University researchers from the Pittsburgh Swanson School of Engineering have created an effective solution to curb credit card RFID and NFC theft, and it’s as simple as pressing a button.

University researchers are working on a simple solution to the unnervingly easy-to-hack radio frequency ID chips (RFID) and near-field communication cards (NFC) installed in credit cards. think of it as button that activates the cards when ready to be used for payment.

While scanning credit cards rather than swiping them is convenient, the need for better security derives from unforeseen loopholes in the technology that have been exposed since its introduction. In the case of credit cards installed with RFID chips, the first step to stealing an unsuspecting victim’s credit card information  is as simple as an eBay purchase.

A simple Google search for “credit card rfid hack” turns up numerous YouTube videos of hacks, and even step-by-step outlines. more unnerving is the realization that contactless RFID readers can be purchased on eBay for as low as $50. But while RFID credit card supporters claim cards must be 1 to 3 inches from a reader to pull data, eliminating the possibility of falling victim to theft, long-distance reading has in fact been around for a while.

In the summer of 2005 during DefCon13, Flexilis, now known as Lookout Mobile Security, proved the feasibility of a homemade long-range RFID scanner. the company’s build, successful in scanning passive RFID chips, reached over 69 feet. a quick Google search again pulls up in-depth and detailed instruction from 2006 for building a long-range scanner for a mere investment of $100.

While luckily scanning is not rampant, and far from lucrative due to predetermined RFID spending caps, researchers from the Pittsburgh Swanson School of Engineering are building a credit card “switch” allowing for the card to turn “on” and “off.” upon applying contact with a specified area on the credit card, whether hidden behind a logo or emblem, the switch would complete the circuit and switch the card “on.” In the absence of contact, “The RFID or NFC credit card is disabled if left in a pocket or lying on a surface and unreadable by thieves using portable scanners,” professor Marlin Mickle explains.

Besides credit cards, RFID chips are used in pharmacies, shipping, tracking, and even passports (which use active RFID chips). However simple or complex the improvements are, the necessity for this research extends beyond our wallets.

Credit card RFID theft protection is as simple as an ‘on’ button

The perks keep coming at the hotel. for example, American Express Platinum charge card holders receive room upgrades (depending on room availability), free breakfast, a spa credit, or complimentary food and beverages at participating hotels and resorts worldwide, according to Leah Gerstner, a spokeswoman for American Express.

Those carrying a Ritz-Carlton Rewards credit card from Chase can expect similar high-end benefits. Additionally, cardholders get three Ritz-Carlton Club upgrades each year, says company spokeswoman Laura Rossi.

A signature of the Ritz-Carlton experience, Club services include living-room type lounges that offer a hot breakfast buffet, lunchtime sandwiches and salads, afternoon tea with scones and small bites, predinner cocktails and hors d’oeuvres, and late-evening cordials and chocolates.

2. ServicePremium rewards credit cards also come with personal assistants, or something very close to it. Most issuers offer customer service representatives 24/7 to help cardholders with such mundane tasks as procuring hard-to-get tickets, booking a table at Gordon Ramsay’s newest restaurant or coordinating one-of-a-kind travel experiences, such as a cruise with the Food Network, says Thomas Hobbs, director of Discover Network product management, which includes the issuer’s Premium and Premium Plus cards.

Other unique customer services include emergency translation services, weather forecasts, ATM locations, referrals for specialty services such as dog groomers and tailors, or locating rare books or other items for purchase.

One Discover Premium Plus cardholder sought help after a tree demolished half his house the night before a big vacation.

“The cardholder called, and the concierge helped track down the cardholder’s insurance company and helped them rearrange their upcoming vacation,” Hobbs says.

This past holiday season, American Express expanded its concierge services to include holiday shopping for its Platinum cardholders. Those lucky enough to hold the silver card could submit their Christmas (or Hanukkah) lists to the concierge gift-buying service, which would research gift options, compare prices, buy the presents and ship them. the only caveats: the purchases had to go on the Platinum card at a retailer that takes American Express.

