Seeing How Kids Pay Keeps Fraud at Bay

Many kids do not know that how they pay with their cards matters when it comes to protecting funds from fraud. For example, swiping the card’s magnetic stripe through a point of sale device exposes the card information to potential skimming devices. Dipping the card into a chip reader or using mobile Tap to Pay doesn’t.

FamZoo has a unique feature that encourages kids to pay more securely. For each transaction (whether successful or not), we show the “card entry mode” on the Transaction Details screen. The entry mode indicates how the payment was made (or attempted in the case of a decline).

Entry modes include magnetic stripe read, mobile Tap to Pay, chip card read, online or in-app entry, stored payment method, etc. We include details about the entry mode's relative security so we can nudge kids toward the safest transacting habits. Expanding the entry mode line reveals details about how the card information is transmitted and how vulnerable it is to fraud.

Here’s a rundown of the most common entry modes:

• Manual Key Entry — The card information was manually entered, likely by the merchant in a store.

  ☆☆☆☆☆ Weakest Security
  Card information manually provided to a merchant is vulnerable to copying or insecure storage.

• Magnetic Stripe Read — The card information was read off the magnetic stripe by a point of sale device.

  ★☆☆☆☆ Weak Security
  Card information read off the magnetic stripe is vulnerable to card skimming devices. Gas pumps, ATMs, vending machines, and other self-checkout machines are some of the most common targets.

• Online/App Entry — The card information was typed into a web site or app.

  ★★☆☆☆ Medium/Weak Security
  Card information keyed in online or in an app is vulnerable to phishing attacks or merchant data breaches.

• Stored Payment Method — The card information has been retained by the merchant and was retrieved from a stored payment profile.

  ★★★☆☆ Medium Security
  When properly secured by the merchant, stored card information can reduce risk. Without adequate protections, it remains vulnerable to data breaches.

• Chip Card Read — The card information was read from the card’s EMV chip by inserting it into the chip reader of a point of sale device.

  ★★★★☆ Very Strong Security
  EMV chip cards generate unique tokens for each transaction, significantly reducing the risk of fraud. Card information is read securely and generally not vulnerable to card skimming devices.

• Mobile Tap — The payment was made using contactless payment technology like Apple Pay, Google Pay, or Samsung Pay.

  ★★★★★ Strongest Security
  Card information is protected by tokenization which does not transmit actual card numbers to the merchant. Payment devices are often also protected by biometric authentication.

  One of the best things about mobile Tap to Pay is that kids don’t have to pull out the physical card to complete the purchase. The most secure cards are the ones that never see the light of day.

Encourage your kids to tap and dip to give skimmers the slip!

👉 To find the card entry mode information for a transaction, see here.