California is the second state in the U.S. to implement this new technology. It follows the opening of the American Express card program in California. The installation of chip-enabled plastic cards (PEIP) can potentially reduce fraud by up to ninety percent. This means an increased time for processing and reduced fees. However, as you might expect with a new technological solution, there are still some things that the card issuer must consider before everyone starts carrying them.
“Will my card company allow me to use the chip in my card for purchases overseas?” If you travel regularly or live overseas, you will want to make sure you can use your card for overseas transactions. There are a number of payment options, you may want to use while traveling. Air miles, hotel rooms, and rental cars are only a few of the options available. You may want to review your credit card provider’s policies on these purchases to be sure that you are allowed.
“How will I make my purchases online using my credit card?” Prepaid online credit cards have become a popular way to make purchases online. Many online retailers allow you to make purchases using your card online. Some companies even allow you to make purchases at gas stations, department stores, and even specific restaurants.
“Who can I charge on my card and for how much? My card could easily be maxed out and I won’t be approved for anything else if this happens.” While you should not let the cost of a purchase keep you from making a purchase, you need to understand how your spending may be affected if you are limited by a low limit. You should also understand the fees and charges involved in making purchases.
“Will people with bad credit be able to get credit cards?” Yes, there will be some restrictions put in place for people with bad credit. Most of the restrictions will involve only purchases for which you show proof of having been authorized. It is important to contact your financial institution and ask questions before ordering your chip-enabled credit cards.
“Can I get a prepaid credit card for my newborn baby? California has set aside a total amount of $25 million to help those who need it. This means that you can use this money towards items such as baby clothes, diapers, bathing supplies, and more. However, it will not be possible to charge purchases online for the duration of time that you are in diapers.
“How can I get a California prepaid card when I am already maxing out my existing credit card?” Prepaid credit cards are similar to debit cards in that you cannot purchase more than you have on deposit. However, you will not be able to apply for purchases online. If you need to make purchases online, you will be able to do so after you have exhausted your balance. It is important to note that purchases online will incur charges.
Credit theft has skyrocketed over the last decade. Identity theft and credit card fraud are on the rise. The theft of personal information has led to more consumers being turned into identity thieves, many of whom then attempt to misuse their victim’s identities. With the implementation of chip-reading technology and other methods of preventing ID theft, the introduction of a prepaid credit card can help to stem the tide of ID theft in California.
A typical California credit card will include spending limits which are pre-determined by the issuing bank based on your credit history. Those limits are usually $1000 per calendar year and can be increased or decreased throughout the year for an annual fee. Once you have reached the maximum monthly limit for that particular card, you will no longer be able to increase your purchases. The theft of a California prepaid card number allows someone to take control of your purchases, withdrawing cash from your account and then using that money to make purchases they would not be allowed to make with your card.
With a chip card, you will be able to avoid this altogether. Anyone looking to use your California prepaid card number for online purchases must first swipe their card through the reader located at merchant checkout terminals. When they swipe their card they are making an authorization for that transaction which is then stored on the merchant’s server. Once complete the sale has been processed and you can go back to making your purchases. With a MasterCard or Visa account, this authorization is not stored on your part so it is impossible to be accessed by someone seeking to steal your credit card information.
You will want to carefully review the statements you receive each month since there will likely be charged for purchases you didn’t make. These purchases will appear as if they were made by someone with your credit or debit card but in actuality, you are the one who authorized those purchases. With a chip-enabled credit card, you will also be able to avoid being overcharged. This is because anytime a salesperson handles the card, a magnetic field is generated which holds details about all of a user’s purchases including the amount, date, and time the purchase was made. Anytime this magnetic field is read, a computer processes the details and the charge are applied to your card.