Since I started using payment cards online, I have completely no understanding about how these payments are secured.
Whenever I pay online no matter for what, I'm usually asked to provide all information, that can be found on the plastic card itself. This information usually includes
- the number of a card (those 16 digits)
- card holder full name
- expiration date
- CVV/CVV2 or similar
That means that if someone has a chance to observe my payment card when I am using it in the ATM or paying anywhere in the store, that bad guy will be able to make payments using data from my card online.
Moreover, not all banks notify me about transactions via SMS or something, so I would hardly have a chance to ever realize that someone has somehow memorised my payment card personal data and uses it for everyday "free" pizza.
From this point of view, it feels that my facebook account is much more secured, than my personal finance. I've got a password that I only know and it is not written anywhere for someone to notice, especially in public places.
So, my questions: Are payment cards provide sufficient security now?
If so, how is that achieved?
Why do online services ask for all those CVV codes and expiration date information, if, whenever you poke the card out of your wallet, all of its information becomes visible to everyone in the close area? What can I do to secure myself?
BTW, some of my friends tend to rub off the CVV code from the cards they get immediately after receiving; nevertheless, it could have already been written down by some unfair bank employee.
UPD: Looks like I'm asking something obvious for everyone else. Then, there's something more I wanted to clear out:
Usually, when you receive a plastic card, there's a pin code with it. What is worth to be noted is that it always comes in a quite secure package, which seems impossible to be looked through using a ray of light and probably some other technique.
Moreover, there's a prescription inside, that states: "Do not ever tell your personal code to anyone on the Earth, even to you relatives and bank employees, destroy it after opening".
So, why don't you put the pin code along with other stuff directly on the plastic card? Why do I have to hold my pin code securely, while preserving all other information, that also allowes to use money, at least online, simply left on the plastic card as is?