I have an honest question I can’t wrap my head around, and I’m curious if any OMAAT readers can help. Does anyone understand why people selectively stress over credit card fraud when sharing credit card details with others? I assume it’s just one of those irrational things, but I’d love to know if I’m missing something…
Let me state upfront that all of the below is specific to US-issued credit cards, based on the consumer protections that are in place here.
In this post:
Credit card theft paranoia makes no sense to me
I always find it interesting how many people have a double standard when it comes to their concerns over credit card fraud, and I can’t figure out if people just aren’t thinking rationally, or if there’s something I’m missing.
Let me give an example. Some time back I spoke to someone who explained to me that he’ll only use a debit card for purchases abroad. Why? As he explained, because if he used a credit card and it got stolen, someone could “access” his full credit line, while if he used a debit card, they could only “access” the couple of thousand dollars in that account.
Or there seems to be a selective fear over giving credit card information to service providers, especially those running small non-brick-and-mortar businesses. I’m sure many people who work online and take credit card information can relate to this, where someone is convinced you’re just trying to steal their credit card details.
Why these credit card fears are irrational
Let me simply share my perspective — it’s completely irrational to have concerns about credit card “security.” Don’t get me wrong, you should be smart about things and shouldn’t wear a t-shirt with your credit card number on it, but that’s about it.
Paying by credit card is the safest way to pay, no matter how you share that credit card information. And while credit card theft and fraud are no doubt annoying, I think we’re collectively not great at assessing when we are at an increased risk of that, and when we aren’t.
Why do I find this fear of sharing credit cards to be so irrational? Let me explain…
Credit cards offer amazing fraud protection
At least in the United States, credit card companies offer unrivaled fraud protection. If your credit card is stolen or compromised and you report it, you’re not on the hook for the purchase.
That’s infinitely more security than if you were paying in cash (where your money could be stolen) or if you pay with a debit card (where your balance could be drained).
I’ve had credit card fraud occasionally, and it has literally never cost me a single cent (though it can be inconvenient). Not only that, but many credit cards have other built in purchase protection that covers you beyond just fraud.
Credit card fraud fear is so selective
What I also find interesting is the double standard when it comes to people being concerned about their credit card details:
- People have no problem paying with a credit card at a restaurant, and at least in the United States, the server often walks away with your credit card, and could easily get a picture of it; I’ve never in my life seen anyone say “wait a second, when you walk away with that credit card how do I know you’re not going to steal the details?”
- We see a countless number of data breaches at huge companies, including of credit card details, so there are so many ways your credit card details can be compromised, and there’s no point in even trying to control that
- All kinds of businesses still use credit card authorization forms that require faxing or emailing details, which comes with more security concerns than just outright giving someone credit card details
Bottom line
There are some things that keep me up at night. Whether or not my credit card will be compromised isn’t among those things. At least in the United States, credit card fraud protection is fantastic, and you’re not on the hook for purchases in the event your card is lost or stolen and you report it.
While everyone should be careful with credit cards, there’s literally zero need to be stressed about your credit card details being leaked. You’re infinitely safer paying with a credit card compared to cash or a debit card, regardless of the circumstances. You’re protected against fraud, you often get purchase protection, and hopefully you’re earning some great rewards as well.
Can anyone make sense of why some people are so paranoid about their credit card details? Is there anything I’m missing?
This article raises an important point about financial awareness. Credit cards do provide strong consumer protection, but people often react emotionally when it comes to money and security. Understanding how fraud protection works can help users feel more confident about using credit cards.
I had fraudulent charges on my Amex card couple of years ago. I have about a dozen automatic payments charged to the account every month, and Amex sent me a list of charges that looked like they were regular. They also assured me that they would accept the charges for the next two billing cycles which gave me enough time to make the change with the merchants.
I absolutely hate how in North America restaurants force you to hand over your card, with the number printed on it, instead of allowing you to use contactless. It must be a huge source of card numbers that are sold on the dark internet.
Those countries really learned nothing from the covid experience and innovations.
