Why can't credit card companies send us SMS messages when transactions are performed? This would prevent Fraud

Question

Why can't the credit card companies send us SMS text messages to our phones when transactions are performed using our card details. That way we would know immediately when someone has fraudalently used our card, and then we could reply if we hadnt just used it and they could probably catch the culprit whilst they are still in the shop using the card !!

I have long wondered why the companies have not done this?

Anyone know why, think its an good/bad idea ? or know of any card companies that do this already?

Answer 1

the main reason is cost even at a few pence per transaction it soon mounts up..... The other thing is I'm not sure that if my phone was stolen, I would want somebody else vetting my purchases (i.e. I go into a shop to buy a new phone with my credit card, and the person with my old stolen phone sends a don't pay that back to the credit card people and I spend all day proving I am who I am and explaining the several reasons why I shouldn't be arrested)

Answer 2

Interesting idea, here's why its not around yet:

1) it costs the credit card companies money to implement

2) people use their credit cards a lot, they may not want to get a text everytime they do

3) a lot of people still get charged for SMS usage

4) Fraud just doesn't occur to that many people at any given time. When it does it's usually thousands of dollars, but as the credit companies eat these charges, the consumer might find the constant SMSing a nuisance and have no incentive to use the service.

Answer 3

ok good idea but...

have you ever had a text message a day, or more late... so you r at home in bed.. your phone goes off, you like oh no... you get your card cancelled, the transaction stopped... whatever... and its a txt from 4 days ago...

what about phone cloning

what happens if you share a card, and your partner uses theirs

i think you could get around most of this , with the contents of the message, but msgs are only 80% reliable..

what happens when the con artists start sending out fake txts... ure card has been used... please confirm your password, to cancel transaction... people will fall for it..

Answer 4

Most credit card companies post transactions on the web under your acct usage. Your idea is interesting but it takes the responsibility of your finances and places it back in the hands on the bank where it does not belong. Credit card companies currently use software to detect unusual charges and if something odd comes through they will deny the charge and call the card holder. Most credit card fraud is not done in person....most are internet charges or mail order. To protect yourself from fraud check your statement every month and if you misplace your card report it immediately.

Answer 5

Some Credit Cards do have email alerts letting you set it up to notify you when a purchase(s) is over a certain amount or so many transaction is done within a 24 hour period. You can set the limits yourself. It does not get denied. You just get notified.

Answer 6

This is a very good idea.

However, I am guessing that the banks may not implement it because of the additional cost of sending out such SMS messages.

Answer 7

This is an excellent idea. Why not add this to the Global Ideas Bank?

Answer 8

You know this may eventually happen as i've heard of student bank accounts that do that but of course it costs money per text.

Answer 9

$$$ that would costs millions over a year.
maybe if a CC company had its own cell business but that too would be EXTREMELY expensive.
its all about the benjamins babay!

Answer 10

What about those who don't have mobile phones ?

Or people like me who only switch on my phone when I want to make a call ?