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7 Tips To Avoid A Rejected Credit Card During Vacation Travel

Today, banks are more vigilant than ever about spotting potential fraud. One way banks spot potential fraud includes charges outside of the cardholder's normal usage pattern -- the area where you live, work, and use your credit card. Often, when consumers go on vacation you intentionally travel outside of your area. Nobody wants a credit card purchase denied while traveling, especially when you don't have the cash with you.

So, what can consumers do to avoid having your credit card denied while shopping during vacation? Banks and credit card issuers advise consumers to:

1. Understand where your credit card is accepted outside of the United States. You can visit the customer service section of your bank's or credit card issuer's website. For example: the Help Center in the Discover site lists the regions where that credit card is accepted, including an international Country Acceptance Map. This is also helpful to understand any exchange rates used, and/or any fees or surcharges that might apply for purchases in different currencies. The Visa Travel Preparation Page provides similar information for cardholders traveling internationally.

2. Decide which credit cards you will bring. You may decided to leave at home the credit cards with high foreign transaction fees, don't offer purchase protection insurance, doesn't offer frequent-flyer mileage, and/or aren't accepted in the countries which you will visit. Experts advise consumers to bring at least two credit cards, and use one as a back-up in case your primary card doesn't work.

3. Notify your bank or credit card issuer of your upcoming travel, and the specific locatons where you will use your credit card. For example, Capital One directs its Visa cardholders to call its Customer Service department (1-800-955-7070) before their trip to provide the following information:

• Credit card number
• Travel destination(s): states and/or countries
• Travel start and stop dates
• Which cardholders will be traveling (if multiple people have accounts)

In Capital One's automated voice system, cardholders speak to enter and select voice prompt options. Say "More Options" and then "Report Upcoming Travel" to access the relevant option. Then, you can enter all of the necessary information, or you can speak with a human representative.

Obviously, if your vacation travel itinerary includes several cities and/or countries, you will want to have all of that information ready. When you contact your bank or credit card issuer, they will provide an international customer service phone number you can call while traveling outside the United States, should you have any problems. Last month before my vacation, I used Capital One's automated voice system. My travel itinerary included about six countries, and I found the system pretty easy to use to enter the necessary information.

4. Watch out for PINs. In some regions, automated kiosks require credit cards with smart chips. If your credit card doesn't have this new technology, it may not work.

5. If you want to use your debit card instead, first contact your bank, credit union, or card issuer to report your travel itinerary. Visit their website to find their office and ATM locations in the states or countries you will visit, any other banks they have partnerships with, any fees (e.g., conversion, foreign transaction) that apply, and any PIN number limitations (e.g., fewer digits). Generally, in-network ATM machines have lower fees than out-of-network ATM machines.

Experts advise consumers to keep sufficient cash with you for smaller purchases. The fewer times you use your debit card, the less you expose it to identity theft and fraud risks. If you read this blog regularly, then you already know that I use my debit card only at my bank's ATM machines. To me, it is too risky to use a debit card in a local retail store or gas station, especially in another country. There is no way to know if the card entry pads (or gas station pumps) has been compromised with skimming devices.

6. If you want to use a prepaid card instead, CardHub advises consumers:

"As long as your prepaid card bears the MasterCard or Visa logo and you notify your issuer of your travel plans, you should be able to use it abroad...”

Wise consumers will still check with their card issuer to get a copy of their prepaid card agreement, to find ATM locations in the states or countries you will visit, any other banks they have partnerships with, and any fees (e.g., conversion, foreign transaction) that apply. Again, in-network ATM machines generally have lower/fewer fees than out-of-network ATM machines. Compare the fees for your prepaid card against fees for your credit/debit cards. Understand your rights, protections, and the differences between credi, debit, and prepaid cards. If decided to use a prepaid card, make sure you load enough money onto it before you leave for your trip.

If you are unsure about whether prepaid cards are for you or not, there are plenty of online resources to help you decide. You can learn more by browsing the Prepaid Cards section of this blog. The posts in this blog section contain plenty of links to external sites and resources.

7. Check for foreign travel advisories. These may suggest additional precautions you should take in the countries you will visit.

Having done all of this, you can then travel with peace of mind.

Search The Web's Nooks And Crannies To Find Connected Devices

Most people believe that when they use one of the popular search engines (e.g., Bing, Google, Yahoo, DuckDuckGo), that they have effectively searched the entire Internet. That belief is erroneous for a couple reasons.

CNN Money has a good report about the Shodan search engine, which was developed specifically to search what I call the nooks and crannies of the Internet. Shodan users can find devices connected to the Internet that other search engines don't necessarily focus upon:

"... servers, webcams, printers, routers and all the other stuff that is connected to and makes up the Internet... traffic lights, security cameras, home automation devices and heating systems... control systems for a water park, a gas station, a hotel wine cooler and a crematorium... command and control systems for nuclear power plants and a particle-accelerating cyclotron..."

