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Showing posts with label debit cards. Show all posts
Showing posts with label debit cards. Show all posts
Thursday, April 30, 2015
Next Frontier for Mobile Payments: Adding Loyalty Programs
Even as credit unions are figuring out the emerging space that is mobile payments, there already are glimpses of the next frontier — adding loyalty programs to mobile.
For years the concept of loyalty was simple: consumers used their credit and debit cards to make purchases and earned rewards by doing so. With the advent of mobile payments, however, suddenly the picture becomes much murkier.
Read the full article.
Read the full article.
Wednesday, February 18, 2015
Credit unions set to take on banks with launch of debit cards
Eleven of the largest credit unions in Ireland are set to launch debit card services, allowing them to compete head-on with banks by offering full current accounts.
The move is set to transform the services offered by credit unions, which have been concentrated on small loans and savings facilities up to now.
How does your CU stack up to those in Ireland?
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| Image source: Article |
How does your CU stack up to those in Ireland?
Thursday, June 21, 2012
Dozens Held in FBI Credit-Card Fraud Sting
The Manhattan District Attorney and the FBI released details of a huge international cybercrime takedown.
The sting, known as Operation Card Shop, was established to thwart criminals from stealing credit or debit card information from the Internet and using the information for fraudulent transactions.
According to a news release, the coordinated action involved 13 countries and resulted in 24 arrests.
Read the full article to learn more about the sting. Were any of your members impacted?
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| Image source: Rude Cactus |
According to a news release, the coordinated action involved 13 countries and resulted in 24 arrests.
Read the full article to learn more about the sting. Were any of your members impacted?
Tuesday, February 7, 2012
Risky Places to Swipe Debit Cards
Would you give a thief direct access to your checking account?
No? Unfortunately, you may be doing just that by regularly using your debit card. Debit cards may look identical to credit cards, but there's one key difference. With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. On the other hand, debit cards draw money directly from your checking account, rather than from an intermediary such as a credit card company.
Because of that, even clear-cut cases of fraud where victims are protected from liability by consumer protection laws can cause significant hardship, says Frank Abagnale, a secure-document consultant in Washington, D.C.
He cites the example of the The TJX Companies Inc.'s T.J. Maxx data breach that exposed the payment information of thousands of customers in 2007. The incident resulted in $150 million in fraud losses, and much of it was pulled directly from customers' bank accounts. While credit card users got their accounts straightened out and new cards in the mail within a few days, the case created major problems for debit card holders who waited an average of two to three months to get reimbursed, Abagnale says.
Read more: Risky Places To Swipe Debit Card | Bankrate.com http://www.bankrate.com/finance/checking/risky-places-swipe-debit-card-1.aspx#ixzz1ljVNFbYl
No? Unfortunately, you may be doing just that by regularly using your debit card. Debit cards may look identical to credit cards, but there's one key difference. With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. On the other hand, debit cards draw money directly from your checking account, rather than from an intermediary such as a credit card company.
Because of that, even clear-cut cases of fraud where victims are protected from liability by consumer protection laws can cause significant hardship, says Frank Abagnale, a secure-document consultant in Washington, D.C.
He cites the example of the The TJX Companies Inc.'s T.J. Maxx data breach that exposed the payment information of thousands of customers in 2007. The incident resulted in $150 million in fraud losses, and much of it was pulled directly from customers' bank accounts. While credit card users got their accounts straightened out and new cards in the mail within a few days, the case created major problems for debit card holders who waited an average of two to three months to get reimbursed, Abagnale says.
While debit card fraud is always a possibility, being careful where you use it can help keep your checking account balance out of the hands of criminals.
Read more: Risky Places To Swipe Debit Card | Bankrate.com http://www.bankrate.com/finance/checking/risky-places-swipe-debit-card-1.aspx#ixzz1ljVNFbYl
Thursday, June 23, 2011
Ohio CUs Hit by Debit Card Fraud Contain Losses on Own
Ohio Credit Union League spokesman Patrick Harris said the Northeast Ohio credit unions reportedly hit by a debit card fraud have managed to contain their fraud losses on their own.
