Category: Credit Card

Credit cards is a plastic card that lets you pay for goods or services and can be paid for either at the end of a set period which is normally a month. The minimum payment will be a percentage of the balance on the credit card. It is suitable for buying goods or services. It is also used for convenience and safety as an alternative to using cash.

Credit cards, also known as plastic money, have seen a significant increase in usage worldwide since their introduction. At the beginning of the twentieth century, credit cards were first issued in the United States. Since then, they have become very popular in many countries around the world, and credit cards are the primary system for facilitating transactions or payment exchanges for household and personal expenses.

The Advantages of Credit Cards

The advantages of credit cards are that it is easy to use, you could pay above the minimum rate if you want to and hence speed up the rate of repayment and reduce interest incurred. It can be used for any item no matter how big the value is, and it provides some protection on purchases.

Also, they’re a great way to build credit. Each time you open a new credit card account, the lender reports that activity to a credit reporting agency. They’ll also report if you miss a payment or are frequently late paying your monthly installments.

Credit cards are more secure than cash. They are used frequently—even by people who have access to cash—because they offer another level of security.

Many credit card companies offer rewards such as cash back or airline miles for using them regularly. If you use a credit card for routine expenses, these rewards can add up quickly.

The Disadvantages of Credit Cards

The disadvantages of using a credit card are that it can encourage overspending which will lead to a bad habit, you could make unnecessary purchases which would also lead to debt problems.

Although credit cards are convenient, the cost of borrowing is typically much higher than with a traditional loan.

Applying for too many credit cards can damage your credit. Several factors impact your credit score, including payment history, current amount owed, length of history, new credit, and types of credit used.

Conclusion

I certainly think that using credit card are very useful as you can put money in there whenever you want and spend the money when or wherever you want. You could use it online as well. As long as you don’t become addictive to overspending, it will be a great way of delaying payments and it is simple to use.

The fraudulent use of a card account by the theft of the account holder’s card number, card details and personal information, through a plethora of methods in order to perform unauthorized transactions from the compromised account is called a card fraud.

Causes of Credit Card Fraud

Reasons for massive online card fraud are that it is easy enough to buy stolen credit card information, moreover, legal action is rare, and online fraud may be a low priority for law enforcement, due to difficulty in collecting evidence and time and resource constraints.

Different Ways to Produce Credit Card Fraud

Some of the various ways, by which online card frauds can take place, include:

• Pharming. In pharming, fraudsters reroute the user to a faux website that appears much like the original. The card details can be stolen when the account holder conducts transactions and make payments via credit or debit card.
• Keystroke logging. In this method, a software is unintentionally downloaded by the user, which allows the fraudster to trace the key strokes and steal passwords or credit card and Net banking details.
• Public Wi-Fi. Usage of public Wi-Fi to carry out transactions on smartphones can provide a good hacking opportunity for thieves to obtain card information.
• Malware. Malware is a software program which can harm computer structures at ATMs or bank servers and permits fraudsters to get admission to confidential card records.

Options for Using Stolen Card Data by Fraudsters

A fraudster can use the stolen card information in the following ways:

1. Online purchases. Card information can be used for online purchases. It is easier to do this if the thieves also have the user’s billing postal code and the security code from the back of the card.
2. Sell information. Credit card information can be sold over the Internet. The price is determined according to the type and amount of information, the more information the thief has, the more valuable the card information is.
3. Create duplicate cards. Fraudsters can create identical credit or debit cards by programming the credit card information on gift cards or prepaid credit cards.

How to Know If Online Card Fraud Has Taken Place?

1. Don’t ignore odd problems with your web accounts. Messages and emails informing that the account has been accessed from a new device or the web dashboard showing a ‘last logged in’ date which the user does not recognize should not be ignored as they could be the first sign of identity theft.
2. Check your bank account and credit card statements. Monitor statements of the card regularly to check for any discrepancies such as transactions you don’t recall making, amounts that seem unusual or a vendor name you do not recognize. If you suspect any other activity which is not done by you, contact the bank or credit card company and report it immediately. Changing the password or setting up a two-factor authentication to enhance the security of your accounts can prevent identity thefts.
3. Run a free credit report. Running a credit report every four months can help detect theft. If the first credit score seems low, there is a chance that your identity has been stolen. A report check can help provide information on any credit cards, loans or other financial details, and if there is any suspicious activity, get in contact with the credit bureau and let them know where you think the problems are.
4. Pay attention to your email and post. Be vigilant of the emails and physical bills that you receive on emails and, more importantly, those you do not receive. If someone steals your identity you might start seeing a lot less email because the thief is having it delivered to a different address. Furthermore, emails that don’t belong to you, could also be an early warning sign of fraud. This should raise some issues, which you should be able to figure out by reporting it to the credit card company that it came from.

Ways to Prevent Online Credit Card Frauds

• Use safe and secure websites. Visit only renowned and established sites for online shopping. Confirm the website’s legitimacy before using it and shop only on those that are Secure Sockets Layer (SSL)-certified which can be identified by the lock symbol next to the browser’s URL box. Make sure that the website uses the ‘https’ protocol instead of ‘http’, where ‘s’ stands for ‘secure’. Also, make sure not to click on the choice that asks for saving your card details on any website. You should look for a website’s payment verification tools, such as Secure Code of MasterCard, which verifies that the payment is made by you while protecting the privacy of the online transaction.
• Anti-virus software. Installing identity theft detection apps on the phone from an official app store can help prevent frauds. A computer software that enables the wiping out of the data remotely in case the mobile gets stolen can also prevent confidential data from being stolen.
• Debit. Transactions using a debit card are riskier than credit card transactions because if card is compromised, the entire cash in the bank account can be wiped out immediately. The credit card, on the other hand, offers a month’s grace period before the cash leaves the account, during which the investigation can possibly identify the fraud.
• Hide CVV. When you enter the CVV on the website, it should be encrypted by asterisks. This is especially important while shopping on foreign websites where the CVV is the only point of authentication. A virtual keyboard helps to prevent keystroke logging.
• Public Wi-Fi. Unsecured W-Fi networks or public Wi-Fi are these are easy targets for identity theft cases in online transactions.
• Register for alerts. This is a very crucial step because the bank will warn you of any online card transaction or ATM withdrawals the moment those take place. If there is any change in the contact details, they must be updated to receive alerts.
• Log out. Logging out from social media websites and other online accounts ensures data security. Confidential passwords should not be stored on mobile phones as these can be used by fraudsters.
• Change passwords. Frequent password changes reduce the probability of identity theft.
• Virtual cards. Virtual cards are limited debit cards that do not provide the fundamental card details to the seller and expire after 24 hours or 48 hours.

