The Use, Pervasiveness and Liability Shift of EMV Chip Cards

In the United States, we boast about being technologically superior than other nations, especially developing nations. But in some areas, we are far behind other countries. Cyber security and payment system are two such areas.

We don’t always follow safe and recommended procedures for online data security. As a result, cyber criminals gain access to our financial details. What they do next can be done by spending as little as $25.

They collect ordinary plastic cards, create fake magnetic stripes, paste the debit card info obtained by hacking other people’s accounts online onto the phony magnetic stripe, and then use the card like a normal ATM card to withdraw money.

EMV chip cards

The good news is debit and credit cards now have the chip technology, which offers a robust protection from card theft. Europay, MasterCard, and Visa cards come with this protection feature. Because of the technology being smart, the cards are called Smart cards.

Here’s how the cards work:

On a chip card, you can find a small integrated circuit. Akin to a magnetic stripe, it stores all payment information of the cardholder. But it generates a unique code every time someone uses it for a financial transaction. Since it’s a one-time code, it can’t be reprocessed.

How it protects you

The one-time code, created by the chip card is a PIN, which offers a two-way protection. When someone uses the card, he has to verify himself as the legitimate cardholder. The verification is done via the PIN.

Let’s say, someone steals your card. When that fellow tries to use it, the system asks him to verify himself as the owner of the card. He couldn’t verify because he doesn’t have the PIN.

To put it simply, a card with magnetic stripe contains static data, which remain unchanged after every transaction. If someone copies the magnetic stripe, he could easily replicate all data that it stores. But if someone has your chip card, he couldn’t carry out any financial transaction because the card creates a unique PIN for every transaction.

Fraud protection level

A chip enabled credit card lowers the risk of a credit card fraud. However, the card doesn’t guarantee that a hacker couldn’t access a merchant’s database. What this means is the information that your credit card contains continue to remain vulnerable. A hacker can steal the information, but he couldn’t easily carry out a counterfeit transaction.

If you have to insert your credit card into a terminal slot for a transaction, then it’s a secure one. That’s because when you insert your card into the terminal, details regarding the card quickly flow between the terminal and the financial organization, which have issued you the card.

If your card has NFC, then you are saved from physically contacting the card to the terminal scanner, as the chip functions as an interface, through which the scanner picks up all your card data. When purchasing something from an online retailer, you need to be very careful because not all retail merchants follow the compliance rule as investing in the EMV technology is costly.

Remember, an EMV card is not a panacea for all types of data breaches and security issues. It makes transactions secure for you, but you need to be cautious.

EMV fraud liability

Whom should you hold liable as a cardholder in the case of a fraud? If the merchant’s system didn’t ask you for a PIN, then it’s the merchant who’s at fault. If the merchant could prove verification attempts have been made by his system, the liability then falls back on the card issuer.

A new liability shift policy has been at work since October 2015. As per the new policy, whoever is not EMV-capable among the card issuer and the retailer, is liable for a theft. In case both have EMV-capable systems, the card issuer is accountable for a theft.

EMV card prevalence

It’s quite disappointing that when more than 100 countries have weeded out the risky and anachronous magnetic stripe system, US lagged behind. Nevertheless, better late than never. But, because US has lagged behind for a long time, EMV cards are yet to be pervasive in the country.

More than 100 million Americans use EMV cards, but the number of retailers, who have EMV-capable systems is not at per with this number. What’s promising is more and more retailers have been adopting EMV technology. Within next few years, we are sure to see a large number of retailers offering EMV-enabled safe transaction, and the rate of credit card vulnerabilities will drop.

What do you think of EMV cards? Do you use one? Is there any vulnerability that we haven’t discussed? Let us know in the comment section.

Questions To Ask Before Trading Forex

We’ve discussed forex trading before, and in fact a year ago we even wrote up some reasons to consider getting into the market. There are truly a lot of benefits to putting some of your investing funds into this sort of market, even if you’re primarily looking for a way to diversify your portfolio. However, while the benefits we discussed previously—high returns, convenience, etc.—are all perfectly legitimate, it’s also important, as with every investment, to make sure this is the right market for you.

Trading Forex

These are some of the questions you should be asking in order to make that determination.

Do Trading Hours Affect You?

Trading hours are often mentioned as being among the chief benefits of forex trading. Because there is always currency being traded somewhere in the world, and because you don’t conduct forex trades through a stock exchange, you can manage your account at all hours of the day or night. It certainly sounds nice., but before allowing this to sway you, consider whether or not it will really make a significant difference for you. A lot of us like to think that we could manage a financial account in the evening hours, perhaps even as a sort of side job. But flexible hours don’t mean less time spent. Managing a portfolio is time-consuming no matter when you do it.

Do You Understand The Market?

