Reward credit cards are designed to help consumers save money through a number of perks offered by the card issuers. However, for you to enjoy the top reward cashback credit card perks, you have to qualify for the card issuance. Although you may still qualify for a cashrebate reward credit card with low income, you may not benefit from the top rewards as they are offered to high spenders.
If you earn less than $60,000 annually, you will not qualify for those top reward cashbacks cards. In 2010, the Federal put in place a voluntary ethical code of conduct that was meant to protect small business entities from the rising processing fees charged on credit card. This is the reason why modest income earners cannot enjoy best reward credit cards and therefore, they are virtually locked out.
Initially, before this code of conduct was issued, small entities complained that they were compelled by credit card issuers to pay more in processing premium card. Therefore, Ottawa concluded that premium cards should not be marketed to consumers if they do not meet certain income level. In recent times, there has been proliferation of reward credit cards which are aimed at saving consumers money whenever they spend in purchasing goods and services with their cards.
High spenders can benefit from premium cards like Visa’s Infinite brands as well as MasterCard’s World brands. For you to benefit optimally from these premium cards, you need to spend more than $2000 per month, and this for the low income earner, is pretty large amount to spend. Considering that credit card debt still hurts many consumers, it would not be easy for them to spend such amount and these cards will remain to benefit the wealthy class and high spenders.
In order to qualify for reward cards like Capital One and Scotia, the card users need to have at least a personal annual income of $60,000 and a household income of at least $100,000. However, despite low income earners being locked out of the premium reward cards, they can still enjoy reward card perks that are designed for the modest income.
One of these cards is the RBC Cash Back MasterCard. You are only required to have an annual income of $15,000 for you to be issued with the RBC Cash Back MasterCard. Another low income reward card is MBNA’s Smart Cash card, which requires you to have at least an annual income of $35,000. The MBNA’s Smart Cash card offers a cashrebate of up to 5 percent on gas and groceries in the first 6 months of use. After that grace period, you are offered a 2 percent cashrebate in purchases.
Other cards that have been designed for the low income earners are Scotia Momentum No-Fee Visa, which requires a low amount of $12,000 annual income to qualify. Capital One Aspire Cash Platinum requires an annual income of $30,000 while CIBC Dividend Card is designed for consumers with an annual income of at least $15,000.
However, the perks are far much less compared to the premium cards. In addition, since the more you spend, the higher the perks you enjoy, for low income earners, definitely, they will benefit from less perks compared to the wealthy class.
Nonetheless, using these no-fee reward credit cards can help the users save about $10 to 20 dollars in every month and this can go towards meeting the card fees. The MBNA’s Smart Cash card gives card users the most cashrebate considering that you can get 5 percent on gas and groceries in the first six months spending.
Monday, November 18, 2013
A Steady Credit Card Use Expected Despite Looming Consumer Spending Cutbacks
Consumer spending is expected to dip in 2013 owing to increased payroll taxes however, analysts say that consumers will continue to show increase credit cards use despite these spending cutbacks challenges. Middle class Americans will not escape higher taxes in spite of the Congress’s effort in passing legislation that helps keep the broader middle class income taxes from going up. The reality is that workers will still part with more than 2 percent through payroll taxes.
The reason behind this is that the government had put a temporary hold in paying payroll taxes of 6.2 percent but this has already expired. In 2011, the government temporarily lowered payroll tax rate to a low of 4.2 percent from the designated rate of 6.2 percent and this hold expired in 2013. What this means is that the workers will have to pay more in payroll taxes and this has an implication on consumer spending.
In yet another blow to consumers, in January 2013, credit card users would be subjected to direct surcharges when they shop in stores. Store owners in most of the states were allowed to impose direct surcharges on shoppers to the tune of 4 percent of the bills they paid through their credit cards. This would further implicate negatively on their spending patterns.
What this means is that consumers need to prepare for tough times ahead whenever they use their credit cards. Bearing in mind that credit card debt is the number one debt burden in the country, it means that consumers need to be careful in the way they spend their income. As though not enough, consumers are likely to be dealt a blow by the seemingly increasing credit card interest rates.
