My Pet Peeve: Credit Card Fraud Alerts

I HATE FRAUD ALERTS!

Sure, they’re supposed to keep us protected from unauthorized use…but how does that explain why I get a fraud alert when I called in earlier and told them EXACTLY what charges to expect? And how about when I’m on the phone with the fraud team at the point-of-sale and it takes them ten minutes to be able to get my charge processed.

Whatever. Just part of life.

Largely, the issue of fraud alerts has to do with manufacturing spend and wouldn’t affect most people. And, without a doubt, different people have different luck with these kinds of things and with banks learning their patterns. It’s possible that it has more to do with history and less to do with one bank over another. Still, I feel some are better than others.

Here’s my Fraud Alert Hit List. It’s the order that I would punch out the banks if they were people and not buildings. (Punching the building is painful and doesn’t help. I tried.)

From worst to best:

  • Fidelity/Fia Card Services. Hopeless. Not even worth talking about. They flag EVERYTHING. Calling in at the point-of-sale isn’t too successful. (My story above with spending ten minutes at the point-of-sale…was with Fia). Important to always have a backup card on hand even for ordinary purchases. Verdict: Lost cause.
  • Citi They flag most large purchases, even when I’ve made similar such transactions in the past. Eventually, they’ll probably learn your habits, way too slow. Also flags repeat purchases terribly. Usually easy to clear up though. Verdict: Pretty bad.
  • Chase Seems to be okay with SINGLE large purchases, even without a significant history of such. With multiple large purchases they’re awful. Even calling in advance doesn’t do much. Being on the phone with the fraud department at point-of-sale could help. Verdict: Mediocre.
  • Amex They learn your curve well and won’t make you problems much. Without history, however, they do flag a lot. Fraud team is quick to okay a purchase at point-of-sale. Verdict: Reasonable.
  • Discover Most of my history with them is doing $1500 at a time to max out quarterly categories. I usually call/chat in advance and never had a problem. Verdict: Good.
  • Barclay Never make me any problems. Almost never got a fraud alert on my Arrival, despite lots of large purchases, including repeat large purchases (hmmm…$1000,$1000,$500 anyone?). The only time I recall getting a fraud alert was when making an online international purchase in foreign currency. Verdict: Great.

I’d be interested in hearing from readers whether their experiences are similar to mine or different. Please let us know in the comments.

While I’m still dreaming about punching out the banks for making problems, Julian on FrequentMiler takes a more productive approach of outlining how to set up text/email alerts. In many cases, you can do a quick reply to a text and swipe your card again without a hitch.

But still…punching out the banks sounds more fun.

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AMM
AMM (@guest_353879)
February 15, 2017 13:20

Citi is the worst and I’ve been with them (why?) now for over 8 years. Someone in Bangladesh ordered clothes and it wasn’t flagged, but I can’t get Starbucks in my own home town. (Which trust me, there’s a sad amount of history with).

We just had to replace both our citi biz and personal cards. We use them for miles, but I’m thinking of moving over to Cap1. Having 40k in credit on two cards is pointless if you can’t freaking spend $6 for a latte.

Less Antman
Less Antman (@guest_353972)
February 15, 2017 16:33

I had the same experience and left them as a result. They are also masters of bait-and-switch rewards. The only card company I never have problems with is American Express and they are my go-to for virtually all spending.

David
David (@guest_157854)
August 10, 2015 16:18

Capital One Spark Business has their Fraud Alerts set so high, if you walk outside and the humidity is high, they’ll shut down your card … Gawd, why did I switch from Amex Biz!

Question: “What’s in Your Wallet?”

Answer: “A false fraud, deactivated useless business card.”

Parkerthon
Parkerthon (@guest_110148)
April 28, 2015 09:40

It’s great for CC companies, they have effectively put the onus on the consumer now to clear most charges(anything outside your home area which they learn over time). So now basically anytime I travel(which is weekly) I trigger fraud alerts wherever I go. MS or non-MS, doesn’t matter. The irony is the worst offender I have found is Barclaycard Arrival+. They don’t currently have a mobile platform for clearing fraud alerts, and despite being a card geared towards travel, they trigger alerts all the time wherever I go. They have also sent me no less than 3 new card with new numbers over the last couple years, unsolicited, due to possible data breaches. Talk about PITA since this is my recurring normal spend go to card I set for autopay on a lot of stuff. Really gets old after a while.

KP
KP (@guest_110619)
April 29, 2015 00:47

Why not get an auth user card and set that up with auto pay merchants? Since BA+ issues different card numbers for different users on the same account, the chances of the auth user card getting compromised are greatly reduced.

