What do I think of using your credit card at "high risk" locations such as gas stations, certain restaurants or strip clubs?
I'm not in favor of it. Although I prefer to use my credit card at department stores and at the grocery store, to maximize my cash back rewards, I don't like using credit cards at establishments I don't fully trust. Here's a bit of an explanation:
Strip clubs and bars: Do you really want "Shady Cabaret" or "Bill's Bar" to appear on your credit card statement, and then be recorded there online, in some form, forever? Plus, if you are married, it may not go over so well with the wife... unless you have a VERY trusting and open relationship. Also, I have heard that some credit card companies are analyzing their data much closer these days to weed out the recessionary deadbeats -- if you are spending a lot of money at a strip club, night club, or bar it could appear as if you recently lost your job and are "compensating" by drinking a lot. A card company, if they suspect this, could lower your credit line or close out your account altogether.
Gas stations: I have no solid reason for this, but I don't trust certain gas stations and convenience stores with my credit card information. Also, I have heard from more than one person that fraudulent charges occurred after using a debit card and entering PIN at a gas station card swipe. So just a word of warning... I definitely would not use your PIN at a gas station, and I probably would not use a debit or credit card "regular" swipe either.
Restaurants: Waiters are underpaid, overworked and at some places notoriously transient. Do you know with 100% certainty that your waiter won't turn your $20 tip into a $25 one, or a $30 tip into a $50 one? Most people probably don't pay such close attention to their credit card statements -- especially if the dinner itself was expensive and you had a large party. This one actually has happened to me before, so that's why I am vigilant about it.
What do you think? Too paranoid? Or right on the money? Where are you afraid to use your credit card these days?
Opinions expressed are those of the author only; not professional financial advice; no warranties or guarantees provided.
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