There are a lot of seductive qualities of the forex market, and again, plenty of legitimate reasons to consider getting involved. However, most of those reasons are broad: high liquidity, flexible hours, high profit potential, etc. Always keep in mind, however, that if you hope to take advantage of these aspects of the market, you still need to understand what you’re doing with your trades. Forex markets involve different sets of influences than ordinary stocks or commodities, and it’s important to educate yourself before starting up an account.

Do You Understand The Risk?

When you hear phrases like “high profit potential,” it’s easy to get the idea that the market being discussed is a low-risk environment. Relatively speaking, that may be true as forex compares to other markets, but always remember that there’s no such thing as a low-risk investment. Asking yourself “how risky forex trading is” is an important part of the process as you consider whether or not to dive into the market. Know that liquidity can change as a result of major world events, and that it’s up to you and you alone to do due research on your broker. Factors like these contribute risk, even if the market itself appears at a glance to be a little bit safer than some alternatives.

Do You Know How To Trade Remote Currencies?

Some of the benefits of forex trading—the huge market size and the flexible hours, among them—don’t mean much if you can’t establish a relationship with remote currencies. That is to say if you’re trying to deal in euros when the markets in the U.S. are closed, but you don’t actually have any or understand how to do so, you’re not realizing the full potential of the market. This requires some research, but suffice it to say there are ways of purchasing options and contracts that swing on the performance of remote currency pairs, whether or not you actually own those currencies.

Most of these questions come down to education. Any investment requires careful preparation and organization, and by addressing these questions you can set yourself up more effectively to enter a new market.

Things You Should Consider Before Applying for a Car Loan

Thinking about buying a car but you don’t have the funds? Or are you simply looking to exchange your old banger for a slightly shinier one? With the many cars for sale online, it has become easy to get yourself some new wheels and almost as easy to make rookie car loan mistakes!

Applying for a Car Loan

Here are a few things you should consider before fill out an Auto Loan Application.

Credit history and eligibility of the loan applicant 

Banks generally look into an applicant’s previous credit history and fulfillment of the eligibility criteria before sanctioning the loan. 

Banks sanction or reject loan application on the basis of monthly income or salary  for salaried professionals, and annual income for business people.

With the number of bank loan defaulters increasing every day, banks nowadays have become very strict when it comes to sanctioning home or car loans. Banks investigate the CIBIL (Credit Information Bureau India Limited) report of the individuals to determine what credit track records the applicants have. While some banks have a universal loan processing charge for all individuals , others ask for it on the basis of the sum of debt and a fixed percent is used to compute the charge.

What’s The Real Price?

You may have found the perfect car with the perfect price tag but remember that this is not all you’ll be paying! Don’t forget to add up all the interest as well as service charges and VAT ( value added tax) and then you’ll get a better idea of the real price of your lovely car.

There are also loan processing fees charged by banks that can have an effect on the final cost of the car that you are looking to purchase. The computation of loan processing fee differs from one bank to another.

Calculate Your Budget

Your loan payments will give you the amount you’re going to need to fork out every 30 days for your car, but can you really afford to pay that each and every month of the year? Plan for holidays, celebrations you’ll be buying gifts for, and the cash you need for a rainy day and make sure you’re not dipping into those funds.

Consider the interest rates

The rate of interest for car loans in banks is something you need to find out because it will have a big impact in the final cost of the car. Check out the interest rates of different banks and ten make your decision cautiously.

Car loan usually has 10-10.5 per cent of interest per annum according to the   present macroeconomic scenario. Many banks provide fixed rate of interest throughout the loan term. For car loans, the floating rate of interest is the best because when the rate of interest decreases you can always reap its benefits.

EMI and loan tenure 

This is the most important thing to consider before applying for a car loan. The down payment varies from one bank to another and that will determine hoe much amount of money as car loan you will need. Your EMI is also influenced by factors such as loan value and loan term. Make sure your loan amount is small and the loan term is short because in that case, the rate of interest will be low.

A Little DIY

If the prospect of talking to a loan company or rolling up to your local car dealership seems daunting, don’t forget just how much of this you can do yourself online, if only to get an idea of what cars are on the market and which loan options are popular. There are many online loan calculators that can help you get an idea of what you’re facing, not to mention the great amount of used car classifieds available online.

Shop Around!

There are hundreds of companies out there ready to give you some money, but at what price? Research auto loan companies and remember that even a difference of 0.5% can make all the difference when you’re paying off that loan. Same goes for your car, there are plenty of second hand cars online and you can browse without the pressure of the car salesman’s magic words.

Insurance can be the key

Many lenders will often advise that you require insurance to acquire the best car loans. In case if anything happens to the lender during the loan tenure having an insurance might not be essential, but it might be beneficial to have the information of any insurance coverage you have accessible.

Whether you’re looking to find a used Ford Focus car online for sale or browsing auto loan companies, take your time, do your calculations and ask around! The beauty of starting this process from the comfort of your computer screen is that you can send a line or two to a friend for advice, and of course not feel pressured into signing anything before you’re figured out the best solution for you!