Nine times out of 10, retailers accept credit card payments without a second glance at the signature. Given the long queues at the billing counters, many merchants overlook signature verification despite the gravity of this issue. “Signature is just for the validation process. It does not prevent misuse of the card,” says Subrat Pani, Business Head — Cards, Kotak Mahindra Bank.

However, the liability always lies with the merchant if he processes a fraudulent transaction. Hence, always keep a photocopy of your credit card (along with the signature) to help you in case of disputed transactions which has to be reported within 60 days. If the signature on the charge slip mismatches with yours then the merchant has to bear the liability and you get your money back. Most card issuers have dispute forms either online or in their branches.

Erase the CVV

E-commerce has opened up a new avenue for fraudsters. Online transactions require only the card number, validity date and the 3-digit CVV number printed on the reverse of the card. This three-digit number has to be kept confidential to prevent card misuse. Since cardholders often part with their cards during payments, the CVV number should be scratched off or masked with ink to prevent misuse.

However, a CVV can’t be regenerated like a PIN, so ensure you remember it or else you have to apply for a new card altogether. Most e-commerce websites have a Verified by VISA programme or a MasterCard Secure Code programme. This is a two-level authentication process which validates an online transaction.

After keying the card number and the CVV number, the website asks for a net pin, which banks offer on request. Although you can complete the transaction by merely filling your birth date, it is recommended that you obtain a separate net pin to ensure a secured transaction.