If we are talking about banks and what they can do to prevent card fraud on the Internet, we can note the following:

• Check account level. understanding the usual behavior and login timings of the customers can be helpful. Analytics can be used to identify the unusual transactions for the account holder.
• Creation of Unique Account User IDs. Unique profiles for each of account holder can be created by the bank by unique user names.
• Dual Control. Two different users approving the transaction can help reduce fraud.
• SMS Messaging. When a change is requested in the number or the email, the bank can identify it as a fraud by contacting the account holder and verifying if the change is requested from him/her.
• Controls on Email and IP Address. Allowing only some email addresses or IP locations to carry out transactions online on the bank’s website can help control frauds.

Effects of Online Card Frauds on Consumer Perception

77 % of account holders check their bank accounts weekly for suspicious activity. News of frauds on many fronts have established a sense of vigilance and hesitancy among users.

62 % of respondents believe they are at an increased risk of fraud today than they were two years ago. Criminals can use details to steal information from many accounts, making proactive education about safeguarding personal information is a vital component of fraud prevention.

38 % of consumers responded to experiencing at least one instance of fraud on an existing bank account. With technology friendly fraudsters overcoming many of the existing fraud detection systems, frauds have become widespread and many users have experienced it at least once.

36 % have cancelled a debit or credit card or closed their accounts entirely. Online card frauds have alarmed customers and many of them have closed their accounts or closed their accounts due to it.

51 % of consumers say they have had a transaction declined because their banks mistakenly suspected fraudulent activity. The effort taken by banks in trying to stop fraud backfire sometimes. The embarrassment from a transaction being declined can often be just as detrimental to a customer relationship as instances of actual fraud.

Conclusion

The growing scale and reoccurrence of fraud attacks has increased public awareness of threats, benchmarking a new standard of consumer expectations to be protected from fraud and notified in the event of a breach. A survey found that 75& of respondents expect their banks to inform them of suspicious activity within an hour or less, and 59 % say they should be notified immediately. Meeting these expectations is not an easy task; it is more than just security threat, and it has notable implications on the satisfaction of customers. Suspicious activity is inevitable, and when it happens, a bank should know the best time and channel through which to alarm the customer. How efficiently and effectively a bank detects fraud, combined with the communication to customer at the right time – either as an alert or to request verification of activity establishes trust and a sense of security that maximizes loyalty and ongoing revenue opportunities.

Have you ever thought of how money started? Well, it all started with bartering. People use to swap their goods for the other persons goods. Bartering turned to coins. The first coin ever minted featured a roaring lion created by King Alyattes in Lydia now known as Turkey. Coins then turned into bank notes around 1661 AD. In 1950 credit cards were then introduced. Money has evolved for the better because there is more control over how much people take and use, it is a lot easier to read and the value of money has grown a lot over time.

Bartering

Bartering is how the whole money thing started. People use to swap their goods for the other person’s goods, like farming produce for farming produce. Bartering dates all the way back to 6000BC, when it was introduced by Mesopotamia tribes, and adopted by Phoenicians. Bartering was one of the earliest, most significant inventions because it was very convenient for everyone.

Money

Why do people need currency? “There are many theories about the origin of money, in part because money has many functions”. Money is an essential thing in life, it is something you can’t live without, but unfortunately some people have to survive with very little money. Money is one of the earliest and most significant inventions of civilization. Money provides everything in life food, water, a shelter, medicine and the list just keeps going on. As the years went on the medium of money and exchange got better, now we have an option of credit cards, bank notes and coins, you can even have both as well. Money entered the digital age in the 1980’s.

Coin Currency

King Alyattes created the first known currency. Decimal currency was introduced in Australia on the 14th of February. decimal currency system of dollars and cents that is still used today. With 1c, 2c, 5c, 10c, 20c and 50c coins, they were all rounded in shape. These decimal coins replaced the half penny, penny, threepence, sixpence, shilling and florin. The circular 50c coin was replaced by a 12-sided 50c coin which we still use today. A $1 coin was introduced to replace the $1 note because the $1 notes kept wearing out too quickly from being touched and passed around. A $2 coin was introduced to replace the $2 note. Australia’s 1c and 2c coins were taken out of circulation because their worth had dropped, and they were becoming too expensive. It has now been 50 years since decimal currency was introduced in Australia. The first coin we recognize today was issued in Lydia now called Turkey, in about 600BC coins were made of electrum, a naturally occurring alloy of gold and silver. Metal objects were first used as money as early as 5000BC. Around 700BC the Lydians became the first western culture to make coins. Money then entered the digital age around the 1980’s.

Paper Currency

Paper money was first developed by the Chinese in about 700AD just after they invented wood block printing, they called it flying cash. Money is not just a piece of paper, it is worth a lot more than that. After bartering someone came up with this genius idea of money, it was then turned into money, people had to work to get money, people then started to get richer and richer until bills, economy and inflation became a thing so then people weren’t so rich anymore and didn’t have much money as they did before bills. Around 700BC the Chinese moved from coins to paper money.

Credit Cards

As the years went on the medium of money and exchange got better, now we have an option of credit cards, bank notes and coins and even both. In 1950 credit cards were then invented. The first universal credit card, which could be used at a variety of establishments, was introduced by the Diners’ Club in 1950. Another major card of this type, known as a travel and entertainment card, was established by the American Express Company in 1958.

