New handheld credit card readers set to be a success

A new credit card reader is set to be launched within the UK in the hope that it will cut down credit card fraud.

The amount of online fraud has rocketed over the past few years and people who regularly purchase things online have now started to become concerned over their privacy whilst they pay through supposedly secure systems.

In order to use these new readers, customers will have to put their card into the reader and then type in their pin number.

Read more at: New handheld credit card readers set to be a success

BofA to continue issuing controversial credit cards

Bank of America will continue a controversial pilot program in Los Angeles that markets credit cards to customers without Social Security numbers despite a national uproar, the bank said Thursday.

"We know some will find this unacceptable," the bank's chairman and CEO, Kenneth D. Lewis, wrote in an editorial in the Wall Street Journal.

The program is in full compliance with U.S. laws and the Patriot Act and is intended to help customers build a credit history, Lewis said.

Read more at: BofA to continue issuing controversial credit cards

Overseas Card Spending Hits Record High

South Koreans’ credit card spending in foreign countries soared to a record high last year as more people went abroad for holidays and study, the central bank said Friday.

Overseas card spending by domestic residents totaled $4.84 billion in 2006, up 32.8 percent from a year ago. The amount includes the card spending abroad by foreigners living in the country, but that growth is not as high as spending by Koreans, according to the Bank of Korea (BOK).

The number of Koreans who used cards more than once to buy goods and services overseas increased 19 percent year-on-year to 7.05 million.

Read more at: Overseas Card Spending Hits Record High

Turbocharge Your Credit Card Repayments!

We Brits certainly love our credit cards. Indeed, according to the Bank of England, we owed £55 billion on credit cards at the end of 2006.

What's more, we spend around £10 billion a month on our credit cards, according to banking payments association APACS.

One comparison that I often make is that credit cards are like razor blades. Used sensibly and correctly, they are an extremely useful tool.

However, used recklessly, they can really hurt your finances and even become WMDs: Weapons of Money Destruction!

Read more at: Turbocharge Your Credit Card Repayments!

Latest credit card survey shows Americans are taking the bait

BALTIMORE - How many credit cards do you have in your wallet?

With Creditcards.com reporting 6 billion credit card offers mailed to consumers in 2006 and with a recent credit card study showing 14 percent of Americans now sporting more than 10 of these plastic passports, simply getting off the card companies’ mailing lists might be a good step toward financial independence.

It’s a move underscored by the fact that the average American family, according to the online card-comparison company, now maintains $9,000 in revolving debt.

Read more at: Latest credit card survey shows Americans are taking the bait

Higher Credit Card Fees Hit Small Businesses Hardest

“Credit card fees charged to laundry services are almost twice higher than those charged to golf clubhouses. How absurd is that?”

Small-and-medium sized companies and self-employed businessmen are calling for the credit card industry to lower its fees, and in response, the Korea Federation of Small and Medium Business said on February 22 that they have set up a special committee for promoting lower credit card fees.

The federation said, “So far, unlike mega franchises, small-sized businesses have not had a negotiation channel for credit card fees; from now on, this committee will take on the role.”

Calls for lower card fees have been made by different business sectors, such as department stores. However this is the first time for small-and-medium sized companies and mom-and-pop shops to join forces and set up their own representational organization to ask for a lower fees.

Read more at: Higher Credit Card Fees Hit Small Businesses Hardest

Lloyds starts credit card fees

Customers at Lloyds TSB will be charged if they are not using their credit cards enough, it has emerged.

The bank, which is expected to report £3.7bn in annual profits on Friday, up seven per cent on last year, has written to customers who do not use their cards very much explaining that they will have to pay an annual fee of £35.

The move comes days after the new chief executive of the Nationwide Building Society predicted the end of free banking, saying that a system of annual fees on bank accounts was the best way forward.

Read more at: Lloyds starts credit card fees

Consolidate Credit Card Debt - Eliminate Debt With A Home Equity Loan

Is consolidating credit card debt into a home loan a good idea. It could be for some, especially if you intend to pay off the debt. There are tax advantages plus the borrower can take advantage of lower interest rates and lower monthly payments.

According to national surveys, the average household carries a credit card balance of approximately $8,000. Because of high finance fees, many people find that it is difficult to reduce their consumer debts. While bankruptcy is a tempting option, it is important to explore other alternatives for eliminating debts.

Benefits of a Debt Consolidation Loan

One approach for eliminating or reducing debts involves acquiring a debt consolidation loan. Although debt consolidation loans will not miraculously eliminate your debts, these loans make is possible to reduce your debts faster.

Read more at: Consolidate Credit Card Debt - Eliminate Debt With A Home Equity Loan

Good debt vs. bad debt

It should come as no surprise to you that Canada - North America, really - is awash in personal debt.

The amount of personal debt in this country is ever-increasing and a large part of the reason is that credit has never been easier to get. Whereas credit-card issuers previously looked for customers who could repay, today card issuers relish the chance to reel in those who'll continuously charge beyond their means at 18% or 20% interest rates.

But debt is a complex concept. Not all of it is good -- a fact a surprising number of people fail to realize until they're in the hole -- and yet not all of it is bad.

When used intelligently, debt can be of tremendous assistance in building wealth.

Read more at: Good debt vs. bad debt

Online identity theft increases from phishing

Although the Internet is versatile enough to offer amenities like online shopping and banking, the information highway isn’t always the safest option.

Phishing is probably the most commonly heard of method that scammers use to steal identities and money.

According to www.internetnews.com, phishing is defined as the art of sending an e-mail to people pretending to be from a bank, major online merchant (such as Amazon or Ebay), credit card company, or PayPal asking them to click on a link and verify their account information.

Read more at: Online identity theft increases from phishing

Britons Set New Low For Card Usage

U.K. consumers hit a record low for credit card usage in January, using plastic less than any other time in Britain's history, according to findings released by the British Bankers' Association.

