With so many concerns today with identity theft and stolen credit cards, the safety of transacting business with a merchant who is willing to accept a credit card by phone remains on the minds of many people. We know that with secure websites, firewalls, and other safety precautions, the Internet is usually a safe place for transacting business using a credit card, but what about using the phone for credit card processing? How safe is it to give your credit card information to someone on the other end of a telephone? This is especially of concern with so many people today using only wireless or cordless telephones.

Unfortunately, many people still think of the telephone as a mechanism that is safer than that of the Internet, but the problem with that line of thinking is that there are no safeguards built into the telephone. It's easy for anyone with even a minor knowledge of electronics to learn how to tap into someone's phone line and record their conversations, including those that obtain personal information such as social security numbers, credit card numbers, bank account information, and much more. This is simpler still with cordless phones that actually access radio towers rather than telephone lines. Remember the influx of irregularities of the 900 numbers that were billed to people's phone lines as direct dial access, and there was no one home at the time? Many fought with the phone companies over that, and some were stuck paying bills for charges they never made. Have things changed much since then? It's doubtful and with all of the new technology, it's likely the problem has become worse.

For those who think it's safer to transact business with a merchant who is willing to accept a credit card by phone, think of this-the person at the other end of that line may take your credit card numbers and use them for his or her own benefit. With a computer-generated purchase on a secure network, no one at the company sees your credit card information. It is securely stored within the confines of the credit card processing system, which is why many online retailers ask for the secure three-digit code that is on the back of your credit card. The code identifies that card with an individual person as it is making its way from the SSL network to the computer of the credit card processing company, and finally, the credit card issuer. None of the personal information reaches the hands or eyes of a person unless you fail to secure your information, and it finds its way into the hands of a hacker. For the cautious shopper, the chances of that happening are far fewer than the risks involved with placing an order over the telephone to a person.

Of course, there are those who don't have access to a computer that rely on the integrity of merchants who will accept a credit card by phone, and this will likely never change. However, for those customers, it's important that you follow all precautions, not the least of which is to never give your credit card number to anyone who calls you. If you do not initiate the call, do not give out your personal information. Instead, ask for a number to return the call.