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According to police reports from the North Olmsted Police Department, criminals made fraudulent purchases from six accounts at the Cleveland-based, $311 million, Century Federal Credit Union, two accounts at the Cleveland-based, $180 million Firefighters Community Credit Union, two accounts at the Parma, Ohio-based $100 million PSE Credit Union, one account at the Cleveland-based, $36 million Steel Valley Federal Credit Union and one account at the Akron, Ohio-based, $180 million GenFed Credit Union.
Century’s president/CEO, Tony Coniglio, told Credit Union Times that approximately 200 accounts were hit at his 26,000-member credit union.
Cleveland’s The Plain Dealer newspaper listed two other credit unions that were hit by the breach: The $34 million First Class Credit Union Employees of Cleveland and the $98 million Best Reward Credit Union of suburban Walton Hills.
Best Reward President/CEO John Shirilla told Credit Union Times that there was no breach at his credit union.
Fraudsters reportedly made purchases using counterfeit debit cards containing stolen account information. Thieves are said to have stolen as much as $4,000 from a single account and the spending sprees reportedly took place at retailers across the U.S. and in several other countries
Century’s president/CEO, Tony Coniglio, told Credit Union Times that approximately 200 accounts were hit at his 26,000-member credit union.
Cleveland’s The Plain Dealer newspaper listed two other credit unions that were hit by the breach: The $34 million First Class Credit Union Employees of Cleveland and the $98 million Best Reward Credit Union of suburban Walton Hills.
Best Reward President/CEO John Shirilla told Credit Union Times that there was no breach at his credit union.
Fraudsters reportedly made purchases using counterfeit debit cards containing stolen account information. Thieves are said to have stolen as much as $4,000 from a single account and the spending sprees reportedly took place at retailers across the U.S. and in several other countries
Tuesday, April 5, 2011
Reduced debit swipe fees may hasten shift to phone payments
The "mobile wallet" is coming, a smartphone application that consumers can use to tap their deposit accounts at checkout, bypassing the current card system. (AP photo)
The era when you could get a little gift back every time you swiped your debit card may be coming to an end - and the brave new world of mobile payments may be ready to replace it.
Last year, Congress ordered the financial industry to get ready for a substantial reduction in interchange fees - the price a merchant pays each time a customer swipes a debit card and the source of revenue that paid for those debit card rewards. In December the Federal Reserve recommended that Congress slash swipe fees by more than 70 percent, to 12 cents per transaction.
Banks were livid at the recommendation, which promised to erase millions of dollars from their bottom line, and they pledged to fight it. Wayzata-based TCF Financial takes that fight to court next week, trying to overturn the new law on constitutional grounds.
But some of the nation’s largest institutions - including Wells Fargo Bank - indicated they are ready to move on, announcing in the last two weeks that they would stop or curtail the rewards programs that they have used to boost debit card usage.
Those banks’ willingness to drop rewards is an acknowledgement that the programs did their job, said Jerry Rossow, a bank marketing consultant in St. Paul.
“People have already adopted debit cards,” Rossow said. “They’re comfortable with them.”
Young consumers have grown up in an electronic, card-based world, he said, and for many older consumers, the rewards program worked. “You tell people that they’ll use the card five times in a month and get a price reduction on something else and they’ll start doing it. It’s an easy habit to form.”
Payment data tell the same story. Debit card usage grew rapidly during the last decade: Transactions reached 37.9 billion in 2009 - half of them from a checking account. Paper checks made up just 30 percent.
For the rest of the story, visit: http://finance-commerce.com/2011/04/reduced-debit-swipe-fees-may-hasten-shift-to-phone-payments/
The era when you could get a little gift back every time you swiped your debit card may be coming to an end - and the brave new world of mobile payments may be ready to replace it.
Last year, Congress ordered the financial industry to get ready for a substantial reduction in interchange fees - the price a merchant pays each time a customer swipes a debit card and the source of revenue that paid for those debit card rewards. In December the Federal Reserve recommended that Congress slash swipe fees by more than 70 percent, to 12 cents per transaction.
Banks were livid at the recommendation, which promised to erase millions of dollars from their bottom line, and they pledged to fight it. Wayzata-based TCF Financial takes that fight to court next week, trying to overturn the new law on constitutional grounds.
