What Is Credit Card Encryption?
- Encryption has been around for centuries. During ancient times, warring armies would encrypt battle updates and strategies using special codes so secret information was protected in case the message fell into the wrong hands. Credit card encryption works in much the same way; technology uses a complex code to temporarily translate your credit card number into something entirely different and inaccessible to online criminals. Today's technology employs complicated algorithms to assign and decode ciphers intended to protect credit card users. Keys containing the code help translate the encrypted credit card information back into its original form so online vendors can charge the account for purchases.
- Some credit card holders may wonder why they should be concerned whether their online purchases are protected with encryption software, given that most consumers are protected from financial liability stemming from identity theft purchases. But consumers can end up spending many hours sorting out financial complications resulting from identity theft, according to the Federal Trade Commission. For this reason, read online vendor statements at checkout to determine whether they offer credit card encryption. If they don't, you might be better off paying by phone or personal check. Don't proceed with purchases when messages boxes alert you that encryption has become compromised or corrupted. Although these alerts sometimes occur mistakenly, it's not worth the risk.
- As ciphers for encoding and decoding credit card encryptions become increasingly complex, international governments, including the United States, have expressed concern that terrorists could use encryption to communicate dangerous plans without detection. Some advocate establishing code agreements to securely house ciphers in the event that encrypted messages must be decoded to protect people.
- Consumers can safely rely on credit card encryption technology to protect themselves from online fraud, but they can also take additional measures to protect finances. Study monthly credit card statements to identify unusual purchases possibly related to identity theft. Use strong passwords incorporating letters, numbers and symbols, when possible. Some laptops and home computers offer data encryption, so if your computer falls into the wrong hands, your vital credit card information and other numbers can't be accessed.