If it isn't obvious to you, these search results have huge privacy and identity theft implications for a variety of reasons. Many users connect devices to the Internet which they shouldn't connect. Or don't properly secure their Internet-connected devices with firewall software. You can bet that since the good guys already know about and use Shodan, then the bad guys will, too, and hack into unprotected devices, steal identity information, and/or cause havoc.

The second reason: many consumers are trapped in the search Filter Bubble, and don't know it.

Visa Survey Claims Consumers Lose $1 A Day In Cash

While surfing the web recently, I ran across a news item at Talking Payments, a website for people and companies (e.g., banks, retailers, card issuers, payment processors, etc.) interested in digital payments. The TP news item mentioned a study by Visa that consumers lose, on average, about $1.00 a day.

To learn more about the Visa study, I next visited the Visa Viewpoints website. The August 2012 survey included 5,641 people in Australia, India, Indonesia, Japan, Russia, Singapore, South Africa, South Korea, Taiwan, Thailand, the UAE, and the USA. View the infographic about the study (Adobe PDF). The survey tries to document the "cost" to consumers of using cash by adding cash lost plus idle cash. Some findings:

• In the US: $365 lost cash = $285 in lost foreign currencies after trips + $80 in idle cash lying around your home, office and/or car.
• In the US: men ($331) lose more than women ($245). And, younger people ($165) lose more than older people ($135).
• Lost cash varies across countries: Singapore ($656), Australia ($361), Japan ($349), and Russia ($137)

At first read, this seems very interesting. The implication of this study is that consumers who use payment cards (e.g., credit, debit, or prepaid) won't lose cash daily. Losing $1.00 a day in cash equals about $30 a month, or $365 a year.

Do you lose $1.00 a day in cash? I don't. I know this as I check the cash in my pocket at the end of the day -- everyday. When I receive change in the form of bills, I place that change in my wallet immediately. And, I don't consider idle cash as "lost." Maybe you do, but I don't. So, I am wondering exactly what consumers really lose $1.00 a day cash, and if people really lose that much cash daily.

One of the footnotes in the Visa inforgraphic reads:

"2. Foreign currencies given as tips given away in airports and/or misplaced."

What? So, a portion of the supposedly lost foreign currencies includes tips. I don't consider tips as lost money. When traveling, I tip bellhops, taxi drivers, and others who help me with my luggage. That's not lost money, That is paying for services received. Sometimes, I have foreign currencies left over from a trip, but that amount is nowhere near $285. It's under $5.

What's really going on here?

In my view, several things. First, banks really want to capture usage from consumers who don't have traditional bank accounts, or have only one account (e.g., checking or savings). Second, banks really want consumers to migrate to prepaid cards where there are fewer regulations for them; which means fewer or weaker consumer protections and consumer rights. That includes banks working with employers to provide payroll cards and banking services via prepaid cards, and/or health care spending accounts via prepaid cards. To learn more, read the list of prepaid card fees in this blog post, the payroll cards from Bank of America, and the Walmart MoneyCard.

To me, the study methodology compiled numbers in a way to inflate the amounts lost to justify these business goals.

Third, even if you lose as much as $1.00 a day in cash, a fair comparison is to consider the fees associated with prepaid cards, and if those those fees are greater than the cash you really lose. CNN Money found that basic prepaid card fees are about an average of $300 per year. That is almost as much as the supposed cash lost by consumers in the US, Australia, and Japan. Those average prepaid fees exceed the cash lost by consumers in several countries.

Both CNN Money and Consumer Reports found a wide variety of fees when it investigated prepaid cards: activation fees, monthly fees, reload fees, cash withdrawal fees, inactivity fees, online payment fees, paper statement fees, customer service phone call fees, and more.

What do you think of the Visa lost cash study?

Chicago Theft Ring Received Sentences For Card Skimming Crimes

In a Chicago court, several defendants were sentenced for card skimming thefts and fraud. The sentences ranged from six years of prison time for the ringleader to two years of probation for other members of the theft ring.

The thieves, working with employees at several fast-food restaurants in Chicago, had allegedly swiped consumers' debit/credit cards through small portable readers to obtain their card numbers. The theft ring then allegedly created fake cards with the stolen card numbers and purchased about $200,000 in merchandise.

