Why It Is More Secure To Use Credit Card Than Cash

Credit cards became very popular for many reasons. They not only offer attractive bonuses, but also allows one to carry big sum of money with a low risk of being robbed. It is possible because it is not that easy to steal money from a plastic.

Credit card payments made international commerce possible. The client can buy goods and services from any enterprise in the world. Non-cash payment today dominate the global market, so more people use plastics.

 

Why It Is Hard To Steal Money From Plastic

When a person uses plastic, he can make any type of purchases. That can be buying a chocolate bar or a new computer. Whatever the payment is, one can easily make it. If one decides to buy any valuable good and carries cash to the shop, the possibility it gets stolen is quite high.

However, if a person puts money on plastic and carries it to the shop, the chance that money will be stolen is much lower. Here are the main security mechanisms the credit plastics have:

  • PIN code. Even if a plastic gets stolen, the thief can hardly use it to withdraw cash. For that he needs to know Personal Identification Number. This number is unique. The card holder has to choose it by himself. The only thing that can make a thief  guess easily this number is its simplicity. Sometimes people still use 1111 PIN for the bank cards, which is a very bad idea.
  • Near Field Communication technology. This type of technology is used for contactless plastics. In order to make transactions with such a plastic the PIN is not needed. However, it can hardly help the thief to use the card. Such plastics have strong security mechanisms. The card can only work if its owner and his mobile phone are one or two meters near the cards. NFC technology uses the mobile phone to transmit the personal data of a client and to allow the purchase. So, a contactless plastic will be of no use for the thief. It simply won’t work.
  • The card blockage. If the plastic gets stolen, the card holder can easily block it. In order to do so, he has to contact the bank. The banker will immediately block the plastic. So, no transaction can be made by it.
  • The payment limits. The card holder can enhance the security of his plastic. To do so, he has to put a limit on his everyday transactions. For example a person assumes 100 dollars is the sum of his everyday spending. He should then limit his everyday transactions to 100 dollars. Than there is no way more than 100 dollars per day can be spent using the card.

These security mechanisms prove it is really beneficial to use the plastics. It is definitely harder to steal money from plastic than from someone’s pocket. Check with your banker the options of available bank cards.

2 Comments

  1. I do not quite agree with the author of the article. I prefer to use cash, I do not want banks and government to collect data about me and invade my personal life. But this is just my superfluous opinion

  2. I think you have a paranoia, if the state or special services want to get your data, then they will get them even you will not know

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