Paying for goods and services digitally has become commonplace, with many of us swiping or tapping our cards or using mobile payments without a second thought. However, when it comes to providing card details over the phone, we may be more hesitant. While merchants are legally allowed to ask for credit card details over the phone, there are certain standards and safeguards in place to protect consumer data.
To ensure the protection of cardholder data, merchants are required to comply with the Payment Card Industry Data Security Standard. This standard includes security measures such as encryption and access controls, as well as regular security assessments and strong governance. If unauthorized parties gain access to the stored information, encryption ensures that it remains unreadable, making it impossible for criminals to use the stolen card details. Additionally, access controls ensure that only authorized individuals have access to cardholder data.
While all companies processing card transactions are expected to meet compliance standards, only those processing large volumes are subject to mandatory regular audits. Failure to comply with these standards can result in significant penalties for the company in the event of a data leak or misuse.
These requirements apply to all card transactions, whether they are conducted in person, online, or over the phone. Phone transactions typically involve a human collecting the card details and either entering them into computer systems or processing the payment through paper forms. The Payment Card Security Standards Council provides detailed guides for best practices in this regard, including protecting payment card data against unauthorized viewing, copying, or scanning.
Despite these protective measures, there are still risks associated with providing card details over the phone, such as the potential misplacement of details or the possibility of interacting with fraudulent individuals. To minimize the chances of falling victim to fraud or having your details leaked, there are several steps you can take:
1. Verify the caller: If you receive a call that you did not initiate, hang up and contact the company directly using verified contact information. Scammers often pretend to be well-known companies and may try to convince you that a payment has failed or that a payment is required to release a delivery. Before providing any information, ensure that the caller is legitimate and that the purpose of the call is genuine.
2. Be skeptical: If you encounter a deal that seems too good to be true or have concerns about the person you are dealing with, trust your instincts and hang up. You can always call back later if necessary.
3. Use secure payment methods: If you have previously used more secure payment methods with the company, ask to use the same method for the current transaction.
4. Keep records: Make sure to record details of the company, the representative you spoke with, and the amount being charged. Request an order or transaction reference, and ask for a receipt to be sent to you. Check the transaction against your card to ensure it matches the receipt.
In addition to these precautions, using a virtual credit card can further reduce the risk of card fraud. Many financial institutions offer virtual card options that allow you to create new credit card numbers linked to your physical card. Some banks even allow you to generate unique card numbers and CVV numbers, making it easier to separate transactions and cancel a virtual card or number if needed.
If you suspect that your card details have been compromised or stolen, it is important to take quick action. Contact your bank to block your card and prevent further losses. Report the issue to the police or relevant authorities, monitor your accounts for any unusual transactions, and explore the card settings in your banking app or website for additional security measures.
Ultimately, if you want to minimize risk, it is best to avoid providing card details over the phone if possible. While providing card details via a website still carries risks, it eliminates the human element. Currently, using virtual cards offers the best solution as it allows you to cancel a unique card identity in case of any issues, rather than having to cancel your entire card.
