According to the data that was released by APCA, the value of all reported fraud cases had risen from 9.9 cents to 12.2 cents for every $1000 transacted including transaction through payment cards and cheques.

However, cheque fraud value has decreased, with rates falling from 1.1 cents to only 0.9 of a cent in every $1000 transacted. This meant that there is at least one fraud case for every 300,000 transactions.

There is also a significant decrease in debit card fraud, from 10.7 cents to 4.1 cents in every $1000 transacted. Whereas, credit card fraud increased from 58.9 cents to 74.3 cents for every $1000 transacted giving a record of 41.9 frauds in every 100,000 transactions.

Chris Hamilton, APCA Chief Executive, said that counterfeiting and skimming fraud is expected to decrease this year. It is due to the update in most cards making it chip-enabled. “Despite the increased prevalence of chip transactions, we need to remain vigilant against card skimming,” Hamilton said. “Consumers should always keep their card in sight and cover their hand when entering the PIN at terminals,” he added.

Steven Munchenberg, Chief Executive of the Australian Bankers’ Association (ABA), expressed that ABA was happy with the decrease in debit card fraud rates – a record low in years.“There was a spike in debit card skimming following the well publicised targeting of ATMs and EFTPOS terminals by criminals in 2009-10, but these fraud rates are now back down to much lower levels,” Munchenberg added. It helped that the banks improved its security and worked hand in hand with the police to fight these crimes.

In the APCA report, there is an alarming increase in card-not-present (CNP) type of fraud. This type of fraud happens when transactions are not upfront or face-to-face with a retailer, for instance, shopping by mail, phone or online. Currently, 71 percent of the fraud value on Australian issued credit and debit cards consists of CNP fraud cases. “Tackling CNP fraud requires effort from everyone from the retailer, through financial institutions and card schemes right to the consumer,” Hamilton explained.

According to APCA statistics, the notable decrease in fraudulent transactions of debit cards is due to its additional security measure – PIN-protection. The amount went down from $28 million to $11 million. Hamilton also highlighted the addition of chip and PIN technology as a big tool in fighting credit and debit card fraud. “We expect counterfeit and skimming fraud to decrease through to 2013, when all terminals and most local cards will be chip-enabled,” he added.

With the rise of CNP transactions today, banks and consumers need to be very vigilant and should work together in fighting card fraud. Hamilton advises cardholders to look for extra security by checking for guarantees such as Mastercard SecureCode and Verified by Visa signs.

To avoid getting trapped in this awfully awkward situation, vigilance is required. Here are simple steps that can be followed to ditch any undesirable surprises when it comes to your credit card bills:

Get Smart With Credit Cards

Know how to go around credit cards. Cardholders who are unable to pay their bills on time and in full should choose a low rate card. Interest-free days are only applicable for bills paid on time. For balances carried over to the next billing, it will automatically be charged with interests along with interests on current purchases. To illustrate further, if a credit card has a purchase rate of 19 % and the cardholder has a $500 unpaid credit card bill, that is automatically $95 in addition to the $500 original purchase. That is a lot of money spent on interest alone.

Look for credit cards with low rates, some go as low as 9 to 10 %. However, if already deep in debt, check out balance transfer deals that offer 0% interest for a few months. This way, interests can be avoided while the cardholder gets rid of their current debt. It is also wise to avoid charging utilities on credit cards if balance is not paid on time. Cancel any direct debit agreement that might have been earlier arranged. This will also allow the cardholder to review their utility consumption before paying for it.

Budget Wisely

Work out a budget. Do not consider the credit card limit as part of the budget. Track expenses on a weekly and monthly basis to have a better idea on how to cut down on it especially when going overboard the budget. Analyze if the expenses are more than the income. This situation usually leads to frequent charging of purchases using credit card and consequently leads to debt since income is constant while expenses are increasing. Avoiding getting into a situation like this is easier said than done but will eventually be helpful in avoiding the consequences of a shocking credit card bill.

There are a lot of online tools available which aims to help people avoid getting into credit card blunders. Cardholders should take advantage of these tools in their quest to avoid drowning in credit card debt.

Credit Cards Can Be A Friend

Responsible use of credit cards can actually lead to a more flexible management of finances. Sometimes, it can even help you earn savings. Credit cards can assist cardholders in using credit when cash is not available yet but every cardholder should remember to repay as soon as the intended cash for the purchase is already available. This way, cardholders avoid credit piling up and not having the cash to pay for it. Self-control is the key – make it a habit. Once mastered, credit cards can be every consumer’s best friend.

Nothing compares to freebies, and credit cards can have some of the most interesting freebies when it comes to insurance like travel insurance, car rental insurance and so on. Credit cardholders should always check what comes with the card they acquire which is usually indicated in the fine print. Sometimes there are charges involved or purchase required but it would still come out cheaper compared to purchasing the insurance separately.

Another example is price protection which is fast becoming associated with credit cards. This type of insurance protects consumers with their purchases when the item they bought is advertised later on at a lower price. Consumers can ask for the difference to be returned. It has to be paid by credit card and valid only up to a certain period. The bottom line is, consumers can use this credit card feature and save hundreds of dollars through this.

Interest free credit cards can help save as well. Some offer 0% interest on balance transfers for the first half year. Some credit cards are interest free for 55 days. Making use of the balance transfer facility of a credit card, if already in debt, and paying it off within the prescribed 0% interest period allows a cardholder to get rid of debt faster and save on interests. Of course, this can be achieved by clearing a maxed-out credit card in time and not later on.

