Why brokers ask for a photocopy of your credit card?
By TheTradingBible.com, Updated on: Apr 07 2023.
Brokers request a photocopy of your credit card to ensure that the card exists physically and it belongs to the person using it. This also gives brokers a layer of protection against malicious users that try to deposit, trade quickly, lose the funds and then ask for a chargeback to their credit card provider.
By having a photocopy of your identity documents along with a credit card they are sure that the transactions belong to the person in question and are not disputable.
Safety precautions when sending a photocopy of your credit card
In order to safely send a photocopy of your credit card to your broker, ensure that you’re sending it through:
- Their own web application (always check the URL on your browser to ensure you’re in their official page)
- Their own mobile application downloaded from the official device’s store (such as App Store for IOS or Play Store for Android)
An official contact email address belonging to the domain of your broker, for example, any email address belonging to our company will always end in @thetradingbible.com, that’s because it belongs to our domain.
To send the copy of your credit card you can always use a phone camera it’s the simplest method. Make sure that you cover certain parts of your credit card as described below:
- For the front side of your credit card, cover the first 12 digits (you can do this putting a cropped piece of paper on top of them or by editing the photo on your phone after taking it).
- For the back side of your credit card, cover the CVV (the 3 digit security code at the right side of your card’s back) and also cover the first 12 digits from the front as they can be occasionally visible from the back side of the card as well.
Bear in mind that you should never send a copy of your credit card to any questionable organisations such as unregulated brokers, there’s no telling what they can do or cannot do with your personal information.
If you happened to send your credit card to a questionable destination, we heavily recommend that you cancel that card for your own safety.