Nearly 100 million Americans have their credit card or debit card information stored on a website or in an app to help them make purchases faster in the future, according to a recent study by CreditCards.com.
[See: 10 Ways to Protect Yourself From Online Fraud.]
It shouldn’t be surprising. We all have to-do lists that are a mile long, and anything that will help us take items off those lists more quickly is like a gift from heaven — even if it only speeds up things a little. Storing your credit card information can do just that. No more worrying about whether that monthly subscription gets paid. No more fumbling through your purse to find your card. No more squinting to read the security code on the back of the card. You simply go to the site, give it your credit card information and you’re on your way.
While it might be convenient to store this information, is it wise to do so?
As with so many questions involving your money, the answer is this: It depends. For the most part, storing your information on a shopping site should be just fine. However, it is not without some risk, and it’s important that you understand that before you entrust a retailer with your precious data.
Here are a few things to think about before storing your credit card information online.
[Read: 10 Ways to Keep Your Phone Safe.]
It’s easier for hackers to use, too: There’s no doubt that storing your credit card information on a site or in an app makes it easier for you to make your purchase and move on to the next thing on your to-do list. Often, all you have to do to is select the stored card from a pull-down menu, and you’re set. You don’t even have to enter the card security code. It’s easy and convenient. The problem is that if your account gets hacked, it makes it easier for bad guys to shop there using your card, too. That’s about the last thing you want.
Not all stores are created equal: When you’re in an unfamiliar neighborhood in real life, you probably handle yourself a little differently. You’re just a little more cautious, just in case, and you’re a bit more likely to trust your gut when things don’t feel right. Shopping online should be treated the same way.
It’s one thing to store your card information at familiar sites, such as Amazon, Apple or Netflix. However, it’s a totally different thing to save your credit card details on a site that you’ve never heard of, gets bad reviews online or generally gives off an icky, something-just-doesn’t-feel-right kind of vibe. That doesn’t mean that you should only use the biggest name-brand shopping sites. It just means you should take a little extra care when you veer off the beaten path. So maybe, for those sites, take the time to enter your card info for each purchase rather than storing that info online.
[See: 10 Completely Careless Credit Card Mistakes You’re Making.]
Better to store credit cards than debit cards: When it comes to online security, credit cards are always a better choice than debit cards. It’s simple: If a bad guy gets hold of your debit card information, he can steal real money out of your bank account and cause you real problems when you’re trying to pay those oh-so-real bills. Sure, you’ll almost certainly get that money back thanks to banks’ zero-liability policies, but it might take a while. In the meantime, you might have to scramble to figure out how you’re going to get those bills paid. With credit cards, that’s not an issue. Oftentimes, the fraud amounts to not much more than a nuisance. You’ll get a new card and may have to make a few phone calls or change some numbers on a few websites, but that’s a whole lot easier than dealing with missing cash.
Yet another reason to be diligent about your accounts: The more you put your information out there, the more you need to work to keep an eye on it. Check your credit report regularly at AnnualCreditReport.com, just to make sure everything is in order. Also, visit your credit card issuer’s website and your bank’s website at least once a week to check for any unauthorized charges. Yes, we’re all incredibly busy. However, we still find time to check Facebook, Instagram and Pinterest 10 times a day. Just carve out a couple of minutes once a week — even if you have to put it on your calendar to ensure you do it — and you’ll be taking a big step forward in protecting yourself from credit card fraud.
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Don?t Store Your Credit Card Information Online Without Reading This First originally appeared on usnews.com