The BBA said the amount borrowed on credit cards fell last month by nearly $657 million, or 42%, from December's total of $156 billion.

Despite a drop of $17 million in the amount of overall consumer credit outstanding, the total net lending rose by $7 billion last month, thanks to increases in mortgage originations and personal loans.

Read more at: Britons Set New Low For Card Usage

Credit card loans fall in remortgage goldmine

There is business out there for mortgage intermediaries as families move to swap expensive credit card borrowing for a cheaper remortgage.

Latest figures from the British Bankers Association (BBA) show that credit card lending actually fell by £1.8 billion last year, the first decline since 1993. But the BBA said that borrowers were refinancing and paying off credit card debts with remortgages.

And this is confirmed by the latest findings of Alliance & Leicester’s (A&L) borrowing monitor. Mortgage borrowing has continued to grow rapidly, while the appetite for personal loans and credit card debt has diminished.

Read more at: Credit card loans fall in remortgage goldmine

Saving On Credit Card Processing Fees

When Yvonne Chu launched Kimera, her Brooklyn, N.Y.-based dress retailer, five years ago, setting up a system to accept her customers' credit cards was an afterthought. Already armed with a small business card from Capital One, she figured why not use the bank's credit card-processing services, too? "I needed it in a hurry," says Chu.

It took a few years, but Chu eventually realized she was leaving real money on the table. Today she uses New York-based Merchant Processing Services, which charges her a base rate of 1.61% on each bill, plus 20 cents per card swipe. That's down from roughly 2% and 23 cents at Capital One. Says Chu: "Every little bit counts."

Of all the demands of running a business, shopping for a competitive credit card processor might seem trivial. Yet a healthy dose of due diligence can go a long way.

Read more at: Saving On Credit Card Processing Fees

Tearing Up Credit Card Applications May Not Be Enough

How many times have you reached into your mailbox and found a credit card application? For many of us, the answer is too many times to count. This credit card application story will have you paying more attention to what you do with the offers you get in the mail.

On a weekly basis, I can't tell you how many credit card applications I get in the mail. Until now, I've just ripped them in half and tossed them in the trash. But is tearing them up in a couple of pieces enough? The answer may surprise you.

Pam Dixon of the World Privacy Forum says tearing up those applications doesn't cut it.

Read more at: Tearing Up Credit Card Applications May Not Be Enough

My Credit Card Drives Me Nuts

Do you ever get that slightly paranoid feeling, every once in a while, that your credit cards actually are out to get you?

I've been a regular user of a certain credit card for many years. I'm not the kind of girl who charges everything from my morning coffee to new appliances just to claim more credit card rewards. I do get a percentage of cash back for every purchase, and I've been generally satisfied.

Lately, though, I'll sit down to pay the bills and be surprised that my credit card payment is due almost the moment I open the envelope. I started thinking I was just getting a little careless with the mail. Maybe the statement had been sitting around longer than I thought.

Read more at: My Credit Card Drives Me Nuts

6 steps to credit card serenity

We've become a nation dependent on plastic. Rent a car, buy a gift online, make airline reservations.

We think nothing of pulling out our credit card for these and hundreds of other transactions every year. That's not necessarily a bad thing. Credit cards can be a convenient and safe alternative to cash. But too often, before you know it, credit card purchases spiral out of control (to the tune of more than $8 trillion a year) with a simple swipe of the card.

Then, with high rates, fees, penalties, continued spending and the other pitfalls that can happen with credit cards, debt accumulates much faster than your ability to pay it down.

Read more at: 6 steps to credit card serenity

Getting Lower Credit Card Rates

Dave Ramsey's recent first stint as the money answer man on The Early Show was so successful, he came back for another one Tuesday.

The financial author and radio show host fielded questions sent in by viewers. We got so many after the first segment, we knew we were onto something!

This time, the missives involved how to get credit card companies to lower your rate, whether it's better to save for your kids' college or your own retirement, and what the best investment vehicles are for young people.

Read more at: Getting Lower Credit Card Rates

Prepaid credit cards - a double-edged sword?

Prepaid credit cards for those without bank accounts and teens without self-control have been available in the United States for years.

Now, Visa New Zealand, in cooperation with that country's postal service, is taking the concept to a new level that promises a measure of protection from online identity theft, but also the prospect of abuse by young people looking to access adult services, and criminals needing a cloak of anonymity.

Moreover, Visa says these prepaid cards are becoming a "de facto" means of conducting commerce online. The company is anticipating the market for them will move well beyond gift-giving and those who otherwise cannot get regular credit cards.

Read more at: Prepaid credit cards - a double-edged sword?

'Credit' best in any language: Using plastic while abroad saves hassle, money

Traveler's checks used to be as common as a hot meal on a cross-country flight. Not anymore.

Nowadays, more and more travelers are opting to use credit and debit cards when they travel overseas to take advantage of more favorable exchange rates along with other advantages the cards offer, experts say.

Transactions involving credit and debit cards have better currency exchange rates because Visa, MasterCard, American Express and other giant credit card companies process millions of transactions a day. That gives them pull with banks to negotiate better exchange rates than those obtained for individual transactions.

Credit cards can provide protection in case there is a dispute over a purchase, as well as an itemized account of spending. Debit cards allow travelers the convenience of pulling local currency from ATMs, as opposed to waiting in line at a bank or money exchange counter to cash a traveler's check.

Read more at: 'Credit' best in any language: Using plastic while abroad saves hassle, money

Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits

Debt counselors are now getting calls from confused and desperate consumers spouting interest rates of 27% to 33% who are looking for credit card debt help.

"Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury," says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. "People need to have credit card debt terms spelled out for them in easy to understand language.