In 2012, MBNA hiked its credit card interest rates up by 4 percent and in a similar move, the Bank of Ireland also extended interest hikes to its card users by the same margin at the end of the year in 2012. The latest move to see increased interest rate on credit card balances has been witnessed within Danske Bank, which has hiked the rates by about 2 percent.
Experts say that other banks are likely to follow suit and increase their rates too. Consumers have been enjoying low interest rates on credit card since the highs of 14 percent imposed in 2010 following the credit crisis. When all these factors are put together, it is expected that consumer spending may be hit hard and banks may have to cope with hard time too.
However, notwithstanding fear of weak consumer spending, credit card use is still strong and it is expected to grow throughout the year. When consumers do not have sufficient income, they tend to use their credit cards. Owing to the pressures put on the consumer by payroll tax, then these consumers are likely to increase the level of use of credit cards in order to make up for the reduced income, FBR Capital Markets’ analyst Scott Valentin said.
It is also projected that banks that depend on revenues generated through credit card interest rates are likely to experienced reduced earnings because consumers are now holding less credit. There has been a notable decrease in credit card loans and this is something that has seen revenues generated from credit card interest rates shrink significantly.
Companies that count on interest rates levied on revolving loans are likely to feel the pinch. Nonetheless, for American Express, the largest US credit card issuer, it may be less affected by the reduced card borrowing, and this is because this company generates much of the revenue through merchants who are charged when consumers make purchases using their cards. American Express doesn’t rely on revenue generated from revolving credit card loans interest rates.
The reason behind this is that the government had put a temporary hold in paying payroll taxes of 6.2 percent but this has already expired. In 2011, the government temporarily lowered payroll tax rate to a low of 4.2 percent from the designated rate of 6.2 percent and this hold expired in 2013. What this means is that the workers will have to pay more in payroll taxes and this has an implication on consumer spending.
In yet another blow to consumers, in January 2013, credit card users would be subjected to direct surcharges when they shop in stores. Store owners in most of the states were allowed to impose direct surcharges on shoppers to the tune of 4 percent of the bills they paid through their credit cards. This would further implicate negatively on their spending patterns.
What this means is that consumers need to prepare for tough times ahead whenever they use their credit cards. Bearing in mind that credit card debt is the number one debt burden in the country, it means that consumers need to be careful in the way they spend their income. As though not enough, consumers are likely to be dealt a blow by the seemingly increasing credit card interest rates.
In 2012, MBNA hiked its credit card interest rates up by 4 percent and in a similar move, the Bank of Ireland also extended interest hikes to its card users by the same margin at the end of the year in 2012. The latest move to see increased interest rate on credit card balances has been witnessed within Danske Bank, which has hiked the rates by about 2 percent.
Experts say that other banks are likely to follow suit and increase their rates too. Consumers have been enjoying low interest rates on credit card since the highs of 14 percent imposed in 2010 following the credit crisis. When all these factors are put together, it is expected that consumer spending may be hit hard and banks may have to cope with hard time too.
However, notwithstanding fear of weak consumer spending, credit card use is still strong and it is expected to grow throughout the year. When consumers do not have sufficient income, they tend to use their credit cards. Owing to the pressures put on the consumer by payroll tax, then these consumers are likely to increase the level of use of credit cards in order to make up for the reduced income, FBR Capital Markets’ analyst Scott Valentin said.
It is also projected that banks that depend on revenues generated through credit card interest rates are likely to experienced reduced earnings because consumers are now holding less credit. There has been a notable decrease in credit card loans and this is something that has seen revenues generated from credit card interest rates shrink significantly.
Companies that count on interest rates levied on revolving loans are likely to feel the pinch. Nonetheless, for American Express, the largest US credit card issuer, it may be less affected by the reduced card borrowing, and this is because this company generates much of the revenue through merchants who are charged when consumers make purchases using their cards. American Express doesn’t rely on revenue generated from revolving credit card loans interest rates.
Free Credit Reporting... Do You Have to Pay For Your Credit Report?
Credit reporting is important because it helps you monitor your credit report in order to ensure that that it is accurate and any disputes and errors are rectified and reflected on the report. Every action you take on your report either contributes positively or negatively to the credit score. If there are errors in a report, they need to be fixed very fast and waiting from the free credit report released yearly may not be advisable. Because of the increased need to monitor credit reports, there are reporting companies that have cropped up to offer these services.
