Target Hacked: Are You Safe?

 The better question to ask is your debit card safe?

Perhaps you’ve heard about shoppers who used debit and credit cards at Target for their holiday shopping having their data hacked. To learn more here is the full article. People who suspect they could be victims are to call credit card agencies and change their ATM numbers. This is a consumer’s worst nightmare especially so close to the holidays.

Trust me; I know the feeling. My debit card number was hacked at a routine refill at a Meijers' pharmacy. I heard about it on television before I found out I was a victim.  Foolishly, I thought those card readers at the register were so much safer than the old fashion carbon paper slide device for credit cards.

I stood transfixed watching the reporter explain that a ring of Meijers' employees downloaded the credit card numbers from the machine each night. This was standard procedure. Then eight employees would charge gift cards for either $25 or $50. Most people could accept they spent that much at Meijers and didn’t question the charge.

Of course, once they had the number and the pin number. They would go back and charge more gift certificates. That was their downfall.  Apparently, some people wondered about the mysterious charges and contacted Meijers. My phone rung as the news story continued only to find out I was a victim.

I quit using my debit card with the numbers. If I use it, I run it as credit.  My credit card company protects me more. Often refusing to run a charge when I am out of state, I have to call and verify it’s me. Of course, that wouldn’t have helped at the local Target or Meijers, which are both in my town.

The message I received from this retail disaster is that cash is your best option. You don’t spend as much. Some gas station and groceries have started adding a surcharge for using a debit card. All these little charges add up. Right now, I am glad I didn’t go to Target. However, online Target purchases were safe because of the encryption used.

Think about everyone who handles your credit information. This process happens at gas stations, groceries, retail stores, even credit card agencies. I had a friend who had her identity stolen by a credit card employee. Another lost her identity to a travel agent who planned her honeymoon. 

Knowing all this, check out who gives out your information easily. It could be you! Discover card never ever uses your entire number. It isn't on you card or even in your account. You are identified by your last four numbers. 

Many credit cards uses your entire number on your statement. This is important because felons are shopping your mailbox for this information. Some companies try to make your statement look less like a statement. Still, the greatest culprit is the consumer who throws the stub into the garbage can. People do search your trash and dumps for this type of information. This is the reason for paper shredders. As bad as someone getting your credit card number is, getting your debit card is worse.

If someone gets your ATM number your bank won’t reimburse you for the money shifted out of your account. Not knowing what happened immediately adds on overdrawn fees, which makes the situation even more dire. 

Remember the bank telling you never to give your pin number to anyone? A close friend lost her entire savings due to using an ATM in front of an alleged friend. While she didn't give him the number, he paid attention, then lifted her card later and cleaned out her account. Be paranoid about your ATM number.

Another thing about the dangers of debit cards is charges don’t show up immediately. Some businesses will take up to a week to post. That money you think you have as available balance might not be so available at all.

It’s something to consider.

0% Credit Card Transfer Bait and Switch Trap

Your credit card finance charges are overwhelming, especially the department store cards. You find yourself paying $30 for t-shirts you bought on sale for $12 with your department store charge over a year ago after interest has been compounded. The simple solution is to take advantage of a recent mailing you received about transferring all your high interest accounts to a 0% credit card. Sounds good, but have you read the fine print. The fine print is usually small and incredibly boring. Here are a few items you should beware of:

1. Transfer fees-every account balance you transfer will be charged a transfer fee, which is usually between $60-$75 dollars per account. This usually doesn’t show up until you think you’ve paid off the balance. This can be pricey if you transfer several accounts.
2. Time limitations-in the exceedingly small print, your 0% interest may be applicable for six months, or as little as 30 days. As soon as the time limit expires, your interest jumps usually to 30%.
3. Penalties-one late payment usually cancels your great 0% great rate, which automatically jumps your interest rate up to the 30% rate plus the late payment charge.
4. Usage of the card-the whole reason you signed up for the card was to lower your debt, but the card issuer is counting on you using it for future charges. Your future charges WILL NOT BE AT 0%, they will be at the higher rate.
5. Hidden Charges-your intentions are good, you transfer your high interest account to a 0% rate charge and pay-off your debt within a year. Suddenly you’re hit with all sorts of odd charges, such as processing charges. I was even charged by Citibank for overpaying by 9 cents. They issued me a check for .09, which I didn’t cashed and charged me twenty dollars for issuing the check.

So, how do you get out of paying high finance charges to credit card companies? We’ve all heard about if we paid only the minimum payment on a $5000 credit card balance with standard interest rate, that we will be paying for the next forty years. The first step is to cut up your credit cards. If you don’t have them, you won’t use them. One card may be saved for emergencies or for car rental, but it is best not to carry that card on your person.

Your local bank will work up a consolidation loan with a fixed rate and fee. You know exactly how much you are paying in fees, which will be lower than the combined fees of the 0% credit card if you have more than one account to transfer. The monthly payment will be higher than if you went with the 0% transfer. Keep in mind, the credit card never wants you to pay off your balance. Usually within two years, you’ll be out of debt with a consolidation loan—unless you make the mistake of thinking you have all this extra money to spend.

So are 0% transfers to new credit cards ever a good idea?