How to use a debit card for everyday expenses | 7 Ways to Wealth posted on the topic | LinkedIn (2024)

Are you tired of carrying around a bulky wallet filled with cash or constantly worrying about going over your credit card limit? Well, fear not my friends, because prepaid debit cards are here to save the day! These little plastic rectangles have become quite the trend lately, and it’s not hard to see why.With a prepaid debit card, you can have all the benefits of a credit card without the stress of accruing debt. It works just like a regular debit card, except you load it with cash beforehand, kind of like a piggy bank for grown-ups! You can use it anywhere that accepts regular debit or credit cards, whether it’s to pay for your morning cup of joe or to splurge on a shopping spree.One of the biggest perks of prepaid debit cards is the ability to track your spending. Let’s face it, we all have those moments where we swipe our card without even thinking about how much we’re spending. With a prepaid debit card, you’ve got a built-in limit. Once the amount you loaded onto the card is used up, you’re done spending for the month. It’s like having a financial coach gently whispering in your ear, “Easy there, big spender! Time to rein it in.”But like everything in life, prepaid debit cards have their limitations. First off, some merchants might not accept them. It’s always a good idea to check if a particular store or restaurant will take your card before frantically waving it around at the cashier like a magician performing a disappearing act. Nobody wants to be the person holding up the line because their prepaid card wasn’t welcome.Another drawback is the potential for fees. While prepaid debit cards are great for keeping your spending in check, they often charge a variety of fees for various services. Fees for activating the card, reloading it with cash, or even checking your balance can add up quickly. It’s like having a little gremlin sneaking into your wallet every time you use your card. So, before jumping on the prepaid debit card bandwagon, make sure to read the fine print and be aware of any lurking gremlins ready to gobble up your hard-earned cash.Lastly, prepaid debit cards might not offer the same protection as credit cards when it comes to fraud or theft. If your card is lost or stolen, you might not have the same level of liability protection as you would with a credit card. So, it’s always a good idea to keep an eye on your card and report any suspicious activities right away.In conclusion, prepaid debit cards can be a convenient and helpful tool for managing your spending and avoiding debt. They offer a sense of control and come in handy when you’re trying to stick to a budget. Just remember to be mindful of their limitations, such as potential merchant restrictions, sneaky fees, and a possible lack of liability protection. So go ahead, embrace the prepaid debit card life, but don’t forget to keep an eye out for those pesky gremlins hiding in the shadows!The post Exploring Prepaid Debit Cards: Uses and Limitations appeare

DEBIT Card Dangers!!!! I read recently that over half of the “every day” purchases made by consumers are done via Debit Card. These purchases include groceries, gas, and meals at restaurants. Some people even use their Debit Cards for online purchases. I understand that people don’t want to go into Credit Card debt. This is the primary reason people use their Debit Card instead of a Credit Card. BUT, I am not sure the true dangers of Debit Cards are understood. Here are a few issues you should know about: 1.Debit cards have limited fraud protection – If your Credit Card gets compromised, your maximum exposure is $50. And, most Credit Card companies will not hold you responsible for any fraudulent charges. With Debit Cards, on the other hand, you could have to pay some or all of the fraudulent charges, depending on how soon you report the fraud to your bank. 2.YOUR money is exposed – Fraudulent charges on your Debit Card expose the money in YOUR bank account. That money remains tied up (and unavailable for you to pay your bills) while the bank sorts out the fraud. 3.Bank fees – I have heard countless stories of consumers charged bank fees due to fraud on their account. These include overdraft fees, minimum balance fees and bounced check fees. These fees add up quickly, and create a downward spiral that is hard to pull out of. 4.Selecting “Credit” at the checkout does not protect you – A Debit Card does not change to a Credit Card, by selecting Credit at checkout. This merely changes how the transaction is processed behind the scenes. At the end of the day, your bank account is still potentially exposed. 5.Debit Cards don’t report to the Credit Bureaus – This means that Debit Cards do not help improve your credit profile. The proper use of Credit Cards, on the other hand, can improve your credit score. I understand that Credit Cards can be tempting to some people to buy items they can’t afford and go into debt. In some ways, Debit Cards protect us from ourselves. So, how can we have the protections of a Credit Card, without sliding into debt?I suggest getting a credit card from the same bank as your checking account. This way, it is easy to move money out of your checking and onto the Credit Card. Whether you do this weekly, monthly, or after each purchase, it is a great habit to avoid the dreaded Credit Card debt. It takes discipline, but the risk of exposure from using Debit Cards makes this a practice worth adopting!!#debitcards#creditcards#credit

