible what the final amount is – including VAT, shipping costs or surcharges. Reputable online shops communicate the expected delivery time. This is normally three to five days. If it is longer, a dealer must point this out separately. Merchants should only use your address and bank details to process the order. You can read about whether this is the case in the general terms and conditions. If nothing is found or the information is incomplete, you can assume that the provider wants to sell your data or send your advertising.
Bottom Line
If it isn’t possible to shop as a guest in a shop, first check whether you can log in centrally using the yes identity service. If the online shop is not one of the retailers participating in yes, you should choose a secure password to set up your user account. That means: at least eight characters, mix upper- and lower-case letters, include numbers and special characters. Avoid names of family members or pets, or dates of birth. You should also avoid keyboard patterns like qwerty. The last tip is the simplest: avoid offers that sound good – it could be a trap to get your data. In times of cybercrime and identity theft, everyone should get used to a certain amount of caution when handling the data.
