Check Cards, the new name for debit cards, can be used instead of cash, personal checks or credit cards. As stated, when you use a check card you transfer funds immediately from your account to the store's account. A growing number of consumers use check cards because they eliminate the hassle and risks of writing checks or carrying large amounts of cash. Important facts you need to know are:
· You have less bargaining power with a check card than with a credit card. With a credit card you have the right to refuse to pay for the purchase if you are not satisfied. With a debit card you have already paid for the product, so you have less bargaining power with the merchant.
· A thief with your check card and PIN number can take all the money in your account. The thief can even make point-of-sale purchases without your PIN.
· Your liability is limited to $50 if you report the checkcard loss within two days, any longer and your liability can go to $500. After 60 days, you can be responsible for the entire amount.
Note: MasterCard and Visa have voluntarily capped the loss liability of checkcard holders at $50. "As welcome as these voluntary protections are, they are too important to be left to the kindness of bank marketing departments," writes Consumer Reports. The consumer advocacy magazine advocates federal law changes to make consumer liability caps mandatory.
· In an era of increasing bank fees, consumers can expect to pay for the service of using a checkcard.
· It is the consumer's responsibility to keep checkcard receipts and deduct the dollar amounts of the purchase from your bank balance immediately, in order to avoid overdraft changes.
Smart Cards, sometimes called stored-value cards, have a specific amount of credit embedded electronically in the card. For example, a $100 smart card that you have purchased in advance can be used to cover expenses such as pay phone charges, bridge or expressway tolls, parking fees or Internet purchases. These cards make the transaction fast, easy and convenient.
Smart card technology is in a period of rapid change. Ultimately consumers should be able to customize their smart cards to suit their financial needs with access from their personal computer or cellular phone. Some important consumer issues are:
· Smart cards are the equivalent of cash so must be guarded.
· Procedures for recovering the value of a malfunctioning smart card are unclear.
· The computer chip within the card will contain both financial and personal information. Privacy and security issues could be a problem.
·
Smart cards may not be covered by the Electronic Funds Transfer Act in case of loss or misuse of the card.
Digital Cash is designed to allow the consumer to pay cash rather than use a credit card to purchase products on the Internet. One type of digital cash allows consumers to transfer money from a financial institution or a credit card into an "electronic purse". The cash is held in a special bank account that is linked to your computer. Another type of digital cash converts money into digital coins that can be placed on your computer's hard drive.
Digital checks allow consumers to use their personal computers to pay recurring bills. Consumers can use computer software provided by a bank, or they can use personal finance software packages such as Quicken or Microsoft Money and subscribe to an electronic bill-paying service.
The technology of paying bills electronically by home computers is advancing rapidly, but relatively few businesses currently can accept payments made directly by computers. Digital checking is expensive. Fees generally run from $5 to $10 a month for 20 transactions. Privacy and security issues are major consumer concerns. Encryption technology may lessen privacy concerns in the future.
0 التعليقات:
Post a Comment