Proposal to Delay Debit Card Swipe-Fee Limits
Posted on April 14th, 2011
After intense lobbying by the credit card industry, a bipartisan bill, the Debit Interchange Fee Study Act (S. 575), was introduced in the Senate that will delay reform on swipe fee laws that were set to go into effect on July 21, 2011 as a part of the Financial Reform Act. The postponement will delay the Durbin Amendment to the ‘Dodd-Frank Wall Street Reform and Consumer Protection Act’, and allow time for the U.S. Treasury to conduct a study on the impact to banks before enacting any limits on debit card swipe fees.
The bill is designed to cap interchange fees, also known as swipe fees, that banks can charge to merchants for processing debit cards. It would limit the fee to 12 cents, a major reduction from the average of 44 cents per debit card transaction. The new law could cut debit card fees by up to 70% and it’s estimated that banks would see a loss of up to $1 billion per month. According to
Tags: Card, Card Swipefee
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Aussies ‘should watch out for hidden fees with travel cards’
Posted on April 12th, 2011
Individuals who visit other countries and use preloaded travel cards have been advised to check the small print and hidden fees before deciding to use their plastic.
According to the Australian Business Traveller, this form of plastic can be useful for purchasing items over the counter as there are often no charges.
However, there are certain costs that might tempt some to compare credit cards online and use this payment method instead.
For example, many banks charge an initial fee for the purchase of the card and it can cost between one and 1.1 per cent when money is loaded onto the plastic.
There is also a standard fee for withdrawing money from cash machines, although this is also true of credit cards.
Last month, the Commonwealth Bank of Australia announced that those using its credit cards might soon be able to deactivate them for use abroad in an effort to reduce the number of people who are the victims of fraud, ZDNet.com reported.
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Tags: Cards, Hidden Fees, Travel Cards
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United and Continental Credit Card Accounts Merge
Posted on April 11th, 2011
With the merger of Continental and United Airlines late last year, cardholders of the Continental OnePass MasterCard and United Mileage Plus programs are now a part of the largest frequent flyer program in the world with over 90 million members. The newly merged company is working to align benefits and provide a single world-class frequent flyer program by 2012 when all accounts will be integrated. Cardholders will be able to keep their existing accounts for now, but they shoud be aware of the following updates:
Transfer Miles Between Programs
Cardholders of both credit cards can transfer miles between the two programs for redemption from either program. And, cardholders can choose to continue with both accounts without consolidating them. For example, if you want an award from United but don’t have enough Mileage Plus miles, you may move miles from your OnePass account to make up the difference, or vice versa. You can tr
Tags: Accounts Merge, Merge
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Credit cards ‘can be useful when starting a business’
Posted on April 6th, 2011
Going online to compare credit cards might be an effective way to fund a start-up business, it has been suggested.
Writing for StartupSmart, internet entrepreneur Fred Schebasta noted that plastic can provide an easy way to purchase tools and equipment in the early days of a new company.
He suggested looking for zero per cent purchase offers, which can be particularly useful for buying basic essentials such as computers or printers.
The expert noted that going online to compare credit cards is a worthwhile step to take and recommended looking at a variety of different banks before making a decision.
Commenting on how to manage cards, he suggested treating credit cards as a short-term solution and advised those who get plastic to pay it off sooner rather than later.
This comes after YourMortgage advised Aussies to compare credit cards to help minimise the amount of interest they pay for.
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Tags: Business, Credit Cards
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Barclaycard 18-month balance transfer relaunched
Posted on April 3rd, 2011
Barclaycard is re-launching its 18-month balance transfer offer, beating its own 20-month deal on interest rate and transfer fee.
From today, Barclaycard is reintroducing its 18-month 0% balance transfer card with an APR interest rate of 16.9% and a fee of 2.9%, compared to the 20-month card which has an typical APR of 17.9% and a transfer fee of 3.2%
For example, anyone transferring a balance of 3,000 to the 18-month card will pay a fee of 87 while anyone moving the same balance to the 20-month card will pay 96.
Prospective customers can choose from either of the two deals. However, anyone who has previously had a Barclaycard will not be able to get the offer.
Barclaycard is also offering a 25% discount on fees if you transfer more than one balance. For example, anyone transferring a balance of 3,000 (1,500 from two places) would pay 65.75 for the 18-month offer, or 72 for the 20-month deal.
Credit Card Point Schemes Offer Poor Value
Posted on April 3rd, 2011
Credit card companies often use point schemes to attract more customers. But often these schemes offer very poor value. This is especially true for people who get credit cards in order to borrow money.
Most of these credit card schemes give back only 1% or less of what you spent on your credit card, says a report in a Consumers Association magazine.
Also they often have rules in place that you need to spend a certain amount before you are allowed to claim anything back. These amounts can be £500 to even £1000. For example, spending about £5000 on over a couple of years on certain credit cards would give you vouchers with a value of only £12.50.
They types of credit cards that use point schemes tend to chare much higher rate, when you are borrowing money on your credit card. Unl
Tags: Poor Value, Schemes Offer, Value
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