New System Underway for Increased Debit Card Protection

Charge Notification Services is creating a system that will alert debit cardholders once a card is swiped

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    NEWSLETTERS

    Identity thieves are going to have a harder time stealing information from debit cards down the road, experts said Wednesday. (Published Wednesday, Nov 9, 2011)

    Identity thieves are going to have a harder time stealing information from debit cards down the road, experts said Wednesday.

    Under the system, which is still in the works by Charge Notification Services, as soon as the card is swiped, an alert is sent to the cardholders’ cell phone or email with a summary of the charge.

    Then, the cardholder can decline the charge and alert the debit card company.

    Ivan Ochoa’s firm created the technology that will send cardholders the message within a few seconds of swiping.  

    “With debit cards, it brings and instant security,” Ochoa said.

    Ochoa said the system is already in place overseas and used with credit cards here, but the pilot programs with South Florida banks will probably come early next year.

    Meanwhile, NBC Miami found one Broward credit union giving money back when cardholders use their debit cards.

    For every five times the card is swiped, the cardholder will get back a dollar, up to $5 per month, said Rich Helber, CEO Tropical Financial Credit Union.

    Customer Nahola Mills said it’s a good idea.

    “Why do I have to pay a bank to manage my money?,” asked Mills.

    Helber said that increasingly,customers are looking for an alternative to their bank. Credit unions _ since the members are the owners _ are able to offer some things banks can't, he said.

    “We've seen the number of new customers coming in and join the organization increase 177 percent, the number of checking accounts increase approximately 267 percent,” Helber said.

    To find out more details on how you can get cash back on your debit cards and to see if a credit union might be right for you, go  to www.betternameforbanking.com.