Credit Cards Offering Fraud Protection – A Protective Perk
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One day at work, my coworker and I ordered food from a local restaurant. I made the order online, and the website must not have been as secure as advertised because less than 24 hours later, I noticed fraudulent charges on my account. It turns out that somehow my credit card information had been compromised, and now somebody was trying to purchase a bunch of concert tickets on Ticketmaster in Spain—more than 4,000 miles away!
When you often read personal finance articles ranking the best credit cards, features like annual fees, cashback, and free access to your credit score are often the things that get the most attention. However, in the case of a data breach, many card issuers also offer benefits like fraud protection or zero liability protection on unauthorized purchases using a stolen card. Thankfully, my credit card was one with $0 fraud liability, so when I talked to my card issuer’s credit card fraud department, they could lock my account and refund the fraudulent purchases.
At first, seeing several hundred dollars worth of fraudulent transactions in my credit card’s mobile app was stressful. However, when I called my credit card company and explained the situation, everything was reversed and properly handled almost instantaneously. As a cardholder who can quickly get unauthorized charges changed thanks to fraud protection, I have peace of mind when making purchases online—and you can, too. Check out the following credit cards offering fraud protection so you can swipe confidently.
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What is fraud protection?
At its heart, fraud protection is precisely what it sounds like: protection from the fraudulent activity for which your credit card number might be used. If you have a debit card, getting charges reversed at an ATM or online account for shopping could take weeks, if not months, to be thoroughly investigated. Having fraud protection and using your credit card for most purchases can thus help you safeguard your money and how accessible it is.
Unfortunately, data breaches are becoming increasingly common, putting your account number and other sensitive personal details at risk. Identity theft and phishing scams can all jeopardize your finances, so it’s a good idea to consider a credit card that offers fraud protection if you’re looking to sign up for a new account.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Common types of fraud protection
There are a few different services that credit card companies offer their cardholders to help protect them from suspicious activity. Here is a quick overview of two of the most common types of security your credit card issuer may offer.
Fraud detection
One layer of fraud protection is fraud detection, when suspicious activity is automatically flagged, and your approval is required for the transaction to go through. Sometimes, you’ll be notified immediately via text or email to alert you to the suspicious charges. This is why many people are told to let their card issuer know if they’re planning to travel out of town or make a large purchase: you don’t want your card declined due to suspected fraud!
Zero liability
The Fair Credit Billing Act has made it a federal law that any credit card transactions you are not responsible for as a consumer are transactions you do not have any responsibility for. Technically, you have to report that your card has been stolen or compromised in some way first to be able to cash in on that claim. However, most credit card companies go above and beyond what is required by law by offering zero liability, no matter the circumstances. Zero liability means you won’t have to pay a dime towards any fraudulent charges you report to your card issuer.
Free credit monitoring
Many credit card companies offer credit monitoring and access to your credit report as a complimentary service. Having your free credit report can help you review instances of identity theft or credit card theft beyond just charges on your account. With free credit monitoring services, you can protect yourself against new accounts or loans being taken out in the future using your personal information.
Locking your card
If your card is stolen, many banks and credit card companies have features that allow you to lock it via mobile app or online remotely, preventing it from being used. Rather than hopping on the phone to talk to a customer support rep, this expediency can give you peace of mind since you might notice unauthorized charges in your app or online account.
Credit cards offering fraud protection
Most major card issuers have a few options for opening a credit card with fraud protection. Here’s an overview of some of the best credit cards that feature this service, among their other benefits.
Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express
Card Name
Blue Cash Preferred® Card from American Express
APR
19.24% - 29.99%
Recommended Credit Score
Good, Excellent
Annual Fee
$0 intro annual fee for the first year, then $95.
Special Offer
Earn a $250 statement credit
Special Offer Terms
after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
Rewards Rate
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases.
Why We Like It
- Buy Now, Pay Later options.
Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Card Name
Capital One Venture Rewards Credit Card
APR
19.99% - 29.99%
Recommended Credit Score
Excellent, Good
Annual Fee
$95
Special Offer
Limited-time offer: For a limited time, earn 75,000 Miles
Special Offer Terms
once you spend $4,000 on purchases within the first 3 months of account opening, plus receive a one-time $250 Capital One Travel credit in your first cardholder year – that’s equal to $1,000 in travel
Rewards Rate
2 Miles per dollar on every purchase, every day. 5 Miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel.
Terms
Why We Like It
- 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, which is equivalent to $750 in travel
- You can earn unlimited 2X miles on every purchase
- $100 credit for Global Entry or TSA PreCheck®
- Two complimentary visits per year to Capital One Lounges
- 5X miles on hotels and rental cars booked through Capital One Travel
Chase Sapphire Preferred® Card
Chase Sapphire Preferred® Card
Card Name
Chase Sapphire Preferred® Card
APR
21.49%-28.49%
Recommended Credit Score
Excellent, Good
Annual Fee
$95
Special Offer
Earn 60,000 bonus points
Special Offer Terms
after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
Rewards Rate
Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
Terms
Why We Like It
- Generous bonus points offered.
- High points for travel and dining purchased through Chase Ultimate Rewards® and points on all purchases.
- Complimentary one-year access to DashPass.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Fees
When it comes to the APR rate of most of the credit cards on this list, your variable rate will run anywhere from 14.99% to 28.99%. Your credit score has a major role in your interest rate, so it’s a good idea to do what you can to boost your score before applying to one of these cards.
As has already been outlined, many cards charge an annual fee of $95. However, due to the Fair Credit Billing Act, every card offers zero liability for free. This means that you don’t necessarily need a card with an annual fee to gain access to a credit card with fraud protection. Many people are more concerned about credit card fraud if they frequently travel or spend time overseas, so getting a travel reward credit card with a fee might still be the best option unless you’re particularly budget-conscious.
Pros and cons
Pros
- Layers of protection. Many of the credit cards on this list offer multiple layers of fraud protection, including zero liability for fraudulent purchases, credit monitoring, contactless payment, and the ability to lock your card without calling customer support.
- Peace of mind. Unlike when you use a debit card, unauthorized transactions are very quickly taken care of if you swiped your credit card to make the purchase.
- Ubiquitous. Thanks to the Fair Credit Billing Act, most credit card issuers have a generous zero liability policy on unauthorized purchases made with your card. This means that fraud protection likely won’t be the most significant deciding factor in your credit card search.
Cons
- Fraud detection can be a nuisance. Having your card automatically declined when making a large purchase or overseas can be annoying and embarrassing.
- Best cards have annual fees. Some of the best options for credit cards with a robust bevy of fraud protection features also come with annual fees due to other perks. If you’re budget-conscious, you may not get much more than zero liability protection.
- Need to be used responsibly. While a debit card offers you less protection than a credit card when it comes to fraud, you’re much less likely to overdraft your account swiping your debit card than you are to overextend the credit you’re using. It’s important always to pay your credit card balance in full each month to avoid getting hit with interest costs.
The bottom line
As you can see, many options for finding a credit card offer fraud protection. Fraud protection may seem like a small perk to prioritize as you’re shopping around for cards, but it can be a great defense to protect your finances. Mainly if you do a lot of online shopping, it’s best to utilize a credit card with fraud protection to be safe. This is particularly true since debit card fraud is much more cumbersome to take care of.
While there are many reasons to choose a credit card with good fraud protection, some people may not want to use it because they’re not the best at managing debts. Even if you can trust yourself to use your credit card each month responsibly, many of the best cards have annual fees, so your options are more limited if you want a $0 annual fee card with a suite of security features. It’s also worth repeating that any time your card is declined due to suspected fraud, it can be a nuisance to remedy the situation immediately without holding up the checkout line.
Since every card issuer offers some form of fraud protection, which credit card with fraud protection you choose is totally up to you, after all, you may or may not be interested in getting cashback rewards, discounts on prepaid gift cards, or entertainment parks. The most important thing to do is get a card that offers robust fraud protection via zero liability and other services to have peace of mind while using a credit card that best meets your needs. You’ll be grateful the next time you and your coworker order lunch!
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JoyWallet has partnered with CardRatings for our coverage of credit card products. JoyWallet and CardRatings may receive a commission from card issuers.
Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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