Is It Safe to Give Out Your Card Details Over the Phone?

As e-commerce sales in the UK are predicted to soar to nearly £6.4 billion by 2027, a significant increase from previous years, the convenience of shopping via internet and phone has become increasingly attractive. This shift is characterized by a surge in “card-not-present” (CNP) transactions, where your credit card isn’t physically swiped. But as this convenience rises, so does the concern over the security of sharing card details over the phone. Is it really safe to recite your credit card number over the line? This blog will explore the risks involved in phone transactions, the standards set by the Payment Card Industry to safeguard your details, and practical tips to keep your financial information secure.

The Rise of CNP Transactions and Associated Risks According to a report by eMarketer, the volume of CNP transactions, including phone sales, has been growing steadily. These transactions pose a greater risk for merchants due to the lack of physical card verification, leading to an increase in swipe fees and fraud-related losses. In 2023, CNP transactions were expected to account for 73% of all credit card fraud losses in the UK, amounting to a staggering £7.6 billion.

Merchant Challenges and Security Measures When you make a purchase over the phone, merchants typically request details such as your credit card number, your name as it appears on the card, the CVV, expiration date, and your billing address. This information is crucial for completing the transaction but also poses a privacy risk if mishandled.

To mitigate these risks, the Payment Card Industry Security Standards Council (PCI DSS) has established guidelines for handling such transactions. These include:

• Not retaining the card’s CVV or other sensitive authentication data post-transaction.
• Ensuring full primary account numbers are not stored unless necessary and are properly secured.
• Forbidding the recording of sensitive details during phone calls to prevent data interception.

Tips for Consumers to Safeguard Their Information As a consumer, you can take several steps to protect your credit card information during phone transactions:

1. Verify the Legitimacy of the Company: Before giving out any details, make sure you are dealing with a reputable company. Check their website, read customer reviews, and verify contact information.
2. Initiate the Call: Always be the one to initiate the call when making a payment over the phone to avoid scams.
3. Use a Credit Card Over a Debit Card: Credit cards typically offer better fraud protection compared to debit cards.
4. Get Transaction Confirmation: Before ending the call, confirm the transaction amount and ask for a confirmation number.
5. Monitor Your Account: Regularly check your account statements for any unauthorized charges and report them immediately.

The Bottom Line While CNP transactions are convenient, they inherently carry more risk. However, adhering to PCI DSS standards and taking proactive measures can significantly mitigate these risks. By being vigilant and informed, you can safely enjoy the benefits of shopping over the phone.

For More Information For those interested in deeper insights into card security and transaction safety, visiting websites such as Dojo Tech can provide valuable resources and up-to-date information on how to protect your financial data during phone transactions.