There are only three major credit reporting agencies, which are legally authorized to provide one copy of free credit report per year. According to Fair Credit Reporting Act, every consumer can get a free copy of their credit report from the three major reporting agencies which are; Experian, Equifax and TransUnion.
This means that you can get one copy of your credit report in every 12 months for free. However, if you want to monitor your report, you have to pay for the other copies. There are many credit reporting companies that are offering monitoring services for your credit history. These companies claim that they offer free credit reporting but in the real sense, you sign up for a trail period and then after that you are subjected to a paid service.
Consumers pay about $19 to $29 per month for credit reporting, a service that is provided for free. There is no need to pay for your credit reporting even if you want to monitor it. In fact, you can spread out your free credit history reporting from the three agencies and use them to monitor your credit history.
If you were to use the paid services, it means that you would pay at least $228 dollars in a year. This is a large amount you are paying for a service that is actually offered free. What you need to do is spread the three credit reports from the three major reporting companies. You can spread them in four-month intervals.
There are no restrictions as to when you can get your report from these companies. You can start with Equifax, and get your report on January. After four months i.e. the month of May, you can get your report from TransUnion, and after another four months, October, you can get the third report from Experian. This means that in one year, you have three reports.
You can use the reports to monitor the accuracy of the information. If there are errors, you are able to fix them in advance. This way, you save money and you do not have to pay for the free credit reporting services. One thing you need to know is that you cannot order your free reports from the three credit reporting agencies on their website.
These free reports are provided through annualcreditreport.com that has been provided the mandate to provide the free copies of the credit reports. However, if you want a paid credit report, you can order directly from these agencies. It is important that you watch out for websites that claims to be offering free credit reporting. You need to avoid them because they will eventually subject you to a paid service or even sell your personal information to marketing companies and spammers.
There are only three major credit reporting agencies, which are legally authorized to provide one copy of free credit report per year. According to Fair Credit Reporting Act, every consumer can get a free copy of their credit report from the three major reporting agencies which are; Experian, Equifax and TransUnion.
This means that you can get one copy of your credit report in every 12 months for free. However, if you want to monitor your report, you have to pay for the other copies. There are many credit reporting companies that are offering monitoring services for your credit history. These companies claim that they offer free credit reporting but in the real sense, you sign up for a trail period and then after that you are subjected to a paid service.
Consumers pay about $19 to $29 per month for credit reporting, a service that is provided for free. There is no need to pay for your credit reporting even if you want to monitor it. In fact, you can spread out your free credit history reporting from the three agencies and use them to monitor your credit history.
If you were to use the paid services, it means that you would pay at least $228 dollars in a year. This is a large amount you are paying for a service that is actually offered free. What you need to do is spread the three credit reports from the three major reporting companies. You can spread them in four-month intervals.
There are no restrictions as to when you can get your report from these companies. You can start with Equifax, and get your report on January. After four months i.e. the month of May, you can get your report from TransUnion, and after another four months, October, you can get the third report from Experian. This means that in one year, you have three reports.
You can use the reports to monitor the accuracy of the information. If there are errors, you are able to fix them in advance. This way, you save money and you do not have to pay for the free credit reporting services. One thing you need to know is that you cannot order your free reports from the three credit reporting agencies on their website.
These free reports are provided through annualcreditreport.com that has been provided the mandate to provide the free copies of the credit reports. However, if you want a paid credit report, you can order directly from these agencies. It is important that you watch out for websites that claims to be offering free credit reporting. You need to avoid them because they will eventually subject you to a paid service or even sell your personal information to marketing companies and spammers.
Seniors in More Credit Card Debt Burden than Young People... What is The Matter!
Older Americans are carrying more credit card debt that young people, a research findings has revealed. In a study paper entitled “In the Red: Older Americans and Credit Card Debt,” presented by the AARP Policy Institute and Demos, it showed that older Americans are struggling with more credit card debt that young people. Old age comes with many challenges as it is the time when many retire to enjoy their after-retirement life.