More than half of consumers who carry credit card debt want customized disclosures on their monthly bills explaining how many years it will take to pay off the card if only the requested minimum payment is made so that way they have a clear idea of how long it will truly take to get out of debt," he continued.

Read more at: Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits

Hawaii Residents Push Credit Limit

The competition is so intense, credit cards these days come loaded with incentives like cash bonuses and airline miles. But as Hawaii consumers rack up the rewards, they're also racking up debt at one of the fastest rates in the country.

Jogger Brian Byers never lets credit card debt out run him.

"I'm not into credit cards. Never had one, not planning on getting one soon. I don't even deal with a checking account," Byers says.

Read more at: Hawaii Residents Push Credit Limit

Want to avoid credit card debt? Avoid credit cards

I’m not one of those guys who will tell you to cut up all your credit cards.

But if it’s the only way you can keep from revolving debt each month, then do it.

Credit is out of control. The word has lost meaning. It’s a stand-in word for debt, with softer overtones, as in: You don’t have debt, you’re just learning to manage credit. How nice.

A recent New York Federal Reserve study concluded that payday loan stores are not really so bad because they provide credit to a strata of consumers — basically poor people — who otherwise can’t get it.

That’s true, in a warped way. Payday loans, with 390 percent annualized interest rates, do give desperate people a handy option to go even deeper into debt. But I’m not sure that’s a good thing.

Read more at: Want to avoid credit card debt? Avoid credit cards

Using credit cards wisely can save money

Most people shouldn't have credit cards. They allow you to spend money you don't have. Supposedly they are good for emergencies, but what is an emergency? That plasma TV is on sale and you don't have the money?

About a year ago, I paid off all credit-card debt and now use only a debit card. I am much more aware of how much I spend and think twice about unnecessary purchases. Before, I got in the expensive habit of carrying a balance.

About 85 million Americans, or nearly 60 percent of all card users, carry a balance, according to recent industry estimates. Many end up paying thousands of dollars in interest they could have avoided with more self-discipline.

Read more at: Using credit cards wisely can save money

Beware of the 'universal default'

Melina paid one credit-card bill late. She tucked the bill in her purse around Thanksgiving but forgot to mail it, then sent it about a month later when she needed to use that purse again.

She mailed the bill in, paying more than five times the minimum amount due.

She was worried about the card's interest rate rising because the issuer had that as a penalty for late payments but believed she could sweet-talk her way out of it.

She was prepared for a late charge — figured she owed it — and thought that would probably be the end of it.

Read more at: Beware of the 'universal default'

Google Moves To Checkout Line

Last June, Google launched a service offering a one-click method of paying for purchases that minimizes the risk of credit card information being stolen off a Web site.

The service, called Checkout, links to credit card accounts, but is more secure and faster than, say, typing in 16 digits off a card.

Checkout is used on 100 of the top 500 online shopping sites, including those of Toys R Us, Linens N Things and Buy.com. But the new service faces an uphill battle fighting its more-established rival PayPal, a similar payment service owned by eBay.

Read more at: Google Moves To Checkout Line

Over 1 Million bills went unpaid last month in the UK

Feeling the pinch of Christmas and Valentine's Day? If so, you're not the only one. An estimated 1.15 million bills went unpaid in January!

According to data released by Money Expert, when it comes to deciding which bills to pay and which to miss, the most common bill that Brits prefer to give a miss is their credit card.

Money Expert estimates that as many as 332,500 credit card bills went unpaid at the end of January.

Read more at: Over 1 Million bills went unpaid last month in the UK

KIDS AND MONEY: When credit-card fraud hits home, it's scary, frustrating

This is not how to start the day taking a call from a bank security officer.

It's never good news, as in my case in late January, when a security employee at my bank called the house asking about three credit-card purchases. Purchases I supposedly had made earlier that morning at a grocery store in Brazil.

"Holy cow," I blurted out over the phone. "It wasn't me. I've never even been to Brazil."

Count me among the more than 8 million victims of identity theft and fraud in this country. It is not a good feeling. Frustrating and feeling vulnerable are more like it.

Read more at: KIDS AND MONEY: When credit-card fraud hits home, it's scary, frustrating

Play the credit card game to boost your wealth

The worst storms to hit the UK in 17 years have blown in and the most depressing day of the year is now behind us. January 22nd is reckoned to be the grimmest day of the year because that's when the credit card bills from Christmas and the January sales hit home.

Chances are you will now be literally counting the cost of your festive spending and contemplating the grim weather as well as you battle to work.

Many of us are looking for a solution to start to pay off debts racked up over Christmas, or will be hoping to shift your credit card balance to reduce your minimum repayments.

It's time to play the card game to boost your wealth and get your finances under control for 2007.

Read more at: Play the credit card game to boost your wealth

Tighten credit-card information rules: consumers group

The Consumers' Association of Canada wants the federal government to move in at least three areas to protect consumers' credit-card information, president Bruce Cran says.

The group made a presentation to Parliament's ethics committee Thursday, just two days after several Canadian banks said that they have issued thousands of new credit cards, along with warnings that the old ones may have been used fraudulently.

"During this process, there was likely a lot of personal information from consumers that was scalped off the records.… We're concerned about that," Cran told CBC Newsworld.

Read more at: Tighten credit-card information rules: consumers group

Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits

Debt counselors are now getting calls from confused and desperate consumers spouting interest rates of 27% to 33% who are looking for credit card debt help.

"Consumers are really being hit hard by outstanding credit card debt and some of the interest rates verge on being usury," says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. "People need to have credit card debt terms spelled out for them in easy to understand language.

More than half of consumers who carry credit card debt want customized disclosures on their monthly bills explaining how many years it will take to pay off the card if only the requested minimum payment is made so that way they have a clear idea of how long it will truly take to get out of debt," he continued.

