Five Step Payment Protection Plans for Consumers

Purchasing items with the quickness and convenience of a credit card gives consumers a handy way to shop with ease. Bills are comfortably delayed and a lack of cash in pocket is never an immediate issue. However, credit card shoppers should beware a number of risks involved with putting everything on plastic. Signing on the dotted line and paying by check present a few potential problems that might be very easily avoided with some precautions against fraud and identity theft.

People often become too trusting of others they may not know, believing that all people are good and honest until proven otherwise. In dealings with one's credit and personal identity, being too trusting can pave the way for credit card fraud, identity theft and other unfortunate financial scams. Below are a few tactics consumers can exercise in order to decrease the likelihood of these monetary misfortunes.

Keep receipts as personal records of your spending. Organizing information in a binder or filing cabinet with multiple folders will be a great start to keeping your personal data safe. Recording the check number, amount paid and date paid for each and every bill are critical to keeping your finances in order. These steps are also the first in ensuring you are only charged for what you purchased.

Any financial information, ATM slips or credit card statements you do not wish to file away for records should immediately be shredded. Take great care to destroy anything that contains your social security number, personal identification numbers (PINs) or other identifying characteristics and figures. Crosscut shredders work best to wipe out private data beyond recognition.

When paying for a meal or restaurant services by credit card, firmly define the amount you wish to add for the server's tip. If you wish to leave cash for the tip, write "cash tip" or "on table" rather than leaving the line blank. If adding the tip onto the credit card payment, place the amount across the line in quotes, between squiggly lines or inside other symbols. Be sure also to do the math and fill in the total amount that will be charged to your account. Though very fraudulent and seldom occurring, waiters and waitresses may get itchy fingers when it comes to counting tips. In rarity, grumpy, dishonest servers may take their tip amounts into their own hands if they feel the cash tip left did not sufficiently compensate their services.

When writing out a check to pay for anything - services rendered, products purchased or otherwise, be sure to define the amount of your payment. Write clearly in permanent ink, never pencil or erasable pen. When filling out the dollar amount in words across the line, put a short line before you start writing and another just before you inscribe the cents; for example, "-Thirty dollars and-23/100."

When you receive bank statements each month, compare the amounts debited and credited to your account to be sure all finances are in order. Examine cashed checks to be certain they have not been modified and compare deposits to confirm that all your funding safely made it into your account. Keep all financial documents private and safe with your files or shred them if you have no need to retain them.

Maintaining a good credit score is contingent on preserving one's responsible spending and bill paying behavior. Having a relaxed attitude when it comes to fraud and identity theft protection becomes a risk factor, leaving many loopholes for thieves and criminals to take advantage of your finances.

No matter how great or small, incidences of credit card fraud and other financial scams can be lessened with conscious effort. Though consumer protection may not be entirely foolproof, some careful and determined steps requiring only a few seconds will reduce the chances of occurrence while encouraging preventive habits that lead to lifelong safer spending practices.