Friday, April 25, 2014

Critique the use of bank debit cards. Bank debit cards are becoming a popular alternative to using checks or credit cards. Investigate the advantages and disadvantages of using a bank debit card

Critique the use of bank debit cards. Bank debit cards are becoming a popular alternative to using checks or credit cards. Investigate the advantages and disadvantages of using a bank debit card and answer the questions below.
Here are some ideas to consider in your investigation:
  • convenience to account holders
  • “float” time
  • record of transactions
  • financial privacy/safety
  • card loss/theft liability
  • checkbook balancing
  • vendor acceptance
  • usage fees by banks
  • usage fees by vendors
  • ease of administration by banks
  • ease of administration by vendors
Where did you get your information?
  • Was it the most reliable resource? Why or why not?
  • How could you have improved the reliability of your resource?
  • How has technology, such as online banking, affected these aspects? Discuss any pros and cons about the affects of technology on the aspects of reliability.
2. Your textbook defines an installment loan as a “loan with regular payments” (Cleaves, Hobbs, & Noble, 2014, page 428). Search the internet to find an article or application of a type of installment loan that you find interesting, that you encounter on a daily basis or that you find in your profession. Present this article or application to the class and explain why you chose the example. Find the amount financed, the installment price, and the finance charge of the installment loan. Include the URL for the site you used. Do not copy the text in the site verbatim. You should summarize your findings.


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I need a response for the following

Brook  
4/24/2014 11:16:14 AM
Debit cards most definitely have the benefit of convenience for the customer.  They are quick to use compared to writing checks and there is no need to handle change when making transactions.  This convenience does come with a cost.  With the use of electronic payments, including debit cards, we risk the chance of identification or account compromise.  Your information is stored every time you swipe your card.  Breaches of financial information data bases are constantly in the news.  Your information can also be skimmed by merchants.  This information is sold to criminals that make new debit cards with your information on it.  As a bank employee, I see this every single day with our customers.  It is important to remember, with convenience comes risk.
I spoke with my bank’s cashier and controller to discuss the risks of debit card usage.  They stated the bank is many times responsible for customer losses due to customer negligence.  This has become a huge issue for banks.  My sources are very reliable concerning this topic as they are employed to handle such affairs as this. 

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Above is a link for “cash installment loans”. This website gives an example of an installment loan for the amount of $200.  Term 30 days.  Interest charged is $58.  APR is 2010%.  Installment loans are an option on many of these sites.  These sites are obviously targeting desperate people and these rates would be illegal under bank regulation. 

I need a response for the following
Dasia  
4/24/2014 2:00:29 AM
I feel like there are definitely a lot of benefits to a debit card rather than a credit card. For starters its running off of the money you actually have in your account opposed to borrowing it like a credit card and having interest to pay later. With some credit cards you can even get cash back with it and with a debit you can which is of better convenient to the customer. With loss of theft, you can call your bank right there on the spot and get it cancelled and have a new one send to you and you'd receive it in a matter of days to two weeks depending on where you live. The security on a credit card is way low also because there's no pin number to input in order to use it. With just a few quick swipes your card could be maxed out and you'd be stuck with charges and interest to deal with that someone else called. With a debit card your funds are protected because you need a PIN number to use it. Sure there are people out there who sign the back of their cards so that they have to be I.D to use it. However, I know from personal experience that people rarely check to see if the card is signed to protect the customer that way.
The installment load reference site caught my attention because I'm at a place in my life where bettering my credit is definitely a priority. The article talks about sites on the web that people who even have terrible credit can get installment loans that work for then through a variety of loan options. They generally offer installment loans "Up to 4000" and are "committed to getting people back on their feet". When visiting the actual bank page I couldn't find any indo regarding the APR or other special interest. They want you to begin the application process first and I definitely wont be doing that! I feel like its better to give interest rates up front because people know what they're getting into. When it's not on display it give me the feeling that the rates are going to be out of this world, and most of them really are!

1 comment:

  1. If anybody have bank debit card he have easily create a account online loan payment system.you can also visit our online loan service company cash advance and opinion your experience.

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