Read more at: Credit Cards Gotchas: New and Improved Tactics for Accelerated Profits

Security freeze on credit reports could curb identity theft

Really, must we all go back to cash-only to protect our personal information?

In the past several years, millions of consumers have been put at risk of identity theft as their personal information has been either stolen from or left unprotected by the companies that collect it. The latest data breach involves TJX Companies Inc., which operates the T.J. Maxx and Marshalls retail stores.

The company recently revealed that the computer systems that process customer transactions had "suffered an unauthorized intrusion," and that some information had been stolen. In a statement, TJX said it did not know the full extent of the theft or how many customers might have been affected.

The break-in involved the portion of TJX's computer network that handles credit card, debit card, check and merchandise return transactions for customers of T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the United States and Puerto Rico, as well as the Winners and HomeSense stores in Canada.

Read more at: Security freeze on credit reports could curb identity theft

Credit Card Fees Add $169 Million to Cost of Valentine's Day

Visa, MasterCard and their affiliated banks will receive a one-day Valentine gift of $169 million this year because of hidden "interchange" fees collected on transactions during the holiday, the Merchants Payments Coalition (MPC) said today.

"Visa and MasterCard are plucking a few petals off every rose this Valentine's Day," MPC Chairman Mallory Duncan said. "Whether it's a bouquet of flowers, a box of chocolates or a diamond ring, credit card companies are seeing a windfall because of their secret interchange fees that drive up the price of virtually every product in virtually every store.

In an atmosphere of romance, interchange is a love-hate relationship -- Visa and MasterCard love to charge these fees and consumers hate to pay them."

Largely unknown to most consumers, interchange is a percentage of each transaction that Visa and MasterCard collect from retailers every time a credit or debit card is used to pay for a purchase.

Read more at: Credit Card Fees Add $169 Million to Cost of Valentine's Day

Tourism Industry Finds Virtual Credit Cards From Wirecard a Convincing Solution

Wirecard's Supplier and Commission Payments product enables the tourism industry to automate its global business-to-business (B2B) payment processing.

Not Only Successful Among Consumers: Virtual Cards Also in Great Demand in the Business-to-Business Community

Wirecard's Supplier and Commission Payments product enables the tourism industry to automate its global business-to-business (B2B) payment processing.

Numerous customers of Wirecard are already relying on the solution introduced last year - including the leading hotel reservation portals Bookit.nl from the Netherlands and Planigo.com from France.

The solution is based on an automated issuing of "virtual" credit cards by Wirecard Bank AG.

Read more at: Credit Card Fees Add $169 Million to Cost of Valentine's Day

The Making of a Debit Card Monopoly

How San Francisco’s taxi paratransit program is getting ruined by politics

San Francisco’s taxi paratransit program has long been a blessing for our disabled citizens. Since 1979—more than a decade before the federal ADA law of 1991—our city government has provided subsidized transportation for frail seniors, wheelchair users, dialysis patients and others with serious disabilities. Its innovative use of taxicabs for paratransit has been emulated nationwide.

The program works by utilizing taxis to transport the program’s participants. Users receive discounted coupons known as taxi scrip to pay for these trips. Taxi drivers can then redeem those coupons for cash.

As one might imagine, the use of paper coupons for payment has been a serious flaw in the program, leading to high administrative overhead and fraud by a small but significant minority of users and drivers.

Read more at: The Making of a Debit Card Monopoly

Banks launch crackdown on fraud with new card readers

A card reader for every customer as banks clamp down on internet fraud.

A trial scheme has been unveiled to beat fraud on the internet that will see banks issuing their customers with hand-held credit card reader.

APACS, the UK payments association, will trial the next generation of fraud prevention technology, designed to safeguard consumers when buying goods over the internet, by telephone or mail order.

Read more at: Banks launch crackdown on fraud with new card readers

Easy prey for credit card fraudsters

Credit card fraud is one of the hazards of everyday life today, but it is still alarming to learn that Belfast is one of the UK's top five cities for this kind of crime.

In a survey, more than one in four people (28.5%) confessed to having been victims, which put the city in fourth place, just above London and well behind the capital of fraud, Birmingham (34%).

Perhaps the Belfast figure should not be so surprising, since another survey last year showed that almost half of card users in Northern Ireland let their bank or credit cards out of their sight when out in public.

Read more at: Credit Card Fees Add $169 Million to Cost of Valentine's Day

Test card forgoes credit history

BofA directs program at Latino immigrants

For years, U.S. banks have targeted Hispanics -- including documented and undocumented immigrants -- for checking accounts, money transfer business and even mortgages.

Now Bank of America Corp. is going a step further, testing a credit card in Los Angeles that doesn't require a credit history. The cards could be popular with illegal immigrants, who find it difficult to build up a credit record otherwise.

Like with other accounts offered by U.S. banks, customers who use the new credit card need to prove their identity using a government-issued document. But they don't have to provide proof of immigration status or necessarily need a Social Security number.

Read more at: Test card forgoes credit history

Teenagers 'laid-back' about debt

More than half of all schoolchildren have been in debt by the time they reached 17, an education charity says.

Research from The Personal Finance Education Group found a "worryingly laid-back" attitude towards debt and spending amongst teenagers.

About 90% of respondents said they worried about money, but tended to think of overdrafts and credit cards as easy ways to spend more than they earn.

Read more at: Teenagers 'laid-back' about debt

Technology transforming credit card industry

The credit card business turned 55 last year, and it might look as though the industry is having a midlife crisis -- what with credit purveyors trying to dump the classic mag-stripe-and-plastic cards in favor of cards that use wireless technologies and even mobile phones. But that's no midlife crisis. It's market expansion, and it could change the way most people use their credit cards.

