Card Security: What’s That Chip Doing There?

by Celeste Lohrenz

Credit and debit cards have become the norm for Americans as fewer shoppers opt to carry cash for day-to-day purchases. Swiping for gas, groceries and even train tickets has become second nature. However, the public’s reliance on this payment method has made card systems a rewarding target for hackers and has led to major data breaches at some of the nation’s largest retailers. Furthermore, hackers and cyberthieves have found ways of directly targeting the magnetic strips on the back of credit/debit cards, through use of scanner devices that allow the theft of card information without the physical card ever having left your pocket.

For those who have recently experienced a card theft or loss, you may have noticed something different about the new card your bank sent as a replacement. Now, new credit and debit cards will no longer transfer personal information through magnetic strips but through an embedded computer chip, called a Europay Master Visa (EMV) chip, on the face of the card, which is expected to be the nationwide standard by 2016.

So what is that little chip doing there anyway? Here’s what you need to know:

• What it is: The EMV chip you’re seeing (or soon will see) on the face of your credit/debit acts as a security vault for your card’s information. Over the years, the technology that card thieves use to tap into magnetic strips became so advanced that end users and merchants alike were at risk of having their private data stolen. To address this problem, major credit card companies like MasterCard and Visa found an alternative in EMV chips, which are not vulnerable to hackers’ current toolsets.

• How it works: As of now, and likely until all merchants have begun to accept EMV chips, cards work both through the magnetic strip and the EMV chip. Rather than swiping your credit card through a card terminal at the end of a transaction, you will insert your chip card into a machine that reads the specially made computer chip throughout the transaction. This new method allows your bank to monitor your card’s “security vault” during the entire transaction, affording it more data resource points for augmenting security.

If you currently have a card with an EMV chip, be sure to use it with merchants that accept this new technology to guarantee the safest transactions. Card holders who have yet to receive a new card with an EMV chip should contact their local card providers to upgrade their security features.

Just a Local Bank? Think Again. With The Milford Bank, You Can Enjoy Free ATM Withdrawals at 55,000 ATMs Across the Globe!

By Cortney Meng

You might think that when you open a savings account or a checking account at The Milford Bank, you’ll have to do all of your banking—including free ATM transactions—within the limits of Milford and Stratford. Not so!

While it may be true that our seven branch locations are contained within those two towns, we figured now is as good a time as any to inform you, or remind you, that when you open a savings account or checking account at The Milford Bank, you’ll have access to 55,000 surcharge-free ATMs located across the United States, Canada, Australia, Mexico, Puerto Rico and the United Kingdom.

That’s because The Milford Bank is part of Allpoint, the world’s largest surcharge-free ATM network. That means you can use member ATMs just as you’d use any of the machines located at all of our branches—with no hidden costs.
Usually found at places like CVS, Costco, 7-Eleven and Walgreen’s, there’s a good chance you won’t have trouble spotting these surcharge-free ATMs. In fact, you might even pass by them on a regular basis and not even know it.
Worried you won’t be able to find the appropriate ATM? Not a problem. You can download this app that leverages a geo-locator to help you find the machine that’s nearest you.

We don’t charge a fee when you use any ATM, but look out for other banks’ ATMs that may very well tack on surcharges when you are not a customer and use theirs.

Thanks to the Allpoint Network, though, you won’t have to worry about freely accessing your money. We know that’s the way you like it, and we’ll keep it that way.

Survey Shows More Customers Opting to Bank at Branches and on Mobile Devices in 2014

by Celeste Lohrenz

How do you prefer to do your banking?

According to a recent survey by the American Bankers Association, most Americans (31 percent) prefer to do their banking online. Surprisingly, that represents an 8 percent decrease from 2013. Additionally, this year, more customers prefer doing their banking at a branch (21 percent) than they did last year (18 percent). Other banking preferences include:

  • ATMs – 14 percent (up from 11 percent)
  • Mobile – 10 percent (up from 8 percent)
  • Telephone – 7 percent (no change)
  • Mail – 6 percent (down from 7 percent)

We love it when our customers come in to one of our branches to say hello or conduct their banking business. Our staff is always excited to see friendly faces, engage in good conversation and help answer any questions our customers might have. As such, it’s encouraging to see that more people prefer to do their banking at brick-and-mortar locations this year than they did last year.