3. RewardsTop-tier credit cards make it easier to earn rewards. for example, if you sign up for an online account and paperless statement, you score 600 extra rewards points if you’re a Citi ThankYou Prestige cardholder. American Express Delta Reserve cardholders receive 30,000 Medallion miles in the first year that count toward Delta’s elite frequent-flier status. other premium rewards cards offer simple ways to earn points faster than the conventional 1-for-1 rate, such as travel or purchase bonuses.

5 Great Perks Of Credit Cards For The Rich

Debit-card reward programs may be fizzling, but cash-back credit card rewards are going strong, a new analysis from Bankrate.com finds.

In fact, cash-back credit card rewards improved “modestly” over the past year, according to Bankrate, which looked at 50 credit cards, from 19 large issuers, in early January. Roughly half of the cards included in the study pay 1 percent cash back, up from 44 percent in last year’s study. And some even pay more than 1 percent.

(Higher rewards, though, are often limited to certain categories of purchases or have special conditions. Capital One’s no Hassle Cash Rewards credit card, for instance, offers 2 percent back on gas and groceries, and 1 percent on everything else. And the Fidelity Investment Rewards American Express Card, for instance, offers 2 percent back — if you have the rewards deposited into a Fidelity account.)

The majority of the cards come with no annual fees, and more than two-thirds offer rewards without expiration dates. So if your card costs money and offers rewards that evaporate, you might want to see what other cards are offering.

“If you find yourself earning less than 1 percent, or if you’re paying an annual fee, it’s time to shop around,” said Greg McBride, senior financial analyst with Bankrate.com.

What’s behind the better credit-card deals? Banks have scaled back debit-card rewards programs in response to the Durbin amendment, part of federal legislation that restricts the “swipe” fees banks can charge merchants for processing purchases made with debit cards. lower fees translate to less money available for reward programs for debit cards. But credit cards aren’t covered by the Durbin amendment, so banks are still offering perks for shopping done on credit cards.

Banks see credit-rewards customers as low risk; they tend to use the card frequently to earn rewards, which results in fee-processing income from merchants, while they paying their balances in full each month and thus not creating credit risk. It’s true that banks don’t make money from charging interest to those customers, since they don’t carry a balance. But after the past several years recovering from high defaults due to the recession, card issuers “are not in a hurry to put risk back on their books,” said mr. McBride.

He suggests that if you are a big credit-card spender, you should hunt for a card that pays more than 1 percent, or cards that offer a bonus reward based on annual spending.

What sort of cash rewards card do you use?

Cash-Back Credit Card Rewards Offers Going Strong

Am I alone on this?

Every once in awhile, when I walk past a Girl Scout troop selling cookies, usually at our neighborhood grocery store, I’ll say, “Sorry, I don’t have any cash on me,” even if I do. I should just say, “No, thanks,” but never wanting a young seller to take my rejection personally, I always feel like I have to have a plausible excuse for not buying cookies from them. otherwise, I feel like a heel not buying a box. so I’ve always found the, “Gee, sorry, I only have a credit card,” a pretty serviceable excuse.

Well, I may be out of luck soon.

This year, according to the Pomerado (Calif.) News, the Girl Scouts are accepting credit cards.

Not all the troops will be able to process credit card orders. Out of about 1,600 troops in the San Diego Council, 240 so far have decided to accept credit card swipers. Some troops won’t sign on because of the added hassle and responsibility; others may not want to pay the 8 cent transaction fee, which will come out of the troop’s boxes. Each box usually has a profit between 65 and 95 cents, according to the Pomerado News.

Discover announces 2012 rewards

Discover may not have a new card to tout, but the folks there are jazzed about some tinkering that they’ve done with their 2012 5% Cashback Bonus calendar, allowing cardmembers to earn more than they did in 2011.

