Entries Tagged as 'Credit Cards'

PayPal

The world’s most-loved way to pay and get paid.

What a crock… everyone I know loathes PayPal… the only reason anyone uses it is critical mass; pretty much the same reason people use eBay — that’s like saying people love the phone and cable company just because they use their services.

It’s laughable that a brand that’s synonymous with poor service and screwing people over every time they have a chance would have a slogan like that…

Of course, I broke into hysterical laughter the first time a Pacific Bell customer (dis)service person answered the phone with:

How may I provide you with excellent service today.

My reply was transfer me to a company that actually cares about it’s customers if you can find one.

Remember, it’s the worst companies that find it necessary to try and convince you that they’re loved…

Originally posted 2011-01-20 02:00:53.

Banks spend big to sell credit cards to students

By Amy Haimerl, personal finance editor CNN
October 26, 2010: 4:27 PM ET

NEW YORK (CNNMoney) — The U.S. Marines recruit college students to become one of the few, one of the proud.

Bank of America just wants their financial future.

The Charlotte, N.C.-based bank spends exponentially more money than any other bank to recruit students for credit cards.

In 2009, Bank of America unit FIA Card Services paid colleges and alumni associations $62 million for the rights to market cards to students and members, according to a report from the Federal Reserve.

The second biggest spender, Chase, dropped $13.8 million to recruit new borrowers, while U.S. Bank forked over $2.5 million.

When the Credit Card Accountability and Responsibility and Disclosure Act — better known as the CARD Act — went into effect in February, it required credit card companies to disclose how much they pay colleges for the right to set up on campuses — plus how many new borrowers it racked up. On Monday, the Federal Reserve made its first report.
College degrees that don’t pay

In total, the report showed that credit card companies spent $82.4 million to net 53,164 new student accounts.

The University of Notre Dame got the biggest payment of any school: Chase paid the school $1.8 million and in the end got 77 new borrowers. The school used the funds exclusively for financial aid, according to university spokesman Dennis Brown.

Meanwhile, Bank of America spent $1.5 million on the University of Southern California campus to sell 659 new accounts.

“If you look at how much is being paid per account, the numbers vary wildly,” says Josh Frank, senior researcher at the Center for Responsible Lending.

In pre-CARD Act year, Frank estimates that 200,000 to 600,000 new accounts were opened on college campuses and through alumni and other organizations.

“But even in a normal year,” he said, “this seems like a lot of money to pay per account. But it’s possible that they just value those accounts more highly and that they’re more profitable for them.”

One major change from the CARD Act is that students under 21 can no longer obtain a credit card without a co-signer — something that could severely limit new accounts. Credit card companies also can’t entice new borrowers through T-shirts and other giveaways — unless they are 1,000 feet (about three football fields) away from the campus.

“Anecdotally, it does seem to be a different environment on college campuses,” Frank said. “Banks are still on campus, but their presence is lower.

Chase paid the University of Notre Dame $1.8 million for the right to market credit cards on the Indiana campus.

Original article on CNN.com

Originally posted 2010-11-08 02:00:40.

Chase Freedom Rewards Bonus

From July 1, 2008 until September 30, 2008 Chase is offering 5% cash back on eligible travel and entertainment purchases.

So beyond the 3% cash back on certain categories they always offer; and 1% on all other purchases you can now get 5% cash back for a limited time on airline, hotels, rental cars, and fine dining when you spend more than $300 per month (that should be easy to do with any of those in the mix, particularly if it’s business expenses).

You do need to opt into this program, and if you haven’t gotten a letter from Chase inviting you, I’d say just go ahead and call 800-603-2265.

If you don’t have a Chase Freedom MasterCard or VISA, then maybe you should consider taking advantage of their services and rewards.

