The benefits of having a credit card are plentiful. First is convenience, as you can make cashless purchases online or in physical stores. With the rise of digitalization and e-commerce, online payments have become the norm for most consumers. Aside from building credit that helps in future loan approvals, credit cards also help you be financially flexible by letting you borrow money for big purchases and emergencies.

However, irresponsible use of credit cards has downsides, including debt accumulation, overspending temptation, and security risks. According to the Anti-Cybercrime Group, ATM and credit card fraud comprise 5.24% of cybercrimes in 2023, equivalent to 1,043 cases.

After studying credit card advantages and disadvantages, the question remains: Is using a credit card online safe? The answer is a resounding yes – but only if you know the proper safety protocols.

What is a credit card? 

A credit card is a financial instrument that lets you borrow money for payments or purchases. Each card has a limited amount you can borrow, which you must repay at a specified deadline. Because of this responsibility, not everyone can get approval to have this vital piece of plastic. If you have the following qualifications, you're a good candidate for owning one.

• Stable income source
  When you earn regularly, you can pay for accumulated credit expenses. If you don't have a steady income, the bank may worry you'll have difficulty keeping up with your payments. It could also spiral into debt buildup and financial worries.
  
  
• Credit knowledge
  Knowing how credit works lets you utilize your credit card diligently. It means buying within your means and repaying fully and punctually. Credit cards come with interest rates, fees, and penalties, so knowing how to avoid them can help you save in the long run.
  
  
• Financial goals
  Credit cards act as a monetary safety net for sudden expenses, giving you instant access to funds. They also come with detailed statements that support your budget, allowing you to track your expenses closely. Cashbacks and other benefits are other come-ons, potentially boosting savings.
  
  
• Sound financial management
  Before getting a credit card, you should clearly understand your financial situation. Monitor your income and expenditure. Develop the habits of formulating a budget, saving regularly, and exercising financial restraint.
  
  

Basic credit card security features

Are you still wary about putting your credit card information online? To boost your online and financial safety, banks use these security features for credit cards:

• Chip technology
  Each purchase you make with your credit card has a distinct transaction code. Embedded microchips in the card make this possible and lower the risk of fraud.
  
  
• EMV adherence
  EMV refers to Europay, Mastercard, and Visa – the three big companies that established standards for chip-integrated cards. EMV compliance means that your credit card follows international guidelines for protected transactions.
  
  
• Fraud detection
  Banks use advanced algorithms to monitor your spending habits. If anything stands out from your usual activity, banks will immediately notify you of possible fraud, which prevents unauthorized charges.
  
  
• Two-factor authentication
  You can find your Card Verification Value (CVV) on the back of your credit card. When making online purchases, you need to input this value to prove that you physically possess the card. The purchase usually requires a second verification, typically a one-time pin (OTP) sent to your phone.
  
  
• Virtual card
  A virtual card is a supplementary card to your primary credit card. Though it is linked to your original credit card, this virtual version has a different card number printed on it to protect your primary account. A virtual card is specifically designed for online payments.
  
  
• Transaction Alert
  With the Chinabank Credit Card, Get SMS alerts and e-mail notifications through your mobile number and e-mail address on record for every transaction made.  This gives you peace of mind because you are on top of your Card activities.
  
  

How to use your card safely online

It's also important to do your part in ensuring your credit card's safety. Here are some tips when conducting online transactions.

Prioritize security
Invest in software that protects you from viruses and other cyber threats. A firewall also adds a layer of security against malicious attacks. It helps to change the PIN or passwords of your bank account or app every three months. Choose passwords that are hard to crack with a combination of capitalized letters, numbers, and symbols. Don't use personal details like your birthdate and contact number. Keep your login information private.

Be vigilant against phishing
According to a cybersecurity company, the Philippines ranks 5th in having the most phishing cases in Southeast Asia. In phishing, cybercriminals pose as trusted companies to trick you into revealing private information.

