Credit cards security

Press, 14 December 1977, Page 38

Credit cards security

Carrying too much cash while you are travelling can be dangerous. Carrying too many traveller’s cheques can be inconvenient. But, you can never carry too many credit cards. You would be foolish to try and do without either cash or traveller’s cheques altogether, but a credit card is safer, more convenient, and a tremendous asset to any traveller. A credit card is simply a small plastic card which allows you to charge practically anything anywhere in the world. There is one snag. Credit cards are not easy to come by. Credit card companies have stringent membership requirements, and will issue cards only to people with a high credit rating. Two credit card companies operate in New Zealand—American Express and Diner’s Club. Diner’s Club has about 28,000 cardholders in New Zealand and 100,000 in Australia. It is recognised in more than 145 countries, and claims to be accepted in 75,000 more establishments throughout the world than any other credit card. The main advantage of a credit card is that you never run out of cash. Of course, you cannot walk into any shop, hotel or restaurant and say “charge it please.” Credit cards are only accepted at establishments which have been signed up by the credit company and who display the company logo. A credit card is simple to use. When you want to make a purchase you sim-

ply hand over your card. Your name and card number is recorded on a form, which you sign. You are given a copy of the form, your card is returned and you do not have to pay for the purchase until you are billed by the credit card company when you return home. Recently, the Reserve Bank made a change in policy which could greatly affect credit card companies and members who no longer have to pay the credit card company in overseas currency as they did a few months ago. Another advantage of the credit card is that it offers a convenient way of keeping track of expenses. As well as receiving a receipt for every purchase, members receive an itemised statement, usually monthly. You may be concerned that such a small piece of plastic is easy to misplace. Card companies have set up safeguards to protect their members, though. If you lose your Diner’s Club "card, for example, you are absolved of responsibility the moment you advise the company in writing. In the event of unauthorised use of your card before that, your liability is limited to $lOO. Many different kinds of establishments accept credit cards—hotels, motels, restaurants, chemists, florists, art galleries, jewellers, fashion stores, shoe stores, hairdressers, bookshops, service stations, wine and spirit stores, even massage parlours. The Duty Free Shop accept both American Express and Diner’s Club credit cards.