"Startling innovations in technology are rolling like thunder through our industry," says W. Roy Dunbar, MasterCard's president of global technology and operations, in a May 2006 speech to the 18th annual Card Forum & Expo. Among the factors Dunbar cited as having sparked the need for innovation: consumer demands for easier, more secure transactions; globalization; and the impact of new technologies, which are creating new business opportunities (such as paying for something with a cell phone).

MasterCard faces more competition in part because it (along with Visa International) recently lost an antitrust suit, leaving the door open for its member banks to end now-exclusive relationships by signing deals with American Express and Discover. The company also sees an uptick in competition from PayPal and other online payment services.

Read more at: Technology transforming credit card industry

Don’t let Valentines Day be a drain on your wallet

If you’re planning a romantic weekend in Paris to celebrate Valentine’s Day with your beloved, don’t let the costs of spending abroad be a drain on your wallet.

The vast majority of credit cards charge an extra 2.75 per cent for foreign currency transactions, as well as making a turn on the exchange rate, which can lead to some nasty surprises when you receive you next credit card statement.

Find a best-buy credit card

Only the i24 card, Nationwide, the Post Office and Saga’s credit cards don’t charge a foreign exchange loading (a fee for converting your spending to foreign currency). In Saga’s case, the ‘no foreign exchange loading’ only apples within the EU, outside the EU, a 1 per cent loading applies.

By contrast, the SkyCard Master Card levies a thumping 2.99 per cent for foreign exchange transactions, while the average foreign exchange loading across all credit cards is 2.66 per cent, according to Defaqto, the independent financial research company.

Read more at: Don’t let Valentines Day be a drain on your wallet

Over 3 in 10 Cards Dormant

More than three in 10 credit cards are left unused after issuance as card firms compete to boost customer bases by easing screening of applicants, according to the nation’s card association Monday.

As of the end of June, the number of unused credit cards came at 13.4 million, up 2.9 million from 10.54 million six months ago.

The ``dormant’’ cards accounted for 36 percent of all issued cards, rising 5 percent from the end of 2005, according to the Credit Finance Association (CFA), which represents the interests of card firms.

Read more at: Over 3 in 10 Cards Dormant

Debit card fraud is on the rise

Skimmers took $1,000 from Gary Burkey's PNC account before he even finished reading about the debit card scam in the Saturday newspaper.

"I took a look at the article and I told my wife to check our account online and she said, 'Gary, I think we have a problem,'" recalls Burkey, of Wilmington.

Like dozens of others during the past few weeks, Burkey had used his debit card and PIN to make a purchase at the Rite Aid in Graylyn Crest Shopping Center, spending $11.71 on Jan. 24. By Feb. 1, criminals had created a counterfeit card and made two $500 withdrawals from two ATMs in southeastern Pennsylvania.

Read more at: Debit card fraud is on the rise

Take credit only where it is due

SMART SPENDING: Maintain fiscal discipline, don't overspend.

Ever wondered why your solitary salary cheque loses its battle every month against dozens of bills and credit card statements?

To save yourself from losing the war, do you try to ration the money in hand to juggle with your credit card dues and keep paying minimum amount due with interest to keep the ball rolling?

Ever wondered why you just can’t get out of your credit card debt and why the outstanding never seems to decrease? If such is your case, you are not the only one waging this losing war.

History repeats itself

We have heard many stories of village money lenders charging exorbitant interest rates from farmers and labourers, who would stay in their clutches for generations and would never be able to pay back the principal, let alone interest. That money lender has reappeared in a new avatar among India’s urban populace – credit card.

Read more at: Take credit only where it is due

Play your cards right to cash in on credit deals

USED correctly, credit cards are a gift to sensible consumers. They provide interest-free loans, superior consumer protection, reward card holders for spending and even help get fans to football games.

With such an array of cards on offer, however, it can be difficult to know which card is right for you, which perhaps explains why so many people carry around unused plastic.

Some 25% of Scots admit to owning three or more credit cards while using only one or two. The extra cards are never used after introductory offers have expired, according to financial comparison site MoneyExpert.com. Experts recommend cancelling all unused cards, not least because holding so many can affect a person's ability to tap into the best current deals.

Read more at: Play your cards right to cash in on credit deals

Company markets prepaid cards for children

During a recent trip to the grocery store, I was fumbling in my pocket for some cash when my 2-year-old said, "Here's your money, Mommy." She was holding my debit card.

I didn't think much of the incident until last week, when I got an e-mail message pitching the Payjr credit card.

Payjr is a prepaid MasterCard that allows children to shop at stores and online using their own credit card. It also allows parents to go online to track their child's spending and deposit money into the account as needed.

The company is marketing two types of cards. One for teens, the other for children 12 and under.

Read more at: Company markets prepaid cards for children

When credit card fraud hits home

This is not how to start the day — taking a call from a bank security officer.

It’s never good news, as in my case in late January, when a security employee at my bank called the house asking about three credit card purchases. Purchases I supposedly had made earlier that morning at a grocery store in Brazil.

“Holy cow,” I blurted out over the phone. “It wasn’t me. I’ve never even been to Brazil.”

Count me among the more than 8 million victims of identity theft and fraud in this country. It is not a good feeling. Frustrating and feeling vulnerable are more like it.

Read more at: When credit card fraud hits home

Citibank Ultimate Card: Addressing the generation gap

Catering to aspiring consumers, the Ultimate Credit Card is a lifestyle experience with unbeatable international and local offers providing Ultimate rewards and experience to keep cardholders at the cutting edge of the good life.

Coming in two options, The Citibank Ultimate Credit Card (earning CitiDollars) and the co-branded Emirates-Citibank Ultimate Credit Card (earning Skywards benefits), Ultimate addresses the growing aspirations of a whole generation, which demands world-class treatment commensurate with professional achievement, growing mobility and dynamic lifestyle.

