| Greetings!
On December 14, 2009, Bay Gulf Credit Union began assessing a $.50 fee for all PIN-based VISA debit card purchases. The primary purpose for imposing such a fee is to curtail ATM PIN-based skimming fraud. This type of fraud skyrocketed in 2009 causing thousands of dollars in losses to your credit union. Your credit union is a not-for-profit cooperative; therefore, large reserves are not available to offset these types of losses. Losses such as skimming fraud are unfortunately passed on to our member owners in the form of lower share dividend rates and higher loan interest rates.
Simply Sign to Save
Your credit union is simply asking that you sign for your VISA debit card purchases instead of entering your PIN in public places. If the merchant location displays the VISA network logo, they must accept your VISA debit card transaction as credit with a signature upon your request. Simply ask the merchant cashier to please run your transaction as credit. Some merchants automatically have the PIN pad display numerous times. Each time the PIN pad displays, press the Cancel button. The signature screen will come up either through the cancellations or the merchant cashier pressing the proper button on their terminal.
Merchants are persistent in requesting PIN-based transactions as they are less expensive transactions for them. When PIN-based fraud occurs, merchants have virtually no risk. All the risk and losses are taken by your credit union. However, if fraud should occur with a signature-based transaction, merchants share the risk with your credit union.
Bay Gulf values you as a member and we appreciate your understanding. By following a few simple steps, you can avoid paying VISA debit card PIN-based purchase fees and other fee-based transactions as outlined in the column to the right.
Please let us know if you have questions or if we can be of further assistance. |
THIS JUST IN: State Employees Credit Union Accounts Exposed in Skimming Scheme |
The accounts of more than 300 State Employees CU members in Raleigh, North Carolina, were exposed as the result of a skimming scam, where skimming devices record data from the magnetic strips on the back of financial cards such as credit and debit cards.
Criminals use card machines to collect data and create counterfeit cards, and then combine that stolen data with hidden-camera video of PIN entries to use the new, fake cards to withdraw cash and make purchases.
If this type of scam had affected Bay Gulf members, we could have incurred potential losses of $300,000 and members would have been without their cards during the holidays. Please make sure to sign instead! |