10

2 Comments

Credit cards Business Model Explained.Card Issuance and Application Fees: Credit card issuers often charge annual fees or one-time application fees to cardholders. These fees contribute to the issuer's revenue and help cover administrative costs.Interest Rates: One of the primary revenue streams for credit card issuers is the interest charged on outstanding balances carried over from one billing cycle to the next. Interest rates can vary based on the cardholder's creditworthiness and the type of card.Transaction Fees: Credit card companies charge merchants a fee for processing transactions. This fee is typically a percentage of the transaction amount and is known as the interchange fee. It covers the costs associated with payment processing, fraud protection, and other services provided to merchants.Late Payment and Overlimit Fees: When cardholders fail to make their minimum payments on time or exceed their credit limits, they are often charged late payment or overlimit fees. These fees contribute to the issuer's revenue.Foreign Transaction Fees: Credit card companies may charge a fee for transactions made in foreign currencies or outside the cardholder's home country. This fee helps cover the costs of currency conversion and international transaction processing.Balance Transfer Fees: When cardholders transfer balances from one credit card to another, issuers may charge a balance transfer fee. This fee can generate additional revenue for the issuer.Credit Monitoring and Protection Services: Some credit card issuers provide additional services like credit monitoring, identity theft protection, and insurance coverage. These services can be offered as add-ons for an additional fee.Partnerships and Affiliations: Credit card companies often partner with other businesses, such as airlines, hotels, and retail chains, to offer co-branded credit cards. These partnerships can lead to shared revenue and increased card usage.Cross-Selling and Up-Selling: Credit card companies may use their customer base to cross-sell or up-sell other financial products and services, such as personal loans, insurance, investment products, and moreCredit Monitoring and Protection Services: Some credit card issuers provide additional services like credit monitoring, identity theft protection, and insurance coverage. These services can be offered as add-ons for an additional fee.Cross-Selling and Up-Selling: Credit card companies may use their customer base to cross-sell or up-sell other financial products and services, such as personal loans, insurance, investment products, and more🔰𝗟𝗶𝗸𝗲👍this post if you found it insightful🔰𝗥𝗲𝗽𝗼𝘀𝘁🔁 this on your feed to spread awareness🔰𝗖𝗼𝗺𝗺𝗲𝗻𝘁💬 your thoughts🔰𝗙𝗼𝗹𝗹𝗼𝘄(Sumit Kumar Singh)for more premium finance content.#finance #content #linkedin #creditcards

