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- W60100979 abstract "Boot up your web browser and go to Mapquest home page, www.mapquest.com. You'll probably stumble across this ad: Graphic: A man looking like he's having a good time somewhere. Text: On An All-Expense-Paid Vacation. Trouble Is He's Paying For It With Your Money. Clicking on ad brings you to American Express TravelFunds Card page. TravelFunds, launched late last year, is travelers check of future. For a one-time fee of $14.95, you can load--and reload--cash value into card. You can use that card anywhere that American Express cards are accepted. The TravelFunds page has a lot to say. But consider these fragments--emphasis added: This prepaid, reloadable card is a smart alternative to carrying cash or debit cards when traveling. not linked to your bank Losing a debit card when away from home can be a real problem. But if your TravelFunds card gets lost or stolen, you don't have to worry about your funds at home. It's prepaid and not linked to a bank account. When American Express introduced card last October, it specifically noted increasing public worry about identity theft. A spokeswoman declines to reveal how many such cards are out there, but says company has had a good response. The growing debit-card pie Bankers should be concerned that American Express is implying, in this marketing, that ordinary debit cards pose a risk that travelers must consider before hitting road. Is implication warranted? Consider some recent statistics about debit usage. First, take findings of a consumer study released in January by ABA and Dove Consulting. The Study of Consumer Payment Preferences found following: 1. Between 1999 and 2003, number of consumers using debit cards to make in-store purchases increased from 48% to 57%, for PIN-based transactions. 2. In same period, consumers using cards increased from 42% to 54%, for signature-based transactions. 3. Nowadays, 94% of debit card holders have a card with either a Visa or MasterCard logo, and most consumers report using both PIN and signature debit capabilities. The study found that 45% prefer using a PIN, while 38% prefer to sign. 4. is eroding use of cash and checks. In 1999, cash and checks accounted for nearly 60% of in-store payments, and debit for only 21%. In 2003, cash and checks dropped to a 47% share, with all growth in share going to debit, at 31%. 5. The study concluded that for a growing number of consumers, debit cards are payment method of choice. As younger consumers age and represent a larger portion of market, study projected that debit usage would grow by a double-digit rate. Bolstering these findings is a June announcement by Bank of America, one of top U.S. check card issuers, with more than 22 million. B of A reported a 23% increase in volume--65 purchases with a debit card every second. And Visa reported that more than half of its volume worldwide in 2003 was on debit cards, and that 2003 volume in U.S. was up 17% from 2002. Unfortunately, with good comes bad. Fraudsters have also taken a liking to debit cards. There is an element of society that is drawn towards stealing whether it is PIN data or card data, says Susan Zawodniak, vice-president and executive director of NYCE Corp., one of nation's largest ATM and POS network operators. The appeal? Debit cards provide ultimate fencible material, says Zawodniak. Cash. With increasing number of debit cards out there, and their increasing usage, the opportunity for loss is greater than it has ever and numbers are larger than they've ever been, says Rob Evans, director of industry marketing, NCR Corp. chips versus credit chips All plastic cards are susceptible to fraud--indeed, some players in card business decline to differentiate between debit and credit card fraud because they feel a card is a card is a card. …" @default.
- W60100979 created "2016-06-24" @default.
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- W60100979 date "2004-08-01" @default.
- W60100979 modified "2023-09-26" @default.
- W60100979 title "Debit's Downside: Defrauded Debit Card Users Are Made Whole in Most Cases, but Is That Enough to Justify Maintaining a 30-Year-Old Technology That Underpins an Increasingly Popular Payment Option?" @default.
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