Credit card company questions

Question

1. What credit card or debit card companies allow for you to set a maximum swipe charge? So that when the limit is above, it either denies it, or texts you for approval. I am not looking for advice on phishing/skimming avoidance.

2. When credit card companies are part of a bank, can they see how much is in your accounts? I'm with 3 banks. Obviously when you're on the phone about your debit card, and want to talk about your credit card, they switch to different phone numbers, making me think the credit card companies are essentially function like completely different companies. But when you 1st open the cc, are they not given how much are in your savings/checkings? Thanks.

Answer 1

Credit cards are generally run by separate companies even when marketed/branded by a bank. If you look carefully, you will usually find that "The Foobash Card", rather than actually being owned by Foobash Savings And Trust is a co-marketing arrangement with someone who specializes in credit card processing (another bank or service). My credit union Visa card, for example, had the credit union's name on it but was one of many operated by a company called (I kid you not) something like Card Handling Services.

Many credit cards will let you request alerts in charges over a certain size, or when a charge puts you close to your limit. If are concerned about skimming, this gives you a better chance to catch large charges immediately. You can report the fraud and have those charges cancelled, of course, but you will probably want to have a new card issued so that account is going to be unavailable to you for a little while.. which is one reason for carrying a second credit card even if you rarely use it.

Answer 2

Individual transaction limits is probably not something they've implemented because it's not something that has a lot of demand from customers. And it would create ongoing headaches in the support department.

Customers aren't responsible for fraudulent charges as long as they notify the credit card company within a couple months. If you're the victim of skimming, you have to go through the annoyance of getting a new card and updating payment information for anyone you have autobill the card. But you're not out any money if the skimmers manage to charge thousands of dollars in electronics, the credit card company is. That tends to mean that there isn't a huge demand for things like transaction limits from customers.

If a company implemented transaction limits, that would also create a support headache for them. Whatever limit people chose, they'd periodically want to exceed that limit. Usually for something really important to them. They'd get very frustrated when the card company denied their attempt to book a last minute flight for a family funeral or their attempt to buy tickets to that concert/ sporting event for their anniversary. If they remembered that they had set a transaction limit years ago, sure, they might just go up their limit. But a lot of them won't remember, will call in to customer service unhappy, and will erode their loyalty.