This means that seniors loss their jobs through retirement and focus on living an old age life. In addition, this is the time when old persons start experiencing chronic diseases like diabetes, heart problems, and other conditions caused by low immune functions. In order to spend their last days well, seniors need to have a good financial security.
However, this is not case as many Americans are dying at old age with less than $10,000 in their accounts while others are dipping into their retirement benefits and exploiting them long before they die. According to the AARP Policy Institute and Demos report, those over 50 years were carrying a combined card debt of close to $8,278 in all their credit cards while those under 50 where carrying a combined debt of about $6,258.
Some of the contributing factors to the increased indebtedness of seniors are because after losing their jobs, they still have to meet expenses like home repair, medical bills, car repairs, insurance, utility bills, rent, mortgages, and food. However, one peculiar thing has been observed among seniors.
It has been revealed that seniors are helping their family members settle debts. What this means is that a good number of them are using their credit cards to support their adult children. This way, they are carrying a credit card debt that is not theirs. These old people are using their credit cards to obtain loans to pay for their adult children’s tuition fees.
About 25% of seniors are actually helping their family member to settle their debts. In this study, it was discovered that about 5 percent of student loans borrowed, they were taken by persons over the age of sixty. Only a handful of seniors at this age are surely in college if there are any. This means that these student loans were taken to meet college fees for their children.
However, students should bear the burden of their debts. They should take the loans and repay them when they are employed. Seniors seem to be willing to support their adult children not knowing the situation they are subjecting themselves into. When the burden of paying tuition fees is coupled with other expenses like home repairs and utility bills, this is far stretching the finances of the seniors.
What is happening is that these seniors are now dipping into their retirement savings and using their money to settle credit card debts. This is such a big mistake as the retirement benefits are the only financial security these seniors may have. Draining their retirement kits earlier could actually be creating serious financial insecurity at a time when there may be many problems that need financial support such as visits to the doctor and meeting utility bills.
This implies that seniors need to be educated on the reality of life after retirement and understand the challenges they have to go through including credit card debts and how they can avoid them. They need to refrain from taking responsibilities that they cannot afford. Supporting adult children to pay for college fees may be a sign for love and expression of emotional attachment, but does this has to be presented with material things like finances?
This means that seniors loss their jobs through retirement and focus on living an old age life. In addition, this is the time when old persons start experiencing chronic diseases like diabetes, heart problems, and other conditions caused by low immune functions. In order to spend their last days well, seniors need to have a good financial security.
However, this is not case as many Americans are dying at old age with less than $10,000 in their accounts while others are dipping into their retirement benefits and exploiting them long before they die. According to the AARP Policy Institute and Demos report, those over 50 years were carrying a combined card debt of close to $8,278 in all their credit cards while those under 50 where carrying a combined debt of about $6,258.
Some of the contributing factors to the increased indebtedness of seniors are because after losing their jobs, they still have to meet expenses like home repair, medical bills, car repairs, insurance, utility bills, rent, mortgages, and food. However, one peculiar thing has been observed among seniors.
It has been revealed that seniors are helping their family members settle debts. What this means is that a good number of them are using their credit cards to support their adult children. This way, they are carrying a credit card debt that is not theirs. These old people are using their credit cards to obtain loans to pay for their adult children’s tuition fees.
About 25% of seniors are actually helping their family member to settle their debts. In this study, it was discovered that about 5 percent of student loans borrowed, they were taken by persons over the age of sixty. Only a handful of seniors at this age are surely in college if there are any. This means that these student loans were taken to meet college fees for their children.
However, students should bear the burden of their debts. They should take the loans and repay them when they are employed. Seniors seem to be willing to support their adult children not knowing the situation they are subjecting themselves into. When the burden of paying tuition fees is coupled with other expenses like home repairs and utility bills, this is far stretching the finances of the seniors.
What is happening is that these seniors are now dipping into their retirement savings and using their money to settle credit card debts. This is such a big mistake as the retirement benefits are the only financial security these seniors may have. Draining their retirement kits earlier could actually be creating serious financial insecurity at a time when there may be many problems that need financial support such as visits to the doctor and meeting utility bills.