A credit card can also be used to save interest on mortgage or earn interest on money if not in debt. This can be done by placing all the money in a mortgage account if internet redraws are allowed, or in an offset facility, if available, or a high interest savings account. Then, charge the usual expenses like bills, food and fuel on the credit card. After which, transfer all the cash set aside for it at the end of the interest-free period. Understandably this can be achieved if a budget is set and one is disciplined enough not to overspend using the credit card. Thousands can be saved over the duration of the mortgage.

The last but not the least is rewards, or specifically rewards programs. Nowadays there are a number of rewards programs associated with credit cards. Credit cards reward cardholders for every dollar that is spent. Some programs are used to get cash back and some are for free flights. Cardholders can collect enough mileage to acquire a free flight to a destination by switching their usual spending habits from using cash or a debit card to a rewards card. Cardholders can also earn enough points to get Christmas gifts in the form of gift cards.

Credit cards are perceived to be bad because they are often misused. Monitoring spending habits, studying and comparing credit cards can be a great tool in getting wiser with the use of credit cards.

The RBA data also showed that Aussies are paying off the plastic at a faster rate than reducing the mortgage.

“The key measure of this is the annual growth rate in credit card repayments which hit 6.92 per cent in October 2011, well up from the 1.99 per cent recorded in October 2010,” says Mastercard spokesman David Masters.

Outstanding debt on credit cards now represents 3.63 percent of total household debt, the lowest point for over 11 years.  Further more, credit card balances accruing interest is also at a historic low at 2.69 percent.  Masters thinks this is due to consumers opting to use cards for online shopping.

“One reason many consumers opt for cards is that they offer consumers a level of confidence that they are fully protected in the event of unforeseen problems with orders or purchases,” he says. “This is particularly the case with rapidly growing online sales where using credit cards is a mature and established channel with a solid track record for merchants and buyers alike.”

Still the fact remains that Aussies are paying off credit cards at faster rate than mortgages.  Cyber crime expert Mason Hooper from RSA Security suggests the drop in credit card use could be related to the rising use of debit cards, particularly for online shopping.

“I do think the drop in credit card use has a lot do with the fact that since the GFC (global financial crisis) people are more worried about debt and are turning to debit cards to use online,” Hooper said.

It is clear that Aussies are making a frugal choice.  Between credit card debt and mortgage, Aussies would rather keep the mortgage that comes with a potential home asset than maintain a credit card debt that can set them back with their finances and savings.

Meanwhile, the use of debit cards rise as Aussies prefer to make small purchases without accruing debt.

Choosing the right credit card can be quite a challenge. Each person has a different need – a specific requirement. This can be based on one’s lifestyle and income. Comparing options can be done on CreditCardFinder.com.au

Students and individuals with low income should choose a budget credit card that comes with low interest rates. This is because they probably will not pay off their cards on a monthly basis. For such budget credit cards, interest rates may vary from as low as 7 percent to a high of 24 percent. It would be wise to take note of the fact that settling only the monthly minimum can never help clear one’s credit card debt. Long term borrowing is also not recommended.

Big spenders can compare deals offered by Gold credit cards. They usually provide discounted rates for individuals with huge mortgages. The really high credit limit cards can be used as a front line spending tool for managing one’s cash flow. This is linked to a credit line, the income is deposited into a bank or mortgage account which pays for the monthly bill automatically at a low interest rate for outstanding balances. Credit cards with high credit limits are useful for international trips and emergency cases.

Rewards programs are the next thing to can look into. Compare different rewards programs. The normal rewards credit card charges more when it comes to annual fees than what can be earned through the rewards. For huge spenders though, especially those who make their card or cards do all the work, it will make a whole lot of sense. Sticking to a credit card with no annual fee was is a really good optoin to consider. Credit cards with no frills & no rewards are useful for small day-to-day purchases and small loans but of course, if not settled right away, it can prove to be very expensive.

Last but not the least, credit limits and fees are a must in picking the most suitable credit card. Compare the charges, fees and interest rates. Look into how really high fees are charged for cash advances. Credit card providers estimate an amount a little bit more than a cardholder’s actual paying ability and set it as a credit limit. Let us face it, credit limits are there to restrict debts but banks also thrive on providing people with loans. In addition, there are also fines for going overboard or not paying the monthly minimum. Look for credit card providers who can debit the minimum payment directly, automatically, or even the whole monthly due.

It is never about just the credit limit, or the rewards programs, or the fees. It is about everything concerned. Study the options thoroughly before finally picking the right credit card. It is a choice one should never take for granted. It could mean the difference between a never-ending debt process and financial freedom.

The big question remains – what was under every Aussies’ Christmas tree?

Electronics and other household appliances are always a popular choice during Christmas. It’s this time of the year when people are willing to spend whatever they have saved the entire year for bigger than usual purchases. There were a lot of home deliveries made during the season as online spending continued its growth with a 9.3 percent increase in transactions. A rise in delivery of big flat-screen TVs or gadgets was also expected with the electronics market having a growth of 8.1 percent.

