Showing posts with label credit card. Show all posts
Showing posts with label credit card. Show all posts

Monday, February 6, 2017

That Chip on Your Credit Card May Not Be Stopping Fraud After All

Credit Card
It's a different world, where the science and technology have registered some of the most magnificent developments and innovations, which are potentially, help the society in having a massive growth in almost all sectors. The advent of the computer and the internet are one of the major inventions of the scientific development, which have changed the world to a great extent and today we can find some sort of touches in almost all products and issues in our existing society.

While the primary sectors are getting huge supports from the computer technology; the financial sector also has seen some of the major breakthroughs in the operation and management of the financial instruments and data. The Credit card is considered as one of the important issues in the financial market, which is now being used by millions of users, throughout the globe, for ease and comfort.

Today the credit card or debit card are using as the avenue of the cashless transaction, which safeguards the malpractices and helps in efficient accounting purpose. It can be noted that the safety of using the credit card is getting the highest priority and several measures are being taken to get the utmost safety of the cards, which are often found quite inadequate and vulnerable.

Credit Card and Relevant Issues

It is now known to everybody that the transaction through these cards are quite popular among the people, especially in the younger generation, and there are lots of chips and other devices are being used in order to check potential frauds. But at the same time; the fact is that there are some problems inherent in these chips, which are essentially meant for the safety of the credit cards. In the present scenario, the security chips are widely used in the financial world and it becomes a bit difficult for the criminals to counterfeit any debit or credit card.

But in recent days, the fraudulent activities are on a rise and various criminals are now pilfering cash from the plastic card by using some different mode of operation, which is considered as a great threat to the general people, who are using the credit card for convenience and safety. The new study, done by the renowned research organization, Javelin Strategy and Research, has made some unique revelations in the frauds of the credit card, which are as follows:

  • The most common identity fraud has been rose about 16% in the year 2016, which cost individual an all-time high of USD 16 billion; 
  • About 15.4 million people are affected by this kind of fraud, which is about 6.15% of the total consumers and a 2 million more from the earlier year i.e. 2015;
  • While the study was not been done exclusively for the credit cards, but the researchers made it a point that the majority of these identity thefts are predominantly linked with to the credit cards; 
  • This escalation in fraudulent activities, which is about USD 700 million more than the previous year, seems to be unspecified.

Friday, October 21, 2011

Potential for promoters and brands in co branded Credit cards Part.III

Then, the positioning of retail banking networks will play a key role in the organization of the market around these cards, to date, it remains to be determined. By partnering with offers co-branded, they risk a drop in sales of traditional credit cards, implying a de facto decrease in revenues related to contributions (the co-branded cards being offered at a price much lower). In contrast, waive offer these products may cause a loss of market share when demand for co-branded cards for the benefit of credit card companies 'captive' (subsidiaries of the distribution, automotive ...) or new entrants. The tactics seem to apply the major banking groups is to rely on their own subsidiaries consumer credit to play the complementary offers, while reducing the risk of cannibalization ...

Finally, a technical constraint - but significant - just reduce the potential of these credit cards. The choice of "cash payment" or "credit payment" in cash is not possible outside the network of retail partners, including the lack of standardization of EMV terminals.

This uncertainty is reinforced by the lack of feedback potential. Indeed, the very special place of the bank card in France compared to our European neighbors (almost all of the park to the EMV standard, high number of transactions, psychological ...) renders inconclusive any analogies with the co- branding practiced by our European neighbors. Under these conditions, the first move will engage in enhanced listening market reactions. For their part, the traditional players in the market for payment card will now have to think to optimize their organization in the event of a redeployment of their strategy for success of co-branding.

On a broader front, it is an additional axis to be included in the reconfiguration strategies means of payment that must implement the banks to adapt to new regulatory requirements (SEPA, PSD) and market developments (innovative means of payment for retail, process for STP of corporate cash management ...)