NOTES:

  • If you want cash back, you maximize your reward by waiting until you have $200 because you get a check for $250! Other than that some of their travel and give cards are pretty good deals if they would save you money that you would have spent otherwise.
  • Discover is apparently running a promotion as well. I’m not a Discover card holder so I don’t know the specifics of it.
  • My picks for cards are: Citi Rewards Dividend (Citibank); Chase Freedom Rewards (Chase); and Citi Cash Returns (Citibank). There are also a few other cards that give good rewards provided you do a great deal of business with particular vendors.
  • I would stay away from Wells Fargo, Bank of America, Capital One — their cards generally don’t pay bonuses or use some lame bonus programs.  And while you might want a credit card from your credit union, it’s unlikely they will have a decent reward program.
  • Beyond rewards, many credit cards also provide rental car insurance, warranty extensions, lost/damage protection on items you buy, etc.  It’s always advisable to read the benefits that come with your credit card; many financial institutions off great benefits just because very few people ever bother to read the literature that comes with their cards and take advantage of the programs, so it really just makes them look good in all the comparisons and doesn’t end up costing them much at all.

As always, remember you can use credit cards to your advantage as long as you use them wisely.

Originally posted 2008-07-18 21:14:23.

STOP • THINK • CLICK

I’ve mentioned the Internet Crime Complain Centerbefore, but the US Government also sponsors OnGuard Online with the slogan

STOP • THINK • CLICK

While most savvy internet users should be aware of most everything on the site, there’s no harm in taking a minute out and visiting it to see if there’s any suggestions that might make your online experience safer.  You may also want to recommend that your bank, credit union, and credit card company link to them.

Originally posted 2009-01-07 12:00:50.

Virtual Credit Card Numbers

Virtual credit card numbers are numbers that you generate (through your credit card issuer) to use for purchases on line.

Most of the companies that support these allow you to set time and amount limits for charges against the cards, and allow you to terminate the card at will (you cannot prevent a charge that has already been authorized, but you can prevent any future charge).

These financial institutions support virtual cards:

  • Bank of America (acquired from MBNA)
  • Citi Bank
  • Discover

These financial institutions do not support virtual cards:

  • Chase
  • Most credit union issued cards

Citi Bank and Bank of America have very similar systems; the each allow you to set limits and the card immediately binds to the merchant who first authorizes a charge against the number (no other merchant can use the number, which can create issues on PayPal, Yahoo Shops, Google Checkout, and Price Grabber to name a few — the solution is create a new card each time you want to buy something on those sites and destroy the old one).

Citi Bank and Discover have an applet you can download to your PC which will create numbers and auto-fill web forms.

Virtual credit cards give you a great deal of control over your finances, you set the limits of who much a vendor can charge and for how long they can access your credit card account.  While your liability is always limited (zero liability with VISA, Mastercard, and Discover) virtual cards help you avoid hassles.

When you say NO MORE, you end it… you can’t be caught by surprise by horrendous shipping and handling charges, you can’t be over-billed… and you don’t have to worry about recurring charges.

I use virtual card numbers to pay my utilities (electric, water, gas, cable, telephone, cellular); tolls (FastTrak); purchases on line; basically any time I give someone a credit card number via phone, mail, or internet… and I encourage you to do the same.

For one time purchases, terminate the card immediately after the charge is authorized, and THAT IS THAT… for recurring charges, re-authorize the new amount a little before the charge, or go ahead and setup for a year at a time (you can always terminate the card before an authorization).

Originally posted 2008-08-07 20:35:05.

Check Cards

If you have a bank issued “check card” — that’s an ATM card that bears a VISA of Master Card logo merchants will always try and get you to authorize a PINned transaction, DON’T DO IT.

Why?