Electronics and other gadgets have become an inevitable part of modern living that some parents even provide mobile phones, game consoles, and even laptops for their kids as young as preschoolers. Although electronics and other gadgets may not be a practical choice, a lot of consumers still purchase these items be it for convenience or as status symbol.

IBISWorld also revealed that Australians spend so much on fancy food and dishes. This showed in the 9.9 percent increase in consumers who dined out in December. Consumers who worked so hard and religiously saved most often rewarded themselves with a good meal from their favorite restaurants.

IBISWorld also noted that businesses related to new clothing and groceries did not enjoy the happy holiday fever since both categories were coping to beat inflation with only 2.0 percent and 3.4 percent increase in sales last December.

As consumers became wiser with their hard-earned money, they became more aware of their options on how to spend their cash. Last year, there was an increase in purchases of second-hand goods as households began to be more practical by selling unused or barely used possessions and turned them into much needed cash.

There is no beating thinking the practical way – by spending wisely. Whether money is spent on economical or barely used items, the objective is always to spend it well. After all, peace of mind is a priceless reward for those who know how to spend within their budget.

Christmas is never about extravagant gifts but the thought that comes with it. So come next Christmas, do not fret about how $1200 will be spent, and worry more about giving every loved one – family member or friend – just about anything one can.

The Australian Bureau of Statistics calculates that more than 600,000 Aussies have gone overseas for holidays and business trips per month.  That number has been rising steadily over the years. In 2007, before the world financial crisis, about 450,000 Aussies a month were going overseas. A decade ago the number was about 290,000 a month.

According to the Visa Global Travel Intentions Survey published in September, Australians spent an average of $US3,636 during their last overseas trip, making them the biggest travel spenders worldwide.  Aussies responding to the survey say they are planning an average of three international trips in the next two years, spending an average of 16 nights on their next holiday.

Knowing this, banks and financial institutions try to upgrade their travel money services and offer more competitively priced products.

Graham Heunis, head of retail banking and wealth management at HSBC Australia, understands that some travelers want the security of knowing exactly how much spending money they will have when they travel.

“For some people, having certainty and the ability to budget is a valid issue,” Heunis says. ”But others prefer to be able to use their own transaction account and credit card wherever they are. That gives them a lot of flexibility and convenience.”

“When I travel, I take a little cash, my debit card and my credit card. We see a growing number of our customers doing it that way,” he adds.

Cost of service is another important issue to consider when choosing from among the various travel money options.

Travel card users need to be aware of costs that can include a purchase price of as much as $15 plus reload charges, ATM fees and inactivity fees.

Debit card users have costs such as currency-conversion fees of as much as 3 percent and ATM withdrawal fees of as much as $5.

Credit card users can also pay currency-conversion fees and ATM fees. However not all card issuers apply these charges.

Travellers should also consider these money tips:

1. Notify your bank before you go, this way they can update you on countries that have moved to chip technology that requires a PIN, not signatures, for transactions; daily withdrawal restrictions in your destination; and provide you the customer service numbers of your service providers.
2. Do not keep all cash, cards and cheques in one place, this ensure if you are robbed or lose your wallet you don’t lose all your travel money.
3. Keep a copy of all receipts to check against your statements.

There are many products out there for the travelling Aussie and here are a few deals worth a traveller’s time:

1. The Citibank Plus transaction account has no fees for overseas ATM or point-of-sale transactions.
2. Other debit cards with no overseas ATM or currency conversion fees include NAB’s Gold Banking account, Hume Building Society’s All Purpose account and ECU Australia’s Access Plus account.
3. The GE Money 28 Degrees MasterCard credit card has no ATM charges or currency conversion fees.
4. ING Direct’s Orange Everyday transaction account, which is fee-free for local banking, has a low $2.50 charge for international ATMs.

Travel safe and enjoy your vacation!

Maintaining a budget is no joke; it is the ultimate challenge. One’s control and determination will be tested to the core. It is similar to sticking to a diet. Avoid all things tempting like sweets, cakes, pastries, ice cream and so on. In the financial aspect it is the splurging that one must avoid. Spotting a certain something one may like and be tempted to buy it but must back down. Yes, it is a challenge. With the never-ending ads on television, billboards, fliers and print ads, one may not stand a chance or worse, a visit to the mall where a new product is being introduced and tested. It is over. One may very well give up. It is a hopeless case, or is it? With just the right discipline and thinking, one may actually resist.

Start with psyching up one’s self. For some it does work. To just brainwash one’s self into thinking splurging has already been done. It is no different from thinking one has had enough ice cream to take in. Sweets and chocolates are bad for the health. That is the power of mind over matter. How one does it may not really matter anymore.

Stay away from the things you will use to splurge — cash and credit cards. Securing one’s cash away in the form of a term deposit is one option. The thought of being charged a penalty fee for withdrawing cash before the agreed term may be enough to stay away from it. On top of that, term deposits reward account holders with a high rate of interest. Here comes the hard part, not using the credit cards. The best way to go about it is leaving it at home. Remove the temptation of impulsively making huge purchases. Bring it along only when it is absolutely necessary and needed.

Always decide with someone else & never alone. Be it a spouse, a partner or a friend, ask for advice. Talk about the intent to purchase, the budget at hand, how much it costs and more importantly, the pros and cons of the planned purchase. Because chances are, if that person is aware of the dilemma, the whole conversation will lean more toward discouraging one from buying the item. Purchasing may not necessarily be avoided but eyeing an alternative purchase can be an option. It will definitely be something cheaper & lighter on the budget.

