Low-limit credit card to protect against fraud?

You can have a low limit, however it just means it's easier to go over your limit and be charged for doing so.

What about this for a plan? I'm thinking of getting a credit card with a very low credit limit (say 200) which I will only use for online transactions and anywhere else vaguely dodgy (eg petrol stations). Is this worth doing? And can I insist on a low initial credit limit, and insist that the bank put it down again every time they bump it up "for being a loyal customer"?

Can't see the point as you are already protected against fraudulent transactions.

In addition to the previous replies - why bother since you are protected anyway, its pointless, there is nothing more dangerous using a card on the net (unless you are pehaps signing up to malware or pr0n sites) than using it in, say, Tesco's or TKMaxx.

I would no more use my credit card, low limit or not, on a site I thought was dodgy, than a shop I thought was dodgy which is apaprently what you are suggesting.

Chances are that an Amazon or Expedia has better protection against details being captured than n shop thats not on the net and has little idea of security precautions. Details arent captured in flight on the wires, its by breakins to computers, more often than not, by insiders.

Well its a slightly circular argument but its only a fraudulent transaction if fraud is proved. If your PIN was used or your password if using Mastercard Secure or Verified by Visa just try proving its fraud. The banks will argue you have displayed gross negligence. The OP is right to be worried.

Jim A

Thanks for the replies.

I would rather place some kind of preventative limit on the amount that the scam artists could raid from the account than rely on any after-the-event guarantee which the bank may offer (which, as Jim points out, could well involve a protracted argument, even if the bank decides to honour the guarantee).

So is there no bank offering a card on which it simply won't authorise transactions which go beyond a limit set either by itself or by the cardholder? This would seem to be an obvious way of minimising fraud.

Cheers!

Martin

So you wont be having a credit card for day to day use then (with a higher limit?) Otherwise the amount of protection you'll get from an *additional* card is miniscule.

"Jim Alexander" wrote

Why bother? Just sit back and wait for the

wrote

A low "credit limit" won't necessarily do that - you'll just get charged the "over-limit" fee...

Indeed. However even limiting oneself to reputable companies is no guarantee. My credit card was used fraudulently last year and I had only used that card with 4 well known large companies.