Credit Card Lowdown

How To: Buy Gas at Below Retail Price

It’s not enough that you’ve saved up to buy those new set of wheels you’ve had your eye on for an eternity; your wallet/purse needs to be deep enough to fuel the gas guzzling machines that most automobiles are. And it’s not just the pavement you’ll be burning up with your daily gasoline dosage, there’s likely to be pretty deep hole in your pocket too. With the price of fuel rising steadily, affected by wars and foreign policies alike, you’d be wise to use every trick in the book to bring your gas bill down, starting with how to buy the liquid at below retail price, to taking care of your car so you don’t end up spending more than you should on fuel. So turn on the ignition, and get set to go down the gas-savings road with these helpful tips…

Where you can actually see your savings

• Search the Internet for the best deals in your area. There are various sites that tell you where you can buy the gas at the cheapest rates in and around where you live. Make sure though that you don’t end up driving out of your way to fill up where it’s the least expensive – you certainly don’t want to be penny wise and pound foolish.



• Gas cards can save you more than a few dollars every month, but only if you are smart enough to use them wisely. The cards themselves sell at retail rates, but they can be bought off online auction sites or from others who don’t need them at less than the going rate. Remember to add the shipping costs though when you’re ordering online so that you don’t end up paying more in trying to save some money. These cards are valid only at a particular brand of gas station, so they’re worth the prepayment only if you frequent the same outlet/brand.
• Gift cards that come with other perks besides gas are money savers when you buy fuel. Some retail warehouse stores like Costco offer gasoline at less than retail rates. You also have the added benefit of buying other goods at discount. The thing to remember with gift gas cards is that they’re a total write off if you lose or damage them.
• Expect a surge in prices before the holiday season and fill up a couple of days in advance. Low octane gas is cheaper, but you’ll have to check your car’s manual to find out if it’s suited for the low variety.

Smart money-saving tips

• Buy gas during the coolest hour of the day. Only then do you get your money’s worth.

“As a liquid, gasoline expands and contracts depending on temperature. At the 60-degree standard, the 231-cubic-inch American gallon puts out a certain amount of energy. But that same amount of gas expands to more than 235 cubic inches at 90 degrees, even though consumers still only get 231 cubic inches at the pump.”

• As much as possible, take public transportation or carpool with friends and neighbors. Invest in a small car that does not guzzle gasoline like there’s no tomorrow, preferably one that runs on diesel, or buy one of those hybrids that was advertised on the big stage by manyfilm personalities who graced the Oscars. The hybrids allow you tax advantages, but the diesel cars save you the trouble of looking after your batteries.
• Plan your routine and route accordingly before you set foot outside home. Driving round and round through the same streets trying to get things done can be a major strain on your gasoline budget.
• Don’t run your air conditioner all the time and see savings between 10 and 20 percent.
• Remove unnecessary junk from your car, stuff that’s lying around in the boot without serving any purpose other than to add weight to your car and strain on your engine.
• Clean your car of ice and snow in winter – another burden your engine does not need.
• Don’t idle your engine at stop lights for a long time (more than a minute). It’s more cost-effective to stop and restart, unless it’s in cold weather.
• Close your gas tank properly; you don’t want your precious fuel evaporating into thin air.
• Drive steadily without suddenly stepping on the gas pedal and racing your car all the way. Spurts of speed and slowing down take a considerable toll (pun intended) on your gas usage.
• Maintain records of your fuel consumption so you can find out if you’re putting those expensive liters to the best use possible. Logging your distance traveled and amount of gas used regularly can give you an idea of your car’s fuel-efficiency.
• Try and park your car where it’s protected from the glare of the sun. You prevent gas from evaporation and also keep the interiors cool.



• Avoid using credit cards for gas purchases. While some cards do offer you gas savings when you use them frequently, you have to watch the interest rate. Besides, more than a handful of gas stations charge more when you use a credit card.

Treat your car well

• Maintain your regular maintenance schedule, tuning up your car saves you more gas than you realize.
• Check and clean your air filters and injector nozzles for clogs regularly. Avoid reusable air filters; stick with the good quality paper filters.
• Maintain the right pressure on your tires to effect additional fuel savings.
• Use synthetic motor oil to reduce engine friction and boost your mileage.