There are several reasons not to perform PINned transactions…

  • When you do a transaction with a PIN, you’re allowing the merchant to immediately remove money from your bank account.  They likely use a transaction network to do this, but there aren’t as many safe guards or controls on that network as their are a credit card authorization network.
  • When you do a transaction with a PIN, you’re not protected by VISA or Master Cards ZERO LIABILITY guarantee, you’re subject to the rules imposed by the merchant, processing network, bank, state, and federal laws.  If you’re defrauded you might find it’s a long and tedious process to get your money back, and you might find that your bank freezes assets in your account until the matter is resolved.
  • When you do a transaction with a PIN the money is immediately removed from your account (and sometimes immediate means instantly — but certainly within 24-hours, often even on non-banking days); however, when you go through the credit card processing system you’ll see at least an extra day, and generally those transactions are only posted on banking days.
  • When you do a transaction with a PIN your PIN could be intercepted (either electronically of through surveillance) and put you at risk of fraud (which may be hard to prove it’s fraud).

If your bank doesn’t offer VISA or Master Card logo’d check cards, change banks.

If you have access to a small local bank, or better yet, credit union open an account there (after making sure they have VISA or Master Card logo’d check cards and offer totally free services).

It’s your money, make the most of it… and protect it.  As the economy get’s worse and worse we’re going to see more and more “clever” schemes to try and take your hard earned money; start fighting back now.

And remember, if you are a victim, immediately contact your financial institution and any merchant you believe may be responsible via telephone and follow it up in a letter sent via the United States Postal Service (referring to the phone call) to preserve your rights.  You may also want to send an email (possibly using a DEA — disposable email address) as well; but you must send a letter via USPS!

Check cards are also called ATM Debit Cards or ATM Cards, the important thing is that you can use them as a credit card by signing the transaction form (they will have a VISA or Master Card logo).

It’s fine to use those cards at your bank’s ATM as long as you take reasonable precautions.

While using a check card through the VISA or Master Card network is preferable to a PINned transaction, if you can get a credit card, and can use it responsibly you’re even better off to use a real VISA or Master Card and simply pay the balance off every month (transfer the money from your checking account weekly if you need to, and track the expenses on your credit card as you would transactions from your checking account, your bank can probably provide you with online access to your credit card to help you — if they don’t find another credit card issuer).

NOTE:

I haven’t gotten confirmation yet, but it appears Lowes is responsible for leak of bank card numbers and PINs that are currently being used to defraud consumers.  If you have performed a PINned transaction at Lowes within the last several weeks call your bank and have your bank card terminated and re-issued with a different number (tell them you lost it).

Originally posted 2008-12-12 12:00:04.

How To Use Credit Cards To Your Advantage

If you’re a savvy shopper you know that you can save a great deal of money watching for sales and taking advantage of lost leaders.

It’s your money, so you might as well save as much of it as you can; not like some ones just handing it out to you without hard work.

One of the easiest ways to make your money go further is to take advantage of special offers from credit card companies that pay you money back to use their cards.  Most of the programs are complicated, and maximizing your benefits takes a little bit of discipline, but you can end up with quite a bit of money back every year.

The cards I recommend (in order) are:

  • Citibank Rewards Dividend Platinum Card (Master Card)
  • Chase Freedom (VISA)
  • Citibank Cash Returns (Master Card)

I recommend you get all three of them, and here’s why.

There are limits on the Citi Rewards and Chase Freedom cards, but if you use them right you can get 3% cash back, and with the Chase card as much as 5%!  But if you use your card a great deal you’ll cap it out before the end of the year.

The Citi Cash Returns Card doesn’t have a cap, but only pays 1% (1.2% for the first year).

I believe all Citi cards also provide you with virtual account numbers, which give you control of who can change what to your card when.  Chase unfortunately does not offer virtual cards numbers.  If you must have a VISA with virtual account numbers, Bank of America has several cards with decent rewards programs (more like the Citi Premier Pass Card utilizing the “Thank-You Network”).

There are of course many other cards that you might be able to save money with.

For instance I have a Chase Amazon (VISA) Card, mainly because they gave me $30 off my first purchase (since then they’ve given me $20 for $100 in charges, and $30 for $100 in charges to encourage me to use the card; but since I don’t purchase from Amazon much, it really isn’t that great a card for me).

