Learning to recognize credit card theft as it occurs is the first step in finding solutions to a problem that is beginning to run rampant throughout the world. People do not track their credit activities as closely as they do their banking transactions, and are quite startled to learn that their accounts have been violated. Internet use has driven the desire in some people to steal information from credit cards past the point where they can no longer control their urges.

Some solutions for this growing problem can be found at the point of sale, where the online retailers sell their products to anyone with the correct credit card information. An online retailer could institute a spending limit for credit card purchases made by a customer, or regulate the number of internet sales that could be processed in one day on each credit card number that they choose to use for their multiple purchase orders.

Any type of limiting would be a solution that would prove beneficial to the merchant and the deals that the customer found could still be honored, but not paid for until another day has passed. The time delay would give the merchant the opportunity to discover which credit card transactions are fraudulent before the merchandise is shipped. Credit card processors should be more lenient with a merchant that makes these types of inquiries.

A major solution to reducing credit card theft is educating retailers on how credit card transactions are handled. Retailers should also understand that getting authorization on a credit card is still no guarantee of payment of the funds for the purchase. Credit card transactions could be cleared just as fast as debit cards, if credit card companies were not so focused on earning money from the high interest rates they charge and are paid handsomely for.

Instead, merchants are given the go ahead to process the retail sale that is based on just a verification that funds are available at that time, yet no funds are frozen to ensure the merchant gets the funds they are due. The retailer is then left holding an empty bank bag because all of the money has been depleted by chargebacks made by the customer who said they never received their purchase.

The theft of the credit line during online transactions not only affects the bank that it is drawn on, but the livelihood of the merchant who accepted the credit card transaction. Since the access to that line of credit is done electronically, there is no solid proof about who is making the purchase, thus making credit card theft almost impossible to stop.

Temptations abound on the internet because there are so many bargains, and so many merchants that still believe that all of their customers are honest. The internet offers anonymity for a thief to hide behind, and some of the trusting merchants are burdened by so many chargebacks, that they have to close up their businesses and fine work elsewhere to pay for the refunds that occurred on their business accounts.

Some solutions to these problems could be found in making telephone calling a pre-set requirement for any purchases done online. A code phrase could be set in stone for all credit accounts with a company. When probing questions are asked that require some very correct answers, thieves will generally stop pursuing fraudulent charges on accounts that are safeguarded in this manner.

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