Bills

Due to people being so rich before there was such things as bills, economy and inflation; when they were introduced people had to pay and they started to lose money. Bills were introduced in 1857-1996. There are four types of legislation that move through congress bills and three types of resolutions. Generally, bills are legislative proposals that, if enacted, carry the force of law, whereas resolutions do not. Though, this is not always true.

Conclusion

To summarize, that is how money has changed and evolved over time. I think the evolution of money has changed for the better because it is a lot easier to read and count up because all the notes and coins are multiples of five which is easy to count up compared to what we use to have which was pounds and that was much harder to count up. Also, the value of money has improved a lot over time. The unfortunate thing of money evolving is the price of items in shopping centres and bills have increased in price over the years as the value of money has increased.

Bibliography

1. Anderson, K. (2007). Guide to the Barter Economy & the Barter System History. Retrieved from https://www.mint.com/barter-system-history-the-past-and-present: https://www.mint.com/barter-system-history-the-past-and-present
2. Continental Staff. (2017, May 25). The Current . Retrieved from THE HISTORY OF MONEY: https://blog.continentalcurrency.ca/fx101-history-money/
3. Gascoigne, B. (2001). HISTORY OF MONEY. Retrieved from History World Net : http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab14
4. Kusimba, C. (2017, June 20). How Did Money Evolve in Human Societies? Retrieved from Real Clear Science: https://www.realclearscience.com/articles/2017/06/20/how_did_money_evolve_in_human_societies_110319.html

Credit cards have revolutionized the concept of spending and financial management in the modern world. This essay delves into the multifaceted world of credit cards, exploring their functionality, benefits, risks, and impact on personal finance. Credit cards, essentially a form of plastic money, offer users the convenience of purchasing goods and services with the promise of paying back the borrowed amount at a later date. They have become an integral part of financial transactions, providing a secure and flexible way to manage expenses. While credit cards offer numerous advantages, including building credit history, rewards, and ease of use, they also come with responsibilities and potential risks, such as debt accumulation and financial mismanagement.

This comprehensive analysis aims to provide a balanced view of credit cards, illustrating their role in contemporary finance, their usage, advantages, challenges, and strategies for responsible management. Understanding the dynamics of credit cards can aid consumers in making informed financial decisions, ultimately leading to better credit health and financial stability. The increasing prevalence of online shopping and international transactions has further cemented the importance of credit cards in the digital age. They facilitate seamless global transactions, eliminating the need for currency exchange and enhancing purchasing power across borders.

100 Words Essay on Credit Card

A credit card is a financial instrument that enables users to access funds for purchases or services, obligating them to repay the borrowed amount later, typically with interest. This tool provides a convenient and efficient means for cashless transactions, and its global acceptance makes it an essential asset for modern consumers. Credit cards offer several advantages, including building a credit history crucial for future financial endeavors like loan approvals. Furthermore, credit cards can be a powerful tool for effective financial management, allowing users to track spending and budget accordingly. However, they come with inherent risks, primarily the potential for accruing high interest and falling into debt if not managed wisely.

250 Words Essay on Credit Card

Credit cards, a ubiquitous element in today’s financial landscape, provide users with the convenience of borrowing money to purchase or pay for services. This borrowed amount is repaid later, often with interest, if the balance is not cleared in full. Credit cards offer a range of benefits, including the ability to build a credit history, which is crucial for future loan approvals and interest rates. They also provide rewards such as cashback, travel points, and purchase discounts.

Moreover, credit cards offer a layer of security not present in cash transactions. They protect against fraud and theft, with most companies offering zero-liability policies for unauthorized transactions. They also offer the convenience of online shopping and bill payments, making them an essential tool in digital financial transactions.

However, the use of credit cards comes with responsibilities. It’s crucial to understand the terms, such as interest rates, annual fees, and credit limits. Irresponsible use can lead to a cycle of debt, primarily if users spend beyond their means and struggle to pay off the balance. This can result in high-interest charges and negatively impact credit scores.

Responsible credit card usage involves paying balances in full each month, understanding the card’s terms, and using the credit limit wisely. Monitoring credit card statements regularly for unauthorized charges is also important. Credit cards can be a powerful financial tool when used judiciously, offering convenience, security, and opportunities to improve one’s financial health. By understanding their benefits, risks, and best practices for management, individuals can leverage credit cards to their advantage, ensuring financial security and freedom.

400 Words Essay on Credit Card

Credit cards have become ubiquitous in modern society, offering the convenience and flexibility of cashless transactions. These cards provide a line of credit from which users can borrow funds for purchases or services, understanding that the borrowed amount will be repaid. The primary advantage of credit cards is their ability to manage cash flow, allowing purchases without immediate payment. This feature is invaluable in emergencies or when handling large expenses.

Credit cards are instrumental in building and maintaining a healthy credit history, a key factor in securing loans and obtaining favorable interest rates. Responsible credit card usage, including timely payments and keeping a low credit utilization ratio, can positively influence credit scores. Furthermore, many credit cards come with rewards programs, offering cashback, airline miles, or points redeemable for various products or services. These rewards can yield significant savings and benefits, particularly for frequent users.

The enhanced security provided by credit cards is another significant advantage. Unlike cash, credit cards come equipped with fraud protection, and most issuers offer zero-liability policies for unauthorized transactions, making them a safer option for in-person and online purchases. Their universal acceptance also makes credit cards essential for global travel and transactions.

However, the use of credit cards demands disciplined financial management. High-interest rates and additional fees can accumulate quickly if balances are not paid in full, potentially leading to a challenging debt situation. Users must understand their credit card terms, including interest rates, annual fees, and penalty charges. Budgeting and expense tracking are crucial to prevent overspending and ensure credit card use aligns with personal financial capabilities.

