| Over recent years credit card fraud has become a | | | | account or address, so the chance of fraud is next to |
| major problem, and the level of card fraud, particularly | | | | none." |
| CNP fraud, which is card not present fraud, has been | | | | You can compare prepaid cards to find those that |
| rising. | | | | offer lower or waive the usage and loading fees. |
| Card not present fraud is, as the name suggests, fraud | | | | However, there are also disadvantages to using |
| that affects transactions where the card does not | | | | prepaid cards over credit cards. Firstly, you may find |
| have to be physically presented such as with | | | | that you have to pay charges for using your own |
| telephone and online purchases, where the card details | | | | money, which can be somewhat offputting. Another |
| are provided but no card is actually seen by the seller. | | | | downside is that with prepaid cards you do not get the |
| Because credit card fraud with CNP transaction has | | | | benefits that you get with many credit cards such as |
| become so prevalent more and more people are | | | | section 75 purchase protection (which can be |
| becoming nervous about shopping online with their | | | | protection from fraud if you are missold an item or it |
| credit cards, according to recent reports. The research | | | | never gets delivered), the interest free credit that you |
| showed that one in every three people knew | | | | can get on credit cards or the rewards that can be |
| someone that had been the victim of card fraud, and | | | | earned on some cards. |
| this increased their wariness when it came to making | | | | For those that do not want to give up these benefits |
| credit card transaction online themselves. | | | | the key to avoiding fraudulent activity may simply be |
| In fact, it has been found that over half of the | | | | to ensure that you are careful about your credit card |
| population is nervous about using their credit cards | | | | details, and this means not saving account details and |
| online, and given this information some officials are | | | | passwords on websites, not saving account |
| questioning whether those that are wary about online | | | | information on shared computers, and not falling for |
| credit card transactions could benefit from using a | | | | phishing scams, where you link to a website or bank |
| prepaid card rather than a regular credit card. | | | | via an email that has been sent to you. |
| One official said: "Prepaid cards allow such people to | | | | You should also never give out your card details to |
| be part of the modern day 'plastic culture' which allows | | | | someone on the phone if the call was not initiated by |
| you to take advantage of online shopping discounts as | | | | you, and don't give your card details to strangers who |
| well as access to hugely popular sites such as eBay." | | | | stop you in the street or come to your door claiming to |
| He added: "The risk with a credit card is that the | | | | be selling something, as you never really know who |
| fraudsters will be able to max out your card, where a | | | | you are giving your details to. With some simple and |
| prepaid card is almost like a pay-as-you-go mobile | | | | sensible precuationery steps you could minimise the |
| phone. The only money that can be stolen, is the | | | | risk of card fraud without having to opt for a prepaid |
| money you have loaded on. And unlike a debit card, a | | | | card and lose the benefits of a traditional credit card. |
| prepaid card does not have any link to your bank | | | | |