'The Citibank Ultimate Card represents the summit in service provided to our entrepreneurial and lifestyle-driven customers in the UAE with customization features that are unmatched worldwide,' said Sanjoy Sen, Country Business Manager for Citibank's Consumer Banking business in UAE. 'This is the Citibank experience that our customers deserve and can only enjoy through the Emirates-Citibank Ultimate Card.'

Read more at: Citibank Ultimate Card: Addressing the generation gap

America's plastic crisis

WITH welcome words of warning to the credit card industry, the new Democratic political regime on Capitol Hill indicated that it will be far more sympathetic to the plight of consumers than their Republican predecessors in Washington.

But soothing words are not enough. The financial services lobby is so powerful that it will take a strong bipartisan effort among lawmakers to roll back the industry's unconscionably high interest rates and fees, which in many cases would make a mafia loan shark blush with shame.

Americans - many of them spending unwisely, others struggling to stay afloat financially - have rolled up outstanding credit-card debt of $750 billion to $800 billion - roughly $2,500 for every man, woman, and child.

Read more at: America's plastic crisis

MasterCard 4Q earnings beat expectations

NEW YORK - MasterCard Inc. said Friday its fourth-quarter profit topped Wall Street expectations as consumer spending spiked, but the credit-card company warned margin growth may slow this year. The stock tumbled nearly 10 percent after hitting an all-time high in early trading.

The Purchase-based company, which went public in May 2006, posted quarterly profit of $41 million, or 30 cents per share, compared with a loss of $53 million, or 39 cents per share, a year earlier. Excluding the impact of litigation settlements, MasterCard reported a profit of $41 million, or 31 cents per share, in the latest period.

Revenue rose 17.2 percent to $839 million from $716 million a year ago.

Read more at: MasterCard 4Q earnings beat expectations

U.S. consumer credit increases 4.6 percent in 2006

U.S. consumer credit increased by 4.6 percent in 2006, up from a 4.2 percent gain in 2005 but down from a 5.5 percent rise in 2004, the Federal Reserve reported Wednesday.

In the final three months of 2006, consumer credit rose at an annual rate of 3.7 percent, down from a 5.5 percent pace in the third quarter.

For December, consumer credit increased at a 3 percent annual rate, the smallest gain since October last year and far below the 6.9 percent surge in November.

Read more at: U.S. consumer credit increases 4.6 percent in 2006

U.S.: Visa and MasterCard should disclose interchange fees

Poll Finds 9 of 10 Consumers Want Congress to Require More Disclosure

Consumers overwhelmingly believe that Visa and MasterCard should disclose the $30 billion in hidden "interchange" fees they charge each year and consumers want Congress to do something about it, according to a new poll released by the Merchants Payments Coalition (MPC) that was conducted by Harris Interactive(R).

"The way credit card companies hide interchange fees is indefensible," said Mallory Duncan, senior vice president and general counsel at the National Retail Federation and chairman of the MPC. "Interchange fees add up to twice what consumers pay in late fees but they're kept secret and never disclosed to consumers. Consumers want that to end. They want to know how much they're paying."

Nine out of 10 U.S. adults believe credit card companies should disclose how much they charge in interchange fees and how those fees are set. Consumers also want Congress to require credit card companies to be more forthcoming about their policies and practices.

Read more at: U.S.: Visa and MasterCard should disclose interchange fees

How to Avoid Going Further into Debt this Valentine’s Day

With the holiday season behind us, dealing with post-holiday debt can be a challenging experience for some, according to Informa Research Services. Consider a Holiday Shopping Poll recently conducted by Consumer Reports which indicates that 23% of Americans will not be able to pay-off their debt until March or later -- contributing to the $63.6 billion charged on credit cards throughout the shopping season.

While no one enjoys incurring more debt than they have to, no sooner has one holiday passed which involves the “gift of giving” that another one approaches. The National Retail Federation’s 2007 Valentine's Day Consumer Intentions and Actions Survey estimates the average consumer will spend $119.67 on Valentine's Day, an increase of 16% from the previous year.

When it comes to showing your affection for that special person, both men and women will be hitting the stores for that perfect gift. Men will wind up spending $156.22 on average while women will account for $85.08.

Read more at: How to Avoid Going Further into Debt this Valentine’s Day

Tips For Mortgage Refinancing And Debt Consolidation

Many people discover that their credit card debt is out of control when they get their monthly bank statement. Mortgage payment, everyday spending, services and occasionally getaways or dining out can bring your balance over-the-limit fees.

It’s time to consider debt consolidation to save your money - credit card balance transfer, home equity loan or mortgage refinancing.

One of the best ways to obtain debt relief is by consolidating your debts with a mortgage refinancing if the timing is right. Refinanced mortgage is a form of debt help for the borrower, who will be able to pay down the old mortgage with the money of a new loan.

The benefit of mortgage refinance is based in not only debt consolidation of other debt, but in getting a lower interest rate, lower pay off, and taking cash out of the home equity.

Read more at: Tips For Mortgage Refinancing And Debt Consolidation

How to live off your credit card bonus points

Kate Carson's favorite indulgences are monthly facials and massages at Elizabeth Arden. The best part: She doesn't pay a cent for such treats, which cost $200 or more. The bill is taken care of by her unwitting employer, Stockamp, a health care consulting company.

Carson isn't involved in any type of illicit behavior. She's making the most of her corporate credit card by racking up rewards points.

As a recruiting manager for Stockamp, she gets sent around the country, and charges meals, car rentals, hotels and events to her corporate American Express card. For each dollar she spends, she earns one or more Membership Rewards points. "There's almost nothing I can't buy with points," says Carson. "It's great."

Read more at: How to live off your credit card bonus points

Never miss a credit card payment or you will count the cost

New figures show that by missing just one single payment on a 0% balance transfer credit card could cost as much as £278.