The temptation to overspend, like the air we breathe, will always be around but with the right frame of mind and putting one’s financial well-being ahead of everything else, it can be a walk in the park. Not at first though, eventually, after one gets used to the routine of controlling, it will all be just part of one’s system. A system geared toward a rewarding financial freedom.

Ten years ago, Aussies spent $8 billion on credit cards in December.  Five years ago, that amount doubled to $16 billion spent through credit cards in December.  Aussie credit card spending was a whopping $20 billion in December 2008, the year of the global financial crisis.

Forecasts predict that Aussies will spend between $22 billion and $23 billion in credit card purchases this Christmas season.

Unfortunately, forecasts also show that 33 percent of the $22 billion or so credit card debt will not be paid before interest charges start to grow and add up. Interest rates can go as high as high as 20 percent for debtors who carry the balance of their debt from month to month.

Many Aussies are hooked on revolving their debt, which is carrying a balance from month to month. If you keep revolving month after month, you could find yourself in serious trouble.

How does one pick a suitable credit card?

Damian Smith of 9News, says “If I were to pick a person at random out of the adult population, on average they should be using a basic, low-rate credit card,” when asked which type of card suits which type of person.

The first tip Smith gives when picking a credit card is to consider whether or not you carry over an unpaid balance from month to month.

If you choose to revolve your debt then pick a credit card that charges the lowest possible interest.  No rewards credit cards currently charge from 10.7 percent to 13.5 percent, which are much better than the 20.5 percent on some premium cards.

However, if you are confident you will never revolve a debt, the interest rate does not matter because you will not be paying interest. What matters then are the fees your credit card company will be charging.

A quick look at comparison sites will show you a list of no annual fee cards, basic cards that average $60 annual fees, rewards cards at $90 annual fees, and cards that charge as high as $295 annual fees.

Smith says the popular rewards card only suits very few people and can leave many in debt. In actuality, a reward card’s costs can outweigh the benefits.

Smith says the mean spending on credit cards in Australia is about $17,000 a year and the reality is that most people spend less than that amount.

He estimates you need to spend about $60,000 a year on a reward card to come out on top.  If you spend $1000 a month using a typical rewards card, you will get $101 worth of annual rewards but also pay $134 in annual fees.

Are rewards cards worth it?

Although rewards cards may not suit all people, there are still a few who can spend about $60,000 a year and come out on top.

Cards structure their rewards programs differently, so it is difficult to come out with a thorough comparison.

Basically, says Smith, what you want to know is how many dollars of rewards you’re getting per point, how wide the range of benefits is and what the benefits will cost in points.

Some cards will give you one point per dollar spent; others will give you 1.5 points or two points.  The question you should ask is how many points are required to earn the rewards that are attractive to you?

Smith says “the key here is not to change your spending habits just to earn points.  If you spend more, or buy more expensive goods just to earn points, you’re probably wiping out any benefit.”

Have you ever considered the real cost of minimum repayments?

Smith presents a scenario with a $3000 balance, a basic card interest rate of 14 percent, and the average required minimum repayment of 2 percent or $60 a month.  A cardholder in this scenario would pay $3766 in 24 years and three months to clear the debt.

A premium card at 19 percent for the same balance, a cardholder would take 44 years and seven months to repay the debt and fork out more than $10,000 in interest over that time.

The minimum required payment is NOT the amount needed to clear the debt in good time. It is prudent to pay your card off in full each month but if you can’t do that, pay off as much as you can.

Shopping is bliss, and you have to charge each purchase, only this time you whip out your smart phone each time you need to make a payment.

This situation is more a reality now than an episode out of a sci-fi flick like Star Trek.  It’s not that hard to imagine if you consider that up to ten years ago, most mobile phones could only make calls and text messages. Thirty years ago, telephones were only mobile within an office room or house.

The telephone service system has gone a long way in making our lives more convenient with new technology, while the banking system has steadily embraced paperless transactions.

Ten to fifteen years ago cheque payments were still a popular method of transacting a purchase in retail shops. These days, use of cheques are almost limited to bills payments and used only by a certain age demographic in the Aussie population.

According to credit card provider Visa Australia and New Zealand, the number of transactions being carried out via mobile phones is on the rise and near field communication (NFC) is proving unsettling to traditional payment methods.

Speaking to Computerworld, Ben Pfisterer, Visa’s director of innovation and emerging products said that an end to plastic payment cards is in sight for the first time, but it will be some years before they become obsolete.

“Obviously, that will take years to happen, but we really feel that there’s no need for plastic anymore with NFC because it will be more secure in the phone,” Pfisterer said.

Recently, high street retailer Coles announced that it would put on trial contactless payment at its stores from February 2012, and looks to rolling out the technology across all its outlets in July.

What is NFC?

Near Field Communication (NFC) is a technology that aims to make life easier and more convenient for consumers around the world by making it simpler to make transactions, exchange digital content, and connect electronic devices with a touch.

A standards-based connectivity technology, NFC harmonizes today’s diverse contactless technologies, enabling current and future solutions in areas such as Access Control, Consumer Electronics, Health Care, Information Collection and Exchange, Loyalty and Coupons, Payments and Transport.

