How does a credit card company use your private data?

Cynthia Stewart
Jun 28, 2007
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The credit card companies have good access to a wide ranging information about us. They already collect all the personal information such as name, age, address, phone numbers from us. While the vital financial details are acquired by the credit card company by accessing our credit reports. This information is very vital for the credit card companies and even more for us. How do the credit card companies use this information, and what more do they collect from our day to day activities. This article takes a look at all such things.

Whenever we make a purchase or borrow from our credit card the credit card companies gets the required information about the card, date of purchase, amount of purchase and place of purchase. It is good to have a receipt of every purchase one makes using his/her credit card since it is very useful to dispute any fraud claims.

The credit card employees who address who get all the formalities done like getting your application filled, scrutinizing your application, getting thins verified, entering the application in computers and processing them -- all can go through your financial and personal details. It is all bare before them, but all these employees are bound by the company regulations and must respect the company's privacy policy.

The customer service representatives, to whom you refer your complaints and other things also have access to all your private information. They need this to verify your identity and provide prompt and relevant customer services.

Whenever there is a claim for lost or stolen credit cards, the credit card companies do have to share your vital information with the security authorities.

Credit card companies use the information you provide, and your spending habits by recording your day-to-day credit card activities for research and analysis purposes. They also use this information to develop marketing programs that give them more leverage to get new customers.

Credit card companies do share information with their partner networks on a mutual basis for things that benefit each other. In addition to mutual benefits if a credit card company employs some other agency to do marketing or customer service on its behalf, the company also gets to know your personal and financial details.

Whenever, during a legal proceeding, a subpoena is issued, the credit card company must present your private details to the necessary authority.

These things may alarm you as how many people know everything about you! But, wait there is little to worry because the credit card issuing companies have to maintain physical, electronic and procedural security measures that comply with federal regulations to safeguard the information about every cardholder. There are very low incidences where actually the company which has issued the credit card has committed any fraud.