Group items tagged

"Three steps to take to protect your account data from getting into the wrong hands Whether by choice or necessity, American consumers are increasingly relying on debit rather than credit cards. Debit card spending has risen steadily, growing from 47.7 percent of purchases made with plastic in 2003 to 58.9 percent in 2008 and it is expected to surpass 67 percent by 2013, according to the Nilson Report, a newsletter that tracks the consumer payment industry. When you use a debit card, the money is immediately taken from your checking account. While using debit guarantees that you pay as you go, these cards have downsides, including a growing appeal to thieves. "As economic conditions have worsened, there's been a noticeable increase in all types of card fraud," says Avivah Litan, an analyst specializing in fraud detection and prevention at Gartner Research in Stamford, Conn. "But ATM and debit-card fraud is the top area of concern we're hearing about from banks all over the world." More from ConsumerReports.org: * Pros and Cons of Debit Cards * Credit Card Perks * Post-Recession Investing Unlike credit-card thieves, who usually charge merchandise and then resell it to come up with money, people who create counterfeit ATM or debit cards by stealing your PIN and other account data can simply pull cold cash from your bank account. Using a technique known as skimming, they set up equipment that captures magnetic stripe and keypad information when you input your PIN at ATM machines, gas pumps, restaurants, or retailers. Here's how you can protect yourself: Don't Type in Your Pin at the Pump Be especially vigilant at gas stations, Litan says. "Gas pumps are notorious for skimming because they're produced by only a couple of different manufacturers, and if someone gets the key to one from a disgruntled employee, they can insert a skimming device inside the pump where it can't be seen," she says. She recommends using a credit card rather than a debit card whe

"BERLIN - Millions of German bank cards have been affected by a "millennium bug"-like problem because they contain software that can't process the number 2010, industry groups said Tuesday. The DSGV group, which represents public-sector banks, said some 20 million debit cards issued by those banks were affected, along with around 3.5 million credit cards - nearly half of the total number of cards issued by those banks. The group said cash machines were adjusted hours after the problem emerged to ensure that customers could withdraw money, but there may still be problems using some debit-card terminals. Those should be fixed by Monday, it said. Problems remain with credit cards and customers should use debit cards instead for now, added the group. The BVR group of cooperative banks said about 4 million debit cards issued by its members - about 15 percent of the total - also were afflicted by the faulty software, although there were no problems withdrawing cash. Its credit cards were unaffected. Another 2.5 million cards issued by German private banks were affected. The problem stemmed from a chip on the cards which, due to a programming fault, wouldn't correctly process the number 2010. Computer experts widely believed that hardware and software systems would fail as the clocks rolled over to the year 2000. The problem, they said, would be caused when computers and other devices, which used only two digits to represent the year, mistook the year 2000 for the year 1900. In the end, however, the so-called "millennium bug" caused few problems."

"IT MIGHT sound like a contradiction in terms, but for the first time one of the main Irish consumer banks is moving to cashless banking in all its branches. National Irish Bank has written to thousands of its customers this month informing them of a "new style of banking" in which branches will not handle over-the-counter cash transactions. The letter says branches will no longer handle cash withdrawals and lodgements, night safe lodgements and foreign currency cash. Branches will continue to lodge cheques, drafts and postal orders and issue drafts. Customers are advised to obtain cash from "ATMs nationwide" or to seek "cash-back" on their debit cards. A spokesman confirmed that cashless banking was being introduced across the entire NIB branch network over the next 18 months, and had already been introduced successfully in a number of branches. He said the feedback from customers was positive with few complaints. "These branches provide better security for staff and allow us to spend more time, in a better setting, with our customers . . . Customers like them, as our staff have more time to discuss customers' overall needs.""

"Cashless society benefits merchants and consumers, says Visa VP By Lauren Lindberg [Merchant and consumer benefits to electronic payment processing may be accelerating the shift to a cashless society] 13/01/2010 - The world is increasingly moving toward a cashless society, driven both by consumer demand and merchant preferences, a Visa official told the UK newspaper The Telegraph. Steve Perry, executive vice president of Visa Europe, told the newspaper that society is becoming increasingly cashless because consumers have found that electronic payment processing is easier than carrying around cash, and are consequently shifting from paper to plastic payment methods. In addition, debit and credit card processing is better for merchants because it costs less than handling cash, he said. "Because cards are less risky (the associated cost is estimated at 0.02 percent to 0.1 percent per transaction on cards compared with 0.1 percent to 0.2 percent with cash) and encourage spending, they are more efficient and better value," Perry told the newspaper. "Furthermore, card transaction fees are expected to fall.""