To maximize the benefits of credit cards, selecting a card that aligns with individual spending habits and financial situations is important. Regularly monitoring account statements and keeping track of credit scores are also essential practices. When used judiciously and with balances paid promptly, credit cards offer a range of benefits, including convenience, reward accrual, and improved financial management.

Credit cards also serve as a gateway to consumer protection services, such as extended warranties, purchase protection, and travel insurance, adding an extra layer of security to transactions. Some cards offer exclusive access to events, airport lounges, and other premium services, enhancing the user experience. The ability to defer payments through credit cards can also assist in better financial planning, allowing users to align their expenses with cash flows. However, it is vital to be aware of the potential for overspending due to the ease of using credit cards.

500 Words Essay on Credit Card

Credit cards have become an indispensable element in modern financial transactions, offering a blend of convenience and efficiency in managing finances. These cards allow individuals to borrow funds within a specified limit for purchasing goods and services, with a commitment to repay the amount, typically accompanied by interest. This facility has dramatically altered traditional approaches to spending, budgeting, and overall money management.

A significant advantage of credit cards is their role in building a credit history. Regular and responsible usage can substantially improve an individual’s credit score, a crucial factor in securing future financial services like loans or mortgages. Furthermore, credit cards come with various rewards and benefits. These include cashback offers, travel miles, and discounts, incentivizing their use for daily expenses.

Credit cards also offer a heightened level of security compared to cash. They provide fraud protection, with many issuers adopting zero-liability policies for unauthorized transactions. This aspect is increasingly important in an era marked by a surge in online transactions and the potential for digital fraud.

However, the perks of credit cards necessitate responsible management. Accumulating high interest and additional fees due to unpaid balances can lead to a debilitating debt cycle. It’s crucial for users to understand their credit card terms, including interest rates, annual fees, and penalty charges, and to be mindful of their spending habits to avoid exceeding their repayment capacity.

Budgeting and monitoring expenses are essential for effective credit card management. Implementing payment alerts, utilizing expense tracking apps, and consistently reviewing credit card statements are strategies to prevent overspending and missed payments. Selecting a credit card that aligns with one’s personal spending habits and financial objectives is also vital.

Credit cards are particularly useful in emergencies, providing a readily available source of funds for unexpected expenses. They offer the flexibility to manage cash flow by covering immediate costs and repaying them over time. However, this flexibility must be tempered with the discipline to avoid using credit cards to live beyond one’s financial means.

Responsible credit card use involves more than timely payments. It encompasses understanding the credit limit, evading unnecessary charges, and capitalizing on the card’s benefits. Personal finance education and comprehension of the implications of credit card use are key to utilizing this financial tool effectively.

Furthermore, credit cards facilitate global transactions, making international travel and online purchases from foreign vendors more accessible. They eliminate the need for currency conversion and provide a seamless shopping experience. The integration of credit cards with digital wallets and mobile payment systems has further enhanced their convenience, reflecting the evolving landscape of digital finance.

In conclusion, credit cards are a potent financial instrument offering considerable benefits when used judiciously. They provide ease of use, security, and the opportunity to establish a robust credit history, all critical in today’s financial environment. However, they demand informed and conscientious management to circumvent the drawbacks of high interest and escalating debt. With astute use, credit cards can become an invaluable component of an individual’s financial toolkit, enhancing their financial health and empowerment.

Credit cards is a plastic card that lets you pay for goods or services and can be paid for either at the end of a set period which is normally a month. The minimum payment will be a percentage of the balance on the credit card. It is suitable for buying goods or services. It is also used for convenience and safety as an alternative to using cash.

Credit cards, also known as plastic money, have seen a significant increase in usage worldwide since their introduction. At the beginning of the twentieth century, credit cards were first issued in the United States. Since then, they have become very popular in many countries around the world, and credit cards are the primary system for facilitating transactions or payment exchanges for household and personal expenses.

The Advantages of Credit Cards

The advantages of credit cards are that it is easy to use, you could pay above the minimum rate if you want to and hence speed up the rate of repayment and reduce interest incurred. It can be used for any item no matter how big the value is, and it provides some protection on purchases.

Also, they’re a great way to build credit. Each time you open a new credit card account, the lender reports that activity to a credit reporting agency. They’ll also report if you miss a payment or are frequently late paying your monthly installments.

Credit cards are more secure than cash. They are used frequently—even by people who have access to cash—because they offer another level of security.

Many credit card companies offer rewards such as cash back or airline miles for using them regularly. If you use a credit card for routine expenses, these rewards can add up quickly.

The Disadvantages of Credit Cards

The disadvantages of using a credit card are that it can encourage overspending which will lead to a bad habit, you could make unnecessary purchases which would also lead to debt problems.

Although credit cards are convenient, the cost of borrowing is typically much higher than with a traditional loan.

Applying for too many credit cards can damage your credit. Several factors impact your credit score, including payment history, current amount owed, length of history, new credit, and types of credit used.

Conclusion

I certainly think that using credit card are very useful as you can put money in there whenever you want and spend the money when or wherever you want. You could use it online as well. As long as you don’t become addictive to overspending, it will be a great way of delaying payments and it is simple to use.

The fraudulent use of a card account by the theft of the account holder’s card number, card details and personal information, through a plethora of methods in order to perform unauthorized transactions from the compromised account is called a card fraud.

Causes of Credit Card Fraud

Reasons for massive online card fraud are that it is easy enough to buy stolen credit card information, moreover, legal action is rare, and online fraud may be a low priority for law enforcement, due to difficulty in collecting evidence and time and resource constraints.

Different Ways to Produce Credit Card Fraud

Some of the various ways, by which online card frauds can take place, include:

• Pharming. In pharming, fraudsters reroute the user to a faux website that appears much like the original. The card details can be stolen when the account holder conducts transactions and make payments via credit or debit card.
• Keystroke logging. In this method, a software is unintentionally downloaded by the user, which allows the fraudster to trace the key strokes and steal passwords or credit card and Net banking details.
• Public Wi-Fi. Usage of public Wi-Fi to carry out transactions on smartphones can provide a good hacking opportunity for thieves to obtain card information.
• Malware. Malware is a software program which can harm computer structures at ATMs or bank servers and permits fraudsters to get admission to confidential card records.