New Signature Card For Small Businesses From Visa

Visa USA Inc. will soon issue a new credit card aimed at small business owners who are not afraid to charge it. J.P. Morgan Chase & Co. has already indicated its intent to offer the card to its customers. Banknet360.com reports:

Visa's “Signature Business” card does not have a spending limit and includes higher-value rewards and expense management and reporting services. It is designed to appeal to wealthier small business owners. All small businesses spent more than $4.3 trillion on non-card items last year, according to Visa.

Read more: Visa Unveils Signature Card for Small Businesses

WaMu To Offer ESPN's Visa Affinity Card

According to recent reports, Washington Mutual plans to issue ESPN's new Total Access Visa credit card. The Seattle-based bank is the issuing bank for the credit card, which will give card-holders points when they buy ESPN-branded merchandise. Bizjournals.com reports:

Users of the ESPN Total Access Visa card will be able to attend "VIP" events such as ESPN's X Games, pre-draft parties and tours of the ESPN studios in Bristol, Conn.

Read more: WaMu, ESPN team up on Visa affinity card

SafePay's New Visa Card

Online payments provider SafePay Solutions recently announced the launch of its own SafePay-branded prepaid Visa card for all US-based SafePay members. It will provide a bank-issued PIN-based debit card for international members. SafePay members will be able to use the SafePay Prepaid Visa Card to shop at locations worldwide, for purchases made in stores, online, or by phone. Energy-business-review.com reports:

The company said that its members can easily acquire debit cards since there are no credit checks or applications required. Another principal feature of the SafePay PrePaid Debit Cards is that members can transfer funds in real time directly from their SafePay accounts.

Read more:SafePay to launch own-brand Visa card

Connecting Success With Contactless

It’s been nearly a year since each of the big three credit card providers rolled out their own contactless payment version and since the going has been unexpectedly good, it’s probably time to ask what’s next on their agenda. A lot, as it turns out, from different form factors, including watches, to use of mobile phones as a payment medium, to tapping and going your way through the New York Metro turnstile. Cr80news.com reports:

While the original credit cards capitalized on a "buy now, pay later, sometimes much later" philosophy, contactless cards are going after cash. While contactless won't spell the end of coins and dollar bills–at least in the foreseeable future-- it is tying in with what appears to be the consumer's desire to carry less currency. A recent survey commissioned by MasterCard shows that growing numbers of U. S. consumers are using less cash in favor of alternate payment methods, such as credit and debit cards.

Read more: One year after nationwide launches, big three U.S. payment card brands remain bullish on contactless

Are Visa and MasterCard charging too much? Your retailer thinks so

Visa and MasterCard are feeling the heat and how! They were on a roll until now as an increasing number of consumers resorted to plastic to beat the rise in costs. As gasoline rates increase, more customers are opting to use their credit cards to pay. So, what could be the problem?

Well, retailers are not too happy with how events are shaping up. They have gone to the extreme of asking Congress to step in and control certain procedures in credit card companies. Their main grouse relates to how much and in what way credit-card companies and issuing banks charge retailers for processing transactions. Retailers are asking for more regulation on interchange rates – the fee charged to retailers for processing a credit-card transaction. Washingtontimes.com reports:

Visa this week announced that it would make interchange rate factors available to participating retailers online, but only to those that sign a non-disclosure agreement.

Read more: Retailers seek fee rules for credit cards

Is your credit card safe or IS it safe?

Identity theft and other credit card crimes have today become the bane of our existence. Once you realize how open our society has become thanks to the electronic revolution, you’d understand how these crimes are rising. Today we live in a world where everything including our tax records to Social Security numbers and credit card data are recorded on databases. These can easily be hacked and used unscrupulously by enterprising individuals.

Thieves find it quite easy to target the information embedded in ATM, debit and credit cards. They just need to break into or even compromise the equipment and systems that are used for processing payments. And the results are there for all to see. Credit card companies like Citibank and Visa that have been hit are reissuing their cards or using some other methods to counter this fraud.

Reward cards

What is it about cash-back reward cards that has people gunning for them? It probably is simple human nature. Not many people can say no to rewards that are offered for doing what you like to do most – shop. And the market for these cards is growing enormously – at last count, over 32 million people across the country were using reward cards!

So, why is the credit card industry, which is not known for its generosity, making such a magnanimous gesture? When any credit card company offers a cash-back or reward scheme for using its credit card, customers are known to usually use this particular card more than the regular ones. So now you have companies like Discover giving away almost $500 million in 2005 alone. Discover was the company that introduced the cash-back scheme nearly two decades ago. Soon other credit card companies like American Express, Citibank, Visa, and many others were offering reward cards and business was booming.