That must be such a huge source of fraud.
Touche. tap? u think before, where u were asked at times for id or had to sign your cards and now its just a tap and go and you think thats not a huge easy way for fraud once someone happens to grab your card? and like this post says, who cares? if you care about this its a problem
What? You have to hand your card over?
That's crazy- I haven't had to do that in the UK or thr rest of Europe for years! Servers have card readers, transactions happen at the table.
It surprises me just how advanced the US can be, but how backwards bits are.
Signing on the tablet screen at Safeway supermarkets when paying by card in America in 2026 is very quaint.
Handing your card to a waiter is exclusively a US problem, not a “North American” one, lol. Most restaurants in Canada have wireless payment machines that the waiter would bring to the table, and all cards there are required by law to be Chip + PIN, not the Chip + signature nonsense used in the US.
I think some reasons people stress inordinately about it is because it can indicate a broader identity theft is taking place.
Ben, I think this framing overlooks how things actually work for many consumers.
Yes, U.S. credit cards have strong protections, but disputes are not automatically approved. Issuers increasingly rely on algorithms to evaluate claims, and legitimate disputes do get denied. I’ve personally had a fraud claim rejected and only got it resolved after filing a complaint with the Consumer Financial Protection Bureau. Safe to say my bank didn’t like that and closed my card (can’t...
Ben, I think this framing overlooks how things actually work for many consumers.
Yes, U.S. credit cards have strong protections, but disputes are not automatically approved. Issuers increasingly rely on algorithms to evaluate claims, and legitimate disputes do get denied. I’ve personally had a fraud claim rejected and only got it resolved after filing a complaint with the Consumer Financial Protection Bureau. Safe to say my bank didn’t like that and closed my card (can’t bank with chase anymore).
Banks also track dispute frequency, and too many disputes can lead to account shutdowns or future claims being scrutinized more heavily. That alone makes people cautious.
I also think it’s fair to acknowledge that someone with your visibility and relationships with issuers likely has a much easier path to escalation than the average cardholder. For many people, the concern isn’t irrational, it’s based on the reality that resolving fraud can be time consuming, stressful, and sometimes uncertain.
RIP the Consumer Financial Protection Bureau
The thing about the whole situation is that some people just don't trust credit (not just the cards, but borrowing in general). To them, any form of debts is morally bad. Touching credit taints your financial well-being. Being in debt is worse than robbing the banks.
These people do need to apply for credit cards from time to time for various reasons. But their general approach to personal finance is to avoid credit as far...
The thing about the whole situation is that some people just don't trust credit (not just the cards, but borrowing in general). To them, any form of debts is morally bad. Touching credit taints your financial well-being. Being in debt is worse than robbing the banks.
These people do need to apply for credit cards from time to time for various reasons. But their general approach to personal finance is to avoid credit as far as humanly possible.
(side note: different people have different biases, so I can see how a person feels and behaves with much less restraints around credit cards. I think it's normal for each person to approach payment differently based on their individuality. That said, the religious zeal of some of those credit/debt haters occasionally annoys the bejezuz out of me)
To justify their personal biases, people make up excuses about credit cards. Some of them claim that credit cards possess amazing capacity to wreak destructions on your characters. Some other claim that credit cards are inherently insecure. Yet some other claim of mythical powers to cash and/or debit cards and/or checks.
None of these claims are rational. They are just fronts for some quasi-religious feeling around debts/credit. I tend to just discount them.
With a credit card, people at least have a chance to fight the fraud. With a debit card, the money is gone forever.
You are correct that credit cards offer far superior protection. I have never used a debit card and would never use a debit card. Much easier to dispute a credit card transaction BEFORE the money ever leaves your account than to fight a debit card transaction AFTER the money is already gone. If people insist on using debit cards then they should use a debit card from a bank where they maintain only one account...
You are correct that credit cards offer far superior protection. I have never used a debit card and would never use a debit card. Much easier to dispute a credit card transaction BEFORE the money ever leaves your account than to fight a debit card transaction AFTER the money is already gone. If people insist on using debit cards then they should use a debit card from a bank where they maintain only one account and that account they only keep a minimum amount of money at any given time.
