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Mobile Syrup

‘The Language of Fraud’ is contributing to scams in Canada

Digital scams are more common than ever, and language has played an important role in popularizing them.

According to a recent analysis by Visa, fraudsters create messages that take advantage of people trusting “too-good-to-be-true texts and emails.”

Visa surveyed 6,000 adults from various countries, including Canada, Germany, and France.

The analysis found Canadians are more confident than those surveyed globally about recognizing scams; 58 percent of Canadians believe they know about fraudulent behaviours and can spot a scam, compared to 48 percent globally. But that doesn’t mean they aren’t vulnerable, and “The Language of Fraud,” as Visa calls it, plays a big role.

The analysis found 59 percent of Canadians respond to common phrases scammers use. For example, texts or emails containing “urgent,” “action required,” or “positive news” phrases typically receive a response. A further 35 percent of surveyed Canadians said they’ve fallen for a scam on more than one occasion.

“A turn of phrase can turn a simple click into a breach of personal information,” Visa said.

Image credit: Visa

But digital scams aren’t the only thing people need to be wary of.

Businesses also need to be aware of fraudulent activity. According to Moneris, a Canadian finance tech company, fraud cases have increased by nearly 30 percent since businesses have resumed regular activity following pandemic restrictions. Figures are based on fraud cases Moneris has investigated.

Nearly half of these incidents come from the card-not-present category. These transactions relate to remote orders that don’t involve payment cards being used through payment terminals.

Chargeback fraud is another important category. In this instance, a fraudulent transaction leads the scammer to get their money back after they dispute a charge on their payment card.

There are various actions Canadians can take to keep themselves and their businesses safe. Visa recommends Canadians update their password regularly and avoid clicking on links in unsolicited messages. Moneris warns businesses to protect their payment terminals and to review their transactions for suspicious activity regularly.

Image credit: Shutterstock 

Source: Visa, Moneris

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Mobile Syrup

Credit card processing fees are coming for more than just your phone bill

Last week, MobileSyrup reported on a Telus CRTC filing requesting permission to add a credit card processing fee to customer bills. Understandably, people were upset, and the CRTC file has received tons of comments from Canadians upset about the prospect of once again paying more for their monthly cell phone bill.

However, Telus’ proposed credit card processing fee hinges on the result of a lawsuit against credit card companies over these same fees. The thing is, the result of this lawsuit may affect much more than your Telus bill — here’s what’s happening and what to watch out for to avoid paying extra credit card fees this fall.

The lawsuit

In its filing to the CRTC, Telus cited a 2018 lawsuit against credit card companies as the reason for it wanting to add credit card processing fees. However, the filing itself was somewhat vague about the details.

I ended up doing more digging than expected to try and learn about this lawsuit. Overall, I’ve found a few different articles that seem to reference it, although some of the dates and information differs from article to article. For example, this CBC News story seems to match up to everything Telus said in its filing but notes the lawsuit was launched in 2011, not 2018. Below I’ve linked a few articles that seem to concern this lawsuit, or similar lawsuits:

The more important information, however, is the result of the settlement. Credit card companies like Visa and Mastercard charge what are called interchange fees to businesses. These fees can range anywhere from one to three percent, depending on the card and its associated rewards (cash back, loyalty points, etc.). Interchange fees can, understandably, get quite expensive for businesses — especially with the increase in online purchases during the pandemic. Plus, with the increased prevalence of credit cards, there were more fees, and more fees meant higher costs for businesses.

As a result, the settlement did two things: first, it enabled businesses to claim a rebate for some of the fees paid between 2001 and 2021, and second, it gave businesses the ability to pass on credit card fees to customers. As an aside, some coverage noted credit card companies had rules preventing businesses from doing this before and that the lawsuit prevents these types of rules, but that wasn’t reflected in the CBC News coverage.

Anyway, the main takeaway here is that businesses that accept credit cards can also add a surcharge to cover the cost of related fees for accepting said credit card.

The new rules start in October

Starting in October (October 6th, according to Telus’ CRTC filing), these new surcharge rules come into place. However, it remains unclear which businesses plan to do this.

CBC News paints the fees as something of a trap for small- and medium-sized businesses, who might need the surcharge most but could stand to lose more business by charging the fees (put another way, if two stores sell the same product for the same price, but one has a credit card surcharge, which store are you going to buy from?).

