A Case Study of CardValet at Work
By Joan Honeycutt
Today it seems like everyone is concerned with security. Keeping your assets safe requires more than just locking your doors at night. Identity theft and debit card fraud are serious threats that result in financial loss and significant inconvenience. Because these issues are so serious, Federated Bank is always on the look-out for ways to help you protect yourself. One product that we have recently made available to our customers is CardValet. This app offers customers more control of debit card use. It also reduces the risk of unauthorized use of debit cards by thieves. But how does it actually work? If you’re having a little trouble recognizing its value or understanding its details, keep reading. The following is a fictional example of how CardValet works.
The Situation
Imagine that “Bob” decides to give CardValet a try. He downloads the app and sets his limits. He tells the app that he only authorizes the use of his debit card in the following circumstances:
- The purchase may not exceed $200.
- The purchase may only be made within 50 miles of his home.
- The purchase may only be made at grocery stores or gas stations.
- The card may only be used when his phone is less than 15 feet from the card.
Since Bob typically only uses his debit card for relatively small purchases of groceries and gas, usually close to home, these limits are appropriate.
CardValet at Work
Fast-forward to 6 months after Bob downloaded the CardValet app. With the app working invisibly to protect his debit card, Bob has nearly forgotten about CardValet. Then Bob and his family decide to take a vacation several states away from home. While on vacation, Bob’s family makes a stop at a local souvenir shop. Between sunscreen, t-shirts, and gifts for friends, the total bill comes to $203.68. “Oh, well, it is vacation,” Bob sighs and pulls out his debit card to pay.
Bob swipes his card, and it is declined. Thinking he must have swiped it incorrectly, he swipes the card again, and again it is declined. Bob is shocked. Before leaving on vacation, Bob made sure he had plenty of money in his account. Then he remembers the limits that he had set for his card through CardValet and realizes that his purchase is outside of several of these pre-set limits, including:
- The purchase totaled more than $200.
- The purchase was made more than 50 miles from his home.
- The purchase was made at a type of store not approved for purchase.
Since the purchase did not fall within the parameters that Bob had set, the card was declined.
CardValet Gives You Control
Once Bob realizes that the CardValet app has stopped his purchase, he immediately opens the app and makes changes to allow the purchase. Any change on the CardValet limits goes into effect nearly instantly. A few seconds later, Bob swipes his debit card again, and this time the transaction goes through. After the purchase is complete, Bob returns to the original limits of the card.
CardValet Provides Debit Card Fraud Protection
With souvenirs in hand, Bob and his family head out to the beach. Unfortunately, while the kids are splashing in the ocean and Bob and his wife are napping in the sun, a thief grabs Bob’s wallet. While Bob does not have much cash in his wallet, his debit card is among the cards that are taken. The thief hurries to use the card to make his own purchases before the theft is discovered. But thanks to CardValet, his attempts to commit debit card fraud are in vain. Because the purchases are attempted more than 15 feet away from Bob’s phone, none of them go through. Whereas without CardValet Bob might have had a number of charges on his debit card that emptied out his bank account, with CardValet no purchases were made.
I hope this little vignette has given you a better idea of how CardValet works in the real world. Visit our website if you are ready to download this helpful app. As always, if you have questions about CardValet or any other product or services that Federated Bank offers, stop by your local branch to speak with one of our friendly representatives.