But some of the nation’s largest institutions - including Wells Fargo Bank - indicated they are ready to move on, announcing in the last two weeks that they would stop or curtail the rewards programs that they have used to boost debit card usage.
Those banks’ willingness to drop rewards is an acknowledgement that the programs did their job, said Jerry Rossow, a bank marketing consultant in St. Paul.
“People have already adopted debit cards,” Rossow said. “They’re comfortable with them.”
Young consumers have grown up in an electronic, card-based world, he said, and for many older consumers, the rewards program worked. “You tell people that they’ll use the card five times in a month and get a price reduction on something else and they’ll start doing it. It’s an easy habit to form.”Payment data tell the same story. Debit card usage grew rapidly during the last decade: Transactions reached 37.9 billion in 2009 - half of them from a checking account. Paper checks made up just 30 percent.
Rossow, who advises community banks, said small banks probably will continue debit rewards for a while. Under the federal rule changes, banks with under $10 billion in assets will be allowed to charge a higher swipe fee on debit card payments. Meanwhile, industry representatives for community banks and credit unions have said that they think the marketplace will end up forcing their members to match the lower fees the large banks charge.
Thursday, August 19, 2010
Financial Institutions Identify Fraud as Top Debit Concern
About 71% of financial institutions in the electronic payments industry identified fraud as their main concern related to debit cards, according to a recent SWACHA study
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SWACHA, an electronic payments resource, commissioned a study among its members, which includes credit unions, to identify concerns associated with debit card use (Transactiondirectory.com Aug. 17).
Nearly 43% of those surveyed said they spent up to 40 or more hours in 2009 dealing with fraud--specifically, with fraud from skimmers and data breaches. More than 19.2% of respondents spent up to $50,000 with the cases.
SWACHA said it plans to offer additional educational resources to help its member financial institutions mitigate fraud risks.
http://www.cuna.org/newsnow/10/system081810-1.html?ref=hed
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SWACHA, an electronic payments resource, commissioned a study among its members, which includes credit unions, to identify concerns associated with debit card use (Transactiondirectory.com Aug. 17).
Nearly 43% of those surveyed said they spent up to 40 or more hours in 2009 dealing with fraud--specifically, with fraud from skimmers and data breaches. More than 19.2% of respondents spent up to $50,000 with the cases.
SWACHA said it plans to offer additional educational resources to help its member financial institutions mitigate fraud risks.
http://www.cuna.org/newsnow/10/system081810-1.html?ref=hed
Thursday, May 6, 2010
Why Debit Cards Are a Nightmare
Not all plastics cards are created equal. The major differences in credit vs. debit is in the protections (or lack of protections) that come along with the fine print. A debit card is connected directly to a person’s bank account and when compromised can devastate your bank balance.
I know too many people who’ve fallen victim to some type of debit card fraud whether through skimming or unauthorized purchases and never recouped their losses. Sometimes the banks just won’t budge. They tend not to believe a person who’s PIN and card number was leaked.
Creditcards.com reports The Federal Reserve’s Regulation E (commonly dubbed Reg E), covers debit card transfers. It sets a consumer’s liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen. TWO DAYS. That’s it! After that, the maximum liability jumps to $500. Some banks will extend the grace period up to a year, but good luck getting your money back.
Federal laws limit cardholder liability to $50 in the case of credit card fraud, as long as the cardholder disputes the charge within 60 days. And if a victim doesn’t discover or report the fraud until after 60 days have passed, the liability could be the entire card balance, for a debit or credit card. Once your debit card is compromised, you might not find out until a check bounces or the card is declined. And once you do recover the funds, the thief can just start all over again, unless you cancel the account altogether.
Don’t use a debit card. Use credit cards and pay attention to your statements every month and refute unauthorized charges immediately. I check my charges online once every two weeks. If I’m traveling extensively, especially out of the country, I let the credit card company know ahead of time, so they won’t shut down my card while I’m on the road.
I know too many people who’ve fallen victim to some type of debit card fraud whether through skimming or unauthorized purchases and never recouped their losses. Sometimes the banks just won’t budge. They tend not to believe a person who’s PIN and card number was leaked.