From now until March 31, Discover cardmembers can sign up to earn 5% cashback bonus rewards on up to $1,500 in gas, movie and museum purchases.

From April through June, it’ll just be movies and restaurants, and then the last half of 2012, the bonus rewards come when consumers use the card for gas, movies, and theme parks in the third quarter, and movies, department, electronic and toy stores during the fourth quarter, which means (good grief) the Discover folks are already thinking ahead to the end-of-year holiday shopping season.

Long-term indigestion

Usually if someone talks about paying later for what you eat right now, they’re referring to all of the calories you’re consuming. in the case of a Taco Bell in Port Charlotte, Fla., according to the local news station NBC-2, customers were eating — and then paying for it days, weeks and sometimes a couple months later.

There was a computer glitch at this Taco Bell, dating back to Nov. 22, and so for quite some time, people had been eating for free. once the managers discovered the problem, they began manually putting in the credit card information, and customers were finally charged for their meals. not sure how I’d feel if I were charged for, say, a $7 meal six weeks after the fact. I don’t think I’d be too happy, although, yes, ethically I should pay for a meal I’ve eaten, and I should have noticed that I hadn’t paid for it. but what a mess. still, little anyone can do now. as the saying sort of goes, you can’t unring a Taco Bell.

Disney rewards card

If you’re going to Disneyland, Walt Disney World or pretty much anywhere Disney, you may want to take a look at the new Disney’s Premier Visa Card from Chase. The card allows customers to earn double rewards on certain purchases, and there are other perks, particularly if you’re visiting one of the theme parks or resorts.

You can earn 2 Disney Dream Reward Dollars on every dollar you spend at restaurants, grocery stores and gas stations. Clearly, if you’re a big Disney fan and don’t mind the $49 annual fee, this is not just some Mickey Mouse card. No, wait, I guess it is. well, you know what I mean.

Minneapolis taxis and credit cards

It seems incredible in 2012 that taxi drivers in some cities still don’t accept credit cards, but thanks to the interchange fees, cabbies have been slow to embrace credit cards as a form of payment. still, starting in June, as the Minneapolis Star Tribune reports, Minneapolis will join several other cities that, by law, require taxis to accept credit cards. Cities currently having this requirement include New York, Boston, Chicago, Dallas, Houston and Los Angeles.

The Minneapolis City Council passed the law last month, 11 to 2. Council member Gary Schiff was the driving force behind getting the law changed. he said he didn’t want residents and visitors to be stranded somewhere at night because they didn’t have enough cash on them, which, again, in 2012 seems like a scenario that could easily occur.

Washington, D.C. is also considering a similar mandate.

The original article can be found at CardRatings.com:Cookies on credit: Girl Scouts now take credit cards

Cookies on Credit: Girl Scouts Now Take Credit Cards

Every time you pay with a debit or credit card, retailers get charged an “interchange fee” from card issuers to accept the payment. Interchange fees vary from card to card, but typically hover between 1 and 3 percent of the final purchase price, according to a study by the Government Accountability Office.

Since rewards and cash back cards usually come with higher interchange fees than traditional credit and debit cards, critics argue that the benefits of these cards may not be worth the increased cost they place on retailers. Do retailers pass these costs on to their customers? Are your rewards cards really rewarding you?

No free lunch for the consumer

The major reason that interchange fees for rewards credit cards are higher than those for traditional cards is because banks use the interchange fee to help subsidize the cost of the rewards program, says Scott Schuh, senior economist, policy advisor and director of the Consumer Payments Research Center at the Federal Reserve Bank of Boston.

“[Rewards are] a cost to the bank and like any economic unit, they typically try to recover their costs with the price of the product,” Schuh explains. “… A card that does not pay rewards is a low-cost card to the bank and a card that pays high rewards is a high-cost card to the bank.”