NFC allows a device, usually a mobile phone, to collect data from another device or NFC tag at close range. In many ways, it is like a contactless payment card that is integrated into a phone.  It’s like Bluetooth but far better because with NFC devices can simply touch to establish a connection, instead of programming two devices to work together as Bluetooth does.

In what ways can NFC impact our lives?

Contactless Payment - NFC has a short range of about 1.5 inches. This makes it a good choice for secure transactions, such as contactless credit card payments, customer loyalty schemes and coupons making the digital wallet a reality.

Transportation - NFC works with most contactless smart cards and readers, meaning it could easily be integrated into the public transit payment systems in cities that already use a smart card swipe.

Health Care - NFC tags can provide medical professionals with information about what treatments a patient should receive, keep track of when nurses and doctors have checked in with that patient, and update a database. In addition to improving treatment, NFC tags also have potential in medical research.

The benefits and application of NFC are s endless as ones imagination.  For now, you can start imagining your phone as a digital wallet dispensing payments while you do away with your credit and debit cards.

According to Rohan Gamble, managing director of Mozo.com.au, an approximately $1.4 billion a year is being charged to business travelers merely for spending their money overseas along with foreign currency fees, travel money charges and other charges that all adds up to the total cost of an average overseas trip.

Gamble further stated “Our love of overseas travel is creating a lucrative business for the banks and travel money operators, who are slugging Aussie travelers with a confusing array of fees for spending money overseas.”

A research conducted by Mozo.com.au was able to prove how travel money charges are badly communicated by the industry, thus making multiple layers of fees and commissions confusing to consumers.

To avoid this dilemma of business travelers, here are some tips on how one can avoid unnecessary charges and fees:

1. Make it a habit to shop around for the best foreign currency rates

Keep in mind that pre-ordering your foreign currency and collecting it afterwards from your nominated bank branch or foreign exchange outlet not only results in the best rates but will also save you money. This practice is the total contradiction of exchanging your cash at airports where rates and commissions are at their worst and highest rate possible.

2. Understand that ‘commission free’ foreign currency “No commission” does not always necessarily connote no extra cost for you

Most providers build a profit margin into their buy and sell rates which is, at most times, separate from their advertised commission. As a result, some have higher margins than other foreign exchange providers, so again, it pays to compare rates before deciding on a provider.

3. Think twice before deciding on using your credit or debit card as your main form of payment when travelling

When you decide to use your credit or debit card for travelling, be prepared to get stung by card fees. Keep in mind that some credit and debit cards charge quite a lot when used overseas. However, if you still plan to travel with minimal cash and pay via plastic, then choosing a card that has no foreign exchange fees and no ATM withdrawal fees like 28 Degrees MasterCard from GE Money or the Citibank Plus Visa Debit will save you a lot.

4. Opt for pre-paid travel cards

Pre-paid travel cards are ‘top up’ travel money cards which can be pre-loaded with your chosen currency. These ‘money cards’ are becoming increasingly popular to travelers due to its safety and convenience, making it a good alternative to cash. Just make sure to check exchange rates when using pre-paid travel cards and expect additional fees for extra services like recovering your cash post-holiday.

5. Keep in mind that the most expensive way to obtain cash overseas is via a cash advance using your credit card in an overseas ATM

Using your credit card’s cash advance feature overseas will cost you not just an overseas cash advance fee but a foreign exchange fee and an interest on your cash advance as well, at a very hefty rate. So before travelling, make sure you have already planned your way out just in case you run out of cash to avoid drowning in charges and fees.  

As a matter of fact, a growing number of Aussies are using their credit cards to buy items via online retailers – from designer bags to candies. According to a study conducted by PayPal (an e-commerce business allowing secure money transfers, transactions and payments through the Internet), most people nowadays shop via the Internet while they are at work. The said survey found that 80 percent of Australians have admitted being guilty of indulging minutes of some web-based retail therapy during their working hours instead of heading to nearby shops during lunch breaks.

This study also shows that 50 percent of online transactions are completed during standard office hours. The results, PayPal claims, have not changed a bit despite the fact that Christmas is just around the corner.  In addition to that, majority of Internet shoppers are noted to purchase items as “treat” to themselves rather than purchasing items to be given as “gifts” to friends or loved ones this coming holiday season.

Adrian Christie of PayPal Australia commented “As our research shows, consumers are increasingly taking advantage of the convenience that online shopping offers, particularly in the office.”  

In line with the rising popularity of online retail, Westpac-Melbourne Institute stressed on the need of Aussies to be more cautious not just in giving out their credit card details online but also in racking up too much credit card debt, which is expected to rise at 11 percent this coming Christmas season.

In order to make sure that transactions via the Internet are safe and secure, take note of the following:

1. Make Sure That Your PC is Secure

Fraudsters are operating nowadays by planting a keylogger to your system that patiently waits for you to enter credit card or bank passwords. Once your computer is infected, it does not matter even if you are dealing with a legal merchant because your identity will surely be stolen using the keylogger planted in your system.

2. Always Check the URL

It should always be “https” and never “http.” Legit online merchants would always want their clients to come back so they also make sure that their sites are “clean” and secure.

3. Know Who You’re Dealing With

Before clicking the “buy now” button, it helps to do a little research first. You can either type your merchant’s name at the search box and look for any reports of scam or check via Eopinions .com, Google Shopping or Better Business Bureau Online for seller ratings.

