A Credit Card or a Debit Card for Fraud Protection, That is the Question

This article comes from Odysseas Papadimitriou, founder and CEO of Card Hub, a leading marketplace for comparing and learning about credit cards, prepaid debit cards, and gift cards.

Mirrors on ATMs are an ever-present reminder that there very well could be someone out there trying to steal your hard-earned money. Even though fraud only impacts about 0.5% of all purchases made with credit cards and debit cards, no one wants to be a victim, so fears pervade, fueled on by the sensationalistic horror stories commonly run on the local news. But instead of always looking over your shoulder, why not get a spending vehicle that will naturally shield you from fraud liability? Such is the type of rationale that leads to me hearing the same question from consumers time and again: Will a credit card or a debit card better protect me from fraud?

To run the risk of being anticlimactic, let’s clear things up right off the bat. As long as you report suspected fraud promptly, you won’t be held liable for any unauthorized charges made with either a credit card or a debit card (non-PIN transactions). Not only does federal law limit liability to $50, but most, if not all, card networks and issuers have themselves voluntarily adopted $0 liability guarantees. Fraud therefore isn’t that big of a concern and your money should be safe whether you’re using a credit card or debit card.

Still, fraud can be a major pain to deal with, so it’s fair to wonder whether a credit card or a debit card makes for a simpler remedy to any potential problems.

The answer to this question pertains to the fundamental difference between these two plastic spending vehicles. While funds are removed from your bank account pretty much immediately upon a debit card transaction being made, the issuing bank initially pays for your credit card purchases. That means you have much more time to notice and report credit card fraud before being out any cash than you would debit card fraud. You could therefore conceivably end up bouncing a few checks as a result of being unaware that fraud had led to an insufficient account balance – which can complicate things quickly. Plus, you’d have to endure the psychological trauma of seeing your bank account empty.

The best answer to the question of whether a credit card or a debit card serves as a better safeguard against the ill-effects of fraud therefore has to be the former.

Simply using one piece of plastic as opposed to another is not the only way to ward off financial thieves, however. There are a number of simple everyday measures you can take as well, each of which will drastically reduce the chances of your cash or sensitive financial information falling into the wrong hands.

It all starts with exercising your right to free copies of your major credit reports every 12 months. Credit report inaccuracies (e.g. the presence of accounts you did not open, being listed as delinquent when you have always paid on time) can be obvious indications of identity theft. If left uncorrected, they will not only bring creditors to your doorstep asking for “their money,” but also lead to significant credit score damage. Some other fraud prevention tactics include:

• Using passwords to your advantage: Setting passwords for your bank accounts and other important financial information should entail more than simply plugging in the name of your pet and saving it in your computer. Rather, you should use a combination of letters, numbers and cases that is both memorable and secure. You should also change your passwords on a semi-regular basis.
• Not talking to strangers: When it comes to your money, introversion can be a good thing. You shouldn't even open e-mails from people you don’t know, especially ones with attachments. You also shouldn't give any financial information to people who contact you – only give your info to reputable companies that you have contacted.
• Going back to the basics: While fraud has a decidedly technological bent to it in this day and age, it pays to remember the basics, such as shredding credit card statements and other financial documents before throwing them out and getting a lock for your mailbox.

Ultimately, you should not let fear of fraud control your life. As long as you take commonsense measures to safeguard your money and are vigilant in reporting suspected instances of impropriety, both you and your money will be just fine.

5 Tips To Keep Your Business Growing

(Photo credit: Wikipedia)

Business is about increasing income and decreasing expenses while providing a superior product or service. When you first start your business you really just have an idea that you think could develop into a viable business. Many people think that a supply of capital is all you really need to get your new company off the ground. This is only one part of the puzzle.

When growing you business you need to seek out the target customers, who will need your service. If you don't, your business just won't grow, it will fail very soon. You need to do the research on where your potential clients are, how you can reach them, and how to convert them into paying customers.

Advertise your product or service. Finding the right place to advertise is very important to you getting your clients. The first place to start is online. You need a website that informs people who, what, and where you are. The majority of people search the Internet to find products and services. The day of the yellow pages book has been long gone. 

Contact by Phone. Having a good way for customers to contact you by phone is very important. Having a 0800 number increase the chances of you getting a call. Even if you are just a regional business, an 0800 numbers cost is insignificant to the amount of business it will deliver to you.

Reevaluate your business plan. As your business grows and expands you need to come back to your business plan and update it. When you first laid out your plan you were facing a set of circumstances that may not apply now. Set up a regular period of time when you evaluate your plan by adding or taking away from it.

Bringing on new employees. Getting present and future employees attune to the way your business runs is going to make your business run better and allow you to maximize profits. The key to this is training. Initial training followed up by continuing education will make your business run better. 

Your business is a living and growing entity that will only grow and stay viable by what the team leader does to make it work. 

College Financial Aid Choices Can Be Confusing - Infographic

When making plans for paying for your college education the process can be confusing. If you have ever filled out a FASFA form you know what complicated means. But many people make it through he maze of paper work because the government grants help take some of the sting out of paying hefty college costs.

This detailed infographic depicts the many different and complicated processes you have to go through to finance your child's college education costs. Gladly for me I only have to go through this one more year.

Brought to You by SNHU.EDU Online College Programs

Start Online When Shopping For Car Insurance

(Photo credit: Wikipedia)

According to a recent study by J.D. Power and Associates, 52 percent of people shopping for car insurance, start their search on the Internet. Also three-fourths of consumers visit at least one online insurers website before making a purchase.

This use of the Internet along with increasing use of smart phones and online shopping has forced the car insurance providers to have an increasing web presence. When I was young, you used to have to trudge down to the corner car insurance agent. Meeting face to face was the only way to apply for a policy. The Internet makes the whole process much easier to find cheap auto insurance rates online and you can even do it in you pajamas.

1. Before you start your online search have ready a couple of important documents. Your going to need your drivers license handy. If you have been involved in any accidents, have that information handy. Also have your address and social security number ready. You will need the year, make, model, license plate, mileage, and VIN (vehicle identification number) from your car.

2. When going online search for "car insurance" on Google. Check out companies that you have heard of before and ones you have been recommended. Find insurers that will show quotes from many car insurance companies.

3. Decide what kind of coverage you need. Depending on the state you reside in, your options for what necessary insurance you need can vary. The website will know and walk you through the specifics of your states car insurance requirements.

4. Enter your information and get your free quote. There are to many insurance companies that offer free quotes, stay away from websites that require a deposit, credit card number, or any kind of fee.

5. Compare the rates and coverage along with the costs. When you feel comfortable about your selection you can pay with a credit card. You will be able to print out a temporary insurance I.D. car and later a formal one will be mailed to you.

Buying insurance online has been streamlined and simplified for the consumers convenience. Remember if you need to talk to a person or if you have any questions an 800 number is always provided.