This implies that seniors need to be educated on the reality of life after retirement and understand the challenges they have to go through including credit card debts and how they can avoid them. They need to refrain from taking responsibilities that they cannot afford. Supporting adult children to pay for college fees may be a sign for love and expression of emotional attachment, but does this has to be presented with material things like finances?
Banks More Likely to Hike Credit Card Interest Rates...What are The Repercussions?
Credit card users have been enjoying relatively lower interest rates charged on balances but this scenario seems to changing. In February 2010, credit card interest rates averaged 13 percent reaching a record high of averagely 14.26 on February the same year. These high rates at that time where attributed to effects posed by the credit crisis. However, since then, banks have been cutting back their credit card interest rates on consumers.
In 2012, the average consumer credit card interest rate was recorded at about 12 percent and in 2012; it hit a low of about 11 percent. When consumers have low interest rates, it means they pay less on any balances they roll over. However, considering that card users have been paying their balance off and they are not carrying a lot of credit, it means that the amount paid as interest rates from credit card balances has reduced.
Credit card debt is still the leading indebtedness in the US and this shows that card use is high. However, there have been a few moves by banks to increase interest rates on credit card balances with the latest being the Danske Bank rate hikes. Danske Bank pushed up its interest rate on cards and this is an indication that consumers will have to tighten their belts to meet the extra cost.
The bank increased the rates by 2 percent and this means that the card users will have to prepare for tough times ahead. The use of credit cards in increasing and this is demonstrated by the proliferation of reward credit cards. There are virtually many different reward cards that cater for every consumer.
Although the top perks in rewards cards are enjoyed by high spenders, there have been low income reward cards, which also meet the needs of the low spender. As consumers seek for ways to cut down on expenses, perhaps the aspect of hiking interest rates on cards may not be received with good news. Danske Bank has not had any credit card rate adjustment for about four years and before the recent hike, this bank had two of the best value credit card ranking on the list of the top first three cards.
The bank’s name was recently changed from National Irish Bank to Danske Bank. At the end of 2012, another bank hiked its credit card interest rates by a margin of 4 percent. Bank of Ireland extended higher rates to its consumers at a time when consumers do a lot of shopping in holiday season.
In a similarly move, MBNA increased its credit card rates last summer in 2012 by the same margin of 4 percent. What this means is that soon other banks may fall suit and also increase their rates. Consumers are still ailing from the effects of recession and perhaps an increase in rates could create more pressure on their spending patterns.
For those carrying balances on their cards, such an increase could lead to more troubles. If any delinquencies occur, the credit card interest rates could hit very high levels that users cannot cope with. Despite these projected increase in card rates, the use of credit cards in expected to grow in 2013.
In 2012, the average consumer credit card interest rate was recorded at about 12 percent and in 2012; it hit a low of about 11 percent. When consumers have low interest rates, it means they pay less on any balances they roll over. However, considering that card users have been paying their balance off and they are not carrying a lot of credit, it means that the amount paid as interest rates from credit card balances has reduced.
Credit card debt is still the leading indebtedness in the US and this shows that card use is high. However, there have been a few moves by banks to increase interest rates on credit card balances with the latest being the Danske Bank rate hikes. Danske Bank pushed up its interest rate on cards and this is an indication that consumers will have to tighten their belts to meet the extra cost.
The bank increased the rates by 2 percent and this means that the card users will have to prepare for tough times ahead. The use of credit cards in increasing and this is demonstrated by the proliferation of reward credit cards. There are virtually many different reward cards that cater for every consumer.
Although the top perks in rewards cards are enjoyed by high spenders, there have been low income reward cards, which also meet the needs of the low spender. As consumers seek for ways to cut down on expenses, perhaps the aspect of hiking interest rates on cards may not be received with good news. Danske Bank has not had any credit card rate adjustment for about four years and before the recent hike, this bank had two of the best value credit card ranking on the list of the top first three cards.
The bank’s name was recently changed from National Irish Bank to Danske Bank. At the end of 2012, another bank hiked its credit card interest rates by a margin of 4 percent. Bank of Ireland extended higher rates to its consumers at a time when consumers do a lot of shopping in holiday season.