Debit card/current account for money-in only. Money-out via credit card every time.
That person in your first example who related use of debit v credit is an idiot. When you use your debit card, you are playing with your own funds. When you use a credit card you are playing with the bank's funds. There is no justification for using a debit card over a credit card to purchase anything.
The issue Ben, is that sometimes the fraud perpetrated can stretch beyond just credit cards as...
That person in your first example who related use of debit v credit is an idiot. When you use your debit card, you are playing with your own funds. When you use a credit card you are playing with the bank's funds. There is no justification for using a debit card over a credit card to purchase anything.
The issue Ben, is that sometimes the fraud perpetrated can stretch beyond just credit cards as it could compromise your PII which can take substantial effort to fix.
Then if you have used that card to pay your monthly bills you have to spend time cancelling and replacing that card. Nobody has time for that foolishness.
Ben,
Yes, you are missing two things. Firstly, the emotional gut punch of having someone target you for a crime even if you ultimately come through unscathed. I think you have recently experienced this yourself.
Secondly, many people who are not chasing bonuses only have one or two credit cards. Having a card blocked due to fraud for even a day or two could be a serious inconvenience. Some issuers are better about this than others.
Worse: bank fantasizes that your debit card is compromised, freezes it and freezes your access to online banking, bill payments. The problem you cite in your second paragraph is best solved by having more credit cards.
I think you answered the question yourself. It is inconvenient! It is a pain! I really don't want to waste time during my vacation dealing with calls to a credit card company because someone is using my credit card for shopping somewhere else. It happened to me many times and it takes a long time to sort it out. Also, your card will be immediately canceled and if you are overseas it won't be easy...
I think you answered the question yourself. It is inconvenient! It is a pain! I really don't want to waste time during my vacation dealing with calls to a credit card company because someone is using my credit card for shopping somewhere else. It happened to me many times and it takes a long time to sort it out. Also, your card will be immediately canceled and if you are overseas it won't be easy to get a new one.
As for handling the card to a person at a restaurant, that is a US thing only. Nobody wants to touch my credit card in Europe or in many countries in LatAm. They will bring the card machine to the table and I am the one that handles the transaction. People outside the US still think we live on the Stone Age when they see we need to sign a credit card transaction. Oh well.......
Reduce the risk of inconvenience by having multiple cards, even if some do not earn rewards.
Of course I travel with multiple cards but again there is an inconvenience. Sometimes you used a specific card for renting a car, if that card is no longer validated because of fraud you lose the benefit. Many times you have to present the card used during the reservation in Europe. Same goes for hotels where you paid a portion in advance and then need time to use the card to pay off the remaining....
Of course I travel with multiple cards but again there is an inconvenience. Sometimes you used a specific card for renting a car, if that card is no longer validated because of fraud you lose the benefit. Many times you have to present the card used during the reservation in Europe. Same goes for hotels where you paid a portion in advance and then need time to use the card to pay off the remaining. I almost had a reservation cancelled in Rome last summer because the original card on file was no longer valid (Amex had it replaced because of fraud) so I got a call from the hotel saying they tried to charge my card (had to pay 2 days in advance of me staying) and I had 24 hours to call them to give another card otherwise my reservation would be canceled. Of course I was on the beach and when I got the message the office was closed, etc... At the end it worked out but again there is an inconvenience.
I've often discussed this question with people who aren't "into" the cards/miles/points game. The missing piece for them is knowledge about what happens after a fraud incident. They worry that the credit card's entire limit is at the disposal of the fraudster, leaving them holding the bag. I never tore up my carbons in the 80s either. (look it up, kids)
Credit card fraud I agree- had happen a few times and only takes minutes to handle typically thanks to the strong protections on US cards. However, I did have someone OPEN an account with my SSN (applied for an apartment, then did not show up probably because they realized they would need ID, then apartment complex sent 2 months rent/app fee to collections who found me no problem…). THAT was a pain and should keep...
