Last week, Global Payments confirmed a massive security breach involving credit and debit card numbers and information. Global Payments operates a gateway; when you use your credit or debit card to purchase an item — and this could be online or in a brick-and-mortar store — your card information is sent through Global Payments or one of many similar companies to the issuer to determine whether the transaction can be approved.

The breach affects all major issuers, so if you have used a Visa, MasterCard, American Express or Discover card, whether a credit, debit, or charge card, you might be one of the estimated 10 million consumers affected. Update: Global Payments is now confirming that 1.5 million card numbers were included in the breach. Issuers — either the banks that offer the cards to their customers or the credit card companies themselves — have already begun notifying customers whose information might have been compromised.

You can expect issuers to offer free credit monitoring and identity protection services to help customers feel secure about their information in the future. The services differ depending on the provider, but most focus on the same core set of benefits.

• You can receive alerts — by phone, email, or even text message — when your card is used for suspicious activity. Suspicious activity could be anything from a transaction at a store or in a location you haven’t previously.
• You can receive updated credit reports. While the government requires the credit reporting agencies to offer one free credit report per customer each year, identity protection services typically provide access to more frequent credit reports — perhaps monthly or unlimited, on demand.
• If your identity information has been compromise, you should lock down your credit file. By contacting each of the three bureaus, Experian, Equifax, and Transunion, you can inform these companies not to allow any new credit to be issued in your name. This is not going to be an issue with most incidences of credit card information compromises, if your identity is stolen, you are at a higher risk.
• Change your credit card numbers. If you were affected by this security breach, you may have received a new credit card with a new number without so much of an explanation from your issuer. Changing the number helps protect customers who have had their data stolen. Some card issuers offer options where you can receive a new number for every online transaction; this may be a worthwhile service if you have reason to believe your credit card number has been compromised.
• Don’t forget to use your credit card online only over secure connections. Different browsers have different methods of indicating a secure connection. Using a credit card over a secure internet connection is safer than handing your credit card to a waiter or gas attendant. Over a secure connection, your credit card number is encrypted while in transit, but when you hand your credit card to someone and they step out of view, there is no limit to what they can do with your card in 30 seconds.

Aside from trusting technology and employees who handle your card information, it helps to always be aware of your surroundings. While in an airport waiting at the gate to board a flight, I called a hotel to inquire about a reservation. The hotel customer service representative was happy to take my reservation, but required me to announce my credit card number. Although I had no reason not to trust the individuals who were sitting near me, I opted not to provide my credit card number to all within earshot. As a result, and with the understanding that there would most likely be rooms available when I arrived later that night, I didn’t make the reservation.

I did lose the best rate offered on the room, though. When I arrived, the rate I had been quoted earlier was no longer available. I consider it a small loss in exchange for the comfort of not sharing my credit card number publicly.

When the cause of the breach of your information is a payment processor, as in this particular announcement from Global Payments, the issuers do all that they can to protect their customers, even if communication is slow or incomplete. When fraud happens on an individual level, and you are the only customer affected, it’s more difficult to get support from the companies you deal with, without insistence.

If you are the victim of fraud or identity theft, and it is not part of a large-scale technology hack, there are extra steps you must take.

• Start keeping a log of everyone you talk to about the fraud, including credit issuers, banks, and the police.
• File a police report describing the fraud or the incident.
• Contact the credit bureaus to inquire about identity protection services and possibly credit freezing.
• Contact your issuers and explain your situation, seeking any tools they have available to protect you going forward including assigning new card numbers.

Different banks and card issuers have different policies regarding your liability in the event of fraud. For the most part, if you follow the appropriate procedures including reporting suspected fraud in a timely manner, you will have no liability. With debit cards, however, even in the case of fraud, your balance could be lower than it should be. That could lead to missed payments or overdraft fees. That’s one benefit of using credit cards rather than debit cards — your bank account won’t be affected in the event of fraud, even for a day.

