Mask your ATM, security system, garage and computer codes and passwords!

There was a discussion this morning about how crooks are modifying ATM's with fake card readers and miniature wireless cameras that allot them to steal people's ATM card numbers and the associated PIN. Here is the link to the Snopes article:

A suggestion was made to always use an ATM inside the bank. However this isn't always possible or feasible.

Remember that, like a computer login account without a password, your ATM card information is worthless without a PIN. Thus protecting your "last line of defense" is most important so I always try to "mask", or otherwise obscure, the process of entering PINs, security codes and passwords by placing the free hand over the typing hand whenever possible.

As a rule, always try to mask the entry of sensitive information when using a keyboard or keypad. Always enter this type of sensitive information with the assumption that there is a camera pointed at the keypad, someone is watching over your shoulder, or perhaps spying from afar with binoculars!

Credit Card Acceptance in Europe

In response to a recent question about credit card acceptance in Europe, I went back through my Quicken transactions and came up with the following statistics for the number of restaurants, stores, museums, churches, attractions or service providers that accepted (or were willing to accept) credit cards over our recent 25 days in the Mediterranean:

3 of 17 museums, churches or attraction (Vatican Museums, Basilica di Santa Croce in Firenze and the Time Elevator in Roma!)
6 of 15 vendors or shops (low because this includes street vendors)
2 of 4 tour companies (5 tours total)
0 of 22 taxi drivers or transfer companies
0 of 4 train, tram or cable car tickets
12 of 21 restaurants (lunch and dinner only, and does not include gelati places)

In purely dollar terms, if you exclude the cruise and hotel portions of the trip (the two most expensive items), credit cards were only accepted for less than a third of all our expenses.

As you can see, credit card acceptance definitely lags in Europe and around the Mediterranean so you'd better have lots of cash!

Buy Stocks Now!

I think the recent 30-50% slide in equities already prices in a severe and protracted recession. Assuming credit flows do stabilize (and the trend is positive), we are basically left with a stagnant economy. Most companies however will still be around and most will still make profits. The current "irrational" market however is valuing many stocks at ridiculously low valuations. Some are even near their cash values which means the market doesn't think they're worth anything. Clearly much of the recent selling is liquidity-based and I figure seniors and others who MUST have some cash to hold them over are mostly done selling by now (or will be very soon). And after the non-serious investors have exited via panic selling, the remaining investors will begin to see stocks for their intrinsic value again. At that point, and this is where I think we are, it will be apparent that many many stocks are bargains. This is not to say we will recover our huge losses (if we do, it will probably take a long time)--just that the equity market has clearly overshot a value target on the way down.

Cancel that service for better pricing!

Whenever competition exists for a particular service, a really good way to keep your costs down is to threaten to cancel your service. Drive a hard bargain and say you're leaving for their competitor due to better pricing or superior offerings. To keep your business, they will almost certainly lower your rate and/or offer free or reduce-priced bonuses. Here are some examples:

XM Satellite Radio: We've had a $7.99/mo. promotional rate for years. Every time my year is up, XM tries to force me to a regular plan where monthly rates are usually $12.99/mo and up. I simply threaten to cancel, and whine and belly-ache about not listening to the service much, etc. etc.

Verizon vs. Comcast: With each provider, I call right after my initial one-year contract is up and my low promotional rates are scheduled to go up to the significantly higher regular prices. Before I call, I research the best current deal being offered by their competitor. Then, I call my current provider and tell them I am switching to the competitor due to their special promotion. Without exception, the offer is matched or bettered.

Credit cards: Many of the best credit cards are benefit cards that offer cash rebates, airline miles and/or other perks. Many of them also have high annual fees and/or interest rates. I will usually partake in some of the better cards because they will typically waive the first year's annual fees. In many cases, if you call after the first year and tell them you'd like to cancel the card because of the annual fee, they will waive it again. Also, if your credit is good and you don't fully pay your balance monthly, the interest rate is also negotiable if you bargain with them.

Bricks and Mortar Banks

I've noticed many new bank branches springing up recently near where I work and live. As someone who banks and pays bills almost completely online, writes about 4 checks a year, and uses less than $400 cash annually, it befuddles me as to why banks still have bricks and mortar branches to expand their business and to service customers. Over ten years ago, around the time of the first true Internet banks, I boldly predicted that, within 10-15 years, traditional banks would go the way of the dinosaurs. Judging by the steady expansion of bank branches, I was wrong.

I don't have or need a local bank because I don't need or want to pay for their bricks and mortar presence. I get better rates, better service, and more accurate record-keeping by doing everything electronically. Thus I don't pay for something I don't use. However the vast majority of Americans still value their local bank presence to make deposits, visit their tellers, use the drive-thru, talk with bank staff for credit lines, loans, mortgages or investments, use the safety deposit box, and partake of various other services. Go figure...