Making the Switch to a Mobile Wallet

There you are, impressed with yourself for getting the rest of your holiday shopping done in just a couple of hours. You make your way to the checkout aisle and hand over your items.AdobeStock_112895088

While the salesperson is ringing everything up, you dig into your purse or pocket for your wallet…but wait, where is it? Now you’re frantically rummaging while customers wait impatiently behind you. It’s then that you realize you pulled it out at the drive-thru to pay for a coffee and left it behind in your car. So much for being done with your holiday shopping.

In the event of a missing wallet, wouldn’t it be great if you could whip out your smartphone, or flash your smartwatch and somehow use it to pay for your goods? Well guess what – you can! Meet the “mobile wallet”.

A mobile wallet is a virtual wallet that stores credit and debit card information on a mobile device. And, it encrypts that information so it can’t be easily accessed if your device falls into the wrong hands.

The most widely used mobile wallets right now are Apple Pay, Android Pay, and Samsung Pay. Some mobile devices come pre-loaded with a mobile wallet, and if your device doesn’t have one you can download a mobile wallet from your phone’s app store. First though, you’ll need to see whether your debit and credit cards are compatible with the mobile wallet. Bank5 Connect debit cards support Apple Pay, and a full list of Apple Pay-friendly banks can be found at https://support.apple.com/en-us/HT204916As a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!. If you’re looking to see which banks support Samsung Pay, visit https://www.samsung.com/us/samsung-pay/compatible-cards/As a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!. A list of Android Pay participating banks can be found at https://www.android.com/pay/participating-banks/As a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!.

Retailers around the world are plugging into the mobile wallet culture. Millions of business now accept mobile wallet payments at their brick-and-mortar locations, and many of those retailers allow you to use your mobile wallet for online purchases as well.

Just don’t confuse the term “mobile wallet” with “digital wallet”. While they are both very similar, they do have some key differences. Think of a mobile wallet as a credit or debit card that lives on your mobile device. If you’re purchasing something in a store, you physically take out your phone and hold it near the terminal at the checkout counter. If you’re shopping online, you can activate your mobile wallet on participating websites and use it to make your purchase.

A digital wallet on the other hand, is typically only used for online shopping. Examples of digital wallets include PayPal and Visa Checkout. When you sign up for a digital wallet service, you link your account to a debit or credit card. Like a mobile wallet, your card information is encrypted for security purposes. A digital wallet can also house your shipping information, so you can make online purchases quickly and easily, without having to enter all of your personal details on the website.

If getting through the checkout aisle a little faster sounds good to you, consider a mobile wallet. Just don’t forget to keep your device charged. A dead battery at the checkout counter is no more helpful than leaving your wallet in the car!

Chip-Enabled Cards Help Prevent Fraud

It wasn’t that long ago when few, if any, people in the U.S. knew what a chip-enabled card was. Today, millions of these cards are now in circulation across the nation, much to the disappointment of fraudsters.AdobeStock_22591245

That’s because chip-enabled debit and credit cards make it a lot more difficult for crooks to steal data, especially compared to their older cousins – magnetic stripe cards. The technology used for each type of card is what makes the difference.

Chip-enabled cards take advantage of EMV technology. EMV stands for Europay, MasterCard and Visa – a global standard for credit and debit cards. All Bank5 Connect debit cards are now equipped with EMV chips for added security.

Older cards that lack chip technology have their data embedded in the magnetic stripe on the back of the card. The problem is, that this data doesn’t change from one transaction to another. This means that if a thief happens to steal the data during an in-person transaction (by using a card skimmer, or installing malware on the cash register system) they can then turn around and create counterfeit cards with the stolen data.

Each time a chip-enabled card is used for payment in a chip reader however, the card’s chip creates a unique transaction code that cannot be used again. So if a thief creates a fake card based on transaction information stolen from a chip-embedded card, the fake card will be denied because the information will be outdated.

The process of inserting a chip-enabled card into a chip reader is called card “dipping”, as opposed to the “swiping” method used for magnetic stripe cards. If you’ve used a chip reader, you may have noticed that the transaction takes a few seconds longer than a card swipe. This is because when a card is “dipped”, information has to flow between the chip and the financial institution that issued the card in order to verify the card and create the unique transaction data. But, this slightly longer transaction time is well worth the additional security!

Since the switch to EMV chip technology began in the United States in October 2015, it’s estimated that 40-60 million chip-enabled cards have replaced magnetic stripe cards. Bank5 Connect alone has issued thousands of chip-enabled debit cards to its customers.

Unlike Europe, where EMV cards have been in use for many years, it’s going to take some time before chip-embedded technology is fully in place across the U.S. A major reason for the slow switchover is the cost involved with creating the new cards and installing the equipment needed to read them. The good news is that chip-enabled cards are still equipped with a magnetic stripe on the back of them, so if you happen to be checking out at a retailer who hasn’t yet installed a chip reader, you can still pay for your purchase with a good old-fashioned card swipe.

While chip-embedded cards provide an added defense against fraud, there are still ways that thieves can get their hands on your card information. Keep in mind that the card still has a magnetic stripe, and any purchases you make with a “swipe” do not utilize the chip’s security benefits. And it’s still possible to lose your card, have it stolen, or have it compromised during an online purchase. Because of this, it’s always wise to monitor your bank statements and card activity on a regular basis. If you suspect someone has used your card fraudulently, you should immediately alert your bank or the financial institution that issued your card.