Credit Card Freezes: What Triggers Them?
Jackie here. On a recent trip to the grocery store I pulled out my credit card to pay for groceries, only to have it declined. It was quite embarrassing. Luckily, I had another card on hand and was able to make my purchase. I left the store and immediately called the bank to see what was happening. They told me a fraud alert had been placed on my card. After I answered a few questions, the hold was removed and my card was back in working order. But, a question remained: what triggers a fraud alert on your credit card?
Potential Triggers for a Credit Card Freeze
Credit card companies want to minimize fraud and reduce the amount lost if a credit card is stolen. They have developed complex processes to identify potentially compromised cards. While many factors can lead to a freeze on your card, there are a few red flags that card companies may be watching out for. Check out a couple of interesting articles on the topic here and here.
Gas Station Purchases
I buy gas with my credit card all of the time, but surprisingly this can be a trigger for a fraud alert on your card. Thieves often test cards to see if they are working by making a small purchase or by filling up at a gas station. Gas stations are a great place to make a test purchase since you can usually pay at the pump without ever having to show id or even talk with an employee. If buying gas always resulted in a fraud alert, no one would use their cards to fill up; alerts are more likely when getting gas in a different part of town or in a different city than usual.
Shopping in a Fraud Prone Area
Making purchases in a known fraud area can be another red flag for your credit card company, especially if the purchases are for large dollar amounts or on merchandise that is easily resold (think electronics, gold, jewelry, etc.).
Using the Card to Get Cash
Getting cash with a credit card (or buying gift cards and other similar items) can be a potential sign of fraud to your bank. ID thieves are often after financial gain, and taking out cash directly eliminates the need for them to use the stolen card to buy items, and then resell those items for cash.
Inconsistent Locations
If your card is being used to make purchases across the country or around the globe, it might be flagged for fraud. This often leads to vacationers or frequent business travelers getting the unfortunate surprise of a card that won’t work. To eliminate this flag for legitimate transactions, call your bank and let them know the dates and location of your vacation before you leave.
Changes in Purchasing Patterns
Most people are pretty consistent in their spending habits. They shop in the same areas, buy the same type of things, etc. Changes to this pattern can trigger a fraud alert. Since your credit card company has an extensive history of your purchasing habits, they know the type of things that you are likely (or not likely) to buy.
Fraud holds on legitimate transactions might be irritating, especially when there is a fairly long list of triggers banks use to detect fraud. However, these fraud holds are often the first warning sign of id theft and credit card fraud that many consumers receive.
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Hi Guys,
Good stuff. Keep up the good work. The wife and I
appreciate the phone call checks you occassionaly make to us on possible frauds. So far it’s stuff we have done out of the ordinary.
Many Thanks,
Mike & Linda Zubkoff
Hi Guys,
Good stuff. Keep up the good work. The wife and I
appreciate the phone call checks you occassionaly make to us on possible frauds. So far it’s stuff we have done out of the ordinary.
Many Thanks,
Mike & Linda Zubkoff
Telling my bank when I’m on vacation also leaves my a message when my home will be vacant to potential thieves. Which is worse????
Telling my bank when I’m on vacation also leaves my a message when my home will be vacant to potential thieves. Which is worse????
Using a cart on line and attempting to have a product shipped to a different address other than the shipping address will place a fraud alert on the account. The card holder will be placed in a high risk category for the attempt with extra fees added later. It also may void the fraud protection agreement with the card issuing bank. If a card is lost, stolen, skimmed or hacked, banks will usually request from the merchant the order and shipping verification of ‘card not present’ purchases. Looking for one shipped to another address so they can not cover the actual fraudulent charges. The customer will never know when their purchases are audited. We are told to NOT contact the customer.
Using a cart on line and attempting to have a product shipped to a different address other than the shipping address will place a fraud alert on the account. The card holder will be placed in a high risk category for the attempt with extra fees added later. It also may void the fraud protection agreement with the card issuing bank. If a card is lost, stolen, skimmed or hacked, banks will usually request from the merchant the order and shipping verification of ‘card not present’ purchases. Looking for one shipped to another address so they can not cover the actual fraudulent charges. The customer will never know when their purchases are audited. We are told to NOT contact the customer.
Thanks for the info. My previous company before you never gave me this kind of information.
Thanks for the info. My previous company before you never gave me this kind of information.
I once took a trip to Romania. I was blocked every time that I tried to use my credit card. I also was shut out of multiple Web sites such as Amazon because trying to access them from a country known for fraud triggered an alert.
I once took a trip to Romania. I was blocked every time that I tried to use my credit card. I also was shut out of multiple Web sites such as Amazon because trying to access them from a country known for fraud triggered an alert.
Every year before the crack of dawn I go black Friday shopping. Just about every year my credit card company freezes my card and then when I call, the fraud dept is closed. I have to use a different card until they re-open. It is a pain, as I like my card that gets frozen because they offer a ‘double the manufacturer warranty’ feature so I never have to buy the extended warranties on my purchases.
Every year before the crack of dawn I go black Friday shopping. Just about every year my credit card company freezes my card and then when I call, the fraud dept is closed. I have to use a different card until they re-open. It is a pain, as I like my card that gets frozen because they offer a ‘double the manufacturer warranty’ feature so I never have to buy the extended warranties on my purchases.
I wish credit card companies would give customers the option to have a soft token involved in the process – to add the secure layer of a random code – in the purchase process. Is it an extra hassle? Yes, but I would gladly put up with it. I suppose the barrier is the merchant for whom it may be a pain. The solution? Invent the merchant with reduced fees.
I wish credit card companies would give customers the option to have a soft token involved in the process – to add the secure layer of a random code – in the purchase process. Is it an extra hassle? Yes, but I would gladly put up with it. I suppose the barrier is the merchant for whom it may be a pain. The solution? Invent the merchant with reduced fees.
My yearly bill will soon be due. Do you bill me or do I just send in payment?
My yearly bill will soon be due. Do you bill me or do I just send in payment?
Mary, In order to best assist you, an AllClear ID customer support representative will contact you within the next 24 hours.
As always, if you have any questions regarding your account please contact us at (855) 434-8077 or email support@www.allclearid.com. Our office hours are Monday through Saturday, 8am to 8pm, CST.
Mary, In order to best assist you, an AllClear ID customer support representative will contact you within the next 24 hours.
As always, if you have any questions regarding your account please contact us at (855) 434-8077 or email support@www.allclearid.com. Our office hours are Monday through Saturday, 8am to 8pm, CST.
We’ve had a card number (not the card itself) stolen 3 times. We’ve been contacted by the bank or credit union very quickly. Each time a freeze was put on the card, a new card, with a new number was issued in no time flat, and an arrest was made fairly quickly. When we travel in our RV, I just let the credit union know in advance what states we will be traveling in. They call me once or twice while I’m away just to make sure everything’s ok.
We’ve had a card number (not the card itself) stolen 3 times. We’ve been contacted by the bank or credit union very quickly. Each time a freeze was put on the card, a new card, with a new number was issued in no time flat, and an arrest was made fairly quickly. When we travel in our RV, I just let the credit union know in advance what states we will be traveling in. They call me once or twice while I’m away just to make sure everything’s ok.