Credit card fraud I agree- had happen a few times and only takes minutes to handle typically thanks to the strong protections on US cards. However, I did have someone OPEN an account with my SSN (applied for an apartment, then did not show up probably because they realized they would need ID, then apartment complex sent 2 months rent/app fee to collections who found me no problem…). THAT was a pain and should keep you up at night. Keep security alerts and/or locks for inquiries at the credit agencies until you need to use them. Also despite me providing every detail about the person (they used most of their own info on the application) local police did nothing- so there’s that.
If your debit card is issued in the US, your bank will more than likely leave you high and dry should the card be used fraudulently. One is ALWAYS better off paying with a credit card, from a liability standpoint, if one's account is USA based.
^This guy gets it.
I agree completely. The only thing I would add is that if your card is compromised, it can be somewhat of a pain to fix any auto pays you may have set up for the card.
While I'm not stressed out, it is very annoying.
Recurring charges that needs to be updated.
Then the issue of not having the card to use, especially when I'm on the road or abroad for an extended period of time.
What's more alarming is how banks only investigate the transaction but never on how it was obtained.
Exactly- I had my credit card info stolen while on a trip, it's the card I usually use to rent cars, since it has excellent rental car coverage. Couple of days later get to next stop, while I had the updated card info in my app on my phone, company wouldn't let me use that, needed the physical card.
Does it stress me out? No, but it can be very annoying like you said.
How is the bank supposed to investigate what you the cardholder did?
@justindev
Because they already have the data.
Like if the card was used a total of 5 times in its lifetime, all in person and offline, and the last one was over a year ago?
It's not that hard to find the leak.
Thinking a debit card is more "secure" than credit card is insane and shows a complete lack of understanding the products, but I can understand why people "fear" cc fraud. It's a huge PITA, even if there are protections in place. Replacing the cards is a major pain, especially if you have cards saved or auto pay set up (admittedly this is not as big of a deal nowadays with digital wallets). It also makes...
Thinking a debit card is more "secure" than credit card is insane and shows a complete lack of understanding the products, but I can understand why people "fear" cc fraud. It's a huge PITA, even if there are protections in place. Replacing the cards is a major pain, especially if you have cards saved or auto pay set up (admittedly this is not as big of a deal nowadays with digital wallets). It also makes you wonder what other of your information the thief has... Freezing your credit is simple enough but again, still a huge inconvenience to deal with.
It's nothing to stress about until the card company does not rule in your favor and you're on the hook for charges that seemed ordinary or within your normal patterns.
Our poor mental health leads to people being paranoid. Look at the people still walking around with a mask on. My favorite are the meth and fentanyl addicts wearing a mask.
Use common sense. Check your cc accounts every week or so. Report fraud right away. It's not that hard.
"Our poor mental health leads to people being paranoid. Look at the people still walking around with a mask on."
Frankly, that at this point in you actually give a shit about who is or isn't wearing a mask makes one question *your* mental health.
He didn't write that he "gives a shit" about it; he pointed out that it reflects on those individuals' mental state. He's correct.
George I am wondering why you hate DHS and ICE so much. Those brave patriots are wearing masks in order to keep America safe and are NOT simply attempting to hide from the repercussions of their fascist actions, their kidnappings, their murders. I am afraid the only person suffering here is you, with your TDS.
I am completely with you. In my experience, credit cards issued in the US and UK offer great fraud protection. In essence you’re not spending your own money at the initial point of transaction (it’s technically a loan), and the credit card companies have to cover their risk. With a debit card, once someone has access, they can empty your account and its generally more difficult to get that back and leaves you vulnerable until...
I am completely with you. In my experience, credit cards issued in the US and UK offer great fraud protection. In essence you’re not spending your own money at the initial point of transaction (it’s technically a loan), and the credit card companies have to cover their risk. With a debit card, once someone has access, they can empty your account and its generally more difficult to get that back and leaves you vulnerable until the bank has helped (which could be instant or could take weeks, if at all, depends on the institution). People are generally scared of credit cards especially those that struggle to manage their finances (not a criticism).
