September 21, 2024
Do credit cards have PINs? #CashNews.co

Do credit cards have PINs? #CashNews.co

Cash News

Credit cards can have PINs, but you’ll rarely use them. For the majority of credit card transactions you make, a PIN isn’t necessary, so it’s not something you typically have to worry about.

Find out how PINS work, what they’re for, and how to request one from your credit card issuer.

A PIN is a four-digit numerical code you have to enter to verify your identity for certain transactions. You may have to enter the PIN at the ATM or provide it to a bank teller to complete the transaction.

The code is secret, and unique to you. The PIN acts as a safety measure that prevents your information from being compromised or stolen.

Credit cards are common. In fact, the Federal Reserve reported that 84% of adults have at least one credit card. However, many people don’t know if their credit card has a PIN or not.

All credit cards have PIN functionality; when you were approved for the card, the credit card issuer sent you your new card and your PIN in the cardmember packet. However, you may not know your PIN; for most transactions, it isn’t necessary to have one.

For most transactions — such as paying your utility bill, purchasing groceries at the market, or shopping at major retailers — a PIN isn’t needed. If you’re shopping online, you’ll enter your card number and card verification value (CVV). If you’re shopping in person, you can tap your card to process the payment through its chip or swipe it at the register to complete the transaction.

There are only two scenarios where a credit card PIN is needed:

Charges made in other countries tend to be a red flag to credit card companies; it indicates to credit card issuers that there may be fraudulent activity. If you’re traveling in another country and using your credit card at certain stores, you may have to enter your PIN to verify your identity and complete the purchase.

Another important thing to keep in mind while making purchases abroad: foreign transaction fees, which can range from 1%-3%. Look for a card with no foreign transaction fees if you plan to use it on international shopping. Some options include Capital One Venture X Rewards Credit Card, Chase Sapphire Preferred® Card, and American Express® Gold Card (see rates and fees).

When you take out a cash advance, you use your credit card to get a lump sum of cash, and the money is deducted from your credit limit. Cash advances are commonly used in fraud cases, so credit card issuers require additional security measures to process your request. As a result, you must provide your PIN to get a cash advance from your credit card.

In general, it’s a good idea to avoid cash advances altogether. This can be a very expensive way to borrow from your line of credit — and can easily lead to lasting debt. Here are just a few examples of how much a cash advance may cost you with certain credit cards:

  • Capital One Platinum Credit Card: $3 or 3% fee, whichever is greater, and a cash advance APR of 30.74%

  • Chase Slate Edge℠: $10 or 5% fee, whichever is greater, and a cash advance APR of 29.99%

Your PIN was likely mailed to you when you first received your card. If you didn’t memorize the PIN and no longer have that paperwork, there are two ways to get a new credit card PIN:

  • Check your online portal: Some credit card issuers allow you to view or request a new PIN online. Sign into your online account and view your security information.

  • Contact customer support: Call your credit card issuer’s customer support line and ask for a new PIN. The representative will ask you some questions to verify your identity, and will process the request for a new PIN. The representative cannot tell you the PIN over the phone; instead, it has to be securely sent to you.

Some credit card issuers, such as Capital One, may send you your PIN via text message or email. But in most cases, the credit card issuer will have to mail it to you, so it can take several days to arrive.

A PIN is an important safety measure, but you won’t use it for most transactions. However, your information can still be compromised, even when a PIN isn’t needed. Use these steps to protect your information:

  • Set up two-factor authentication: Most credit card companies allow cardholders to set up multi-factor authentication. These measures require a user to enter two or more credentials — such as a password, a code you receive via text, facial recognition or fingerprint scans — to access the account. With two-factor or multi-factor authentication, thieves can’t access your account without the second verification, even if they have your password.

  • Create a unique password: If you use the same password for all of your accounts, or have one that’s commonly used (if your password is “admin,” “123456” or your pet’s name, it’s time to change it), change it to one that’s more secure. A good password should be a mix of letters, numbers and special characters, and it should be unique for each account.

  • Don’t share (or write down!) your PIN or password: It may sound like common sense, but a surprising number of people — 30% — write down their passwords and tuck them into their purses or wallets so they won’t forget them. But writing them down leaves you at risk for theft. Instead, use a digital password manager to track your passwords and account numbers. Or, if you must write them down, store your notes in a locked safe in your home.

  • Check your statements: Review your credit card statements regularly — ideally, at least once a week — and make sure you recognize all of the transactions listed. If there are any that seem odd, contact your credit card issuer right away. With credit cards, you aren’t liable for unauthorized charges as long as you notify the issuer before someone uses it. If you notify the issuer after the charge appears, the maximum you’re responsible for is $50.


Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.

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