Beware… your card’s never safe

Imagine yourself sitting at your desk in your office in say, Texas. And suddenly you get a call from your credit card company asking you if you were trying to make some big purchases in Italy. This is just a routine check by the card company, but you are all shaken. You check your wallet, and your card is lying snug in there. So how can someone in Italy try to do you in?

Credit card fraud is assuming scary proportions. Thanks to the internet, your personal data is never safe from ID thieves who are busier than ever before. Don’t believe me? Check these stats: According to federal and state authorities, ID theft is the country’s fastest-growing white-collar crime. It rose to prominence or should we say notoriety in the past decade. Federal Trade Commission statistics show that the number of people victimized annually stood at around 10 million. The federal Bureau of Justice Statistics reported in 2004, that at least one member of 3 percent of all U.S. households were victims of identity theft. And nearly three-quarters of these incidents involved credit and debit card frauds.

Once you realize how open our society has become thanks to the electronic revolution, you’d understand how these crimes are rising. Today we live in a world where everything including our tax records to Social Security numbers and credit card data are recorded on databases. These can easily be hacked and used unscrupulously by enterprising individuals.

Thieves find it quite easy to target the information embedded in ATM, debit and credit cards. They just need to break into or even compromise the equipment and systems that are used for processing payments. And the results are there for all to see. Credit card companies like Citibank and Visa that have been hit are reissuing their cards or using some other methods to counter this fraud.

Texas’ card-based child support program underway

A debit card plan rolled out recently will make it easier for parents who receive child support through the state of Texas. The plan is expected to be in place statewide by September. Called the Texas Debit Card, this card is convenient for people who don't have checking accounts or worry about checks getting lost or stolen. The good thing about this program is that it eliminates checks and deposits money into an account administered by Wells Fargo Bank.

The card is affiliated with the worldwide Visa card network. So you can access the money from ATM machines, places where Visa cards are honored and also at Wells Fargo branches. In the initial stages, state officials plan to target nearly 40,000 parents in nine southeast Texas counties. Most of the people who are being targeted still get checks in the mail rather than by direct deposit. Dfw.com reports:

A bank account is not required, there is no credit investigation and people who apply for the card get it automatically. They must have court-ordered child support obligation and a case with the attorney general's office.

Read more: State unveils child support debit card program

Stormy weather ahead for credit card companies

Card issuers and their partner banks are not in such good humor these days. Rather it would be more correct to say that they are in a state of panic. And why so? The reason is not apparent on the surface at least. I mean, at present, credit cards are having the run of the market. Consumers are indiscriminately using cards for all kinds of purchases and card companies, especially Visa and MasterCard have a steady flow of revenue thanks to the $800 bn credit card debt that Americans owe them. And MasterCard is especially on a roll as it gets ready to go public. So, what’s bothering them?

To know the answers, you need to scratch under the surface. Visa and MasterCard are today facing problems from all fronts. These range from the ongoing merchant lawsuit against hidden interchange fees, to competition from new card issuers. In case you didn’t know about the interchange fee fracas, well here’s the lowdown. Retailers and merchant have filed a lawsuit against Visa and MasterCard wherein they allege that they have been losing profits from sales in order to process card transactions. The main reason for these losses is the high rates for the fees, which are set by the card companies and issuing banks.

And here’s the biggest worry of them all – increasing numbers of consumers are actually getting rid of their cards! And guess what, people are no longer flocking in droves to get new credit cards. So there are not many new customers for these companies. Then there is the problem of increasing interest rates. All these problems seem to have come together, or they were probably brewing on the horizon for quite some time and have now decided to create a much-delayed storm.

Troubled times for credit card companies

It’s payback time for credit cards especially Visa and MasterCard. After having the run of the market for so many years, these two companies are now facing innumerable detractors whoa re filing merchant lawsuits against them. Consumeraffairs.com reports:

The lawsuit filed by retailers and merchants against Visa and MasterCard over "interchange" fees was recently amended to include debit cards as well as credit cards. The lawsuit deals with the processing fees merchants have to pay to card companies and issuing banks when customers buy goods using plastic.

Read more: Credit Card Companies Fear "Perfect Storm"

This youth brigade is financially savvy

Holidays are a time for overspending; for just forgetting how much money runs out your pockets. And when you come back from that lovely vacation with that beautiful tan, you are brought back to earth with a thud – thanks to your credit card bills. While popular media would love to have us believe that this is what the youngsters of today are up to, reality is something else altogether.