48

8 Comments

Paying bills with your credit card to earn points can offer several advantages:- Rewards Accumulation: Many credit cards offer rewards programs where you earn points or cashback for every dollar spent. Paying bills with your credit card allows you to accumulate these rewards over time.- Travel Points: Some credit cards specifically offer travel rewards, allowing you to earn points that can be redeemed for flights, hotels, and other travel-related expenses. This is especially beneficial for avid travelers.- Cashback Opportunities: If your credit card offers cashback rewards, paying bills with it can be a way to earn a percentage back on your spending. This can provide a small financial return on your regular expenses.- Consumer Protections: Credit cards often come with built-in consumer protections such as fraud protection, extended warranties, and purchase protection. Using your credit card for bill payments can extend these benefits to your regular bills.- Build Credit History: Consistent and responsible credit card usage, including bill payments, can positively impact your credit score. This can be advantageous when you need to apply for loans or other financial products in the future.- Convenience and Security: Using a credit card for bill payments is convenient, as it centralizes your spending and offers an additional layer of security. If your card has fraud protection, you can dispute unauthorized charges.- Bonus Offers: Some credit cards come with introductory bonus offers, where you can earn a significant number of points or cashback by spending a certain amount within the first few months. Paying bills with your card can help you reach these thresholds.- Budgeting and Tracking: Consolidating bill payments onto one credit card statement can make it easier to track your spending and manage your budget effectively.However, it’s crucial to use credit cards responsibly, paying off the balance in full each month to avoid interest charges. Additionally, consider the annual fees and interest rates associated with the card to ensure that the rewards earned outweigh any potential costs.Maria RecioCompass REmaria.recio@compass.comMichael NealCertified Credit Consultant

3

Press Release: FundingShield leverages Mastercard #openbanking to expand payment verification solutions; preventing #wirefraud and payment fraud. FundingShield CEO Ike Suri shared,"FundingShield has over 95% coverage of licensed service providers in the real estate, mortgage, closing and settlement space in our live repository. This partnership with Mastercard allows us to leverage its open banking connectivityof over 95% of U.S. based deposit accounts for consumer-permissioned access to real-time, bank-sourced datato expand our B2B and B2B2C payment verification solutions for clients.”See the full Press Release Here: https://lnkd.in/gWMmxK5mIke Suri Adam J. Chaudhary Saam B. Faith Schwartz Jerry Halbrook Selim Aissi Mastercard About Fraud American Bankers Association HousingWire National Mortgage News Mortgage News Daily National Mortgage Professional Bloomberg The Wall Street Journal Mortgage Bankers Association California Mortgage Bankers Association MISMO David Coleman Fidelity National Financial Chuck Cain First American Title Stewart Title Fannie Mae Freddie Mac Federal Bureau of Investigation (FBI) Cybersecurity and Infrastructure Security Agency Federal Housing Finance Agency National Association of REALTORS® National Private Lenders Association American Association of Private Lenders Mortgage Innovators American Land Title Association CNBC Federal Reserve Board #cybersecurity #fraud #fraudprevention

42

7 Comments

Credit cards often emerge as the best payment option over debit cards and Buy Now Pay Later (BNPL) services due to several key advantages. Credit cards offer robust purchase protection against fraud, theft, or damage, which is typically not available with debit cards. They also contribute to building your credit history, which is crucial for securing loans or mortgages in the future.#BNPL #BuyNowPayLater #cashadvances #creditcarddebt #creditcardrewards #creditcards #credithistory #creditscore #debitcards #interestrates #largepurchases #merchantfees #onlineshopping #paymentflexibility #purchaseprotection #recurringbills #travelexpenses

Credit card disadvantages if it is used wrongly.Credit card gives you the financial freedom of spending on your choice of products. But it also has the disadvantages when you use it in wrong way. Definitely, it gives you credit limit and you can spend it on your wish, gives you the various rewards like cash back and cash up, makes your credit history good but remember it is up to you how you want your spending beneficial to you.Let’s talk about what happens when you ignore the basic principles of credit card use.Debt Burden: If you carry credit card balance every month paying a minimum payment that accumulates the debt burden to you resulting in higher interest cost. The interest rate applied in credit card is higher than other personal loans and carrying every month outstanding balance means you are paying higher interest rate. So, avoid carrying balance and pay your credit card bill on full.Bad Credit History and Credit Damage: Credit card payment default or if you fail to pay your credit card due amount on time that is recorded in your credit card history. Same is reflected later on your credit score. When you get low credit score or if your credit history goes miserably, your credit image will be damaged. Later in any financial transaction with the bank’s, you may not be taken as priority customer or even your loan proposal gets rejected.Frequent Cash withdrawal: Frequent cash withdrawal is associated with fees and charges. There is certain cash withdrawal fee on every transaction which cause to higher financial burden to you. And higher frequency of cash withdrawal is not considered the good use of credit card.Higher spending: Results and research show that people spend more when they carry credit cards as compared to cash. In order to grab the various cash back and reward program people spend more and in long run they can not purchase the things which is more important due to restriction on credit limit. So, make your purchase wisely that brings you to enjoy all rewards and also allow you to overcome with credit limit restrictions.Credit Card Fraud/Scam: There are so many instances of credit card fraud and scam. You are only responsible for the use of your card and in case of any fraud transaction happen, there is much stress on to resolve the fraud transaction. So, while using it, you should be careful on your credit card information sharing.There are so many other disadvantages of credit card if used in wrong way. So being a rational consumer, make your habit of using credit card correctly so as to get unlimited benefits of it.

