In this paper we describe how to apply identity based cryptography to credit card payments. This would help with reducing the possibility of credit card fraud that is prevalent on the Internet. Our method is founded on the identity-based cryptography and it secures the credit card transactions in such a way that many types of credit card fraud become either impossible or much more difficult for the attacker to perform simply by stealing the credit card number and some related information. Our method would require some changes to the functionality of the credit cards and thus it is not an immediate remedy. However, the decreasing costs of more advanced hardware and the fairly fast cycle of reissuing new credit cards make it possible to include identity-based cryptography methods to credit cards in the near future.