Higher interchange fees generally mean a higher cost of doing business for the retailer, adds Schuh, which may translate to higher costs for the consumer, particularly in highly competitive markets. they can also translate to actions retailers take to minimize or eliminate interchange fees and reward consumers who pay with cash or check rather than plastic.

Why some merchants prefer cash

Under current law, merchants can choose if they want to accept credit cards at all and, if so, which cards they want to process. It’s illegal to add a surcharge for paying by credit card, but retailers may offer a discount for consumers who pay by cash or check.

Trish Wexler, spokeswoman for the Electronic Payments Coalition, a Washington, D.C., nonprofit that represents the interests of banks, credit unions and major payment networks including Visa and MasterCard, says that a discount for cash payment makes sense in certain industries.

“Particularly from gas retailers you’re more likely to see [cash discounts] because…people will tend to pay at the pump, but the real profits from that industry are inside the store,” Wexler says.

The incentive for you to use cash instead of your gas credit card sidesteps interchange fees and gets you inside the store, walking past marked-up goods as you get out your wallet. in other businesses, making room for rewards credit cards, even with their higher fees, can still make good financial sense, says Wexler.

“[Reward and cash back card holders] bring with them higher value to that retailer because rewards card holders tend to spend more at those stores,” Wexler explains. “It’s a better business proposition for that retailer.”

How to fight back

Interchange fees are actually just a portion of what merchants pay to process credit card transactions, says Heather Petersen, CEO of the National Merchants Association, an advocacy group in Burbank, California that focuses on optimizing credit card processing for small and medium-sized businesses. On top of interchange fees, retailers also pay smaller surcharges to the card processor, the consumers’ financial institution and other parties.

“The FTC has regulated some of it, but you [could] see everything from customer service fees to debit access fees, statement fees, PCI [Payment Card Industry] compliance fees,” Petersen says. “You name it, you can find it, I’m sure.”

While business owners can’t eliminate interchange fees, they can ensure that they’re not overpaying by having a third party group like the National Merchants Association optimize their processing contracts, says Petersen.

Likewise, if you’re a consumer, you can’t get rid of the increased cost caused by interchange fees, but you can save money by not overspending on your rewards credit cards and by maximizing your rewards to ensure that the markup you’re paying pays off in the end. That means using rewards points or miles in a timely manner, taking steps to ensure that rewards don’t expire and staying within the limits of the reward card program.

The original article can be found at CardRatings.com:Bonus or bogus: Who pays for rewards credit cards?

Bonus or bogus: Who pays for rewards credit cards?

By Mike Petchenik

SANDY SPRINGS, Ga. —

Sandy Springs Police are investigating claims that a restaurant employee stole a customer’s credit card and went on a spending spree. Autumn Lingle told Channel 2′s Mike Petchenik she used her credit card at Evos, a hamburger restaurant in the Prado Shopping Center on Roswell Road. ”By Monday, I noticed my credit card was missing and this was the last place I’d actually used it,” she said. Lingle said when she checked her online statement, she noticed $4,000 in fraudulent charges at a Dillards and Express for Men at Perimeter Mall in Dunwoody. “I was just outraged, she said.  “I can’t believe someone would spend that kind of money at the expense of another person.” Lingle told Petchenik that on the same day she discovered the bogus charges from the mall, she also noticed another charge at the restaurant where she’d lost it. According to a police report obtained by Petchenik, detectives reviewed surveillance video of the transaction and saw a store employee using Lingle’s card. ”You really can’t trust people anymore,” she said.  “It’s sad, but that’s the reality.” a store manager told Petchenik when he learned of the alleged theft, he immediately fired the employee.  Police told Petchenik they are still investigating and haven’t charged the employee for it.  Lingle has a warning for other credit card users, “Be very careful.  Always be aware of where your credit cards are and always be aware of your transactions online.”

Woman says restaurant employee stole credit card

By Amy Calder acalder@mainetoday.comStaff Writer

WATERVILLE — A man who racked up nearly $4,600 in charges on a stolen credit card is under arrest after police found him Wednesday in a motel with a homeless woman and four hungry children.