But we also understand that in today’s digital world, not everyone has time to drive to the bank for routine financial transactions. While it’s likely you’ve conducted some of your banking business online before, have you ever given mobile banking a try?

At The Milford Bank, we are proud to offer mobile banking options. With our mobile deposit tool, you are able to deposit money into your savings account, for example, no matter where you happen to be—so long as you have a mobile device handy. You can read more about our mobile deposit program here.

In addition to that, we’re pleased to offer Popmoney, a peer-to-peer payment service that lets you send money to friends, family and whoever else from your mobile device. This is perfect for sending your kids money at college or paying your brother back the couple hundred bucks you owe him. Interested in learning more about Popmoney? Stop by or call us. We’re here to help you find the financial services that work best for your needs.

What’s the Difference between a Debit Card, a Credit Card and an ATM Card?

Credit-ATM-Debit-Card

By Pam Reiss

How big is your wallet? It might be quite large due to the amount of plastic it holds.

Believe it or not, 78 percent of Americans carry $50 of cash or less on them at any given time. That’s because these days, virtually anything can be purchased with credit cards or debit cards. Should a consumer find him or herself in a pinch where a business doesn’t accept charge cards, that person could always find the nearest ATM and take out some cash.

But what is the difference between all of those kinds of cards anyway? Let’s take a look:

An ATM card is usually issued by your financial institution. The card allows you to take money from your savings account or checking account from an ATM, depending on which account it’s linked with. Generally speaking, you can use your ATM card to withdraw money from any ATM machine. But be careful: Some of those withdrawals will cost you. If an ATM machine is not part of your bank’s network, there’s a good chance you’re going to have to pay a fee to access your money. Because The Milford Bank is a member of the Allpoint ATM Network, our customers are able to withdraw money from one of 55,000 machines across the world with no fees. You can find more information about that here.

• A debit card—also known as a check card—is linked with your checking account and generally has a Visa or MasterCard logo on it. As such, you can use these kinds of cards anywhere credit cards are accepted. It’s important you realize that debit cards are not credit cards, as the money that they draw from is the money that is on deposit in your bank account. Because you’re using your own money to make purchases you don’t have to pay interest on the things you buy with your debit card. But it’s important that you remember to keep track of how much money you have in your account because it is possible to spend more money than you have in your accounts, causing you to overdraw your account. .

• A credit card allows you to purchase things with a lender—like American Express, Visa or MasterCard—fronting you the money. The lender charges the merchant a per-dollar percentage on each transaction. They will also charge you interest if you carry a balance on your account. . Depending on your credit history, your credit limit may vary. The better your history, generally speaking, the higher your limit.

Different kinds of cards are the preferred method of payment for different kinds of people. There are some people who will only buy things with cash. When you pay with cash, you know exactly how much of it you have in your wallet so you don’t risk spending more than you have.

Other people turn to debit cards because they don’t like having cash on their person in case they lose their wallet, for example. On top of that, you don’t have to worry about carrying a high balance—though you might have to worry about overdrawing your account if you’re not careful.

Because of the freedom and rewards that come with some credit cards, many people feel comfortable buying with them. It is important to try and pay your credit card balance in full each month, however, if you wish to avoid hefty interest rates.

What is your favorite banking card to use and why? Keep the conversation going in the comments section below!

Protecting your finances following divorce

By Celeste Lohrenz

Separating from a spouse is not an easy time. Still, important decisions need to be made related to your finances.

Following a separation, you should figure out how to live on your own income. You also should learn about what is going to become of your retirement assets, what Social Security benefits you might be entitled to and whether you are properly insured.