In a similarly move, MBNA increased its credit card rates last summer in 2012 by the same margin of 4 percent. What this means is that soon other banks may fall suit and also increase their rates. Consumers are still ailing from the effects of recession and perhaps an increase in rates could create more pressure on their spending patterns.
For those carrying balances on their cards, such an increase could lead to more troubles. If any delinquencies occur, the credit card interest rates could hit very high levels that users cannot cope with. Despite these projected increase in card rates, the use of credit cards in expected to grow in 2013.
What Is Phishing and Why Does It Target Online Bank Account Holders
Phishing is scamming method used by internet intruders to steal personal information from you mainly through emails. Whereas some of the emails intended to steal information from you may be easily detected as spam, nowadays, these hackers have become smart and you cannot easily detect some of the emails they send. The reason why online bank account holders or credit card holders are targeted is because once your personal information is stolen, the scammers can use it to log into your online bank account and steal money from it.
One thing that banks will not do is to tell you to activate your account through emails. In addition, banks don’t request for personal information through emails. If you already have a bank account and an online banking access, then you are always advised to log into the secure website of the online account and log in from there. You should never click on email links that are mainly provided by these scammers.
What these scammers do is that they send you information purporting to originate from a bank or credit card issuer where you have an account and then ask you to activate or provide your details. They may claim that your account has been suspended and you need to log in and confirm your personal details in order to uplift the suspension. NEVER click on any links you suspect that they are from hackers.
One thing that makes the email phishing difficult to detect is that it may bear the logo and address of the bank or credit card issuer. In addition, the emails may resemble other genuine emails you have received from your bank. The best way you can protect yourself from these intruders is to learn how to identify phishing emails.
You need to check where the email was sent from or the e-mailer. You need to check the section “mailed by”. The email may be from the bank or credit card web email address but not sent by the bank or credit card company. If the message is not mailed by the bank or card issuer, and it appears to have originated from another address, then you should ignore it and delete it immediately.
Another way you may detect a phishing attempt from an email is to check on forged links. The scammers will try to use a link that is very similar to that of the bank account or credit card issuer. You need to roll over your mouse on the link and see if it identical to the one on the email without clicking on it. In most cases, if the link does not begin with “https” it means that it is not secure. If when you roll the mouse over the link and you cannot get the address, you may “copy link location” and paste it on the web search tab. This way, you will determine whether it is genuine link or not. NEVER click on the link. Almost all bank websites will begin with “https”.
Moreover, if you get an email that requires you to provide your personal information, you should ignore. Once you have provided your personal information during your account registration, your bank will never ask you to provide the same again through an email. This is because that information can be intercepted online and stolen.
In addition, when you see that you are required to follow a link and log in to provide your details, then it means that the “phishers” want to steal your log in details. Even when you click on the link, you may be directed to a page that looks the same as the bank account log in website page. Another way you may detect a phishing email is the urgency of the message. The email may be sent twice or thrice meaning that there is a pressing request to provide your information. You need to ignore that email and filter it from your address.
One thing that banks will not do is to tell you to activate your account through emails. In addition, banks don’t request for personal information through emails. If you already have a bank account and an online banking access, then you are always advised to log into the secure website of the online account and log in from there. You should never click on email links that are mainly provided by these scammers.
What these scammers do is that they send you information purporting to originate from a bank or credit card issuer where you have an account and then ask you to activate or provide your details. They may claim that your account has been suspended and you need to log in and confirm your personal details in order to uplift the suspension. NEVER click on any links you suspect that they are from hackers.
One thing that makes the email phishing difficult to detect is that it may bear the logo and address of the bank or credit card issuer. In addition, the emails may resemble other genuine emails you have received from your bank. The best way you can protect yourself from these intruders is to learn how to identify phishing emails.
You need to check where the email was sent from or the e-mailer. You need to check the section “mailed by”. The email may be from the bank or credit card web email address but not sent by the bank or credit card company. If the message is not mailed by the bank or card issuer, and it appears to have originated from another address, then you should ignore it and delete it immediately.
