Category: Technology

Don’t spend too much with digital wallets

By
Brenda Porter-Rockwell
September 6, 2017
LGFCU card in mobile wallet

Digital wallets allow for quick and easy purchases using your smartphone or tablet. You can leave your wallet at home, and just tap, pay and go. Your payment information and passwords are stored in a mobile payment app like Apple Pay®, Samsung Pay or Android Pay.

However, tap and pay could make it too easy to spend and forget. Even though digital wallets are not yet accepted nationwide, more and more retailers are adding this payment option daily. As a result, a recent Nielsen survey predicts that as digital wallet usage increases, spending will too. Don’t let this new-found payment freedom derail your good spending habits.

Choose and use the right card

The first card you add to the app becomes your default. This means it will be the one that shows up first for purchases. You can change your default card at any time. It’s a good idea to choose the one you use most and stick with it regardless if it is your debit or credit card. This helps keep your finances organized.

With your debit card, funds get deducted right away leaving no bills to pay at the end of the month. If you use a credit card, choose the one with the best available terms. Look for features like a low annual percentage rate (APR), no added fees and an extensive list of places that accept the card. You’ll find these must-have benefits with your LGFCU Visa® debit or credit cards.

So, add your LGFCU credit or debit card to your digital wallet for fast and easy check out. Watch one of our how-to videos and in less than 60 seconds you’ll learn how to add your card to any Android, Apple or Samsung phone with a digital wallet.

Keep your current budget in mind 

  • Don’t rush to buy something “just to try it out.” Wait and spend for a purpose.
  • Be careful impulse buying doesn’t become the norm. Check in regularly to make sure your budget hasn’t gone off the rails.
  • Remember, you’re still dealing with real money. Don’t spend more than you can afford to pay back in full each month if your default card is a credit card.
  • It’s a good idea to use a digital money management service like LGFCU’s Compass. You can track your spending, create budgets, set alerts and see your transactions in real time. And you’ll know if your spending is still on course with your original plan. Or you'll know if you need to make adjustments to get back on track.

Keep your financial data safe 

While the wallet apps take steps to keep your card data secure during transactions, go the extra mile by locking your device with a fingerprint scan, PIN or Passcode. With that in mind, check your transaction history in Member Connect often. This reduces the risk of fraudulent transactions you could be responsible for.

The advice given is for informational purposes only. Consult your financial advisor for additional guidance. 

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