3

💳 Understanding ATM Chargebacks: Protecting Your Finances 💰Have you ever experienced an issue with an ATM transaction, such as a failed withdrawal or an incorrect balance? Don't worry, you're not alone! In this post, we'll dive into the world of ATM chargebacks and how they can help safeguard your financial interests. Let's get started! 💳💼🔍 What is an ATM Chargeback?An ATM chargeback is a process that allows you to dispute a transaction made at an ATM. It occurs when there is an error or discrepancy in the transaction, such as a double charge, a non-dispense of cash, or an incorrect balance displayed. By initiating a chargeback, you can reclaim your funds and rectify any issues. 💸💪🔄 How Does the ATM Chargeback Process Work?1️⃣ Document the Issue: Keep records of the transaction details, including the date, time, and location of the ATM, as well as any receipts or screenshots.2️⃣ Contact Your Bank: Reach out to your bank or financial institution as soon as possible to report the problem and initiate the chargeback process.3️⃣ Investigation: The bank will investigate the issue by reviewing the transaction records and communicating with the ATM operator.4️⃣ Resolution: If the bank determines that the chargeback is valid, they will credit your account with the disputed amount. However, if the issue is found to be invalid, they will provide an explanation for their decision.⚠️ Tips for a Successful ATM Chargeback:- Act Promptly: Report the issue to your bank as soon as possible to ensure a timely resolution.- Keep Evidence: Maintain all relevant documents, such as receipts, transaction records, and communication with the bank.- Be Patient: The chargeback process may take some time, as the bank needs to investigate the issue thoroughly.🔒 Protecting Yourself from ATM Transaction Issues:- Choose Reliable ATMs: Opt for ATMs from reputable banks or financial institutions to minimize the risk of encountering issues.- Monitor Your Account: Regularly review your account statements and transaction history to identify any discrepancies promptly.- Stay Alert: Be cautious of suspicious-looking ATMs or any signs of tampering, as these could indicate potential fraud attempts.Remember, your financial well-being is important, and ATM chargebacks can help you resolve transaction issues and protect your money. If you encounter any problems, don't hesitate to reach out to your bank and take advantage of the chargeback process. Stay vigilant, stay informed, and keep your finances secure! 💪💰#ATMChargebacks #FinancialProtection #SecureTransactions #BankingTips #ProtectYourMoney