I used to think this until my dad's credit card was used for unauthorised charges at Amazon. He immediately (within 30 minutes) reported it to the bank and to the police as well. Despite this, the bank eventually ruled that the transaction was indeed authorised and reinstated the charges. When questioned how they reached that conclusion they responded that it was "after a thorough investigation that determined no security breaches had occurred". Given the amount...
I used to think this until my dad's credit card was used for unauthorised charges at Amazon. He immediately (within 30 minutes) reported it to the bank and to the police as well. Despite this, the bank eventually ruled that the transaction was indeed authorised and reinstated the charges. When questioned how they reached that conclusion they responded that it was "after a thorough investigation that determined no security breaches had occurred". Given the amount in question was not huge (around $1200) and the cost of pursuing it through the legal system would almost certainly have been around that much if not higher, he just cancelled that particular card and chalked it up to experience. But your fraud protections are only useful if your bank decides to back you, which isn't always the case.
@Sean Was it a U.S. issued credit card? As Ben said, the fraud protection is very good including debit card fraud charges especially if you report it to the bank immediately though it may depend on which bank as I think larger banks tend to have better and quicker to resolve customer service for credit and debit fraudulent charges.
If this was a bank in US, they are in violation of federal laws. Before you go through the legal system you could have gone through various consumer protection channels. Violations like these would cost bank millions in fines.
My guess on this is the bank rather piss the customer and keep blowing Jeff Bezos. They could have easily delay merchant payment until Amazon provides sufficient evidence.
I had the same experience with Chase. They eventually reversed the charges, but I had to push back on their ‘determination’ a couple of times.
@Mark - while it wasn't the same case as my dad, I also had a very poor experience with Chase on a dispute many years ago. It wasn't a huge amount again (less than $150) so I just wrote it off in the end. It was not a fraud case though, but rather a manually inputted charge which reversed the decimals (eg. $129 became $219). Even though I provided the actual receipt for the correct...
@Mark - while it wasn't the same case as my dad, I also had a very poor experience with Chase on a dispute many years ago. It wasn't a huge amount again (less than $150) so I just wrote it off in the end. It was not a fraud case though, but rather a manually inputted charge which reversed the decimals (eg. $129 became $219). Even though I provided the actual receipt for the correct amount, Chase sided with the merchant repeatedly. I think it was at least 6-8 months before I just gave up.
Stories like this can give the impression that card issuers are unlikely to decide a fraud case in the cardholder's favour. I don't dispute Sean M's story, but it's an edge case that doesn't prove likelihood. All my fraud reports were decided in my favour. Ben indicates something similar in this post. Most commenters reporting firsthand experience with fraud reports say that the same. V bad story and shame on that card issuer, but I'm...
Stories like this can give the impression that card issuers are unlikely to decide a fraud case in the cardholder's favour. I don't dispute Sean M's story, but it's an edge case that doesn't prove likelihood. All my fraud reports were decided in my favour. Ben indicates something similar in this post. Most commenters reporting firsthand experience with fraud reports say that the same. V bad story and shame on that card issuer, but I'm sticking with my never-debit-never-cash policy.
this is BS. so many questionable things that dont make sense. when you have liability protection and this is one of the biggest things advertised on every card, including to the mainstream mass (not smart folk), if fraud actually occurred you are not liable. I hate to say this, but your dad tried to hustle them. right away they can see the location of where it was from albeit hacker may be using a vpn....
this is BS. so many questionable things that dont make sense. when you have liability protection and this is one of the biggest things advertised on every card, including to the mainstream mass (not smart folk), if fraud actually occurred you are not liable. I hate to say this, but your dad tried to hustle them. right away they can see the location of where it was from albeit hacker may be using a vpn. they can see address being sent to. its very easy to prove fraud. anyone getting rejected for actual fraud, my god you are very.....giving ;-)
No it is entirely irrational, as was this post https://onemileatatime.com/insights/credit-card-fraud-grab-malaysia/