The man, Chad Gilley, 38, told police he found the card on the floor of a convenience store and used it in Waterville over the weekend to buy food, clothing, lottery tickets and a hotel room, according to police Chief Joseph Massey.

Massey said he was angry that the children, ages 6 to 11, had not eaten breakfast when the family was picked up by police late morning Wednesday. Police fed the children, who played games and watched children’s programs on television for about six hours until the state Department of Health and Human Services came for them.

"The worst thing about this case is that we had four children here, who I can call victims, to be hauled around all weekend … by this guy using a fraudulent credit card and charging things all over town," Massey said.

Massey said Gilley, whose last known address was Elm Street, was arrested nine times in the city between 2007 and 2009 for everything from assault to burglary. he was convicted of assault, vehicle burglary, operating under the influence, habitual motor vehicle offender and violation of conditional release in the last few years. "Here’s a guy who’s had multiple arrests and multiple contacts with police and he’s still out and about, victimizing people," Massey said.

Police began investigating Monday when a Clinton woman reported about $4,562 in fraudulent charges to her credit card in Waterville, Massey said.

"she was shocked," Massey said.

The woman last used her credit card Friday at J&S Oil convenience store and thought she had the card when she left there, according to Massey.

After speaking to employees at the store, Officer Jen Weaver went to Econo Lodge on Kennedy Memorial Drive, where a clerk told her the person using the card was still in a room.

Weaver was joined by two other officers who used a hotel key to open the room after no one responded to knocking.

They found Gilley with the four children, some of whom are his, Massey said. Gilley told police their mother was out shopping. when she returned they all were taken to the police station.

Gilley told Weaver that he found the credit card on the floor Friday in J&S Oil, Massey said.

"three minutes after the (card owner) paid for her purchase, Gilley charged a 96-cent candy bar with the credit card as a test to see if it would work — same place, right there — and it went through," Massey said. "After that, he started purchasing things all weekend from different stores, hotels."

Gilley told police he made the credit card purchases himself and the woman with him was not involved.

When police called the DHHS, they learned the department had been working with the woman and her children and had been trying to find them, he said. DHHS on Wednesday found a temporary shelter for the woman and children, he said.

Gilley was arrested and charged with felony forgery, felony theft and criminal trespassing and was taken to Kennebec County jail in Augusta.

He was also wanted on outstanding warrants for failure to pay restitution and a hold by probation officials, Massey said.

Massey said the mother is at fault too, for keeping the children out of school and not making better choices.

"The city does have a welfare office, and she could have come here," he said. "she could have come to the police. she could have reached out to DHHS, which she knew was looking for her."

Amy Calder — 861-9247

acalder@centralmaine.com

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Police make credit-card arrest, feed 4 hungry kids

According to the Central Bank of Sri Lanka, the outstanding credit balance borrowed via credit cards stood at Rs. 37.63 billion by end December 2011, compared to Rs. 31.61 billion remained as of December 2010.

Apart from it, the number of active credit cards in usage has also gone up to 862,340 by end 2011, from 778,474 remained as at end 2010.

Out of the total number of cards, locally active credit cards have risen to 61,320 by end December 2011, compared to 58,771 credit cards remained as at end 2010.

While, the globally active credit card number also has increased during the year 2011, standing at 801,020 cards, compared to 719,703 cards remained as of December 2010.

Outstanding credit balances borrowed via locally active credit cards has risen to just over Rs. 1 billion by end December 2011, from Rs. 840 million remained in end December 2010.

The outstanding credit card balances purchased via globally active credit cards has risen to Rs.36.53 billion by end 2011, compared to a balance of Rs. 30.77 billion stood one year ago.

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Sri Lanka sees increased borrowings via credit cards

MIAMI, Feb. 16, 2012 /PRNewswire via COMTEX/ –Online payday loans are becoming ever more popular, according to Credit Land’s research. These online payday loans are incredibly easy to access, but are incredibly hard to pay back because of their high interest rates.