Phishing can happen during online shopping. Cybercriminals may pose as trusted online retailers, deceiving shoppers to divulge credit card details and personal information. Phishers can create fake websites, domain names and logos that closely resemble those of legitimate online shops. There are also spoofed emails, which pretend to be from genuine businesses, asking users to click on links to update their information. These links often lead to fake websites that steal information.

Look out for the "s" connection
To check if the website you're visiting is safe, there should be an "s," which stands for "secure" in "https." It means that the site and your browser exchange encrypted communication, which has better security than regular "http" connections. Such secure encoding helps protect sensitive information, like your login details and transactions, from cybercriminals.

Use public Wi-Fi wisely
Are you shopping online? Avoid using public Wi-Fi, which usually has weak encryption protocols. These protocols allow malicious parties to intercept the communication between your device and the website you're buying from, enabling them to capture credit card details and personal information.

Moreover, attackers can set up fake Wi-Fi access points that imitate authentic public networks. Once you connect, cybercriminals can control your online transactions, potentially leading to identity theft. Malicious code can also be incorporated into the network traffic, causing you to download malware, which steals sensitive information.

Use reliable sites for purchases
Shop only on reputable sites. If a site is unfamiliar, research it. Read reviews and comments. You can also double-check its contact details and assess if it looks off or unprofessional. Watch out for too-good-to-be-true deals; this is usually a red flag for a possible scam.

Don’t give your credit card number
Banks always warn you that they will never ask for your credit card details over the phone or through text or email. Make sure that when you purchase online  – albeit a ticket, a reservation, or a product – it’s coursed through a verified payment platform, such as PayPal, DragonPay, Xendit, PayMongo, and others.

Track your card activities
Nip fraud in the bud by monitoring your credit card transactions. This way, you can report inconsistencies and dubious activities ASAP to the bank. The earlier you report, the better your chance of preventing the further unauthorized use of your card. After notifying your credit card company, they will most likely suspend your account to prevent new transactions, investigate your case, and provide a replacement card if needed.

Know your rights
According to the "Access Devices Regulation Act of 1998", if you report unauthorized purchases soonest, you're only liable for a maximum of PhP50,000. The same act states that credit card fraud is a crime, allowing you to submit a formal complaint. The law says credit card fraudsters can be fined and imprisoned.

Remember to update
Update your security software, apps, and operating system as needed. Developers often release new versions to address security lapses, which cybercriminals can leverage. Updates also fix bugs, which may cause apps and systems to crash suddenly. Cyber threats are becoming increasingly sophisticated, so developers are keeping up with new security features. You enjoy boosted security by using the latest software and app versions.

Now that you know how to safely use your credit card, maximizing its benefits and security features, it's time to check out Chinabank's credit cards and choose one that matches your needs and preferences!

Here are some credit cards you may want to enhance your lifestyle and financial freedom:

• Chinabank Cash Rewards Mastercard offers up to 6% cash rebates on qualified purchases. It also offers monthly payment options, including 0% Merchant Installment, Balance Transfer, and Transaction Conversion.
• Chinabank World Mastercard is for the global consumer, offering fuel rebates, airport lounge memberships, and international concierge services.
• Chinabank Platinum Mastercard helps boost your lifestyle through fuel cashback, travel accident and inconvenience insurance coverage, and exclusive dining perks and discounts. 
• Chinabank Freedom Mastercard perpetually waives membership fees, has light monthly payment options, and offers worldwide acceptance.
• Chinabank Prime Mastercard is your everyday card, giving you rewards, deals, and promos while allowing you to repay in manageable terms.
• Chinabank Virtual Card offers an adjustable monthly spending limit and SMS/e-mail notifications that let you monitor spending and possible fraudulent activity. It earns the same rewards and cashback as your main Chinabank credit card.
  
  

Credit cards are now a staple in today's digital economy. However, just like with regular ol' money, use it wisely – especially when making online purchases.

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