If you belong to a credit union, some unexpected fees may be coming your way.
At least three Bay Area credit unions are charging members for using their PIN number at stores and gas stations.
This week, Bay Gulf Credit Union began assessing members 50 cents each time they punch in their PIN for a purchase. In November, GTE Federal Credit Union started charging 25 cents per transaction. The Railroad and Industrial Federal Credit Union also charges $1 every time you use your PIN.
The fees are taking some members by surprise.
"I'm disappointed," said Ron Alicea, Bay Gulf member for 32 years.
Bay Gulf President Bill DeMare said the credit union was forced to impose the fees because of recent losses due to debit card skimming. Skimming enable thieves to steal debit card information by placing tiny devices into ATMs, gas pumps or other point of sale kiosks. When the consumer swipes their card, the device reads the account number; if they enter their PIN, it records that as well. DeMare said the crooks then produce a duplicate card, visit an ATM and clean out the bank account.
DeMare said each skimmed card can cost the credit union thousands of dollars, which is why Bay Gulf is imposing the fees on PIN transactions only. Signed debit transactions are typically for merchandise rather than cash, so signing instead of using a PIN also protects the credit union member.
"All fraudulent activity from a sign based debit card, there is no liability for the member, zero liability. We incur all liability for the member," DeMare said.
Bay Gulf said it will waive the first round of fees if the member didn't know about them.
If you are surprised, give them a call.
But after that, he said, the charges are in effect.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement
Advertisement