Of course, if you choose a cash-only existence, you may be able to completely avoid the hassles involved with credit card fraud and identity theft.

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Credit card debt is never fun, and developing a plan to get yourself out of the debt can be exhausting. Credit cards commonly charge interest rates of 20% or more, and if you miss a few payments the default rate can be even worse. Fortunately, if your credit is still decent, there is a way to make payments on your credit card without paying any interest. That’s through a solid 0% balance transfer offer provided by a new credit card.

0% APR balance transfer offers are commonly provided by credit card issuers to attract new customers. Credit card issuers rightfully assume that if they can attract you to their product by offering to house your debt for 0% interest, you’re likely to generate new debt after you’ve paid off the old debt. The trick in taking advantage of a balance transfer offer is to pay off the entire debt during the 0% introductory offer, then pledging never again to get deep into credit card debt. It’s easier said than done for many.

Many top credit cards offers now have balance transfer fees, but even with a fee, you could save thousands of dollars of interest charges by taking advantage of 0% APR balance transfer offers. Below you will find the best credit cards available for balance transfers as of May 2012. If you have a favorite balance transfer offer not included on this list, let me know and I’ll add it.

Slate® from Chase – No Balance Transfer Fee. If you have excellent or good credit, the Slate® from Chase – No Balance Transfer Fee offers a 0% introductory APR on both purchases and balance transfers for fifteen months, without charging the dreaded balance transfer fee on transfers made within 30 days of account opening. All other transfers will be charged $5 or 3% of the amount of each transfer, whichever is greater. The Slate® from Chase – No Balance Transfer Fee also offers a low standard APR of 11.99%, 16.99% or 21.99% variable, depending on your credit history. The card comes with Chase’s Blueprint feature, which allows you to watch your spending like a hawk, paying down the purchases you want as soon as possible.

You’ll avoid the 3% surcharge when making a balance transfer within 30 days of account opening, so if you can pay off your credit card balance in the fifteen month time-frame, the total cost of fees and interest is zero. The Slate® from Chase – No Balance Transfer Fee also has the benefit of being annual-fee free, so depending on your needs, this card could represent the highest amount of savings.

Discover® More® Card. Discover More Card offers a 0% introductory APR on balance transfers for fifteen months and a 0% introductory APR on purchases for fifteen months. Discover has a balance transfer fee of 3%. With this card you’ll earn other benefits such as 0.25% cash back on your first $3,000 in annual purchases then 1% cash back thereafter. The opportunity to earn 5% cash back on rotating categories, subject to a maximum spending limit and quarterly enrollment, is also present. There is no annual fee.

Discover® Motiva® Card. With the Discover Motiva Card, the 0% APR on purchases and balance transfers is in effect for fifteen months. The balance transfer fee is 3%. After the introductory period expires, the regular APR is 10.99% to 20.99% variable*, depending on your credit history. The Discover Motiva Card also includes a cash back rewards feature, in which card holders earn 0.25% cash back on the first $3,000 spent on the card and 1% cash back thereafter.

Chase Freedom® Visa. The Chase Freedom® Visa offers account holders a 0% introductory APR on balance transfers for fifteen months and carries a 3% balance transfer fee ($5 minimum). The Chase Freedom® Visa provides 1% cash back on all purchases and 5% cash back on rotating categories, subject to a maximum and quarterly enrollment, and is therefore one of my favorite cash back credit cards. With the current offer you can earn $100 bonus cash back after you spend just $500 in the first three months of card membership. The Chase Freedom® Visa also offers a 0% introductory APR on purchases for fifteen months and does not have an annual fee.

For diligent credit card users, balance transfer cards can be efficient tools for keeping your bank account balance intact, making better use of your cash than spending your own money for a large purchase. In great economic environments, you could earn interest on your money while paying off your expenses with a 0% interest rate. The proliferation of balance transfer fees makes this type of arbitrage more difficult, but with a few fee-free offers being available today, you might be able to earn interest on your card issuer’s money if you don’t fall into any traps.

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