Options for Using Stolen Card Data by Fraudsters

A fraudster can use the stolen card information in the following ways:

1. Online purchases. Card information can be used for online purchases. It is easier to do this if the thieves also have the user’s billing postal code and the security code from the back of the card.
2. Sell information. Credit card information can be sold over the Internet. The price is determined according to the type and amount of information, the more information the thief has, the more valuable the card information is.
3. Create duplicate cards. Fraudsters can create identical credit or debit cards by programming the credit card information on gift cards or prepaid credit cards.

How to Know If Online Card Fraud Has Taken Place?

1. Don’t ignore odd problems with your web accounts. Messages and emails informing that the account has been accessed from a new device or the web dashboard showing a ‘last logged in’ date which the user does not recognize should not be ignored as they could be the first sign of identity theft.
2. Check your bank account and credit card statements. Monitor statements of the card regularly to check for any discrepancies such as transactions you don’t recall making, amounts that seem unusual or a vendor name you do not recognize. If you suspect any other activity which is not done by you, contact the bank or credit card company and report it immediately. Changing the password or setting up a two-factor authentication to enhance the security of your accounts can prevent identity thefts.
3. Run a free credit report. Running a credit report every four months can help detect theft. If the first credit score seems low, there is a chance that your identity has been stolen. A report check can help provide information on any credit cards, loans or other financial details, and if there is any suspicious activity, get in contact with the credit bureau and let them know where you think the problems are.
4. Pay attention to your email and post. Be vigilant of the emails and physical bills that you receive on emails and, more importantly, those you do not receive. If someone steals your identity you might start seeing a lot less email because the thief is having it delivered to a different address. Furthermore, emails that don’t belong to you, could also be an early warning sign of fraud. This should raise some issues, which you should be able to figure out by reporting it to the credit card company that it came from.

Ways to Prevent Online Credit Card Frauds

• Use safe and secure websites. Visit only renowned and established sites for online shopping. Confirm the website’s legitimacy before using it and shop only on those that are Secure Sockets Layer (SSL)-certified which can be identified by the lock symbol next to the browser’s URL box. Make sure that the website uses the ‘https’ protocol instead of ‘http’, where ‘s’ stands for ‘secure’. Also, make sure not to click on the choice that asks for saving your card details on any website. You should look for a website’s payment verification tools, such as Secure Code of MasterCard, which verifies that the payment is made by you while protecting the privacy of the online transaction.
• Anti-virus software. Installing identity theft detection apps on the phone from an official app store can help prevent frauds. A computer software that enables the wiping out of the data remotely in case the mobile gets stolen can also prevent confidential data from being stolen.
• Debit. Transactions using a debit card are riskier than credit card transactions because if card is compromised, the entire cash in the bank account can be wiped out immediately. The credit card, on the other hand, offers a month’s grace period before the cash leaves the account, during which the investigation can possibly identify the fraud.
• Hide CVV. When you enter the CVV on the website, it should be encrypted by asterisks. This is especially important while shopping on foreign websites where the CVV is the only point of authentication. A virtual keyboard helps to prevent keystroke logging.
• Public Wi-Fi. Unsecured W-Fi networks or public Wi-Fi are these are easy targets for identity theft cases in online transactions.
• Register for alerts. This is a very crucial step because the bank will warn you of any online card transaction or ATM withdrawals the moment those take place. If there is any change in the contact details, they must be updated to receive alerts.
• Log out. Logging out from social media websites and other online accounts ensures data security. Confidential passwords should not be stored on mobile phones as these can be used by fraudsters.
• Change passwords. Frequent password changes reduce the probability of identity theft.
• Virtual cards. Virtual cards are limited debit cards that do not provide the fundamental card details to the seller and expire after 24 hours or 48 hours.

If we are talking about banks and what they can do to prevent card fraud on the Internet, we can note the following:

• Check account level. understanding the usual behavior and login timings of the customers can be helpful. Analytics can be used to identify the unusual transactions for the account holder.
• Creation of Unique Account User IDs. Unique profiles for each of account holder can be created by the bank by unique user names.
• Dual Control. Two different users approving the transaction can help reduce fraud.
• SMS Messaging. When a change is requested in the number or the email, the bank can identify it as a fraud by contacting the account holder and verifying if the change is requested from him/her.
• Controls on Email and IP Address. Allowing only some email addresses or IP locations to carry out transactions online on the bank’s website can help control frauds.

Effects of Online Card Frauds on Consumer Perception

77 % of account holders check their bank accounts weekly for suspicious activity. News of frauds on many fronts have established a sense of vigilance and hesitancy among users.

62 % of respondents believe they are at an increased risk of fraud today than they were two years ago. Criminals can use details to steal information from many accounts, making proactive education about safeguarding personal information is a vital component of fraud prevention.

38 % of consumers responded to experiencing at least one instance of fraud on an existing bank account. With technology friendly fraudsters overcoming many of the existing fraud detection systems, frauds have become widespread and many users have experienced it at least once.

36 % have cancelled a debit or credit card or closed their accounts entirely. Online card frauds have alarmed customers and many of them have closed their accounts or closed their accounts due to it.

51 % of consumers say they have had a transaction declined because their banks mistakenly suspected fraudulent activity. The effort taken by banks in trying to stop fraud backfire sometimes. The embarrassment from a transaction being declined can often be just as detrimental to a customer relationship as instances of actual fraud.