On the other hand, there are many benefits of using a credit card over a payday loan. for example, credit cards are considered a better type of loan and help you improve your credit history by reporting your timely payments to major credit bureaus.

Credit-Land.com editor-in-chief Michael Germanovsky urges consumers to not fall into the trap of payday loans, and instead apply for a credit card for people with bad credit.

here is an eye-popping comparison, says Germanovsky, that should convince anyone to be careful with payday loans:

for example, when compared to a credit card cash advance a payday loan may look very attractive to the consumer:

Typical interest Rate on a Cash Advance with a Credit Card = 20%

Typical interest Rate on a Payday Loan two-week term = 16%

However, if expressed in terms of APR, the truth becomes apparent. The payday loan APR is calculated by multiplying the simple interest by the payday term in one year:

Typical APR on a Credit Card Cash Advance = 20%

Typical APR on a Payday Loan = 16% times 26 two-week terms = APR of 416%

“These types of loan situations only end up getting the consumer in more debt,” Germanovsky says.

in another prospective, a typical payday loan scenario is when the consumer requests an amount of money upfront and is given cash, and they are then required to pay that amount back plus interest on a specific date, usually in two weeks after the cash was given. The problem with this picture is that most consumers who sign up for payday loans have bad credit and haven’t established good spending habits.

Germanovsky continues: “With the high interest rate on payday loans causing more debt accumulating each term, these consumers quickly fall into a circle of unpaid debt, sometimes resulting in bankruptcy. Unfortunately, with payday loans, consumers are subject to random rates on their bill, penalty fees, and aggressive collection methods. Check out Credit-Land.com for a comparative list of all the best credit cards to build credit, and other important credit card nuances, before choosing your next payday loan.”

about CreditLand.com:

Credit Land is an award-winning company that has monitored the personal finance industry since 1999. The company systematically gathers, records, and analyzes data relating to personal finance products and services. The goal of industry research is to identify and assess how changing financial regulations and geopolitical events impact customer behavior and banks’ marketing strategies. Based on industry research and new technologies, including proprietary analytical software that allows tracking of the consumer from initial product search to the final moment when a consumer makes a decision to submit a credit card application, Credit Land has developed a card rating system that helps consumers evaluate credit cards for every need, including low interest credit cards, small and large purchase, balance transfers, rewards, and improving your credit history.

Credit-Land.com inc.2751 S Ocean DriveSuite 1202 SouthHollywood, FL 33019Phone: 1-888-281-1556Email: press@credit-land.comWebsite: http://www.credit-land.com/

this press release was issued through eReleases(R). for more information, visit eReleases Press Release Distribution at http://www.ereleases.com .

SOURCE Credit-Land.com inc.

Copyright (C) 2012 PR Newswire. all rights reserved

Urgent Cautionary Note to Payday Loan Consumers

Roche ran into trouble with his government credit card when he cavalierly used it to pay $250 to a private company to clear away debris at an abandoned home, a violation of the county charter and the county’s purchasing policies. but he also bypassed government purchasing policies to use his card to spend $2,605 at a local consignment shop for his office furniture. Only Roche doesn’t understand the obvious problem.

Under the new rules, the card will be used only for travel expenses on official business and registration for training seminars. the commission would have the final say in determining whether a board member abused his or her government credit card. Commissioners found in violation of the new policy could have their card taken away and be required to reimburse the county. the commission could start now by sending Roche a bill for $2,855.

Roche complained a commissioner had slandered him and invited a grand jury to determine whether he has broken any laws. That’s tempting but unnecessary in this case. the commission has responded responsibly to Roche’s credit card use, which was improper regardless of his intentions. It’s up to Roche to accept that he must follow the same rules as every other county commissioner.

Keep an eye on commissioners’ credit card use – Tampa Bay Times