Impact of the Credit CARD Act – Two Years Later
Posted on June 17th, 2011
Consumers are starting to reap benefits two years after the CARD Act took effect, according to the Pew Health Group’s Safe Credit Cards Project, a review of credit card offers by the nation’s 12 largest banks and largest credit card issuers. These institutions represent 90% of all outstanding credit card debt in the United States. The purpose of the latest report was to see how the credit card industry has changed since the passage of the Act and used data collected from March 2010 through January 2011.
According to Nick Bourke, Director of the project, “Pew’s research shows that predictions that the legislation would spark new charges and long-term interest rate growth have not materialized.” Interest has stabilized at reasonable rates of between 12.99% – 20.99%, unchanged from 2010. Overdraft
Tags: Card Act, Two Years, Years
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Swiping credit cards ‘leaves users open to fraud’
Posted on June 17th, 2011
Australians have been warned to be wary when using their credit cards on shopping trips and to opt to use chip technology wherever possible.
Peter Arnold, financial analyst at Canstar Cannex, observed that 76 per cent of new pieces of plastic have a chip up 64 percentage points compared with three years ago, reports National Features.
However, he urged Aussies not be complacent when shopping, because the success of chip technology in preventing fraud relies on merchants having a chip and PIN device.
“If the card reader does not have a chip reader, users will still need to swipe their card so will still be open to skimming,” he warned.
Skimming involves the theft of credit card information during a legitimate transaction and is usually done by someone photocopying receipts or using an electronic device to swipe and store the details of the intended victim.
Mason Hooper, RSA Security fraud specialist, said this method can be easier than stealing a wallet.
Tags: Cards, Credit Cards
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Aussies ‘spending more with credit cards in rural areas’
Posted on May 31st, 2011
People in rural areas of Australia are spending more than those who live in metropolitan locations, according to a new study.
The ANZ Small Business Sales Trends series found that regional and rural small businesses had seen a 1.9 per cent growth in trade during April 2011.
This is in comparison with the minus 0.1 per cent that it saw for firms that are based in bigger locations.
ANZ head of economics and property research Ivan Colhoun explained that the results are found by processing the value of credit card and eftpos transactions seen in the banks system for firms with an annual turnover of $5 million or less.
Mr Colhoun said it is likely to be down to Australias two-speed economy, with “regional areas in general benefiting more from the commodities boom and metropolitan centres arguably more impacted by the Reserve Banks restrictive monetary policy”.
A recent study from the Australia Institute suggested that many consumers are using their debit cards and other payment options to save money by shopping online.
Tags: Areas, Rural Areas
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How to cut the cost of holiday spending
Posted on May 28th, 2011
Customers will benefit from a fairer exchange rate when using RBS and NatWest credit cards abroad.
There was an outcry when it emerged that RBS was using its own exchange rate, which could add an extra 2% to the cost of overseas transactions.
From July 1, the bank will base its rates on standard Visa and MasterCard exchange rates, which offer a better deal.
Tesco bowed to similar pressure at the end of January.
It was clear from feedback that customers wanted a more standardised approach to how exchange rates are calculated and one that was easier for them to understand. As a result, we are changing the system, says an RBS spokesman.
However, RBS and NatWest credit cards are still expensive to use abroad because, in common with most other cards, they add a loading to the Visa and MasterCard rates.
Museums On Us Bank of America: Free Museum Admission 2011-2012
Posted on May 27th, 2011
In times like these free entertainment is always a major plus, right? If you’re looking for something to do and don’t want to blow your hard-earned dough on a movie or meal, check out the Bank of America Museums on Us program – it gives you free access at over 150 museums!
Who qualifies? All you need is a debit or credit card from Bank of America or Merrill Lynch. You will also need to show your photo ID (like a drivers license or passport) that matches that name on your credit or debit card. One free ticket for admission per cardholder, per visit.
When can you go? The first full weekend of every month.
Which museums participate? This program has been around or several years and it seems to keep growing every year. As I write this, the Bank of America free museum admission was available at 152 institutions. Obvio
Tags: Free
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Woolworths to start using payWave credit cards
Posted on May 21st, 2011
Consumers shopping at stores belonging to Woolworths Group may soon be able to use credit cards that do not require a signature or PIN.
The firm has announced that throughout 2011 it will be installing contactless payment systems to enable shoppers to purchase goods more efficiently.
Those who would rather use the payWave credit cards will soon find it possible to buy goods valued at up to $100 using the technology.
Among the stores that are set to have the machines fitted before the start of 2012 are Dick Smith Electronics, Tandy, Dan Murphy, Safeway and Woolworths petrol outlets.
Dhun Karai, head of group financial services, commented: “We know how much our customers love to embrace new technologies and services that help make their life a little bit easier.”
She added that consumers had already adapted rapidly to innovations such as self-service checkouts.
This comes after Coles announced plans to enable customers to purchase goods online with their credit cards and pick them up at drive-through outlets.
Tags: Cards, Credit Cards
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