Conclusion

The growing scale and reoccurrence of fraud attacks has increased public awareness of threats, benchmarking a new standard of consumer expectations to be protected from fraud and notified in the event of a breach. A survey found that 75& of respondents expect their banks to inform them of suspicious activity within an hour or less, and 59 % say they should be notified immediately. Meeting these expectations is not an easy task; it is more than just security threat, and it has notable implications on the satisfaction of customers. Suspicious activity is inevitable, and when it happens, a bank should know the best time and channel through which to alarm the customer. How efficiently and effectively a bank detects fraud, combined with the communication to customer at the right time – either as an alert or to request verification of activity establishes trust and a sense of security that maximizes loyalty and ongoing revenue opportunities.

Have you ever thought of how money started? Well, it all started with bartering. People use to swap their goods for the other persons goods. Bartering turned to coins. The first coin ever minted featured a roaring lion created by King Alyattes in Lydia now known as Turkey. Coins then turned into bank notes around 1661 AD. In 1950 credit cards were then introduced. Money has evolved for the better because there is more control over how much people take and use, it is a lot easier to read and the value of money has grown a lot over time.

Bartering

Bartering is how the whole money thing started. People use to swap their goods for the other person’s goods, like farming produce for farming produce. Bartering dates all the way back to 6000BC, when it was introduced by Mesopotamia tribes, and adopted by Phoenicians. Bartering was one of the earliest, most significant inventions because it was very convenient for everyone.

Money

Why do people need currency? “There are many theories about the origin of money, in part because money has many functions”. Money is an essential thing in life, it is something you can’t live without, but unfortunately some people have to survive with very little money. Money is one of the earliest and most significant inventions of civilization. Money provides everything in life food, water, a shelter, medicine and the list just keeps going on. As the years went on the medium of money and exchange got better, now we have an option of credit cards, bank notes and coins, you can even have both as well. Money entered the digital age in the 1980’s.

Coin Currency

King Alyattes created the first known currency. Decimal currency was introduced in Australia on the 14th of February. decimal currency system of dollars and cents that is still used today. With 1c, 2c, 5c, 10c, 20c and 50c coins, they were all rounded in shape. These decimal coins replaced the half penny, penny, threepence, sixpence, shilling and florin. The circular 50c coin was replaced by a 12-sided 50c coin which we still use today. A $1 coin was introduced to replace the $1 note because the $1 notes kept wearing out too quickly from being touched and passed around. A $2 coin was introduced to replace the $2 note. Australia’s 1c and 2c coins were taken out of circulation because their worth had dropped, and they were becoming too expensive. It has now been 50 years since decimal currency was introduced in Australia. The first coin we recognize today was issued in Lydia now called Turkey, in about 600BC coins were made of electrum, a naturally occurring alloy of gold and silver. Metal objects were first used as money as early as 5000BC. Around 700BC the Lydians became the first western culture to make coins. Money then entered the digital age around the 1980’s.

Paper Currency

Paper money was first developed by the Chinese in about 700AD just after they invented wood block printing, they called it flying cash. Money is not just a piece of paper, it is worth a lot more than that. After bartering someone came up with this genius idea of money, it was then turned into money, people had to work to get money, people then started to get richer and richer until bills, economy and inflation became a thing so then people weren’t so rich anymore and didn’t have much money as they did before bills. Around 700BC the Chinese moved from coins to paper money.

Credit Cards

As the years went on the medium of money and exchange got better, now we have an option of credit cards, bank notes and coins and even both. In 1950 credit cards were then invented. The first universal credit card, which could be used at a variety of establishments, was introduced by the Diners’ Club in 1950. Another major card of this type, known as a travel and entertainment card, was established by the American Express Company in 1958.

Bills

Due to people being so rich before there was such things as bills, economy and inflation; when they were introduced people had to pay and they started to lose money. Bills were introduced in 1857-1996. There are four types of legislation that move through congress bills and three types of resolutions. Generally, bills are legislative proposals that, if enacted, carry the force of law, whereas resolutions do not. Though, this is not always true.

Conclusion

To summarize, that is how money has changed and evolved over time. I think the evolution of money has changed for the better because it is a lot easier to read and count up because all the notes and coins are multiples of five which is easy to count up compared to what we use to have which was pounds and that was much harder to count up. Also, the value of money has improved a lot over time. The unfortunate thing of money evolving is the price of items in shopping centres and bills have increased in price over the years as the value of money has increased.

Bibliography

1. Anderson, K. (2007). Guide to the Barter Economy & the Barter System History. Retrieved from https://www.mint.com/barter-system-history-the-past-and-present: https://www.mint.com/barter-system-history-the-past-and-present
2. Continental Staff. (2017, May 25). The Current . Retrieved from THE HISTORY OF MONEY: https://blog.continentalcurrency.ca/fx101-history-money/
3. Gascoigne, B. (2001). HISTORY OF MONEY. Retrieved from History World Net : http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab14
4. Kusimba, C. (2017, June 20). How Did Money Evolve in Human Societies? Retrieved from Real Clear Science: https://www.realclearscience.com/articles/2017/06/20/how_did_money_evolve_in_human_societies_110319.html

Credit cards have revolutionized the concept of spending and financial management in the modern world. This essay delves into the multifaceted world of credit cards, exploring their functionality, benefits, risks, and impact on personal finance. Credit cards, essentially a form of plastic money, offer users the convenience of purchasing goods and services with the promise of paying back the borrowed amount at a later date. They have become an integral part of financial transactions, providing a secure and flexible way to manage expenses. While credit cards offer numerous advantages, including building credit history, rewards, and ease of use, they also come with responsibilities and potential risks, such as debt accumulation and financial mismanagement.

This comprehensive analysis aims to provide a balanced view of credit cards, illustrating their role in contemporary finance, their usage, advantages, challenges, and strategies for responsible management. Understanding the dynamics of credit cards can aid consumers in making informed financial decisions, ultimately leading to better credit health and financial stability. The increasing prevalence of online shopping and international transactions has further cemented the importance of credit cards in the digital age. They facilitate seamless global transactions, eliminating the need for currency exchange and enhancing purchasing power across borders.