Thursday, October 20, 2011

Potential for promoters and brands in co branded Credit cards Part.II

The co-branded cards allow, a technical point of view, to combine:

    * The functions of a card "private" (when used one mode "on us", that is to say in a shopping partners). It opens all the specific services: credit, loyalty ...
    * The functions of a card "banking" (when used on mode "on them", that is to say, outside partner stores). It can then pay for purchases at any merchant equipped with an electronic payment terminal (EPT) or remove hope in vending machines (ATMs).

This device should allow going further in terms of loyalty. Besides disseminating the image of the brand with every new spending set by the wearer, the method allows to increase the accumulation provisions of points and possibly create a new need among customers not yet equipped cards.

More discrete, the arrival of co-branding will also allow retailers to renegotiate rates and commission charged plates with company’s consumer credit outstanding that manage card or to change partners.

Uncertain scope

Many uncertainties remain about the success of this system:

First, the process of replacing a store card with a Visa or MasterCard co-branded (or the systematic use of it if replacement is required by the sign) does not always value added significantly to the holders. This determination should be largely influenced by the potential affinity with the brand or the provision of fringe benefits.

This trend may be in favor of high-potential brands identification of dream or ostentatious (luxury, automobile, travel ...) but less favorable to the everyday consumer brands (supermarkets, health, fast food ...) they may have to pay more benefits to customers will finally convince a "subprime" (involving an increase in the cost and risk is a decline in the commission of the sign by the company credit ...)

Potential for promoters and brands in co branded Credit cards Part.I

After issuing co-branding interest on credit cards for many retailers (supermarkets, car, tour operators, telecom ...). The increase in sales, the new potential of loyalty or the innovative images of the brand are often cited as advantages of the device. However, this new model card is it so attractive it is understood, particularly for carriers that have already greatly expanded an offer for "credit card"?

The provision of means of payment through non-bank is not new. Credit cards say "private", which bear the logo and colors of the sign that the commercial offer, are already widespread (one person in four has at least one store card in Europe). These allow the wearer to pay for purchases in stores of the brand or brands in a community of partners (equipped with specific payment terminals capable of reading the map). End of period, the balance of expenditure is deducted from the customer's bank account specified in the subscription card.

For the wearer, the main advantage of these cards is access to credit facilities in the form of consumer credit. For the merchant, this device allows to increase sales through financing provided to customers. That is why they are often offered free of charge and available direct in store.

These systems of credit cards are designed and managed by the players specialized in consumer credit. Largely in competition in this market segment, they offer innovative and customized services to retailers. Thus, these payment methods usually offer several additional features:

* Choose from several formulas settlement at the time of checkout: cash payment, use of the reserve revolving unique to the card, credit depreciable independent promotional rates (especially during Christmas or birthday of the brand ...)
* Advantages of a traditional loyalty card: accumulation of points, good management and specific reductions, access to targeted campaigns (type balances private ...)
* Insurance and other additional services

In addition, this system is transparent to the user, since these cards are promoted and distributed by the sign at the point of sale.

Wednesday, May 4, 2011

Heavy charges on the Credit Cards

The latest survey conducted in France points out the lack of transparency in the banking community regarding fees and charges levied by them on credit card transactions. Sense of opacity and injustice are the two main feelings expressed by the artisans and traders surveyed by the   on the commissions charged by banks on credit card transactions
According to the latest survey , commissions  weigh heavy for these entrepreneurs. Between 0.5% and 1% of their turnover for the three quarters of them, plus a set fee from the rental payment terminal at the telephone terminal via the contribution for those offering financial payments on credit.

 Over 40% prefer to limit their costs by denying the CB below a minimum purchase, while nearly half say they are aware that these practices adversely affect their turnover business.

The banker did not explain how the amount of commission or the default interest is arrived; entrepreneurs are forced to do their own calculations and analysis more over variation as a function of turnover for some of the industry for others, even the client's head for 28%!

For artisans and traders surveyed by the Team, the solution lies in greater transparency of bank with one hand, the average rate of release that would allow them to play competition and, secondly, the provision of summary of fees charged. In contrast, only 20% considering Government  intervention, with setting a maximum charge of credit card transaction or incremental costs of commission.