Parkerthon
Parkerthon (@guest_110853)
April 29, 2015 09:29
  KP

I have an AU and they reissued cards for both every time. I don’t know how they dermine what has been compromised but I think they just cast the net wide and replace both cards out of caution. I think it’s an easy automated option for them and they don’t care if card users are inconvenienced. I have a list of accounts I update reg method of payments now so it goes quick. Just annoying is all.

KP
KP (@guest_111385)
April 30, 2015 00:09

Sorry, did not know that they replace all cards. Seems to be a waste of money (especially replacing chip cards for all cardholders on the account), if those other cardholders never used their card at an affected merchant.

I know a bit about the back end system they use, so I know why it may be less complicated for them to simply reissue everybody on the account.

Less Antman
Less Antman (@guest_109902)
April 27, 2015 21:17

I’m not an MSer but my wife and I do engage in frequent large transactions and travel regularly. We’ve done so with Citi, Chase, Amex, and Barclays, and our experiences line up precisely with yours. Citi refused normal transactions so many times I’ve stopped all significant business with them. Chase occasionally declines the silliest of transactions (while traveling, I had a hotel charge approved without a hitch, and the next day my credit card was declined trying to gas up in the same city) but is usually good on large transactions that are local or when I notify them of travel. Amex has been trouble-free for decades with the only fraud decline a perfectly reasonable concern about a very large online purchase on a card that had been open for less than a week. Barclay has never declined a charge.

It is also worth noting that your list lines up almost perfectly with the J.D. Power Customer Satisfaction Ratings. I’d say you pretty much nailed it with this post.

Rick
Rick (@guest_109866)
April 27, 2015 14:03

Interesting comment about FIA / Fidelity Amex. I have had nothing but positive experiences with the card. I regularly make large purchases at Target (hmm), and not once have they ever denied a transaction at the register. My Citi Double Cash on the other hand…

JB
JB (@guest_109811)
April 27, 2015 12:23

Hmm, this hit list is kinda reversed for me. Barclay is terrible. It takes way to long for a text message to arrive and last time they blocked my card completely for a $500 charge at Target which I do like every week or two. Even $250 purchases on the Sallie Mae get declined one in a while which have to be unlocked via text message.

Only had an issue with the FIDO last year, it took a while to verify all transactions on the phone but since then I never had a problem which makes this is my #1 card for the real big purchases a la $2000 AGC etc…

Alonso
Alonso (@guest_109794)
April 27, 2015 11:49

I’ve never had an issue with Chase, which is surprising because of all the “purchasing” I do at Target to meet minimum spends with them.

I agree with you on FIA, though, I’ve even taking to telling the cashier that the card might get rejected when it’s a big purchase. I’ve only had the card a few months and I keep hoping they learn what my spending pattern is but it has yet to happen.

I just opened up an AMEX Business Gold card (first AMEX for me) and foolishly took it to Target for my first purchase. Big mistake. Hoping they are more flexible as time goes on.

KP
KP (@guest_110612)
April 29, 2015 00:40

Did you get FR-ed for large target purchase on new biz card?

KP
KP (@guest_111382)
April 30, 2015 00:02

Nope, no data. Just remember reading a long time back that large purchases at retail stores on new biz amex led them to getting FRed. Obviously amex would not confirm the reason, so it was/is pure speculation. Alonso was referring to using new biz card at target as a “big mistake” and was “hoping they are flexible” which just made me think the person was FRed. Trying to determine what spooks amex, since I don’t want to burn bridges with them.

Jonathan
Jonathan (@guest_111021)
April 29, 2015 14:41

I haven’t used FIA amex to purchase any big purchase for over a year. It is a pain in the butt. I only use it for amex offer or AGC purchase online so I don’t need to put too much monthly charge on arrival+ or BOA travel(2.6%).

All my nearby 5 target stores(6 miles or less) are categoried as grocery store. There is no incentive for me use FIA at all.

hipp0
hipp0 (@guest_109782)
April 27, 2015 11:31

Barclays approved my wife’s first redbird load with them for $500 yesterday, but when logging in today I saw that they want her to call in to verify the transaction. Interesting version of a fraud alert.

JohnnieD
JohnnieD (@guest_109759)
April 27, 2015 10:07

Never get alerts on my Chase business cards. Once and awhile I get a text after 3rd or 4th large (1k) transaction but the text usually asks me to text back 1 or 2 for ok or no.
Amex needs you to garden your acct so that large trans are normal. It took two or three large amts and calls to fraud dept to clear it up before continuing. Btw, always have phone out and ready for fraud texts when I am spending big amts.

Jeffrey
Jeffrey (@guest_109754)
April 27, 2015 09:51

I’ve had a couple problems with Barclays doing Target loads, but they’ve lessened. US Bank gives persistent problems – the first $1000 swipe works fine, but the second right after always failed, enough that I gave up trying.