Omitting a payment could incur increased interest charges in addition to losing a card’s introductory benefits and possibly damaging one’s own credit file. This advice is offered by comparison site Moneysupermarket.com, whose head of credit cards highlights the lack of awareness on the customers’ part as to the extent and severity of penalties incurred through missing a single payment.

There are currently 31 cards which automatically revert back to the typical APR after one single missed repayment, which could prove very costly for the credit card holder.

Read more at: Never miss a credit card payment or you will count the cost

My cat has no need for a credit card

Melbourne - An Australian bank has issued a credit card to a customer's cat.

The Bank of Queensland gave Messiah the moggy a credit limit of £1 660.

Messiah's owner, Katherine Campbell from Melbourne, applied for the card in her cat's name to test bank security.

Campbell told reporters that the bank requested identification from Messiah, but later sent a credit card without receiving any proof of ID.

Continue reading at: My cat has no need for a credit card

Make your credit history work for you

WASHINGTON — If you're thinking of buying a house, there's one number that's more important than all the others.

It's not your salary. It's not your savings account balance. It's not even the price of the house.

It's your credit score.

In just three digits, that score tells lenders just about everything they say they need to know about how likely a person is to pay back a mortgage loan in a timely manner.

The more risk potential home buyers pose, the less likely they are to get a loan with the lowest possible interest rate and the best terms. It's the rare lender who looks only at a credit score, but a low score will put you in a bad position.

Read more at: Make your credit history work for you

Holiday Shoppers Feel Credit Card Aftershock

A late surge of holiday shoppers hit upscale shops and discount stores in full force, pleasing retailers, but putting a strain on the already bloated credit cards of millions of Americans, according to CareOneCredit.com.

Electronic sales rose 0.9 percent in December, the best numbers in five months. This number exceeded the predicted 0.7 percent made by analysts, according to the Commerce Department (DoC), and Web holiday sales were up 24 percent this year. A soft housing market had consumers turning away from home equity withdrawals and back to the familiar plastic, statistics show.

But it remains to be seen if all the purchases made during the past holiday season could really be afforded, as a dramatic increase in consumer debt was seen during this time as credit card debt jumped to $8.7 billion in revolving debt during November, after falling $1.3 billion the previous month. Overall, the November credit rose to $12.4 billion.

Read more at: Holiday Shoppers Feel Credit Card Aftershock

Debit cards, credit cards, electronic payments taking over for once popular paper checks

OMAHA, Neb. – Richard Kesterson slid his debit card out of his wallet before the grocery store cashier rang up his total.

Like millions of Americans, he didn't even consider paying by check. Using a debit card or paying online through his bank's bill-pay system is easier, he said – and his bank keeps track of his spending instead.

“I haven't balanced my account in 10 years,” Kesterson said.

Check writing has declined sharply since 1995. The Federal Reserve estimates that 49.5 billion checks were paid in the United States in 1995; that figure dropped to 36.6 billion checks paid in 2003, according to the most recent Fed studies.

Read more at: Debit cards, credit cards, electronic payments taking over for once popular paper checks

Repayment warning on 0% credit card deals

Consumers hunting down cheaper credit cards could be stung for hundreds of pounds if they miss a repayment, research showed today.

Many credit card holders switching to a 0% credit card deal do not realise that in most cases, one missed payment will result in the introductory interest rate reverting to the standard rate.

Research from price comparison website moneysupermarket.com found that almost two-thirds of cards offering a 0% balance transfer for an introductory period will automatically revert to a typical APR on default.

As a result, missing a single monthly payment could cost the average credit card holder almost £300 in avoidable interest charges.

Read more at: Repayment warning on 0% credit card deals

Missed credit card repayments 'have a high cost'

Missing just one credit card repayment can have a high cost, according to new data from moneysupermarket.com

Penalties resulting from just one missed repayment could cost up to £278, the financial advice website said, as well as a damaged credit rating and the loss of all introductory card benefits.

Moneysupermarket.com's observed that credit card holders taking advantage of a nought per cent balance transfer can have the benefit stripped if they miss one repayment – and find themselves repaying the debt at typical APR.

Read more at: Missed credit card repayments 'have a high cost'

Credit card rules put under spotlight

The credit card industry's playing field, which was tilted toward issuers when Republicans controlled Congress, is now tipping back to consumers as Democrats assume power.

Proposed laws to curb questionable practices, which barely reached bud stage before dying on the vine in recent years, have sprung to new life. And Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, late last month began a series of hearings on how credit card industry practices affect consumers.

The upshot? Credit card lending practices, fees, penalties and interest rates are crippling U.S. consumers, who carry more than $750 billion in debt -- and Congress has noticed.

"No industry in America is more deserving of oversight by Congress," the Consumer Federation of America told Dodd's committee Jan. 25, noting that credit cards are the third-highest source of Better Business Bureau complaints, following cell phone services and new car dealers.

Read more at: Credit card rules put under spotlight

Mobile Credit Card Processing Gaining Popularity Among Solo Attorneys

Recent technology developed for small business owners has made it possible for credit card payments to be processed using only a regular touch-tone phone (or cellular) for a much more affordable monthly cost than a traditional merchant account - and it’s a welcome change for an increasing number of solo and small-firm lawyers across the United States.

Not only does this eliminate numerous billing and collections hassles for lawyers who bill by the hour – accepting credit cards also makes their legal services available to more potential clients.

“Too many lawyers are frustrated by the inherent conflicts of trying to balance the roles of both creditor and advocate”, says RJon Robins, Law Practice Management Advisor and Founder of HowToMakeItRain.com. “It can be very awkward for both lawyer and client to try and focus on substantive legal matters when there’s a big bill outstanding.”