During such time, it’s important that you make informed decisions relating to your finances. Consider the following tips:

  • First thing is first: You’re going to need to make sure your financial accounts are registered in your name. That may mean closing previously shared accounts and opening new accounts in your name alone. You may want to consider consulting a tax professional to understand your tax responsibilities to avoid any unanticipated surprises.
  • You always need to look at your credit score. The financial burden of divorce may have impacted your credit. Be sure to review your credit history and take measures to repair your credit, if necessary.Chances are you’ll have to figure out how to live on one income. Figure out which expenses you can’t avoid paying every month—like food, utilities, transportation and housing—and then determine how much discretionary spending you can afford on top of that.
  • Try to live within your means, as you don’t want to find yourself accumulating more debt.
  • It’s probably time to update your estate planning as well. Have your beneficiaries changed following a divorce? Have you designated legal guardians for your children? It is likely time to update your will, as well.
  • You should also review your retirement planning. Following a divorce, IRAs are often split via a one-time distribution without early withdrawal penalties. You need to make sure that you’re financially secure over the long haul, so you might want to consider making use of investment services to begin planning for your future.
  • You still may be entitled to Social Security benefits. Under the government assistance program, you may be entitled to half of your former spouse’s benefits, assuming those benefits are greater than what you’d be able to get through your own benefits.

Separating from a spouse is never an easy thing for a variety of reasons. But by being aware of various monetary considerations that result from such a separation, you can thus begin making better-informed financial decisions.

Just Married: What to do with your finances?

by Chaz Gaines

Congratulations on tying the knot!

You and your spouse might find yourselves fortunate enough to wonder what to do with your newfound resources.

In either case, do you say “I do” to merging your savings and checking accounts or do you keep it all separate?

Years ago, it might have seemed like a no-brainer for newlyweds to merge their accounts. But today, it’s much more likely that both spouses have their own sources of income prior to getting married.

Either way, the answer varies on a case-by-case basis.

When it comes to your finances, you’ve got three options:

  • Completely merged accounts. There is certainly a level of comfort that comes with combining your savings and checking accounts. Both you and your spouse will know the current state of your finances, and every bill—from utilities to mortgages to groceries—can be paid from the same account. It’s important to keep in mind, that each of you will be supporting the other’s purchases.
  • Partially merged accounts. Is keeping some of your finances separate and merging others the best of both worlds? Couples can consider sharing some of their money while keeping personal accounts to use as they choose. But you still have to consider how you are going to fund that shared account. For example, will the higher earner contribute more?
  • Completely separate accounts. For couples who have both achieved financial independence prior to marriage, keeping completely separate accounts might make the most sense. But keeping finances completely separate still requires you to consider how certain bills are going to be split, for example.

Money is an important aspect of life, but the level of its importance varies from person to person. At the end of the day, it is critical you remember that no matter which option you choose, you should talk openly about your finances. The more conversation that occurs, the more likely your financial objectives will be the same.

Have you heard of Popmoney?

By Celeste Lohrenz

At The Milford Bank, we understand that your banking needs have evolved in a way that corresponds with our increasingly digital world. And that’s exactly why we’ve added Popmoney to our portfolio of financial services.

Popmoney is a peer-to-peer payment service that lets you send money to your friends and family—or anyone else, for that matter—via email or cell phone no matter where they happen to be located. In an instant, money can be digitally transferred from your bank account to theirs. Once it arrives, it’s theirs to spend.

The feature is standard in all of our checking accounts, so if you have one, you already have this amazing banking capability.

Imagine that your children are off at college. We all know how tight money can get during those days. The last thing you want as a parent is for your kid to need money and for you to be left scratching you head as to how to get it to them quickly. The good ole’ wire transfer won’t cut it, after all. Rather than having to send a check through the mail, Popmoney allows you to simply “send” money through a text message or email from your computer or mobile device, giving your child the money he or she needs the moment it’s needed.

Popmoney can also be used to send gifts to loved ones, issue payment to your landscaper, pay your old college buddy back for dinner or make sure your landlord gets the rent money on time, among a myriad of other things.

The service is easily accessed through our online banking system. What’s more, all of your information will be kept safe, secure and private during each transaction.