Tag Archives: ATM

50 Years of ATM and My NFL Financial Hero

Happy 50th birthday to the ATM machine! It was September 2nd, 1969 that Chemical Bank opened the first ATM in New York city. It wasn’t very sophisticated, but just spit out a few 20 dollar bills – but it started the automation wave in the banking world. Today, it’s optical scanners that read the bills you’re depositing and the information off cheques. Tomorrow, being tested today, is face recognition and fingerprints to make it much safer than your four digit PIN. Can’t wait to see what the next wave will be after that!

If you’ve got your favourite NFL players list for the start of this season, you may want to add someone. It’s Alfred Morris, a running back for the Dallas Cowboys. Since Rob Grankowski retired never having spent a dime of his $54 million salary, Morris is my new NFL hero when it comes to saving money. A rare example in football! Morris still drives his 1991 Mazda that he calls “Bentley” and bought from his grandmother before he ever made it into the NHL. Yes, a 1991 – and he’s made $7.5 million so far. Love that as a role model!

Hacking an ATM Seems Easy & God Can’t Get Credit?

Two 14-year olds in Winnipeg seemed to have no trouble hacking a Bank of Montreal ATM machine. They found an ATM internal operating manual online and decided to test it at a real machine.

They actually managed to get into the operating system of the ATM, and guessed the six digit password on the first try! Gee, when the password is 123456 you think there’s a problem? That was enough for them to get out of the system and go into the branch to share their information. But the branch staff didn’t take them serious. So the kids asked if it would be OK to get the proof and were told good luck trying.

Back at the ATM, they went back into the operating system and printed out the amount of money in the machine, the transaction history and the income made from surcharges.

They even changed the ATM surcharge down to a penny and the greeting to read: Welcome to the BMO ATM. Go away! This ATM has been hacked.

Back in the branch with all the printouts, the staff now realized they had a problem.

BMO Media relations stated in an email to the Calgary Herald that no customer information and contents of the ATM were ever at risk. Yea..right…

God can’t get credit?

A Russian immigrant by the name of God Gazarov can’t get credit. Yes, his first name really is God. He was named after his grandfather, and in Eastern Europe that first name is quite common. It’s kind of like many Latinos name their son Jesus.

But Equifax, one of the credit reporting agencies is refusing to accept his first name. As a result, they won’t open a file with his current credit references. No credit report – no borrowing, no credit cards, or car loan – something he tried to apply for last year. He now has a lawyer and is suing Equifax.

Change Of Plans: Your Bank Wants To See You Again

With new credit card legislation a couple of years ago, card issuers can’t increase your credit limit without your consent. Remember that their main goal is to have you owing the most amount of money and making the smallest payments. THAT is how they maximize their interest income.

These days, you’ll get a notice on your statement that you qualify for a limit increase – you just need to call. Or they’ll send you a separate mailer, and may even phone you from their call centre. Don’t do it – unless your limit is really low, it generally becomes more temptation.

The trend of getting you out of the bank and to the ATM machines is changing. Think about it: They can’t solicit or sell you very well if they can’t see you!

When I was at one of the big no-service banks last week, I overheard the teller next to me tell people: My screen just showed that you qualify for a limit increase on your card. Want me to go ahead and put that through? Is that clever or what? And in the few minutes I was there, this teller was three for three. She converted all three people she asked to a higher limit. Great for the bank…often not so great for the person thinking they’re being flattered. Scotiabank does it through their ATM machines. If you’re up to bat, they’ll have a screen that advises you that you qualify for a Visa limit increase and just click here. However, it’s not as effective as seeing you in person.

What the banks want to do is to make you sticky. That’s bank slang for having you deal with them on as many products as possible. The more diverse business they get from you, the lower the odds are that you’ll ever leave them. If you have an RRSP, your mortgage, savings, a term deposit, your checking account, and a credit card, they’re betting you’ll never go through the hassle of shopping around and moving somewhere else.

Technology Is Really Changing The World of Credit & Finance

We know technology is taking over more and more of our lives, and the area of credit, banking and finance is no exception.So I wanted to share two big inventions that you have to know will be pretty commonly used within the next year or two:

The first one is called person to person banking, or mobile to mobile. Starting in the spring, if you owe your buddy 20 bucks, or need to cover half of a restaurant tab, you’ll no longer need to find an ATM, or your checkbook. You just need to get your friend’s e-mail address or telephone number, and you can send the money directly from your cell phone in a few seconds.

It’s already rolled out in Europe and Asia, and will easily be embraced by tech people and the 20-something age group first, because they have grown up with the internet and on-line shopping. But the rest of us will follow, because over half the population now does some kind of on-line banking.

If you remember, the first big one is and was Paypal. An on-line company that allowed you to pay for your E-bay purchases from your credit card or bank account. That company was so successful, E-bay purchased them. It was also something the banks had no interest in at the time, thinking there’d really be no demand for on-line payment services. They were dead wrong, since Paypal now has 78 million active accounts.

But this time, when it comes to mobile person-to-person, the banks are at the front of the line to implement this technology. They’re thinking maybe 25 cents a transaction as a fee. Now, that might not sound like much, but like all their other fees and service charges, it’ll add up to a few bucks a person, and billions in total revenue.

PNC Financial and the credit union of Boeing are at the front of the line to roll out this new technology. MasterCard is working with a different provider, and Visa is already testing the program through US Bancorp.

Here’s how it works: You simply sign up for the service with your bank or another provider. Enter someone’s e-mail address or phone number to send the money, and it’ll be debited right from your account, just like any other bill payment you do on-line. The receiver just chooses to have the money deposited to a checking account or a credit card as a payment. And the great news is that cell phones are way more secure than any computer system. They are way harder to hack into, making this new person-to-person banking system safer than any of your current on-line payments.

The second one is very cool, as well. How would you like to do almost all of your banking in your housecoat, right from your computer? Within the next year, you’ll be able to make any bank deposit right from your computer at home without ever leaving your home, business, or office.

You just need to scan the cheques you’re depositing, and e-mail that scan to your bank. The financial institution processes the deposit with all those transit and account numbers on the bottom of the cheque. They’ve got the numbers on a scan, so they don’t need the original! You can literally throw the cheque away after it’s received. It really is that simple with just a computer and a scanner. Plus, going one step further, one bank in the U.S. has already started taking deposits done electronically with your smart phone.

A little less lofty is that one in five ATM’s in the U.S., not in Canada yet, scans your deposits the same way. You’re still leaving the house, but your ATM receipt is the actual scan copy of what you deposited as a receipt. Fidelity Investments ATMs were among the first, but it’s getting pretty common already. I’ve done it a number of times in the States and it’s really slick to have that copy as a receipt. What’s great is that this saves the banks a fortune, too. The payback on the software is only 14 months. But first the Canadian no-service banks need to get the software sooner, rather than later, please!