Credit card limit and fraud

  • NJB's Avatar
    I have deliberately kept my credit card spending limit low (£1000) hoping that would restrict damage from unauthorised use. Although I've never had unauthorised use on this card, it still looks vulnerable to being compromised - and that does seem to happen to people. I use the card, and thus I hoped that any fraudulent use would be held below £1000. I don't really want any loss, but that would be better than the possible loss if my credit limit were say £5000. However, it appears from other correspondence that purchases above the credit limit are still liable to be allowed - so a fraudulent purchase can still be allowed, and I may be liable to a fine for exceeding the credit limit. I know I can claim the costs of fraud back so long as I'm not negligent, but I'd still prefer not to rely totally on the goodwill of the card provider. I'd be grateful for advice on by how much above credit limit could still be allowed.
  • 3 Replies

  • Verified Answer

    chaddman30's Avatar
    Supervisor
    Verified Answer
    Hello. I'd imagine the amount permitted above your credit limit would depend on Tesco Bank. If they gave these figures out understandably any fraudsters would then act on this information knowing there's a high chance their criminal activity will be approved. Don't forget Tesco Bank have the Fraud Safe mark on the back of their credit cards; it's highly likely any unusual spending patterns will be picked up automatically by the system. So long as you've not given any unauthorised access to someone else, disclosed your PIN or have been knowingly negligent then you'll be covered for any losses including any over-limit fees. The Fraud Safe system does work; just over two years ago I was in Top Man buying some clothes for over £70. As I'd made several purchases within 15-20 minutes when it came to paying for my goods the cashier had to phone for an authorisation code. I confirmed who I was to the Tesco Bank operator and the payment was given an approval code.
  • Del2431's Avatar
    The Fraud Safe system does work; just over two years ago I was in Top Man buying some clothes for over £70. As I'd made several purchases within 15-20 minutes when it came to paying for my goods the cashier had to phone for an authorisation code. I had a similar experience myself a while back - after making 4 transactions inside 45 mins I recieved a text asking me to verify that the transactions were bona fide and carried out by me.Tesco do seem to be more 'on the ball' regarding possible fraudulent activity than many other companies!
  • BobD583's Avatar
    You've done a golod thing by setting your credit limit low. I've done the same, and each time Tesco Bank have authorised an increase to that limit (without my request or permission) I have submitted a complaint and nailed the limit back down. The moral of the story is to set the limit to a maximum you can afford and are willing to write off.