4. Know Your Rights

Remember that credit card companies give their subscribers an extra level of protection by promising to remove charges if fraud is proven. Always be cautious during online transactions to make sure that you are covered by this warranty. Never disclose security numbers to online merchants unless you are a hundred percent sure they are legit. It also helps to check your credit card statement on a regular basis especially a few days after an online transaction is made to make sure that everything is charged accordingly.

RateCity explained that the value of any rewards, merchandise and flights alike, is no match to the credit cards’ annual fees. The research also revealed that cardholders would need to spend approximately $60,000 a year to maximise the benefits. “Only the biggest spenders get any value out of most credit card rewards – and only then if they pay their cards off in full every month,” explained Damian Smith, Chief Executive Officer of RateCity.

“These cards are really aimed at the high flyers; people who are using them for the corporate expenses and getting them paid off in full every month. Most mums and dads won’t be spending $5000 per month on their credit card,” he said. Minimal level of spending or a few thousands a year will get a cardholder very little value in rewards. “We all feel like we’re winning if we can land an airfare or a bit of merchandise. But for the most part those rewards don’t stack up to the value of the annual fee,” he added. The truth is, cardholders need to squander approximately 3.5 times the average Aussie credit card spend of $17,000.

For instance, a credit cardholder will spend an average of $1000 per month using a regular rewards card, the cardholder will receive $101 worth of annual rewards but will also be paying annual fees worth $134. This gives a difference of $33 which the cardholder needs to pay on top of the cardholder’s usage; and, for the purpose of this example, the credit card is paid in full every month so no interest is added.

“In order to get a Sydney-Melbourne return flight on rewards points from your credit card, the average amount you’d have to spend is over $19,500,” according to Smith. While some credit cards may dispute this, the best flight rewards credit card would still require a cardholder to spend nearly $7000 in order to claim a Sydney to Melbourne return flight which would actually cost a cardholder as low as $140 if they purchase it.

The calculations of rewards show that these are mere luxuries and end up being very expensive. Frequent flyer credit cards’ annual fees cost up to $700 per year which is already equivalent to as much as 5 return Sydney-Melbourne flights. Thus disputes the initial idea of a cardholder that rewards are extra savings they get from their credit card usage.

Therefore, it is wise not to drown in excitement over credit card rewards. These rewards are offered by credit card companies to entice cardholders to use their cards as often as possible. At the same time, it is used to mask the annual fees and other charges that can be sky-high. “Don’t get sucked into rewards, sit down and do the sums because it won’t take long and you could be hundreds of dollars per year better off,” Smith advises.

But then again, a few cases of fraud does not necessarily mean that consumers should stop being vigilant. They should always be reminded that fraudsters are lurking around the corner waiting for a leeway where they can grab their chance to steal away either their victims’ identity or money.

Being vigilant means consumers should make it a habit to check transactions and notify their banks of any suspicious activity in their accounts. To avoid becoming victims of fraud, consumers are also reminded to uphold standards of due diligence by doing away with the habit of writing down their PIN (remember that the act of writing PINs makes you liable for any unauthorized transactions that might take place). Aside from that, the simple practice of tearing/shredding letters from banks or credit card bills before throwing them helps a lot in the issue of security.

Now that online purchasing is becoming a fast trend, consumers should keep in mind that a secure website starts with an “https” and not “http.” In shopping malls crowded with people, however annoying it may seem to sales clerks or cashiers, consumers should not let sales persons take away their credit card into a place where it is supposed to be swiped out of their sight.

In such cases where a consumer’s vigilance still is not enough and he becomes a victim of credit card fraud, MasterCard’s zero-liability policy should help to ensure that, in most cases, a cardholder whose credit card details are used by fraudsters for illegal transactions, should be duly reimbursed.

However, Verizon’s 2011 Payment Card Industry Compliance Report states that  upon checking with their initial reports in 2010, only 21% of organisations were fully compliant of the said security recommendat. In addition to that, Verizon also reported that organisations’ priorities for compliance have been less centered on recommendations by the PCI Security Standards Council this year than last year.

Most of the major breaches, according to Verizons’ 2011 report, suggest that it could have been prevented if organisations religiously followed recommended protocols. The reassurances of MasterCard during the past months, in conclusion, are therefore given timely to consumers who participated in surveys and those who are preparing their credit cards for holiday spending.

Consumers should not only be extra careful before deciding on swiping their credit cards but should also be aware of how their insurance policies work and how they can avail of the benefits of such policies.

The survey revealed that one in five Australians allocate 20 percent of their monthly income for personal entertainment and leisure and about one in ten Aussies set aside as high as 30 percent. Budget allocations for leisure and entertainment widely differ with every generation. People from Generation Y may have the luxury of allotting more of their income to entertainment since most of the people in this group are young and single whereas people from Generation X and Baby Boomers may have different priorities with their growing families.

The survey conducted by MasterCard is based on the spending patterns of 650 debit and credit cardholders. It showed that 12 percent of the people from Generation Y allocated the biggest leisure budgets with more than 30 percent of their income going to leisure and entertainment whilst only 3 percent of people from Generation X and 1 percent of Baby Boomers spend that much on entertainment. It also revealed that Aussies are not giving up their entertainment budget anytime soon; their entertainment budget covers dining out, movies, hotel stay and spa. These activities are somehow considered essential to a certain degree regardless of one’s generation.

