APACS reviews some of the year's top payment myths

As we draw this year to a close APACS comments on some of the most popular payment myths that have been voiced throughout the year. Below you will find a selection, but more payment myths can be found on the APACS website.

In no particular order:

Myth 1: If you are at a cash machine and you enter your PIN code in reverse it will send a signal to the police to alert them that you are in danger
Fact: This urban myth spread far and wide thanks to the power of the internet. It isn’t true, if only because many PINs will be the same when reversed i.e. 6226. 

Did you know?

• There are more than 90 cash machine withdrawals per second from the UK’s 63,420 cash machines
• Cash machines supply 70% of all cash acquired 

Top tip: Stand close to the cash machine and always shield your PIN.

Myth 2: You can’t use a debit card overseas
Fact: If you are going overseas, you can almost always pay by debit card wherever you see the card scheme symbols on your card being displayed – such as Visa, or MasterCard and Maestro.  These worldwide brands ensure that you can use your debit card globally whether in shops or at cash machines.

Did you know?

• Generally it’s cheaper to withdraw cash overseas using your debit card and cheaper to make purchases using your credit card – however you should always check your terms and conditions for overseas charges on each of your cards before leaving 
• Total spending on plastic cards abroad amounted to £25 billion in 2007, with £11billion on debit cards and £14billion on credit and charge cards

Top tip: Before going abroad, always ensure that your bank has your up-to-date emergency contact details and that you have their 24-hour contact number or your card protection agency’s number.

Myth 3: Your card can only be used fraudulently in a foreign country if you are abroad, in that country, with your cards.

Fact: Chip and PIN has made it harder for fraud to be committed in UK shops and cash machines. Fraudsters have instead had to turn to stealing our magnetic stripe details and PINs in the UK and then making fake cards, for use abroad in shops and cash machines still without chip and PIN protection. That explains how your card can be fraudulently used abroad with a PIN without you. As more countries roll out chip and PIN – European banks have committed to do this by 2010 – opportunities for this type of fraud will start to fall.

Top tip: Regularly check your bank statements, and if you notice anything irregular on your account, contact your bank as soon as possible.

Myth 4: Cheques can now be processed on the same day through The Faster Payments Service
Fact: The Faster Payments Service only relates to standing order or phone or internet payments – all fully automated payments. Cheques however, are paper items, which need to be physically transferred between banks so that they can be examined by the paying bank for security and fraud prevention purposes. This process takes time and cannot be done on the same day. 

Did you know?

• In its first 6 months of operation, the Faster Payments Service processed 62.9 million payments with a value of £26.3 billion.

Top Tip: If you can make a Faster Payment, but need to check whether the person receiving your payment can, visit www.canipayfaster.co.uk to test their sort code number. Remember to always double check you have used the correct account number and sort code, because a Faster Payment is irrevocable.

Ends

For further information contact the APACS Press Office on 020 7711 6316

or press@apacs.org.uk

Notes to Editors

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.