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Credit Cards

How To Use A Credit Card?

After applying for the credit card, once the application gets accepted you will receive the card. It is now time to learn how to properly use it.


To use the credit card, you will need either of the 2 things (sometimes both) – OTP and PIN. We have discussed OTP in section 2 of this module. Now let us talk about PIN. 


Your credit card PIN is your secret code which you will use to authorize a transaction. In most cases, this can be generated online. Ensure that your PIN is not a predictable number such as your date of birth, anniversary etc. 


The process of using a credit card is simple.


1. Using a credit card online

While using a credit card online, you will have to input your credit card number, the name of the card holder, expiry date and CVV. After this you will be sent an OTP (one-time password) through SMS. This is the secured number which you should never share with anyone else. You have to input this OTP, only after which the transaction will be successfully carried out. 


Pro tip:

  • While using the credit card online, ensure your phone is with you to access the OTP instantly. 
  • Never share the OTP with someone else. 
  • If you receive an OTP without making any transaction, contact your bank immediately. It can be a case of unauthorized transaction. 

2. Using the credit card at a merchant outlet

When you visit a merchant outlet such as a retail shop, you will have to pay through a merchant point of sale machine. Earlier, the magnetic strip of the card had to be swiped for making payment. However, now, almost all cards contain a chip which makes the payment process much easier and secure. You need to insert the card into the machine. You will be prompted to input your credit card PIN to authorize the transaction. Once you input the PIN, the transaction will be successful.


Pro tip:

  • Ensure that your credit card is with you at all times. Do not hand it over to another person and let them take it away for payment. Most credit card frauds happen this way. 
  • Cover your hand while inputting the credit card PIN and ensure no one is watching.
  • Always collect the credit card slip and keep it for a few days till the transaction shows online on your credit card account. 

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Units 8/12