Creditcards.com reports The Federal Reserve’s Regulation E (commonly dubbed Reg E), covers debit card transfers. It sets a consumer’s liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen. TWO DAYS. That’s it! After that, the maximum liability jumps to $500. Some banks will extend the grace period up to a year, but good luck getting your money back.
Federal laws limit cardholder liability to $50 in the case of credit card fraud, as long as the cardholder disputes the charge within 60 days. And if a victim doesn’t discover or report the fraud until after 60 days have passed, the liability could be the entire card balance, for a debit or credit card. Once your debit card is compromised, you might not find out until a check bounces or the card is declined. And once you do recover the funds, the thief can just start all over again, unless you cancel the account altogether.Don’t use a debit card. Use credit cards and pay attention to your statements every month and refute unauthorized charges immediately. I check my charges online once every two weeks. If I’m traveling extensively, especially out of the country, I let the credit card company know ahead of time, so they won’t shut down my card while I’m on the road.
Thursday, March 18, 2010
CUNA advises on 10 places not to use a debit card
There are 10 situations where consumers should keep their debit card in their wallet, according to CreditCards.com. periodicals, provides some of the advice.
Don't use a debit card online. Not using debit cards online was No. 1 on the list. Since the debit card links directly to a checking account, .
Most lists warn against letting a credit or debit card out of sight at a restaurant, but restaurants are one of the few places where the consumer must let the card out of sight to use it. Avoiding such situations isn't workable.
Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill.
That means that even though the consumer bought only $10 in gas, the hotel can have a temporary banking hold for $50 to $100/ The practice isn't as noticeable if paying with a credit card but can be problematic for debit card users with just enough funds in the account to cover the purchase.
Don't use debit cards for:
1. Online;
2. For big-ticket items;
3. When a deposit is required;
4. At restaurants;
5. If you're a new customer;
6. When you buy now and take delivery later;
7. For recurring payments;
8. For future travel;
9. At gas stations and hotels; and
10.When the ATM looks "off."
Most lists warn against letting a credit or debit card out of sight at a restaurant, but restaurants are one of the few places where the consumer must let the card out of sight to use it. Avoiding such situations isn't workable.
Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill.
That means that even though the consumer bought only $10 in gas, the hotel can have a temporary banking hold for $50 to $100/ The practice isn't as noticeable if paying with a credit card but can be problematic for debit card users with just enough funds in the account to cover the purchase.
Don't use debit cards for:
1. Online;
2. For big-ticket items;
3. When a deposit is required;
4. At restaurants;
5. If you're a new customer;
6. When you buy now and take delivery later;
7. For recurring payments;
8. For future travel;
9. At gas stations and hotels; and
10.When the ATM looks "off."
Tuesday, December 15, 2009
Counterfeit credit/debit card fraud: Let's stop it now
These tips may seem obvious, but mentioning them again can’t hurt. It’s your hard-earned money at stake, after all:
> Stare: It’s no longer considered rude to stare at your card for the entire time it’s in the hands of a clerk or waiter.
> Shield: When using your debit card, lean in and cover your PIN entry from every angle, the digits you protect equal the money in your account.
> Change: The bad guys have figured out the number-increment algorithm many banks use. If at all possible, make sure the last eight digits of the new credit/debit card’s number are different.
> Check: The average time between stealing credit card information and using it on-line has dropped from 10 days to three. It is recommended that you check your on-line accounts at least that often.
Mr. Patterson’s endeavor
Those tips are important. Yet, they are overshadowed by Mr. Patterson’s real quest. Here is what he wants to do:
“Completely eradicate counterfeit card fraud world-wide in the next 24 months. With the banks losing over 4 billion dollars a year and growing rapidly, the industry is ready to fight back. Organized crime has declared this fight, and it will take a unified effort to repel.”
We all know about credit/debit card fraud. What surprised me was the scope of counterfeit card fraud. Expert after expert pointed out that using counterfeit cards or information obtained from credit/debit cards supports most illegal activity throughout the world.