I know this sounds incredulous – okay, so some of us do overspend, but we do have more brains than our parents and seniors give us credit for. And we do know when enough is enough. So, while there is the occasional story of maxed-out credit cards, what you will most probably see now are 20 and 30-somethings who know what they are about and know where their finances are headed. And some of them have learnt their lesson the hard way – by battling enormous credit card debt. Mercurynews.com reports:

The others I spoke to said they spent only what they can afford to pay back in full when the MasterCard and Visa bills start coming next month.

Read more: Some young gift buyers set to pay bills

Web merchants fight Internet fraud

Credit card chargebacks are a way of life with most web-based companies and most of them had learnt to live with the inevitable loss of some money in the process of doing business. But now, more and more companies have begun to give fraudsters a run for their money and are refusing to give up without a good fight. I know all this sounds confusing so let’s start at the beginning.

Credit card chargeback is a payment fraud that saps hundreds of millions of dollars from online revenues of Internet-based companies. So, how does this kind of payment fraud happen? Let me explain with an example: A person orders a laptop from an online electronics company and offers to pay with his credit card. The laptop is shipped to him and his account is debited. However, after the due date, the person calls up the company and fraudulently claims that he hasn’t received the laptop. This would render the sale void and the person can then get his money and a free laptop as well. Alternately, the person could also claim that he did not order the product at all.

This just shows how easy it is for a customer to get a charge reversed. At the same time, it is extremely time-consuming for an Internet merchant to prove the sale was legitimate. Internet merchants suffer more from this kind of fraud because unlike a face-to-face sale, an online transaction does not require a customer's signature or credit card imprint.

However, now, Internet companies along with credit card firms are trying to fight back these fraudsters. Card companies are now offering payer-authentication services and other fraud-fighting tools and are also streamlining the process by which chargeback disputes are mediated. Visa and MasterCard already have some options available to merchants like a payer-authentication service, called ‘Verified by Visa’ for Visa cards and ‘SecureCode’ for MasterCard. If you are a cardholder registered with the programs, Internet retailers can ask for a password registered with your bank. This gives the retailer evidence of the purchase and advantage should a dispute arise.

And if you wanted to know what happened to the person who bought the laptop – well he first complained to the web-based company that he didn’t receive the laptop. When the company offered to send an FBI officer to his house to investigate, he immediately called back and informed them that he ‘just’ got the laptop!

Canceling charges are difficult with automated payments

It is the modern amenities and facilities that make life extremely smooth. But in case of a small error, these facilities can make life extremely difficult as well. I know you are probably wondering why I’m trying to sound philosophical when we are here to discuss credit cards. Well, this little bit does have something to do with credit cards, or rather, the automatic payment facility offered by certain credit card companies.

If you are one of those who make use of automatic payments to pay your bills, then here’s a bit of news for you. It can be extremely tiresome to cancel such arrangements. I know this should actually be a cakewalk. Now there didn’t seem to be any hitch when you signed up for the service so why the trouble now? Well, all one can say is, ‘such is life’. According to certain debt counselors, lawyers and Better Business Bureaus around the country, the number of complaints from consumers is increasing considerably. Most of them complain about their inability to stop the recurring bills charged to their bank accounts and credit cards. And to make matters worse, these rules differ depending on whether your payments are linked to a bank account or credit card. Now, unable to stand the frustration any longer, people have even begun filing lawsuits against vendors or their banks to keep the charges from recurring.

Meanwhile banks, which have been bearing the brunt of complaints, say that they are unable to cancel recurring credit-card charges when a consumer has signed a long-term contracts like an extended gym membership. However, things are not as bad as they sound. In response to this troublesome issue, credit card companies Visa USA and MasterCard International say they've upgraded their systems. The new system is supposed to help banks and consumers more efficiently stop automatic payments.

Tiring Taxes? Try using your credit cards

Tax season is well upon us and the IRS is busy giving last minute tax tips to the young recruits. You can now charge federal income taxes to an American Express, Discover, MasterCard, or VISA account by contacting one of the two companies authorized by the IRS to process credit card payments. Thecitizen.com reports:

There is no IRS fee for credit card payments; however, the service providers do charge a convenience fee based on the amount charged. Once you’ve completed the transaction, be sure to write down the confirmation number and the amount of your tax payment.

