Credit Card Security BS

Have you ever had your credit card suspended because you went on vacation and started using it in a different place or because you decided to go shopping one day and made multiple purchases in a small area? It's happened to me at least five times over the past few years. In order to unlock my card, I have to call "Credit Card Security" at my issuing institution. They ask me to identify transactions in order to determine if I am actually the one using the credit card.

This is all couched in terms of security designed to protect me from fraud. But it's really loss-prevention for the credit card company or bank, since they by law and choice cover all the losses. What really infuriated me, though, is that it doesn't seem to work when you actually want it to!

I lost my ATM card last week, when I was staying in Santa Monica (to attend Star Wars Celebration IV in Los Angeles). I didn't realize that I had lost it until I checked my bank account online and discovered a bunch of random charges in and around Santa Monica. (The charges started three days after I lost the card.) I reported the card missingly immediately, but the charges didn't stop for another 24 hours.

But here's what really riles me: Whoever found my card used it in 20 separate credit card transactions in 48 hours and charged a total of $2,157.90. Four of those transactions were at a jewelry store and two at Banana Republic, all six for between $200 and $500. Of course, my bank  (or their insurance company) will cover the losses, so it doesn't cost me a dime. But this is precisely the kind of pattern that the "Credit Card Security" people say leads them to freeze my cards "protect me from crime". But the very first time I've ever lost a card, that vaunted security fails to spot the crime and the card remains unfrozen until I notice the problem and call in!

The good customer service is covering the losses and issuing a temporary replacement card in less than 24 hours. The bad customer service is lying to your customers about your reasons for wanting to minimize losses, which is a perfectly legitimate activity.

Comments

[Jim Dempsey]

I've had similar experiences with "Credit Card Security."

Several years ago, I alerted my credit card company to my planned trip across the country, "Look, I don't want any hassles. I will be driving to North Carolina. The motels along the way are already charged on this credit card, you just need to approve the subsequent gasoline charges." One would expect smooth sailing after such a warning, right?...

During the trip, I was prompted for my billing ZIP code when attempting to refuel in Iowa. A faulty gas pump keyboard caused misentry of the ZIP code. Bam! The credit card was locked! Hmm...let's see if I can reach customer support on my cell phone while in farm country.

I suspect that the folks who create the credit card fraud detection programs are the same ones who create website password requirement rules: http://www.stewartalsop.com/2006/11/must_passwords_.html

[Rob Long]

Well, at least you were in Santa Monica. Last December, I was in Agadez, Niger, trying to use my Visa card - I'd run out of cash - and it wouldn't work. Okay, I thought, I should just call customer service. With my cell phone, which did work. Anyway, I call them up, answer lots of questions, then they tell me that they can't authorize the sale because I'm not calling from my home phone. But I'm not at home, I explain. I'm in Agadez, Niger. If I was home, I wouldn't need to call you. Well, sir, they say, would you like to change the telephone number associated with your account? Yes, please, I say. Can I change it to my cell number? Of course, they say. Just call from your home phone and we'll be happy to change it. But I'm not at home, I say. This is for your protection, they say. And so I used American Express. Later, of course, I beeped into my home voice mail to find 4 messages from Visa asking if I'd call them from my home number to verify that I wasn't at home.