Hotel Scam

[JJReyes]

JJReyes, on 30 Aug 2014 - 2:43 PM, said: American Express and Mastercard won't process my use of their credit cards in the Philippines without my confirming authorization either through a mobile phone or email message. Just curious - is this something you set up with Amex and the other one or is that their policy? I've used my Amex and MC many times here and they've never contacted me. With the MC I keep the travel advisory up to date or I believe the charge would be declined. Amex doesn't require that although I very seldom use it because of the foreign transaction fees. 

 

The credit card companies assume you are in the Philippines and the charges would be considered normal. What they are looking for are unusual changes in your spending pattern. If your monthly charges are less than $500 a month and suddenly your balance is $4,000, their computer will alert a human being. Sometimes the sudden increase is normal such as buying airline tickets for the entire family. 

 

In my case, I make the effort to call or email the company about any anticipated changes. There is probably a note in my file that my preference is prior verification.. Sometimes the company is pro-active. A Wells Fargo Bank representative told us the story that the customer's address was Rapid City, South Dakota. Someone tried to withdraw funds from the account in Florida. The customer was an elderly senior citizen. The account was immediately locked until the transaction could be verified.  The customer had given the account details to a scam group known for selling products at highly inflated prices.

Edited August 30, 2014 by JJReyes

[bootleultras]

I am not sure how old this scam is but it makes me pleased that my credit card uses a chip and pin. Doesn't everyone's these days?

My UK card does Dave but the Philippine card I have doesn't facilitate the chip function yet, not sure if any cards here do

To be honest

My bank does have a prepaid load card to use which is a good idea though so I transfer money from my main account to use on the prepaid card so I can access the amount transferred at an ATM or use it in hotels, bars etc can just help minimise the losses if it should ever happen as they an only get the amount transferred rather than what's im your savings.

Chris