The other way to make a credit card work for you is use it any time a merchant accepts it; they’ve built it into their pricing, so you might as well get 1-3% cash back for using your card; of course you do need to make sure you pay your bill in full before the due date every month, or those “savings” will quickly disappear with the interest charges!

On other word of advice, don’t acquire a huge number of credit cards; it will adversely effect your credit rating even if you don’t use them or carry a balance.  The immediate hit of lots of credit inquiries will make it harder to get credit, and having a large number of open accounts trims down your score as well.  And honestly, you don’t really need lots of cards, companies like Citi and Chase will provide you with INSANE credit limits.

Originally posted 2008-05-16 21:28:07.

eBay Master Card

GE Money Bank provides the private labeled eBay Master Card and they’ve been running promotions here of late to give you a fairly substantial cash back bonus (generally up to $25.00) on your eBay purchases (applied as a statement credit, instantly).

This might be a good choice if you have an eBay purchase in mind — but there are many better cash back credit cards out there.

For general purpose use the Pentagon Federal Credit Union VISA card is one the the sweetest.

For private label cards, the Chase Amazon.com VISA offers a $30 instant bonus and 6% cash back for the first 90 days; the Chase Buy.com VISA offers a $40 instant bonus; the GE Money Bank Sam’s Club Discover offers a $40 instant bonus; and the GE Money Bank Walmart Discover offers a $10 instant bonus (plus additional $10 bonuses for using the card at places other than Walmat and Sam’s Club).

You can certainly put a little money back in your pocket by playing the credit card game — of course you have to be careful that you understand the rules for getting the cash back (and make sure you follow them).

A couple things to keep in mind.

GE Money Bank is a major credit card issuer — but they are a very low rent credit card company; and you certainly will not be treated like a “valued” customer or even a customer that has a choice.  Both Chase and Citibank are far better large credit card companies to do business with — and Pentagon Federal Credit Union has out of this world customer service and does value your business.

Your credit score can be negatively impacted by applying for a large number of credit cards in a short period of time (regardless of whether or not you are approved, the credit inquiries may lower your FICO score).  To protect yourself, and insure that you get the best credit offers, don’t apply for more than two credit cards in any one month — and try not to apply for more than four in any consecutive three month period.

Originally posted 2010-10-07 02:00:44.

Citi Mobile SM for Cards

Citibank has rolled out a mobile banking application for many phones on most major cellular carriers.

Personally I’m not sure why we’ve gone to a model where vendors seem to believe we need all kinds of applications to do simple things that could be done through a web browser… perhaps that’s an unfortunate side-effect of the iPhone craze (or perhaps better said as crazies).

I think it’s great that banking institutions are thinking about ways to provide services to individuals who have cellular data plans, but I think it’s unfortunate that we can’t just use simple standards — after all, the point is to enable the flow of information, not to make an application that people play with like a game.

To use the Citi Mobile application, you need a supported handset on a supported carrier, and you have to sign up, download, and activate it through the Citi “My Account” web portal.

Originally posted 2009-01-28 01:00:03.

Amazon Merchants

Once again I’ve been disappointed with the “service” and “products” provided by an Amazon merchant.

I’ve ask Amazon how to inhibit the display of any and all items except those sold by them; I don’t care to deal with the questionable merchants that use Amazon’s sites.  And obviously Amazon doesn’t stand behind them either (look over their A-Z Guarantee, and notice that a person who buys an item every day has the same lifetime limits as one who rarely buys — sounds to me like Amazon is afraid to offer a real guarantee — why should I have more confidence).

Anyway, rather than play the game with Amazon I’ve just opened a charge dispute with my credit card company (which in this case happens to be an Amazon credit card).

If Amazon doesn’t have a way to block the display non-Amazon merchandise I’ll close my account (and credit card).

Originally posted 2009-04-08 12:00:24.