Tag: credit cards

Source: Supermarket & Retailer

South Africans are truly struggling financially and are prioritising their monthly debt repayments as they battle to make ends meet.

This is according to Debt Rescue CEO, Neil Roets, who said that consumers typically prioritise debt repayments for their homes and cars as these are assets that they do not want to lose to repossession.

However, these repayments also usually have the highest instalment amounts, so keeping them up to date just adds to the financial burdens embattled consumers are already facing, he said.

Roets added that consumers are cutting down on a number of purchases to keep up on their expenses.

“We have seen a lot of belt-tightening happening over the past year, so consumers have started cutting down on many expenses,” he said.

“Most luxury expenses have been foregone, and purchases such as dining out and takeouts are no longer part of budgets, to keep up with debt repayments and put food on the table.

Consumers typically prioritise debt repayments for their homes and cars as these are assets that they do not want to lose to repossession.

However, these repayments also usually have the highest instalment amounts, so keeping them up to date just adds to the financial burdens embattled consumers are already facing, he said.

Roets added that consumers are cutting down on a number of purchases to keep up on their expenses.

“We have seen a lot of belt-tightening happening over the past year, so consumers have started cutting down on many expenses,” he said.

“Most luxury expenses have been foregone, and purchases such as dining out and takeouts are no longer part of budgets, to keep up with debt repayments and put food on the table.

“Many consumers are resorting to credit in the form of store cards, credit cards or payday loans to put food on the table.”

Roets said this was of great concern as it shows that South Africans are taking on debt to cover day-to-day expenses.

“Day-to-day expenses that consumers are taking debt for includes food, clothing, electricity and fuel for transport,” he said.

“But there are cases where people are taking up debt to repay other debt, or a new payday loan shortly after the previous one was repaid, placing them in an even larger debt spiral.”

The South African Post Office (SAPO) is now able to accept debit and credit cards as a payment method for the renewal of motor vehicle licences at all its branches that offer the service.

The service is available at selected post offices in all provinces except Mpumalanga and the Western Cape. The list of branches where the service is available can be checked here.

The renewal of motor vehicle licences is the most popular transaction at Post Office branches – clear evidence of the success of this service.

If you did not receive a renewal notice, the renewal form (ALV) can also be downloaded here.

Motorists who have received a traffic fine issued in terms of the AARTO Act may pay the traffic fine at any Post Office countrywide.

FNB offers “tap and PIN” ATM transactions

Source: The Citizen

FNB has become the first bank in South Africa to offer consumers an innovation that allows them to tap bank cards and enter a personal identification number (PIN) to perform a transaction without inserting the cards into automated teller machines (ATMs).

The bank estimates that the “Tap and PIN” function will reduce the time it takes to make a withdrawal by up to 20 seconds and protect its customers against card skimming devices. The functionality is currently available across 100 FNB ATMs and the bank said more would be upgraded during 2019.

The new product is a major step in the bank’s plans to continuously improve the convenience and safety of its banking ecosystem, said FNB Retail chief executive Raj Makanjee.

“In the last three years, consumers have processed approximately R1 billion worth of contactless payments from 5 million transactions on FNB issued credit and debit cards alone,” Makanjee said.

“The frequency of use by consumers has grown by between 100% and 300% on our credit and debit cards respectively, highlighting the confidence of our customers in adopting new and secure payment methods. Having started issuing contactless cards three years ago, we now have over 8.5 million contactless-enabled debit and credit cards in the hands of consumers.”

Makanjee said contactless payments offered substantial benefits in an era where consumers and retailers wanted to avoid long queues.

Top tricks used by card fraudsters in SA

By Timothy Rangongo for Business Insider SA 
Source: South African Banking Risk Information Centre

The South African Banking Risk Information Centre (Sabric) has released its card fraud statistics for 2017.

South Africa’s banking industry was hit with a 1% increase in credit card fraud in 2017, which rose to R436.7 million, according to the latest report on card fraud.

Debit cards were the least hit by fraud, which declined by 8.5% to R342.2 million in the same period.

CEO of SABRIC, Kalyani Pillay, attributes the decrease in debit card fraud to a reduction in lost and/or stolen and counterfeit card fraud.
“Criminals are always adjusting their tactics to take advantage of innovations in the banking landscape.”

Sabric lists these as the trending types of fraud in South Africa:

Lost and/or stolen card fraud
In many cases lost and/or stolen cards are obtained by interfering with customers while transacting at an ATM; criminals distract victims by offering them assistance during which the card and PIN are obtained.
The card is then used repeatedly at ATMs until the daily cash withdrawal limit on the card is reached, after which high value transactions are made at merchants.

Not-received issued-card fraud
Here, criminals intercept a genuinely-issued card before it reaches the customer.

False-application card fraud
Accounts are opened by falsifying a credit applications.

Counterfeit card fraud
Counterfeit cards are made using information stolen from the magnetic strip of a genuine card, usually through card skimming.

Card-skimming via Point of Sale (POS) devices
The first POS skimming devices were retrieved in South Africa in 2014, according to Sabric. Criminals steal legitimate POS devices from merchants and then convert them into skimming devices. In some instances, devices are swapped between different merchants to make it seem as if all devices are accounted for.

Account-takeover card fraud
The common denominator for both account-takeover fraud and false-application fraud is access to the personal information of victims. Takeovers are done by obtaining personal or client-specific information, pretending to be the client and then applying for a replacement card.

Card not present card fraud (CNP)
These transactions are done via telephone or internet. Criminals source card data in various ways such as phishing, vishing, malware, and data breaches.

How you can protect yourself against card fraud:

  • Don’t disclose personal information such as passwords and PINs when asked to do so by anyone via telephone, fax, or even email
  • Don’t write down PINs and passwords, and avoid obvious choices like birth dates and first names
  • Don’t use any Personal Identifiable Information (PII) as a password, user ID, or personal identification number (PIN)
  • Don’t use internet cafes or unsecured terminals (hotels, conference centres etc.) to do your banking
  • Review your account statements on a timely basis and query disputed transactions with your bank immediately
  • When shopping online, only place orders with your card on secure websites
  • Do not send e-mails that quote your card number and expiry date
  • Ensure that you get your own card back after every purchase
  • Report lost and stolen cards immediately
  • If you have a debit, cheque and credit card, don’t choose the same PIN for all of them. If you lose one, the others will still be safe
  • While transacting always keep an eye on the ATM card slot to ensure that your card is not taken out, skimmed, and replaced without your knowledge
  • Should your card be retained by an ATM, contact your bank and block your card before you leave the ATM
  • Subscribe to your bank’s SMS notification services to inform you of any transactional activity on your account

 

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My Office News Ⓒ 2017 - Designed by A Collective


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