CREDIT CARD BASICS

More and more Jamaicans are using credit cards to conduct a wide array of transactions. Grocery shopping, utility bill payments, school books, lunch and other meals as well as purchasing petrol or entertainment. The popular swipe of the card is fast replacing the counting of and exchange of hard cash. Yet the knowledge and information level of persons using this form of convenience commerce is frighteningly low. This applies equally to merchants and consumers.

Security Concerns
The Consumer Affairs Commission as part of its Consumer Education Programme is using this opportunity to inform members of the public who use credit cards about their rights and responsibilities as credit card users so that they can protect their money, their banking information and their credit history.

Know your Credit Card
Each credit card has what is known as the Customer Verification Information number, these are the last three digits in a sequence of numbers displayed at the back of the credit card. This is a security feature of the card and is intended to provide the cardholder with added protection as well as to provide the merchant with added assurance that the card is valid. The CVI is imprinted on the card when the card is being made, so no two cards can have the same CVI. Even if there are more than one cards issued on the same account.

"Finger Print"
The CVI therefore is like a fingerprint and must never be issued verbally by the cardholder to any one requesting that information except for authorised personnel from the bank that issued the card. Merchants should not "flip" the card and record the CVI. This is extremely important, as with the advent of Internet commerce most shopping sites will require that the usual 16 numbers (appearing on the front of the card) be provided. Then the CVI may be requested in a separate field. If anyone enters your credit card number and your CVI the transaction will be deemed valid and will be understood to have been initiated by you and you will be responsible for payments.

Old Credit Card Machines
Merchants that still use the old credit card machines are being encouraged to change these to the newer online electronic machines for the following reasons. Firstly the electronic machines allow for real time verification and authorization, a benefit for both the merchant and the cardholder. Secondly it protects your customers right to privacy, especially if you will require the CVI when seeking subsequent authorization. On the other hand the Consumer Affairs Commission is encouraging credit card users to think carefully before doing transactions with merchants who still use the old machines, for your own financial security and protection. The old machines capture all 16 digits of your account on your receipt, unlike the electronic machines that only display the last four digits (masking the first 12). This is also an additional layer of security for the cardholder. For further information please contact the Consumer Affairs Commission at 926-1650-2 or 1-888-991-4470.

Tell us what issues you want addressed

Send e-mail to: cacjam@infochan.com or star@gleaner.com

Write to us at: 1B Holborn Road, Kingston 10 Or call us at: 926-1650-2 or toll free 1-888-991-4470, ask for our Information Desk