2 Comments on "Tips on How to Evaluate a Bank"

  1. Chip & PIN and 3-D Secure might prevent unauthorized transactions in the first place.

    They do however carry additional liability risks for the cardholder. Both are used to shift liability from the bank to the customer for disputed/unauthorized transactions.

    If your card has been stolen (or cloned, for that matter) and unauthorized transactions have been effected with your PIN number, it has been legally assumed (prima facie) that you didn’t exercise proper caution in keeping your PIN number secret. The burden of proofs was shifted from the bank to the cardholder. Thus, you may be saddled with the damage, even beyond liability restrictions set by T&C or even mandated by law.

    Similarly for 3-D Secure / Verified by VISA, which I totally detest. Not so much for inconvenience and frustration when I couldn’t remember my code, as from a user experience standpoint. These schemes look and feel like straight out of any “phisher’s” playbook. You’re forwarded to first-sime signup process from a merchant web site (as a pop-up!), user is authenticated by “top secret” personal details as birth date or card billing address. It would be laughable if it weren’t so atrociously bad. Furthermore, it thoroughly undermines the ”internet security best practice” principles which the less internet-savvy should be told. E.g., if anybody “forwards” you to any window/site pretending to be your bank (or someone else you trust), assume it isn’t – and never, ever enter any information on it.

    I do, however, agree, that it is usually a positive sign about the bank itself, if it employs these mechanisms – even if it’s not always benefiting to the customer.

  2. Bonus content! For some examples on how to verify that banks are licensed, head over to the forum: https://www.streber.org//forum/viewtopic.php?f=4&p=23#p23.

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