15

Secure Insight AND Forta Solutions | Agility ANNOUNCE PARTNERSHIP!Wire Fraud Tool to be Integrated in New Warehouse Bank Operating Platform“Forta offers a new and innovative platform for warehouse lenders which has been much needed in the industry. ”— Andrew Liput, CEO, Secure InsightSecure Insight announced today that it has entered into a business agreement with Forta Solutions to provide wire verification technology as an integrated tool in Agility™, Forta’s revolutionary new warehouse lending platform. Designed by warehouse lenders, Agility represents a major leap forward in the banking industry, offering unprecedented flexibility, transparency, and efficiency.Agility is the first adaptable, modern warehouse lending platform built by warehouse lenders that provides a faster, safer path to warehouse liquidity. Agility’s modular-based design, simple integrations and dynamic reporting makes it the perfect choice for organizations seeking to simplify and streamline warehouse lending processes. The SOC II Type 1 compliant platform features automated decisioning engines and customized user dashboards with real-time updates. Secure Insight will be integrated into the platform for the benefit of warehouse bank users.Secure Insight was the first mortgage industry technology provider to envision the need for a uniform, reliable and efficient technology solution to manage lender wire fraud prevention and vendor risk assessment needs. Mortgage lenders, banks and credit unions across the United States rely on Secure Insights ClosingGuard™ tool to prevent wire fraud and closing fraud losses. Since 2012 the company has vetted more than 80,000 professionals nationwide and supervised more than 20 million residential mortgage transactions without a financial loss from wire fraud.The founders of Fintech provider Forta Solutions | Agility have proven success in launching businesses in warehouse lending and mortgage technology. Forta Solutions Co-founder and CEO Kathy Hanco*ck previously founded Avlis Partners, LLC, which grew into the largest nonbank independent warehouse lender in just five years. Forta Co-founder and Chairman Chris Saitta has successfully launched numerous mortgage technology companies, including Equator, Resitrader and LauraMac. Kathy Hanco*ck emphasized, “at Forta Solutions, integration isn’t just about technology; it’s about forging strong bonds with our client’s partners, understanding their needs, and building a unified vision for the future.” SI founder and CEO Andrew Liput stated, “we are excited for this partnership and look forward to helping support the Agility platform with our wire fraud prevention tool. Forta offers a new and innovative platform for warehouse lenders which has been much needed in the industry. Their innovation is second to none and we are proud to have been invited to integrate our solution in their unique platform.”

8

BUY NOW PAY LATER APPS ARE POPULAR, BUT ARE THEY SAFE?📍 Some BNPL Apps Don’t Clearly Disclose FeesBNPL loans frequently claim they have no fees or interest, but CR's study revealed that's not always the case. For instance, some impose late payment penalties that can be as high as 25% of the loan balance. Additionally, while loans intended to be repaid in four installments do not have interest charges, other longer-term loans provided by the same app do, and these loans could be misconstrued for BNPL loans. This is significant because consumers may take out several loans, which may lead some people to take on too much debt and create add-on costs to put them in even deeper situations.⚠️ What you can do: Take a screenshot of each loan term page as a reference before clicking "Accept." In the case that you are charged a surprise cost, this might be helpful. 📍 Security and Fraud Monitoring Standards Aren’t Always AdequateAbout 3% of BNPL users who participated in CR's August survey indicated they had experienced fraud of some kind, including having a stranger make a transaction using their account.In addition to checking accounts for fraud, credit card firms also instantly alert customers when they spot it. Additionally, they don't hold cardholders liable for charges made as a result of fraud. ⚠️ What you can do: Constantly check your BNPL app account to look out for unauthorized charges. Always read your BNPL provider's transaction notifications and communications. 📍 BNPL Apps May Collect More Data Than They Need - and May Not Give Consumers Enough ControlBNPL firms normally want some of your personal information, such as your name, address, and all or a portion of your Social Security number, in order to process a loan application. They also gather information about your bank account, debit card, or credit card for payment purposes. Additionally, they might gather "biometric" information for ID verification, such as photos of your face or a fingerprint you've already saved on your phone. However, several of the apps appear to gather noticeably more information than that. Your internet surfing history, calendar invites, contact information, emails, chat messages, private voice and video recordings, and current location information may all fall under this category. ⚠️ What you can do: Modify your phone's privacy settings. You still have some control by modifying the range of information your phone shares with the app, even if the app doesn't provide you with obvious options for how to limit data sharing from within the app itself.When registering, select the "data sharing" option. You might have the choice to decline consent to sharing your data with a third party when you are asked to accept the terms and conditions for using each app.Source: ConsumerReports#heno #buynowpaylater #bnpl#security #bank

8

1 Comment