When you have a credit card issued in your name, you make purchases by your credit card and are responsible to make the payments for those purchases on a certain billing date. If you have other authorized users of your account, you are responsible to pay for the purchases done by them as well. Credit card company will collect the payments from the original applicant to whom the credit card was issued. They will not contact any other authorized users on that card unless the original card holder is not able to make payments.

There are number of problems that may arise by using a credit card. For instance, if you have lost your card and a purchase is made by your credit card, you will be held responsible for that unauthorized purchase. It’s a very good idea to keep a list of all the credit and charge cards, including the name and address where you used the card so that you know the transactions reflecting on your statement on a certain date. If your credit card is lost or stolen, you should immediately contact the customer care of the credit card company so that they get your card blocked or canceled. The credit card company will issue a new credit card in your name with a different account number. However, they will issue the new card only if you have been making payments on the previous card. They will not be issuing cards to those who defaulted on their payments.

Unauthorized charges are another risks associated with the credit cards. You should safeguard your card and personal information with complete responsibility. Most merchants will only print a portion of your account or the credit card number, but some may print the receipt with complete information. If your account number falls into the wrong hands, unauthorized purchase could be the result. Don’t allow anyone to take your credit card away from your eyes, otherwise it might fall into the wrong hands and they will use your credit card number and the three digit number at the back of the card to make any online purchases.

The Fair Credit Billing Act gives you the right to withhold a payment to the credit card company if you have got defective merchandise or inferior services from any online purchase. However, you are required to pay for the other items to the credit card company. You are not responsible to pay for the disputed item until it is fully resolved by the merchant from whom you made the purchase. The credit card company cannot report derogatory item because of non payment of that disputed item.

Errors and omissions are expected. It is important that you review your statements thoroughly before making the payments. Credit and charge card billing errors are governed by the Fair Credit Billing Act. Turn the back side of the statement to see more information on the calculation of finance charges and your billing rights. If you discover an error in your statement, notify the credit card company immediately and get it investigated.

This entry was posted on Monday, July 28th, 2008 at 5:11 pm and is filed under Credit Card. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.