Read more at: Mobile Credit Card Processing Gaining Popularity Among Solo Attorneys

Credit Myths & How To Avoid Them!

We have often heard that "a little knowledge is a dangerous thing." Yes, we might have done our job of making our clients and prospects aware of the significance of their credit score and the profound benefits that good scores bring, but we must never forget the fact that they can be pummeled with information by a multitude of questionable sources

It seems everywhere you look, some program or Web site offers credit fixes, offers and deals that make it seem so easy to consolidate debt or, worse, get "easy credit" to buy the things you need. They offer "free credit analysis"-all which will, most likely, take our seemingly credit-aware clients down a path of destruction, undoing much of our hard work.

How can we help our clients know how to filter the bad information from the good? How can we satisfy their intellects when we tell them that, even if they read it in the paper, it's not necessarily true? Sometimes, it's not that easy.

Sometimes, bad advice in the credit world can make complete sense, but still be totally wrong. I refer to these bad recommendations as "credit myths," and they run rampant-especially in the online space.

Read more at: Credit Myths & How To Avoid Them!

With a little planning, you can make credit cards work for you

THINGS come in threes: this article is the third in a trilogy inspired by TV. I'm going to start getting out more after this.

It was a MasterCard commercial. The opening shot showed a supermarket checkout, with groceries rolling along the little plastic mat towards the cashier. The voiceover said: "Frozen dinner, frozen dinner, frozen dinner, frozen dinner. $12." Then it added: "Breaking in your new flat-screen plasma TV. Priceless."

So far, so good. Then the MasterCard logo came up and the voiceover said something clever. Then the logo turned into a bag of groceries and the voice said something like: "MasterCard. It's for groceries."

No, it isn't.

I thought I was hallucinating the first time I saw the ad. There's a rule in money wisdom that says if you're buying your groceries on credit, you are headed for trouble. I would accept that the financial milieu in which we live has changed since that statement was absolute, but financial discipline is clear on this.

If you must borrow, use money you already have to buy food, and borrow the money to buy the thing you can't afford and so must borrow to buy.

Read more at: With a little planning, you can make credit cards work for you

Plastic Pitfalls

Beware, credit cards spell more trouble than the comfort they promise. Like cars, recklessness can be costly

Cars and credit cards, they say, kill. Not always necessarily, though. But if you are not careful with them, both can be fatal. More than five decades after Diner’s Club founder Franc McNamara introduced the concept of plastic money to the world, this staple of middle-class life spells more trouble than the comfort it promises. That is, again, if you don’t use it judiciously.

It is a club where the numbers are only swelling every day. With an estimated 20 million cardholders in India today—experts say the number could reach 30 million by the end of next year—it is an industry that threatens to grow exponentially. The expenditure through cards, says Shashwat Sharma, associate director, advisory services in KPMG, would rise to Rs 65,000 crore this year, at least Rs 25,000 crore more than last year. After the platinum, titanium, gold and sundry such cards in the market, now there are credit cards for kids too. Yes, even kids!

But, beware. It is also a trap into which most of us inadvertently fall headlong. The spend-earn-pay cycle has led to a massive attitudinal change amongst consumers, most of whom splurge recklessly. And by the time you are through with your spend party, or realise the enormity of the problem, you are drowned neck-deep in debt. The trouble with credit cards is that the trouble starts only later, when you start feeling the pinch of credit. Remember, once the noose of the debt trap starts tightening, it tightens pretty rapidly.

Read more at: Plastic Pitfalls

Barclaycard: making every swipe count

The latest line in credit cards from Barclaycard offer new lower rates while still providing exclusive sports discounts and a chance to win tickets to the next big game, or give support to a range of charities every time customers use their Barclaycard Premiership or Barclaycard Charity credit cards.

When new customers open a Barclaycard Charity credit card, they’ll be giving support to a range of charities every time they use the card. Barclaycard will make a one-off donation of £5 with every initial customer transaction, followed by a further 0.3 per cent of the amount they spend.

The donations will then be divided equally between Marie Curie Cancer Care, Save the Children, Samaritans and the Woodland Trust.

Barclaycard also offers a credit card created specifically for avid football fans. The Barclaycard Premiership credit card offers new customers zero per cent interest on balance transfers for 12 months, zero per cent interest on season ticket purchases, 10 per cent discount on purchases from JJB Sports and the chance to win Barclays Premiership tickets.

Read more at: Barclaycard: making every swipe count

Credit card use can be a minefield for consumers

BALTIMORE - He’s anonymous, but his advice resounds through the ages — most recently in the words of Stuart Clode, senior vice president for marketing at Aberdeen Proving Ground Federal Credit Union.

“The guy who first invented the phrase ‘caveat emptor’ [let the buyer beware],” Clode said, referring to the hidden dangers of credit card use in a market where, reportedly, 6 billion credit card offers were mailed in 2005, “knew what he was talking about.”

And what this unknown pundit was talking about — when it comes to credit card use in America, where the average revolving debt is now $9,000 per family and the industry’s 2004 profits from fees was $46 billion — is legion and often lurking in fine print.

Read more at: Credit card use can be a minefield for consumers

Beware! Someone may be skimming your credit card

BANK cards are a convenient and safe method for payments for everything, accepted by millions of merchants around the world. However, with criminals seeking to cheat the system, there are risks which can be faced when using your bank card – and knowing the risks means you can avoid becoming a victim.

Recently the criminal practice of card skimming and swapping has come under the spotlight.

Karen de Beer, CEO of FNB SpeedPoint, said every time a card leaves the sight of the cardholder, there is a possibility that it could be skimmed: “Card skimmers are simple devices which are usually used for security access points.

However, when the criminal gets hold of such a skimming devise, they can use it to ‘steal’ your credit card details,” she explained.

Read more at: Beware! Someone may be skimming your credit card