Making cards work for you. A public education campaign brought to you by MasterCard

Transcription

1 Making cards work for you A public education campaign brought to you by MasterCard

2 At school or work paying bills, renting an apartment or shopping for a new car, you need to know how cards save you money and time, protect you, and prepare you for the future. 2

3 Master Your Card is a public education program that helps you get the most from your money through prepaid, credit or debit cards. 3

4 MasterCard is a technology company that builds safe, smart and simple solutions to make payments and purchases. 4

5 Consumers have the money. Banks issue credit and hold funds. Businesses have goods and services. 5

6 MasterCard provides the technological magic that links them all together. 6

7 The value of credit, debit and prepaid cards

8 Simple Anytime and everywhere: pay by phone, computer, mail or in person. Automatic: no hassles, and so good you might not even realize how easy it makes your life. Efficient: saves you time and money by avoiding trips to the bank or ATM to get cash. 8

9 Smart Protection: cards help you fight back when you need to. Control: automatic tools let you set spending limits, see where your money goes and know exactly what s in your account. Efficiency: manage and access your money without wasting time or paying fees for using cash or checks. 9

10 Strong Power: armed with cards, you can shop around to find the best deals online or in your area. Equal footing: through access to the global economy, cards level the field for everyone so businesses have to work as hard for your dollar as they do for anyone else s. 10

11 Safe Private: security features make sure your information is only shared with those who need to know. Money back: if your card is lost, stolen or misused. Crime protection: robbery, mugging and purse snatching is a lower risk when you aren t carrying cash. Fraud protection: you can fight back when a business delivers bad goods or services. 11

12 Get the right card for you

13 Prepaid, credit or debit? 13

14 You can use all of them, one or two. Here are some things to help you choose what s best for you. 14

15 Prepaid Whether or not you have a bank account, you can have a prepaid card to use anywhere credit or debit cards are accepted. Money is loaded, and reloaded, onto your prepaid card with its unique identifying number. Payroll cards are one type of prepaid card. With payroll cards, you don t have to pick up your check. You get immediate access to pay regardless of where you are, and you don t have to wait in line to cash checks, purchase money orders or pay bills. 15

16 Prepaid Pros Get the same convenience and safety as a debit card. No ID required to set up a prepaid card. Use your money everywhere cards are accepted. Easy to use. Easy to reload. No possibility of going into debt. Protection if card is lost or stolen. No check-cashing or other fees with direct deposit. No picture ID or PIN necessary to make purchases. Transfer funds from one card to another. 16

17 Prepaid Cons Some cards come with extra fees. Not all are FDIC-insured. Does not build your credit rating. Policies for dealing with theft, loss and fraud vary. Your money is frozen for reservations or deposits. Liability for fraudulent charges is greater except with MasterCard. 17

18 Credit Every time you use a credit card, you are borrowing money from the bank that gave you the card. 18

19 Credit Pros Helps establish or improve your credit rating. Pay off monthly and you get interest-free credit. Short-term loan, useful in case of emergency. Reverse charges if you re not happy. You re not out any money in case of fraud. Many cards give you services and rewards. Make reservations for things like travel without tying up your money. 19

20 Credit Cons Risk of over-extending yourself with debt and interest. Many cards have annual fees. Late payments harm your credit score. Higher rates/fees for cash advances. 20

21 Debit If you have a checking account, you can get a debit card to make purchases. 21

22 Debit Pros Don t need great credit to have a debit card. FDIC-insured. Can t spend more than you have. Easy access to cash. Fraud protection. Use your money everywhere payment cards are accepted. Some fraud and consumer protections to reverse charges if you re not happy. 22

23 Debit Cons Overdraft fees. Beware of new fees and requirements, i.e., monthly minimum balance, limits on cash withdrawals, etc. Your money is frozen when used to make certain payments, reservations or deposits. In the case of fraud and disputed transactions, your money is lost to you until a decision is made. 23

24 Your credit, your future

25 What s a credit rating and why do I always hear people talking about it? 25

26 A credit rating or credit score is a rating that lenders, banks, landlords and others use to evaluate your financial strength. 26

27 Credit scores change over time, ranging from about 350 to more than

28 good score With a high credit score, you are more likely to get approved for loans and get the best interest rates, potentially saving you a lot of money. 28

29 bad score A low credit score hurts your chances of renting or buying a place, getting a car or business loan, and may even affect your chances of getting some jobs. 29

30 Tips and tools to master your card

31 1. Pay bills on time. 2. Keep balances low. 3. Pay off debt rather than move it around. 4. Don t close unused credit cards. 5. Don t open lines of credit you don t need. 6. Know about fees and how to avoid them. 7. Set smart spending limits you can tell the bank what your max limit should be. 8. Consider declining overdraft protection on debit cards to avoid excess fees. 9. You re on your phone all day use it to monitor your balance. 10. Check credit ratings with free annual reports. 31

32 Asking the right people the right questions can help you be more independent, not less. Don't be afraid to talk to them about money and get some good advice. 32

33 Take advantage of special products and tools 33

34 Digital wallets like MasterPass let you check out quickly and safely with just a tap or unique code number. MasterCard repower and other programs let you instantly reload prepaid cards at participating locations. Products like incontrol let you set budget controls and get text alerts when your spending approaches your limit. Check your credit rating for free once a year at 34

35 Be totally secure

36 If someone calls saying they are from the bank, hang up. Call the number on the back of your card right away. If it s legit, they ll know about it; if not, you ve stopped a scam. Do Sign your cards as soon as you get them. Keep an eye on your card during transactions and get it back as quickly as possible. Keep your account information secret and hidden not on a sticky note on your fridge or in a document on your computer that says passwords. Report any questionable charges right away and in writing to the card issuer. Notify card companies before you move or travel out of the country. Save receipts to compare with billing statements and call to reverse any wrong charges. Remember that your MasterCard comes with zero liability, so you re not responsible if your card is lost or stolen if you report it. 36

37 Don t Don t volunteer details or fill in the blanks (name, relationship, financial or personal information) if someone calls asking for help from family or friends. Don t lend your cards to anyone. Don t leave cards or receipts lying around. Don t sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total. Don t make purchases on websites that don t look safe. You can check out whether a site is OK to buy from at Don t do anything with your card over public WiFi or Internet connections that are not protected by a password. 37

38 Additional fraud resources Financial Fraud Enforcement Task Force National Crime Prevention Council 38

39 Thank you

40 To get the most value from electronic payments, visit