Affected consumers had accounts at several banks: Chase, Citibank, Fifth Third Bank Harris Bank, U.S. Bank, Bank of America, and American Express. Reportedly, the banks assisted local law enforcement with the investigations. The seven defendants included:

• Joseph Woods, 33 (the ringleader)
• William Washington, 31
• Alex Houston, 23
• Britain Woods, 34
• Jenette Farrar, 35
• Essence Houston, 29
• Kenyetta Davis, 33,

Congratulations to both local law enforcement and the judicial system.

Former Employee At Web Hosting Service Arrested And Charged With Felony Computer Breaches

Ars Technica reported that Eric Gunnar Gisse, a former Hostgator employee, has been arrested and charged with felony computer breaches. Gisse allegedly used his position to install secret code that allowed him unauthorized, "back door" access to more than 2,700 Internet-connected computer servers. Gisse, of San Antonio, Texas is being held on $20,000 bail in the Harris County jail.

This highlights one risk with cloud computing services. Many companies outsource the operation of their website to third-party vendors, such as Houston-based Hostgator, that offer what the industry calls "web hosting services." This is not new.

As a usability professional who has worked with several digital agencies, I have seen this outsourcing repeatedly work well and data maintain security. The issue is when employees abuse their positions and either steal or expose the sensitive information of people who use the compromised web servers.

The C/Net website lists companies that provide web hosting services.

ACLU Files FTC Complaint Against Mobile Carriers About Smartphone Security Failures

The American Civil Liberties Union (ACLU) has filed a complaint via the U.S. Federal Trade Commission (FTC) against several mobile carriers for:

"... failing to warn their customers about unpatched security flaws in the software running on their phones... running versions of Google’s Android operating system. Unfortunately, the vast majority of these phones never receive critical software security updates, exposing consumers and their private data to significant cybersecurity-related risks."

The mobile carriers named in the complaint include AT&T Inc., Verizon Wireless, Sprint Nextel Corp., and T-Mobile USA. In its announcement, the ACLU also said:

"Google’s Android operating system now has more than 75% of the smartphone market, yet the majority of these devices are running software that is out of date, often with known, exploitable security vulnerabilities that have not been patched. For consumers running these devices, there is no legitimate software upgrade path... Although Google’s engineers regularly fix software flaws in the Android operating system, these fixes aren’t packaged up and pushed to consumers by the wireless carriers and their handset manufacturer partners."

Download the ACLU complaint (Adobe PDF, 438k bytes).

Hacker Sentenced To Prison For Sony Data Breach

You may remember a series of data breaches during 2011 at Sony Online Entertainment and the Sony Playstation Network. ComputerWorld reported that 25-year-old Cody Andrew Kretzinger was sentenced to one year plus one day in prison for his role in the May 2011 hack into Sony Picture's systems and databases. After serving prison time, Kretzinger will also serve one year of home detention.

Kretzinger was a member of the LulzSec hacker group. Another group member, Hector Xavier Monsegur, was arrested in June 2011 and then served as an F.B.I. informant. Monsegur will be sentenced in August 2013.

April 20 Is 'Secure Your ID Day'

April 20, 2013 is "Secure Your ID Day." To learn more about how you can protect yourself and your sensitive personal information, visit the Better Business Bureau website. The site lists participating BBB groups in various states.

If you can't attend a local event, then browse these tips and suggestions from the BBB to keep your sensitive personal information secure. Other resources that consumers may find helpful:

• Identity Theft Resource Center
• Consumer Financial Protection Bureau (CFPB)
• Onguard Online (FTC)
• The Resources page in this blog

Update: Schnucks Data Breach Exposed 2.4 Million Cards

Back in March 2013, this blog reported about the Schnucks supermarket data breach. On Monday, the St. Louis Business Journal reported:

"Over a three-month period, up to 2.4 million credit and debit cards used at 79 Schnucks stores may have been compromised..."

Two civiil lawsuits have been filed against the company. Now we know more than we did in March. Still, not good.

How To Help After Yesterday's Boston Marathon Bombing

I live and work in Boston, Massachusetts. So the horrible event on Monday has hit close to home. I live in the same area of the city as the 8-year-old victim and his family. For me, it feels like 9-11 and the Challenger disaster all rolled up together.

