The 4 tips you need to hear before giving your credit card number over the phone (2024)

FAQs

The 4 tips you need to hear before giving your credit card number over the phone? ›

The four steps involved in a credit card transaction are authorization, authentication, batching, clearing and settlement, and funding. How to use a credit card for an online transaction? There are a few simple steps that you need to follow to do an online transaction using your credit card.

The four steps involved in a credit card transaction are authorization, authentication, batching, clearing and settlement, and funding. How to use a credit card for an online transaction? There are a few simple steps that you need to follow to do an online transaction using your credit card.

Credit card transactions that you make over the phone have the same protection as those you make online or in person at a store. The law limits cardholders' liability to $50 under the Fair Credit Billing Act (FCBA) for any unauthorized transactions on your account so you will want to make sure you report them.

According to cardholder reports, Bank of America uses a 2/3/4 rule: You can only be approved for two new cards within a 30-day period, three cards within a 12-month period and four cards within a 24-month period.

Character, capital, capacity, and collateral – purpose isn't tied entirely to any one of the four Cs of credit worthiness. If your business is lacking in one of the Cs, it doesn't mean it has a weak purpose, and vice versa.

What do the first four digits of a credit card mean? The first four digits are part of the BIN or IIN, a six-digit number that identifies the card issuer. These numbers contain valuable information about a credit card. The first digit of a credit card specifies the card's payment network and industry.

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

Should you ever give your CVV? ›

As with online transactions, it's usually safe to do this — just make sure that no one overhears the details you give out (so avoid public places when doing this). But you should never provide the details of your CVV when making a purchase in-person.

If you want to minimise risk, it's best to avoid giving card details over the phone if you can. Providing your card details via a website still has risks, but at least it removes the human element.

If you need to send credit card information to someone, you should do so using a secure method such as a secure file sharing service or encrypted email.

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

The Takeaway. The 15/3 credit card payment rule is a strategy that involves making two payments each month to your credit card company. You make one payment 15 days before your statement is due and another payment three days before the due date.

The golden rule of credit card use is to pay your balances in full each month. “My best advice is to use a credit card like a debit card — paying in full to avoid interest but taking advantage of credit cards' superior rewards programs and buyer protections,” says Rossman.

APR/Interest Rate: One of the most important things to consider is the interest rate, or APR, of the credit card. This is the amount of interest you'll be charged on any unpaid balance. While it's ideal to pay off your credit card balance in full each month, sometimes that's not possible.

For example, when it comes to actually applying for credit, the “three C's” of credit – capital, capacity, and character – are crucial.