When it comes to credit cards, a lot of people tend to focus on the convenience of owning one and the perks they can receive. Of course, cashback, frequent-flyer miles, and rewards points have their advantages. However, one thing you shouldn’t neglect during your search for a credit card is its level of security.
Because credit cards have become increasingly common tools for managing one’s money in the digital age, they’re particularly vulnerable to various cyber threats like e-skimming, phishing attacks, and data breaches. As such, it’s crucial to consider the following features when looking for a credit card to ensure your privacy and safety:
1. EMV chip and NFC technology
One of the top features to look for in a credit card is its utilization of an EMV (Europay, MasterCard, and Visa) chip and NFC (near-field communication) technology. Both these technologies ensure your security when making digital and contactless payments using your credit card. A card with an EMV chip generates a unique transaction code for every purchase. This means that even if a hacker manages to capture the transaction data, they cannot use it to make another purchase. The unique code is only valid for that one transaction, significantly reducing the risk of card cloning and fraud. Simply put, EMV chip credit cards offer more security than traditional magnetic strip cards.
NFC, on the other hand, allows you to make payments by simply tapping your card near a payment terminal, rather than swiping or inserting it. During the transaction, NFC technology encrypts your payment information so that your card details aren’t exposed. This not only makes transactions faster and more convenient but also enhances security by reducing the chances of your card details being skimmed or intercepted.
2. Dynamic CVVs
Another crucial feature to look for when selecting a secure credit card is its ability to provide you with dynamic CVVs (card verification values). Unlike the permanent CVV codes printed on credit cards, dynamic CVVs are dynamic and change periodically. This means that even if someone manages to steal your card information online, they won’t be able to use it for long because a new CVV code will soon render it invalid. One credit card in the Philippines that has this feature is the Landers Cashback Everywhere Credit Card (LCECC) by digital bank Maya. This credit card has a dynamic CVV that changes after every transaction, making it the safest credit card you can use whenever you shop online or even in stores.
3. Changeable daily spending limit
The ability to set a daily spending limit is essential to maintaining both financial control and security of your credit card. With this feature, you can cap the amount of money that can be spent using your card both online and in-store within a 24-hour period. This way, you can limit the potential damage in case your card is lost, stolen, or compromised. For instance, if a fraudster gets unauthorized access and attempts to make a large purchase, they will be blocked by the spending limit and your credit limit will remain untouched.
Setting a daily spending limit is also beneficial for personal budgeting and financial discipline, allowing you to keep better track of your expenditures and avoid overspending. This feature is particularly useful for families where multiple members might be using the same card or have supplementary accounts, as it ensures that everyone adheres to a predefined budget.
4. Different spending limits for different transactions
Aside from enabling you to set a daily spending limit, an ideal credit card should also allow you to set different spending limits for different types of transactions. This way, you can customize your spending caps based on the nature of the transaction, such as setting lower limits for online purchases and higher limits for in-store transactions. Tailoring your spending limits can better protect you against fraud in more vulnerable transactions like online shopping, where the risk of unauthorized use is typically higher.
5. Real-time alerts
Real-time alerts are an indispensable feature for anyone looking to ensure the privacy and safety of their credit card transactions. These notifications let you know immediately of any activity on your account, such as purchases, cash withdrawals, and even failed login attempts. Receiving instant text messages or emails ensures that you can detect any unauthorized transactions and take swift action to secure your account. This proactive approach allows you to address potential fraud before it escalates, reducing the likelihood of financial loss.
6. An app for easy account management
To make it easier to control your credit card’s security settings, it’s best to get a card from an issuer that has its own app. A well-designed app allows you to manage your account on the go, providing access to important functions such as viewing your balance, making payments, and checking recent transactions. The convenience of an app also means you can stay on top of your credit card activity anywhere and at any time, helping you spot any suspicious activity and manage your finances more effectively. Also, an app typically offers additional security features, such as biometric login options like fingerprint or facial recognition or two-factor authentication (2FA). These add an extra layer of protection for your account.
As financial threats continue to evolve, having a credit card equipped with robust features provides you with peace of mind. Thus, prioritizing cards that have these security measures during your search ensures that you’ll have a more secure and worry-free financial future.