Another way you may detect a phishing attempt from an email is to check on forged links. The scammers will try to use a link that is very similar to that of the bank account or credit card issuer. You need to roll over your mouse on the link and see if it identical to the one on the email without clicking on it. In most cases, if the link does not begin with “https” it means that it is not secure. If when you roll the mouse over the link and you cannot get the address, you may “copy link location” and paste it on the web search tab. This way, you will determine whether it is genuine link or not. NEVER click on the link. Almost all bank websites will begin with “https”.
Moreover, if you get an email that requires you to provide your personal information, you should ignore. Once you have provided your personal information during your account registration, your bank will never ask you to provide the same again through an email. This is because that information can be intercepted online and stolen.
In addition, when you see that you are required to follow a link and log in to provide your details, then it means that the “phishers” want to steal your log in details. Even when you click on the link, you may be directed to a page that looks the same as the bank account log in website page. Another way you may detect a phishing email is the urgency of the message. The email may be sent twice or thrice meaning that there is a pressing request to provide your information. You need to ignore that email and filter it from your address.
What Are Credit Card Skimmers and How do They Work?
Credit card skimmers are devices used to extract credit card information for intended purpose of theft. The victims of credit card skimming are blindfolded by the theft and many come to realize that their accounts have been swindled money thereafter following the theft of information. Of late, these devices have been used in ATMs, gasoline stations and also in public areas like restaurants and consumer goods stores or supermarkets.
The skimming devices are placed in ATM machines or they are held by hand by the person stealing the information. When the card is run through the devices, information is extracted and stored in the device. The thieves then use the information to device counterfeit card or carry out online withdrawals or payments from your account.
The skimming devices are placed in ATM machines or they are held by hand by the person stealing the information. When the card is run through the devices, information is extracted and stored in the device. The thieves then use the information to device counterfeit card or carry out online withdrawals or payments from your account.
Why it is difficult to detect card skimming devices
What makes this kind of thieving difficult to detect is that the devices resemble the “card insert” or the “keypad” part of an ATM and are attached or plugged just next to or over the exiting parts of an ATM’s “card insert” or keypad components. If you are not keen, you will enter your card in that device and the moment you key in your password, all the information is derived from the card and stored to the device.
Victims of card skimming are not aware of the theft and begin to notice that there is a problem when they get billing statement or even notices of overdrafts through their emails. Another thing which makes credit cards skimming difficulty to detect is that you never lose your card so you are not suspicious at that time until later after your bank account is intruded.
What makes this kind of thieving difficult to detect is that the devices resemble the “card insert” or the “keypad” part of an ATM and are attached or plugged just next to or over the exiting parts of an ATM’s “card insert” or keypad components. If you are not keen, you will enter your card in that device and the moment you key in your password, all the information is derived from the card and stored to the device.
Victims of card skimming are not aware of the theft and begin to notice that there is a problem when they get billing statement or even notices of overdrafts through their emails. Another thing which makes credit cards skimming difficulty to detect is that you never lose your card so you are not suspicious at that time until later after your bank account is intruded.
How can you protect yourself from credit card skimmers?
One way you can prevent this theft is by keeping watch of your accounts. You need to monitor your checking account activities on daily basis and report any transaction that seems suspicious. In addition, you also need to be very careful where you shop. Skimmers are used in bars, gas stations, restaurants and other places when people visit to buy goods and services.
Always, you should not let any gas station attendant or bartender leave with your card. All the transaction should be done in your vicinity because if you cannot see you card; it could be probably be getting skimmed at that moment. Never trust anyone you give your card in these public areas.
If you want to withdraw money from an ATM machine, you need to check around and ensure that there is no device attached to the machine. Sometimes, the skimmers place a camera in a strategic point where it can view the ATM keypad in order to steal your PIN. They may also place a fake keypad fittingly on top of the ATM’s keypad in order to extra the information you enter when using your card.
Because the camera can be so tiny and placed in a hidden location where you cannot notice unless you are very keen, the best thing to do is to always try to cover your hand when you are keying in your PIN numbers on the keypad. If you notice that the keys are hard to push, you would rather stop using the machine immediately and eject your card and look for another ATM machine.
If you become suspicious of your account activity or notice a device that looks like a card skimmer you need to report to the bank as well as your credit card issuer so that actions can be taken to prevent any loss of money. If already there has occurred theft, you should report to your bank and also place a fraud alert in your credit report.
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