Counterfeit cards
This YouTube video will give you an idea of how simple it is to steal information embedded in a credit/debit card’s magnetic strip. As the video shows, the only hardware required is a computer, card reader, and magnetic strip card writer. One expert commented on how easy it is to buy card skimmers (readers) on eBay. So, I looked and, sure enough (courtesy of eBay):
(Read the rest of the story at: http://blogs.techrepublic.com.com/security/?p=2825&tag=nl.e036
> Stare: It’s no longer considered rude to stare at your card for the entire time it’s in the hands of a clerk or waiter. > Change: The bad guys have figured out the number-increment algorithm many banks use. If at all possible, make sure the last eight digits of the new credit/debit card’s number are different.
> Check: The average time between stealing credit card information and using it on-line has dropped from 10 days to three. It is recommended that you check your on-line accounts at least that often.
Mr. Patterson’s endeavor
Those tips are important. Yet, they are overshadowed by Mr. Patterson’s real quest. Here is what he wants to do:
“Completely eradicate counterfeit card fraud world-wide in the next 24 months. With the banks losing over 4 billion dollars a year and growing rapidly, the industry is ready to fight back. Organized crime has declared this fight, and it will take a unified effort to repel.”
We all know about credit/debit card fraud. What surprised me was the scope of counterfeit card fraud. Expert after expert pointed out that using counterfeit cards or information obtained from credit/debit cards supports most illegal activity throughout the world.
Counterfeit cards
This YouTube video will give you an idea of how simple it is to steal information embedded in a credit/debit card’s magnetic strip. As the video shows, the only hardware required is a computer, card reader, and magnetic strip card writer. One expert commented on how easy it is to buy card skimmers (readers) on eBay. So, I looked and, sure enough (courtesy of eBay):
(Read the rest of the story at: http://blogs.techrepublic.com.com/security/?p=2825&tag=nl.e036
Wednesday, September 16, 2009
Internet Criminals Stepping Up Attacks
Internet criminals are stepping up their targeting of small- and mid-sized companies because they have less sophisticated security than larger companies, a Federal official told the publication.
About 87% of data breaches could be thwarted with simple-to-intermediate preventive measures, said a Department of Homeland Security official. Cybercrime has cost the nation nearly $8 billion, U.S. Sen. Susan Collins (R-Maine), ranking member of the Senate Homeland Security and Governmental Affairs Committee, told the committee.
Data relating to more than 130 million credit and debit cards have been stolen from corporations, the publication said.
Wednesday, August 6, 2008
11 charged in TJX, BJ's Wholesale Club breaches
Eleven people have been charged with stealing more than 40 million credit and debit card numbers obtained from TJX Cos., BJ's Wholesale Club Inc., and seven other retailers.
They were indicted Tuesday, in what the Justice Department calls the largest, most complex identity-theft case ever prosecuted (ComputerWorld.com, CNNMoney.com and Bloomberg.com Aug. 5).
Thousands of credit unions and their members were among those impacted in the thefts. Credit unions and other financial institutions were forced to reissue compromised cards and endure costs related to fraud. Some of the breaches sparked lawsuits by credit unions and by their insurance companies.
The identity theft ring targeted nine U.S. retailers, including TJX, BJ's, DSW Shoe Warehouse, Office Max Inc., Boston Market, Barnes & Noble Inc., Sports Authority, Forever 21, and Dave & Buster's restaurants.
More information at: http://www.cuna.org/newsnow/08/system080508-9.html?ref=hed
They were indicted Tuesday, in what the Justice Department calls the largest, most complex identity-theft case ever prosecuted (ComputerWorld.com, CNNMoney.com and Bloomberg.com Aug. 5).
Thousands of credit unions and their members were among those impacted in the thefts. Credit unions and other financial institutions were forced to reissue compromised cards and endure costs related to fraud. Some of the breaches sparked lawsuits by credit unions and by their insurance companies.
The identity theft ring targeted nine U.S. retailers, including TJX, BJ's, DSW Shoe Warehouse, Office Max Inc., Boston Market, Barnes & Noble Inc., Sports Authority, Forever 21, and Dave & Buster's restaurants.
More information at: http://www.cuna.org/newsnow/08/system080508-9.html?ref=hed
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