100 Words Essay on Credit Card

A credit card is a financial instrument that enables users to access funds for purchases or services, obligating them to repay the borrowed amount later, typically with interest. This tool provides a convenient and efficient means for cashless transactions, and its global acceptance makes it an essential asset for modern consumers. Credit cards offer several advantages, including building a credit history crucial for future financial endeavors like loan approvals. Furthermore, credit cards can be a powerful tool for effective financial management, allowing users to track spending and budget accordingly. However, they come with inherent risks, primarily the potential for accruing high interest and falling into debt if not managed wisely.

250 Words Essay on Credit Card

Credit cards, a ubiquitous element in today’s financial landscape, provide users with the convenience of borrowing money to purchase or pay for services. This borrowed amount is repaid later, often with interest, if the balance is not cleared in full. Credit cards offer a range of benefits, including the ability to build a credit history, which is crucial for future loan approvals and interest rates. They also provide rewards such as cashback, travel points, and purchase discounts.

Moreover, credit cards offer a layer of security not present in cash transactions. They protect against fraud and theft, with most companies offering zero-liability policies for unauthorized transactions. They also offer the convenience of online shopping and bill payments, making them an essential tool in digital financial transactions.

However, the use of credit cards comes with responsibilities. It’s crucial to understand the terms, such as interest rates, annual fees, and credit limits. Irresponsible use can lead to a cycle of debt, primarily if users spend beyond their means and struggle to pay off the balance. This can result in high-interest charges and negatively impact credit scores.

Responsible credit card usage involves paying balances in full each month, understanding the card’s terms, and using the credit limit wisely. Monitoring credit card statements regularly for unauthorized charges is also important. Credit cards can be a powerful financial tool when used judiciously, offering convenience, security, and opportunities to improve one’s financial health. By understanding their benefits, risks, and best practices for management, individuals can leverage credit cards to their advantage, ensuring financial security and freedom.

400 Words Essay on Credit Card

Credit cards have become ubiquitous in modern society, offering the convenience and flexibility of cashless transactions. These cards provide a line of credit from which users can borrow funds for purchases or services, understanding that the borrowed amount will be repaid. The primary advantage of credit cards is their ability to manage cash flow, allowing purchases without immediate payment. This feature is invaluable in emergencies or when handling large expenses.

Credit cards are instrumental in building and maintaining a healthy credit history, a key factor in securing loans and obtaining favorable interest rates. Responsible credit card usage, including timely payments and keeping a low credit utilization ratio, can positively influence credit scores. Furthermore, many credit cards come with rewards programs, offering cashback, airline miles, or points redeemable for various products or services. These rewards can yield significant savings and benefits, particularly for frequent users.

The enhanced security provided by credit cards is another significant advantage. Unlike cash, credit cards come equipped with fraud protection, and most issuers offer zero-liability policies for unauthorized transactions, making them a safer option for in-person and online purchases. Their universal acceptance also makes credit cards essential for global travel and transactions.

However, the use of credit cards demands disciplined financial management. High-interest rates and additional fees can accumulate quickly if balances are not paid in full, potentially leading to a challenging debt situation. Users must understand their credit card terms, including interest rates, annual fees, and penalty charges. Budgeting and expense tracking are crucial to prevent overspending and ensure credit card use aligns with personal financial capabilities.

To maximize the benefits of credit cards, selecting a card that aligns with individual spending habits and financial situations is important. Regularly monitoring account statements and keeping track of credit scores are also essential practices. When used judiciously and with balances paid promptly, credit cards offer a range of benefits, including convenience, reward accrual, and improved financial management.

Credit cards also serve as a gateway to consumer protection services, such as extended warranties, purchase protection, and travel insurance, adding an extra layer of security to transactions. Some cards offer exclusive access to events, airport lounges, and other premium services, enhancing the user experience. The ability to defer payments through credit cards can also assist in better financial planning, allowing users to align their expenses with cash flows. However, it is vital to be aware of the potential for overspending due to the ease of using credit cards.

500 Words Essay on Credit Card

Credit cards have become an indispensable element in modern financial transactions, offering a blend of convenience and efficiency in managing finances. These cards allow individuals to borrow funds within a specified limit for purchasing goods and services, with a commitment to repay the amount, typically accompanied by interest. This facility has dramatically altered traditional approaches to spending, budgeting, and overall money management.

A significant advantage of credit cards is their role in building a credit history. Regular and responsible usage can substantially improve an individual’s credit score, a crucial factor in securing future financial services like loans or mortgages. Furthermore, credit cards come with various rewards and benefits. These include cashback offers, travel miles, and discounts, incentivizing their use for daily expenses.

Credit cards also offer a heightened level of security compared to cash. They provide fraud protection, with many issuers adopting zero-liability policies for unauthorized transactions. This aspect is increasingly important in an era marked by a surge in online transactions and the potential for digital fraud.

However, the perks of credit cards necessitate responsible management. Accumulating high interest and additional fees due to unpaid balances can lead to a debilitating debt cycle. It’s crucial for users to understand their credit card terms, including interest rates, annual fees, and penalty charges, and to be mindful of their spending habits to avoid exceeding their repayment capacity.

Budgeting and monitoring expenses are essential for effective credit card management. Implementing payment alerts, utilizing expense tracking apps, and consistently reviewing credit card statements are strategies to prevent overspending and missed payments. Selecting a credit card that aligns with one’s personal spending habits and financial objectives is also vital.

Credit cards are particularly useful in emergencies, providing a readily available source of funds for unexpected expenses. They offer the flexibility to manage cash flow by covering immediate costs and repaying them over time. However, this flexibility must be tempered with the discipline to avoid using credit cards to live beyond one’s financial means.

Responsible credit card use involves more than timely payments. It encompasses understanding the credit limit, evading unnecessary charges, and capitalizing on the card’s benefits. Personal finance education and comprehension of the implications of credit card use are key to utilizing this financial tool effectively.