A few people have written to me asking how they can help and if I know of a victim's relief fun. So, I have compiled below a list of the options I have found. I am sure that more options will become available during the coming days:

• Technology Underwriting Greater Good (TUGG) online victim relief fund. At 12:45 pm this afternoon, donations had already reached $35,000 of its $50,000 goal
• A fund has been set up to assist the Richard family, whose 8-year-old-son was killed and who had other family members injured. You can make a donation at Meetinghouse Bank (2250 Dorchester Ave, Dorchester) or at the Vargas & Vargas Insurance agency (1133 Washington Street, Dorchester). Checks and cash accepted. Make checks or money orders payable to: The Richard Family Fund.
• There are several Richard Family Fund. The Boston Business Journal reported a fund by Salem Five Bank.
• The One Fund Boston 2013
• Celese and Sydney Recovery fund
• The NFL New England Patriots Charitable Foundation (in the donation form message field, specify "Boston Marathon')
• Greg Hill Foundation
• Dine out on April 17 to donate to help Boston Marathon bombing victims
• Dustin Mann's InvestorForce online victim relief fund
• April 21 - 27 is National Volunteer Week. To learn more and find a project to volunteer for, visit the Massachusetts Service Alliance website
• According to news reports, the Red Cross currently has plenty of blood supplies. So, no need to give blood now. Visit www.redcrossblood.org to learn more and to schedule a future appointment to give blood.
• Donors to the Salvation Army can specify a location (e.g., city, state, and Zip Code) to direct their donations to.
• The State Of Massachusetts blog maintains a list of resources and contact information
• If you are looking for somebody that was in or near the explosions, there are several resources: the Red Cross Safe And Well listings, and the Google People Finder.
• Anyone with information about the incident can call the Boston Crime Tips hotline (1-800-494-TIPS), or the FBI (1-800-CALL-FBI and select prompt #3). Families of victims can call the Boston Mayor's hotline (617-635-4500).

Of course, do your homework and research a charity or fund before giving. The Better Business Bureau provides safety and giving tips to protect yourself from scammers. The Red Cross offers tips to recover emotionally after a tragedy. BTW, I donated at the above TUGG link, and I feel better.

Know of a victim's recovery or relief fund? Share it below, please.

Consumers Advised To Be Wary Of Prepaid Card Protections

If you haven't read it, there is an article by Sheila Blair in USA Today. Blair is a chairwoman at the FDIC and also a senior adviser to the Pew Charitable Trusts. If you use a prepaid card, then this article is a must-read. If you are considering a prepaid card instead of a traditional bank account (e.g., checking and savings), then this article is a must read.

In her article, Blair explores the relationship between banks, prepaid cards, and FDIC insurance protection for consumers:

"Banks sometimes fail... because of insurance provided by the Federal Deposit Insurance Corporation (FDIC). When a bank fails today, its insured depositors never lose a dime. By design, the failing bank is usually taken over by another bank... In fact, nearly 500 banks failed during the financial crisis and its aftermath, and every single depositor had access to their insured money within one business day... But this seamless protection for insured depositors can be avoided by companies that offer "reloadable" prepaid cards, a rapidly growing product that many Americans use instead of conventional checking accounts..."

So, don't get "mugged" by your bank's prepaid card. Ask your prepaid card provider for a copy of the complete terms and conditions agreement for your prepaid card. To learn more, read the Prepaid Cards section of this blog.

The CFPB Accepts Complaints From Consumers About Money Transfers

If you are like most people these days, your transfer or "wire" money to people or companies. It's a fast, easy way to send money to somebody in another state or country.

Sometimes, consumers encounter problems when transferring money. The company involved performing the transfer may have made a mistake, and/or does not respond to fix the problem. Or, the resolution may be unsatisfactory. There is a new resource for consumers to help you get problems like these resolved: submit a complaint to the Consumer Financial Protection Bureau (CFPB).

The types of money transfer problmes the CFPB can help with:

• Money was not available when promised
• Wrong amount was charged or received (e.g., transfer amounts, fees, exchange rates, taxes, etc.)
• Incorrect or missing disclosures or information
• Other transaction issues (Unauthorized transaction, cancellation, refund, etc.)
• Other service issues (Advertising or marketing, pricing, privacy, etc.)
• Fraud or scams

This includes both domestic and international money transfers. When you send money electronically to people in other countries, these are called remittance transfers. Consumers can transfer money using banks or certain financial companies the industry calls "non-depository companies" or money transmitters.

By law, companies in the USA are required to provide consumers with a disclosure document (in English) before you pay for your remittance transfer. The disclosure document should include the exchange rate, applicable fees and taxes, and the amount of money to be delivered.There are additional protections for consumers:

"1. Consumers get 30 minutes (and sometimes more) to cancel a transfer. Consumers can get their money back if they cancel.

2. Companies must investigate if a consumer reports a problem with a transfer. For certain errors, consumers can get a refund or have the transfer re-sent without charge if the money did not arrive as promised.

3. Companies that provide remittance transfers are responsible for mistakes made by certain people who work for them.

4. The rules also contains specific provisions applicable to transfers that consumers schedule in advance and for transfers that are scheduled to recur on a regular basis."

All of these protections for consumers apply to remittance transfers that are more than $15. Learn more or submit a complaint to the CFPB about an unresolved problem you had with a financial product and service.