Entries Tagged as 'Banks and Credit Unions'

Credit or Debit

When you use your check card bearing a VISA or Master Card logo at a merchant to pay for a transaction you’re given a choice of how the point of sale transaction will be settled — and that’s generally presented to you as “credit” or “debit”.

Should you care which?

HELL YES!

Most merchants would prefer that you choose to settle the point of sale transaction as a debit; and the reason is very simple — money.  Most any merchant will make more from a debit card transaction than a credit transaction (but remember, they’ve built in the credit card charges to their pricing – so you’re not benefiting in the least).  Plus, the funds will be removed from your account almost instantly.  Also, when you choose to do a point of sale transaction as debit, you’ll have to enter your PIN (just like when you use an ATM).  While you might think having to use your PIN is far more secure, in point of fact you’re exposing sensitive information in a public setting — numerous times criminals have compromised merchant networks and obtained both customer debit card account numbers and their PINs.  Keep in mind, even if you can show that your number was used fraudulently, it will take a great deal of effort and time to get your money back — and that might just be the beginning of the nightmare.

But…

When you decide that your transaction will be settled through the VISA or Master Card network (just like a credit card would be) by hitting the “credit” button you will get all the protection that would be afforded to you had you used a credit card.  Federal law protects credit card users; but both VISA and Master Card go beyond the scope of law with their zero liability programs; and if somehow your account is compromised having funds conditionally credited back to you is a simple phone call (and perhaps notarized affidavit) away.  Sure, it might cost the merchant more money for the transaction; but it doesn’t cost you more.  Plus, while the funds to cover the transaction might be placed on hold, they will remain in your account (earning interest perhaps) for several days.  Additionally, if your financial institution has a rewards programs, generally you only earn points in it with credit transactions (that’s because your financial institution makes more money when you choose a credit transaction as well).  Finally, since the transaction settles through the VISA or Master Card network; the fraud prevention systems of VISA or Master Card, in addition to any your financial institution come into play.

Why on Earth would anyone choose to do debit card transaction (using a PIN) when a credit transaction is much, much safer for the individual, and simpler (though you can argue if you have to enter your ZIP code you’ve typed one more digit than your PIN)???

Bottom line — choose wisely; choose credit!

VISA Master Card

NOTE: For debit cards issued by non-US financial institutions; or cards not bearing the VISA or Master Card logos, please contact your issuing financial institution or consult governing laws in your jurisdiction.

Originally posted 2010-07-30 02:00:40.

Gulf Winds Federal Credit Union

Much of this post is comprised of excerpts of a letter sent to Chris Rutledge, President/CEO, and Jearil Crawford SVP Operations of Gulf Winds Federal Credit Union, Pensacola, Florida.

Here’s how I opened…

Over the many years I’ve had dealings with financial institutions, it’s generally been my finding that credit unions offer a much better value to a consumer as well as much better service. And further I’ve found that smaller institutions are generally better focused on customer satisfaction.

I can assure you that in the case of Gulf Winds Federal Credit Union the level of service is much worse than many large faceless banks, the focus on customer satisfaction is non-existent, and while the rates your institution pays for deposit account might be good, they in no way make for a better value to a consumer given the nightmarish customer (dis)service which seem to be deeply ingrained in your institutions culture.

What happened?

Well, Gulf Winds offers a higher interest rate (up to the first $15K) in your checking account if you accept electronics statements, make at least one ACH/direct deposit, and do twelve transactions using their (VISA) debit card.

So I stopped on first of July to make one of those twelve transaction, and had my card declined because it was expired.  Sure enough, the expiration date was clearly embossed 06/12 on the card.  But I decided to stop at one more retailer to make sure it gave me the same message and that there was no grace period (though I knew that the magnetic strip would have the same expiration date encoded on it that was embossed on the card)… and sure enough, a second time I got a card expired message from a point of sale terminal.

When I got home, I sent an online message requesting a replacement card.  The reply I got told me the card I had was still good.  WRONG.  I had to send a second message for the exact same issue.  Clearly the customer (dis)service person was in too much of a hurry dismissing customer issues to really care to look into what the issue might be.

Then I was told that I’d have to drive to the corporate branch during business hours; a drive which would be one hundred miles round trip for me; so I ask if it would be possible to transfer to a closer branch (which they indicated yes, but I never actually ask them to do the transfer).

I drove to the corporate branch; stepped in, no one was at the receptionist desk, so I had to wait… finally a young woman told me that the high interest checking account cards weren’t in yet; then she checked again (at my request), and told me my card was at the branch I inquired about having it transferred to; then I ask to speak to someone who actually might have a clue what was going on… and I was ask to wait.

I waited until I’d been at the branch nearly half an hour then left.

One the way back I got a call from a woman there who told me that my card had been at the corporate branch all this time.  And I (not so politely) told her to throw it in the trash, that I would never step foot in a Gulf Winds branch again.

After another half hour I got a call from a man at the branch I normally do business with offering to bring the card to me (he had no idea of the distance), and I told him that Gulf Winds didn’t deserve my business.

I’ve put all this (and more) in a letter (as I said) to Gulf Winds, but to me (since this isn’t the first time I’ve had issues like this with Gulf Winds; nor did the pathetic customer service on this instance only involve one individual)  this is a cultural issue where Gulf Winds people do not take ownership of issues, and only care about going through the motions and moving customers through a (broken) system.

Even though you might be able to get better rates at Gulf Winds than other local institutions, I highly recommend putting your assets in an institution more deserving of your support.

After all, I wasted more than two hours of my life that I will never get back, and will never be compensated for… as far as I’m concerned there’s nothing at Gulf Winds for me.

Originally posted 2012-07-08 02:00:30.

Bait and switch rates?

Yesterday (Monday 6-Jul-2010) at 4:15pm I stopped by Gulf Winds Federal Credit Union to open up an IRA Certificate of Deposit; I’d been in the process of transferring money from one institution to another (and it took much longer than it should have — but since two institutions were involved, it’s hard to know which was responsible for the delay).

Anyway, I ended up having to wait 45 minutes to be helped; that gave me plenty of time to look over the posted rate board — and I’d decided that the 2.09% for a 24-month IRA-CD looked reasonable (I’d have preferred 18 months or less, but I wanted a reasonable return rate, and I don’t really expect the economy to start to rebound for several years).

The customer service representative that helped me (the “Financial Services Representative”) ask me which CD I was interested in and I told him — the 24-month 2.09% APR; he immediately said, that the 24-month IRA-CD was 1.97%, not 2.09% — that it had changed on Friday 2-Jul-2010 and they simply hadn’t gotten around to posting it on their rate board.

WTF?

I’ve long been under the impression that financial institutions understand the importance of posting accurate rate information — and I thought most any ethical institution understands the legal (even if they don’t understand the moral) implications of posting fraudulent information.

When I got home I filed complaints with the State of Florida Attorney General’s office (in Tallahassee, FL) and the National Credit Union Administration, Region III office (in Atlanta, GA) requesting that they investigate the business practices of Gulf Winds Federal Credit Union.



Post Note: The VP of Operations contacted me this morning (7-Jul-2010) and Gulf Winds Federal Credit Union will honor the rate as posted yesterday (for me at least).

Originally posted 2010-07-07 02:00:32.