This affirms that the love for leisure and entertainment is common to all Australians. The average Australian allocates around $1600 just to dine out with family and friends and about one-third go to a fine dining restaurant once a month. The survey also reflected how Australians love going to movies. Around 75 percent visited the cinema at least once over the past six months while the remaining 25 percent go to the cinema at least twice or thrice a month. Overall, Aussies only spend 13 percent of their monthly income on entertainment and leisure compared to the regional average in the Asia Pacific which is 14 percent.

These figures may have been overlooked but does not come as a surprise since establishments offering entertainment and leisure services are surviving better than the retail sector in an economy threatened with another financial crisis. Aussies are finding ways to reward themselves after a hard day’s work and recognise every bit of their effort to save. Surprisingly, dining out is more of a choice for them instead of purchasing new items.

Even if households are cutting costs on material possession such as clothes, car, appliances and the likes, consumers must have realised that nothing beats the time spent with family and friends on a dinner at a restaurant, a movie date with spouse or family time at the beach which is why everyone is spending for leisure and entertainment.

The pin pads, supplied by Ingenico, will be installed in stores starting this month. Contactless payments will be tested at ‘selected’ stores starting February 2012.

The company will roll out the pin pads to all 750-plus stores nationwide by July 2012.

A spokesperson from Coles Group said the system “will accept contactless payment from all major card operators, and can be used for both credit and debit payments”. The payment terminals will process contactless payments from Visa, MasterCard and all major credit card users.

It is understood MasterCard has about seven million PayPass cards in the Australian market. Visa has not revealed how many PayWave contactless payments cards it has issued in Australia. However, according to Visa Country Manager, Vipin Karla, “There has been a 150% increase in the number of Visa PayWave transactions in the last quarter”.

Whatever the figures, it is clear Australians are embracing this new new technology as it makes shopping experience in any grocery store simpler for customers.

Coles Group joins Woolworths in rolling out contactless payment facilities. Woolworths launched its contactless payment terminal back in May 2011. There has been no announcement on the completion of its 30,000 terminal roll out.

Mirabella continues by saying “businesses will have it even tougher and would make it harder for them to pay the costs.” With small profit margins due to increases in prices and low consumer confidence from a lot of citizens fearing for a possible economic breakdown, the addition of Carbon tax hits an already injured food industry. “Everyone will face additional costs; not only supermarkets, but even food processing centers and even the agricultural sector will feel the effect of carbon tax,” she continues.

Carbon tax is a form of environmental tax that started in Europe during the 1990s, which encouraged lesser usage of industrial items that put more carbon in the air, aimed to preserve the environment. Within recent years more and more countries have been starting to implement carbon tax, Australia being one of the more recent ones. The promulgation of the Carbon Tax, despite its good intentions for the environment and even for financial means of the government, is also a very difficult  expense to adjust to, considering that just within the year prices of various basic commodities and interests on credit and loans have gone up.

It is also becoming more difficult for businesses, especially for micro, small and medium enterprises, to gain revenue under such taxing conditions. With the country still in debt from creditors, and without full recovery from some countries in Europe and the US, it is wise to assume that recovery from the global financial breakdown in 2007 still has its repercussions today. Low consumer confidence has been the effect of these increases, with people saving more and more due to the possibility that prices may go up too much that they might lose their financial capabilities. With all of these taken into effect, consumers, producers and even retailers are now greatly affected by this ripple caused by increase, making businesses suffer with lesser profits due to less consumers shopping at their stores.

More areas of Australia would probably be affected by Carbon Tax and with most mass production items affected by Carbon Tax; it is a sure bet that prices will begin to increase any time soon; organisational taxes for the emission of carbon would likely be passed on to the consumers. Hopefully, the dimensions that surround Australia’s economy would be able to adjust and act in a way that helps themselves, the economy and the environment as well.

The Carbon Tax has also affected a number of organisations across different industries aside from the food industry; major manufacturing companies, electric producers and other commercial businesses have reported a possible increase in prices due to Carbon Tax.

Apprehension of credit cardholders comes from the simplicity of the transactions. They ask themselves how a financial transaction could be so incredibly simple and so they say it’s impossible. There must be a catch or a glitch. The contactless transaction consists of this step – the cardholder making the purchase needs to swipe their credit or debit card on the pay pad and it is done, purchase is completed. Cardholders have to bear in mind the general limit of $100 but major retailers like Coles allows purchases using the contactless credit card up to $35 only.

According to David Lindberg, Cards General Manager of Commonwealth Bank, contactless credit card transactions are more secure than the regular credit cards even if no PIN is needed to culminate the transaction. Credit cards with a magnetic strip are more susceptible to skimming since the cardholder’s information are stored in the magnetic strip. “It’s a far more secure way to make a credit card payment,” Mr Lindberg said.”There has never been a single incident of fraud in any single pay pad in Australia.”

Mr Lindberg discloses that a boost in consumer confidence in the contactless technology is expected after retail giant Woolworths’ announced its support in the technology and the installation of contactless payment terminals in their stores. “One of the big announcements is Woolworths using it in their stores and that is moving the market to a tipping point,” Mr Lindberg said. “There will be a tipping point in acceptance in a year.” However, there are a lot of credit cardholders that are quite familiar with the pay pad and are able to use it with ease.

