Entries Tagged as 'Point Of Sale'

Check Cards

If you have a bank issued “check card” — that’s an ATM card that bears a VISA of Master Card logo merchants will always try and get you to authorize a PINned transaction, DON’T DO IT.

Why?

There are several reasons not to perform PINned transactions…

  • When you do a transaction with a PIN, you’re allowing the merchant to immediately remove money from your bank account.  They likely use a transaction network to do this, but there aren’t as many safe guards or controls on that network as their are a credit card authorization network.
  • When you do a transaction with a PIN, you’re not protected by VISA or Master Cards ZERO LIABILITY guarantee, you’re subject to the rules imposed by the merchant, processing network, bank, state, and federal laws.  If you’re defrauded you might find it’s a long and tedious process to get your money back, and you might find that your bank freezes assets in your account until the matter is resolved.
  • When you do a transaction with a PIN the money is immediately removed from your account (and sometimes immediate means instantly — but certainly within 24-hours, often even on non-banking days); however, when you go through the credit card processing system you’ll see at least an extra day, and generally those transactions are only posted on banking days.
  • When you do a transaction with a PIN your PIN could be intercepted (either electronically of through surveillance) and put you at risk of fraud (which may be hard to prove it’s fraud).

If your bank doesn’t offer VISA or Master Card logo’d check cards, change banks.

If you have access to a small local bank, or better yet, credit union open an account there (after making sure they have VISA or Master Card logo’d check cards and offer totally free services).

It’s your money, make the most of it… and protect it.  As the economy get’s worse and worse we’re going to see more and more “clever” schemes to try and take your hard earned money; start fighting back now.

And remember, if you are a victim, immediately contact your financial institution and any merchant you believe may be responsible via telephone and follow it up in a letter sent via the United States Postal Service (referring to the phone call) to preserve your rights.  You may also want to send an email (possibly using a DEA — disposable email address) as well; but you must send a letter via USPS!

Check cards are also called ATM Debit Cards or ATM Cards, the important thing is that you can use them as a credit card by signing the transaction form (they will have a VISA or Master Card logo).

It’s fine to use those cards at your bank’s ATM as long as you take reasonable precautions.

While using a check card through the VISA or Master Card network is preferable to a PINned transaction, if you can get a credit card, and can use it responsibly you’re even better off to use a real VISA or Master Card and simply pay the balance off every month (transfer the money from your checking account weekly if you need to, and track the expenses on your credit card as you would transactions from your checking account, your bank can probably provide you with online access to your credit card to help you — if they don’t find another credit card issuer).

NOTE:

I haven’t gotten confirmation yet, but it appears Lowes is responsible for leak of bank card numbers and PINs that are currently being used to defraud consumers.  If you have performed a PINned transaction at Lowes within the last several weeks call your bank and have your bank card terminated and re-issued with a different number (tell them you lost it).

Originally posted 2008-12-12 12:00:04.

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.