Furthermore, credit cards facilitate global transactions, making international travel and online purchases from foreign vendors more accessible. They eliminate the need for currency conversion and provide a seamless shopping experience. The integration of credit cards with digital wallets and mobile payment systems has further enhanced their convenience, reflecting the evolving landscape of digital finance.

In conclusion, credit cards are a potent financial instrument offering considerable benefits when used judiciously. They provide ease of use, security, and the opportunity to establish a robust credit history, all critical in today’s financial environment. However, they demand informed and conscientious management to circumvent the drawbacks of high interest and escalating debt. With astute use, credit cards can become an invaluable component of an individual’s financial toolkit, enhancing their financial health and empowerment.

Abstract

Fraud is any malicious activity that aims to cause financial loss to the other party. As the use of digital money or plastic money even in developing countries is on the rise so is the fraud associated with them. Frauds caused by Credit Cards have cost consumers and banks billions of dollars globally. Even after numerous mechanisms to stop fraud, fraudsters are continuously trying to find new ways and tricks to commit fraud. Thus, in order to stop these frauds we need a powerful fraud detection system that not only detects the fraud but also detects it before it takes place and in an accurate manner. We need to also make our systems learn from the past committed frauds and make them capable of adapting to future new methods of fraud.

In this paper, we have introduced the concept of fraud related to credit cards and their various types. We have explained various techniques available for a fraud detection system such as Support Vector Machine (SVM), Artificial Neural Networks (ANN), Bayesian Networks, K- Nearest Neighbour (KNN), Hidden Markov Models, Fuzzy Logic Systems, and Decision Trees.

An extensive review is done of the existing and proposed models for credit card fraud detection and a comparative study of these techniques on the basis of quantitative measurements such as accuracy, detection rate, and false alarm rate. The conclusion of our study explains the drawbacks of existing models and provides a better solution in order to overcome them.

Keywords: Neural Network, Genetic Algorithm, Support Vector Machine, Bayesian Network, K- Nearest Neighbour, Hidden Markov Model, Fuzzy Logic Based System, Decision Trees.

I. Introduction

Today the use of Credit cards even in developing countries has become a common scenario. People use it to shop, pay bills, and for online transactions. But with an increase in the number of Credit Card users, the cases of fraud in Credit cards have also been on the rise. Credit Card-related frauds cause global loss of billions of dollars. Fraud can be classified as any activity with the intent of deception to obtain financial gain in any manner without the knowledge of the cardholder and the issuer bank. Credit Card fraud can be done in numerous ways. By lost or stolen cards, producing fake or counterfeit cards, cloning the original site, erasing or modifying the magnetic strip present on the card that contains the user’s information, phishing, skimming, or stealing data from a merchant’s side.

Fraud detection deals with finding a fraud activity amongst thousands of genuine ones, which in fact puts forward a challenge. With continued advancement in fraudulent strategies, it is important to develop effective models to combat these frauds in their initial stage only, before they can take to completion. However, the major challenge in developing such a model is that the number of fraudulent transactions among the total number of transactions is a very small number and hence the work of finding a fraudulent transaction in an effective and efficient way is quite bothersome.

II. Literature survey

In 2015, J. Esmaily and R. Moradinezhad in their paper proposed a hybrid of artificial neural networks and decision trees. In their model, they used a two-phase approach. In the first phase, the classification results of the Decision tree and Multilayer perceptron were used to generate a new dataset which in the second phase is fed into the Multilayer perceptron to finally classify the data. This model promises reliability by giving a very low false detection rate. Siddhartha Bhattacharyya and 4 others in their paper in 2011 did a detailed comparative study of Support vector machine and random forest along with logistic regression. They concluded through experiments that the Random Forest technique shows the most accuracy followed by Logistic Regression and Support Vector Machine. Raghavendra Patidar and Lokesh Sharma in 2011 proposed a hybrid of Artificial Neural Network and Genetic Algorithm in their paper. They used a neural network to classify the transactions and a genetic algorithm to optimize the solution and not over-train the system. In 2015, Tanmay Kumar and Suvasini Panigrahi in their paper proposed a hybrid approach to credit card fraud detection using fuzzy clustering and a neural network. It makes use of two phases. In phase one, they used a c-means clustering algorithm to generate a suspicious score of the transaction and in the next phase, if a transaction is suspicious it is fed into a neural network to determine whether it was really fraudulent or not.

III. Proposed system

The proposed fraud detection model is outlined in Figure. During the training phase, the legal transaction pattern and fraud transaction pattern of each customer is created from their legal transactions and fraud transactions, respectively, by using frequent item set mining. Then during the testing phase, the matching algorithm detects to which pattern the incoming transaction matches more.

IV. Conclusion

Although there are several fraud detection techniques available today none is able to detect all frauds completely when they are actually happening, they usually detect it after the fraud has been committed. This happens because a very minuscule number of transactions from the total transactions are actually fraudulent in nature. So we need a technology that can detect the fraudulent transaction when it is taking place so that it can be stopped then and there and that too at a minimum cost. So the major task of today is to build an accurate, precise, and fast fraud detection system for credit card frauds that can detect not only frauds happening over the internet like phishing and site cloning but also tampering with the credit card itself i.e. it signals an alarm when the tampered credit card is being used.

III. References

1. E. D. Yusuf Sahin, “Detecting credit card fraud by logistic regression,” 2011.
2. T. R. C. Sudha, “Credit card fraud detection in internet using k nearest neighbor algorithm,” IPASJ international journal of computer science, vol. 5, no. 11, 2017.
3. A. A. Pansy Khurana, “Credit card fraud detection using fuzzy logic and neural network,” Spring Sim, 2016.
4. D. L. G. S. Chandrahas Mishra, “Credit card fraud detection using neural networks,” International Journal of Computer Science, vol. 4, no. 7, July 2017.
5. A. A. Nancy Demla, “Credit card fraud detection using reduction of false alarms,” International Journal of Innovations in Engineering and Technology, vol. 7, no. 2, 2016.