“The view we have is it’s much like all new technology when it rolls out and at first people are apprehensive on how secure it is,” highlights Mr Lindberg. “It’s no different than when online banking came out.” Cardholders should try to look at its benefits to appreciate this new technology and stop worrying about other details; cardholders must believe in the system. When you swipe your card only and skip the PIN input process, a customer would save up to 30 seconds at the check-out counter. Any fraudulent activity or transaction is covered by the banks. “Nobody looks forward to check-out and as people adopt this technology it will take one, two or three seconds to check-out,” Mr Lindberg said. “That’s good for consumers, but it’s really important for businesses.”

Contactless payments are accepted at major retail stores and food outlets like McDonald’s, Red Rooster and Bunnings. Check for other establishments that uses the contactless technology and enjoy its benefits.

One significant finding showed that the generation gap of credit card users currently does not revolve around age or social factors; Bernard Salt, KPMG demographer mentions that, “There are two Australians: the edgy, the connected and the modern lifestyle-inclined, and then there are the conservatives.” The report has mentioned that these two groups of people, the leaders of social change and the laggards, are grouped according to their preferences on adopting technology, having children, socializing, and physical fitness.

Key findings of the survey composed of how the regular household looks like, dining habits, holiday practices, social media, love and happiness in the virtual world, and credit card use.

The survey showed that people above the age of 45 to 59 years old generally have more than one credit card; with 5 per cent are earning at least $200,000 per household annually, and on the average have 18- to 24-year old children. This condition is known as households with Kids in Parent’s Pockets Eroding Retirement Savings, or KIPPERS; where the Generation Y children continue to stay in the nest.

The report also indicated that 11 per cent make less than $30,000 annually; and are comprised of 18- to 24-year-olds or above 65-year-old pensioners. Mr Salt says, “The survey possibly reveals why 18-24 year olds are so keen to stay in the family home: when they move out they transition from the richest households in Australia to the poorest.”

15 percent of the ages of the 25- to 29-year-olds and those above 60 years old go on three or more holidays in a year; whereas middle aged couples between the ages of 40 to 59 years old with children are less likely to go on holidays. The same results are observed with eating in restaurants or dining out.

The heaviest users of credit cards are from the Baby Boomers; based on the survey, they have more cards and more financial responsibilities to attend to. The Generation Y, on the other hand have been reported to own one or none at all and are reluctant to spend on it significantly. “This finding runs counter to what many might think is the issue with credit cards. It’s not Generation Y with multiple cards; it’s the boomers,” observes Mr Salt.

On the aspect of social networking, 91 per cent of Australians surveyed make use of the Internet, with e-mail, Facebook, Skype, MSN and Google as the most used sites. For overall happiness in their relationships, 95 per cent have said yes; 5 per cent of those who answered no are comprised of 11 per cent from the 45- to 59-year-olds. The survey also showed that the greatest uptake in dating sites is contributed in by those in the early 50s. Mr Salt says of this event, “These are the peak stress years associated with child rearing: teenagers and heavy financial burdens appear. The peak time for divorce is late 30s to early 40s. It might be that those who “stay for the sake of the kids” come to regret this decision within a decade,” showing that the outcome of unhappiness in a late 40s relationship.

KPMG is a world-renowned professional services firm, in line with Deloitte, Ernst & Young and PwC that provides audit, tax and advisory services.

According to The Australian Financial Review, Bendigo and Adelaide Bank Ltd will conduct a dry run this last quarter of the year in preparation for the big launch around the second semester of 2012. This will give enough time to polish the service and attend to any concerns that need to be addressed in case there should be any bumps on the road.

The upgrade is the first major revamp in 25 years that EFTPOS implemented in its functionality. This improvement is following the launch in June of the company’s new multi-million dollar advertising campaign –  “the payment method of choice for small, everyday purchases”. Also in the previous month, EFTPOS users started paying for newly implemented fees for usage of EFTPOS. Thus, improvement and widening of its service and functionality is in order.

In Australia, there is an increasing number of shoppers making cashless transactions and they turn to debit and credit cards. EFTPOS comprises a whopping 85 percent of all debit payments. According to ePAL, the consortium that owns EFTPOS, the objective of the upgrade is to improve the competitiveness of the system as it contends with international giants Visa and Mastercard. The debit and credit card industry is becoming a very competitive sector.

Using a debit or credit card nowadays is fast becoming a way of life. Not only that, the usage of debit and credit cards have evolved from simply swiping a card to simply tapping one’s credit card or using one’s mobile phone in lieu of a debit card. From using it for regular purchases to being able to use it to pay for utilities and online purchases this evolution has made our lives easier. From not having to bring cash to not needing cash momentarily, the existence of debit and credit cards truly spells convenience for the consumer.

Almost all adult Australian has access to EFTPOS system through their banks since personal accounts can be linked to both debit and credit cards which is why there is a huge percentage in debit transactions using the EFTPOS service.

Although credit cards are still widely used, using a debit card is also becoming a popular choice as more and more Australians are making a conscious effort to avoid debt and save. There are simply too much uncertainties in the global economy that might affect the local economy that keep Australians on their toes and cautious of their expenditures. Prices of commodities are continuously increasing which leaves a dent in the household budget and the use of a debit card keeps them in control of their finances at all times, thus, making it a very prominent option.

Even with the new EFTPOS fees, using a debit card is still a wise and economical choice to be debt-free.