The publication also suggests that small- and medium-sized businesses pay higher fees than large businesses, likely because big businesses have much more negotiating power with credit card companies and banks. Moreover, the federal government has reportedly pledged to lower credit card fees for small businesses but hasn’t actually done this yet.

What to watch for in October

Come October, Canadians will want to keep a close eye on their spending if they want to avoid paying additional credit card fees. The easiest solution? Switch to debit or cash to avoid extra fees.

Unfortunately, that’s not a great solution for everyone, especially when it comes to purchases that may be at higher risk of fraud. Debit cards often have less fraud protection than credit cards, which is particularly troublesome since debit cards are also tied to bank accounts. Look no further than MobileSyrup’s own Patrick O’Rourke, who had a difficult time recouping the over $2,000 defrauded from him after his debit card information was stolen from the McDonald’s app.

If you have (or want) to keep using your credit card, you may have to watch for processing fees. In most cases, hopefully, those will be disclosed before payment. An example of this is, coincidentally, Telus. Despite the obvious issues with Telus passing on credit card fees to customers, the carrier promised to warn customers about the change in the filing — and arguably, the wide coverage of the filing further spread the news.

With that in mind, keep an eye out for emails from companies you use a credit card with, as this will likely be the main way any business warns users of fees. Moreover, always check your bills for notices about new fees (especially phone and internet bills!) since sometimes companies will add that information to a bill warning about a change in the next bill.

Image credit: Shutterstock

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Nouvelles quotidiennes

Mexico popular destination for Canadian tourists

Mexico is an increasingly popular tourist destination for Canadians, with 2010 spending up 21 percent over the previous year, according to a report published by Visa, Tourism Outlook: Mexico.

In 2010 alone, Canadians spent $538 million on travel and tourism in Mexico, up from $445 million in 2009. As a major source of tourism dollars for the Latin American country, Canada trails second only to the U.S., and is significantly ahead of Spain, in third place with $102 million in tourism spending for 2010.

"Canadian tourists continue to have a positive impact on the Mexican tourism economy. The strong willingness and desire of Canadians to travel across the southern border reinforces the importance of the North American tourism industry to the region’s continued economic growth," said Eduardo Coello, with Visa in Mexico.

Once in Mexico, international visitors used their Visa cards primarily on retail purchases like clothing and food, which made up 51 percent of the money spent. Accommodations accounted for 17 percent of 2010 spending, with flights making up only 4 percent of the total amount spent.

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Nouvelles quotidiennes

Pay NYC subway fare with smart phone

 

As with more than 10,000 New York taxis already equipped with the Visa payWave system, New York City subway passengers will now be able to swipe their smartphones to pay the fare instead of digging around for their wallet, cash, cards, or tickets.

The pilot project includes 28 Lexington Avenue subway stops with payWave portals at the turnstiles, as well as most PATH railway stations. Passengers testing the system simply tap their smart phone to a reader and voila.

In Los Angeles, a prepaid ReadyCredit Visa card is accepted at LA Metro’s TAP, as well as most retailers, and can be reloaded as needed.

Participants in the smart phone payment project can use their smart phones at certain retailers in the Big Apple as well. 

 

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Nouvelles quotidiennes

Canadians Banned From Libya

Following a comment from Stephen Harper, Libya’s president, Mouammar Khadafi, has prohibited Canadian citizens from entering Libya.

Stephen Harper denounced the hero’s welcome given by the Libian president to a terrorist accused and imprisoned for the crime committed against a Pan-Am aircraft in Lockerbie in 1988.

The terrorist, who was freed for humanitarian reasons, received a large celebration which offended many world leaders, including Stephen Harper, who did not hide his negative comments.

On his way to the UN last month, Mouammar Khadafi specifically cancelled his flight to Newfoundland and has put a stop on any Canadians receiving a visa to enter his country.

 

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Nouvelles quotidiennes

Tibet Is Closed To Tourists

Probably fearing protests, the Chinese government has stopped, since Sunday (September 20), issuing tourist visas for Tibet. This measure will continue until October 8.

China is celebrating the 60th anniversary of the birth of the People’s Republic of China on October 1. Tibet is under the control of communist China since the country was invaded by China in 1950.

Although the celebrations will be held in China, authorities feel that the festivities may lead to problems in Tibet, especially since the last event in Lhassa in 2008, left 100 people dead.

Tourists already in Tibet will be tolerated, but will be closely monitored.