Read more: IRS gives last-minute tax tips

Mini-sized-Contactless Credit Card Arrives!

A new era in credit card technology has arrived and the whole concept of convenience through credit card use is being pushed to a new high. Credit card giant Visa and MasterCard have incorporated the latest Radio-frequency technology to achieve this.

Visa has come out with a couple of firsts in the credit card business – a mini-sized card, which is also a contactless card. The size of the card is half the size of the usual card and is just big enough to attach to a key ring.

However, the "contactless" feature of this mini card is the main draw for most customers and merchants. To put it plainly what this means is that you no longer need to swipe the card to pay. Visa declared that its Visa Contactless brand had surpassed 20,000 merchant acceptance locations in the US, making it "one of the most rapidly adopted payment innovations in Visa history".

Why? Growing concerns about security with the PIN based transactions specially with debit card pins being compromised by thieves who gained access into bank accounts have been the motive for Visa to implement RFID onto its credit cards. 

Security feature: Visa's contactless Radio-frequency chip has Triple Data Encryption Standard; to ensure that the user’s account number and unique numeric code are generated for each transaction is not compromised.

User-friendly: By simply waving your card near the radio frequency reader you can make payments without a pin or swiping. You don’t even need to sign on the merchant copy when you pay – no contact anywhere. So at a store the staff can assist you in your shopping more as you save a lot of time with contactless payment.

Marketing ploy: Visa plans to offer more payment choices on the contactless card to increase awareness and tempt people into trying this new technology. If the marketing strategy works in a couple of years we might be cutting up our traditional credit cards for a contactless one.

Are there minimum limits on credit cards?

Have you ever been in a situation where you buy a bag of crisps and a soft drink and try to pay with your credit card but are rebuffed by the clerk at the convenience store? S/he tells you that there is a minimum purchase to use a credit card and that your purchase is way below this amount. Are they allowed to do this? Wcpo.com reports:

But MSNBC says Visa and Mastercard do not allow stores to set minimum payments. Visa and Mastercard want as much business as possible.

Read more: CREDIT CARD MINIMUMS

Visa asks retailers to beware of scamsters

The recent computer glitch that caused many Visa cardholders’ details to fall into wrong hands may well force the card company to change its motto from "Accepted Everywhere" to ‘Accessible Everywhere’. Jokes apart, Visa has now issued a memo warning retailers of a problem with the software used to help ring up purchases. Wkyc.com reports:

Under card industry guidelines, personal information cannot be stored on checkout computers, because it could make you vulnerable to scam artists.

Read more: Major credit card company issues warning

Credit card companies mum on details of breach

While a large number of people are now aware that a computer attack compromised their credit and debit card numbers recently, quite a few of them have been finding it extremely difficult to know more details behind the breach and also how to defend against identity theft. According to consumer advocates, the lack of information comes as a move by Visa and MasterCard to control bad publicity. Nbc5i.com reports:

One North Texas woman's debit card information was stolen in a recent attack against a merchant's database. Her bank told NBC 5 News that Visa refused to provide details such as the identity of the merchant or when the breach occurred.

Read more: Credit Card Companies Decline Details On Breach

Scary little credit card secrets

Grace periods for some cards are reduced from the original promise of 30 days to 20 days or none at all. Interest is then charged from the day a purchase is made until payment of the bill. Awareness of grace period is crucial.

Interest is charged on cash advances from the moment the cash is dispensed and the rates can climb to 30 percent. Using credit card at an ATM is a lot more expensive than debit card.

Late payment fee is an average of $28.58, for even a day late. Find out about yours for a nasty surprise.

There are two billing cycles, first there will be an interest charge on your purchases and then for the month before. The most favorable balance method is the adjusted balance where interest is charged after payments and credits during the billing cycle.

A single late payment can raise your interest rate from 12 to 20 percent if not more.

Companies have a policy of changing interest rates with notice only 15 days in advance. Even fixed rates can change interest at any time.

Minimum payments are lowered constantly and the increasing interest charges on your card balance is never paid off completely by minimum payments alone. Credit card companies make the most profit if you make the lowest possible payment ensuring your debt remains. Credit card info.com reports:

Grace periods: Some cards have reduced grace periods from the original 30 days to 20 days or no grace period at all. With no grace period, you are charged interest on the purchase from the day you make it until the bill is paid. Knowing your grace period can save you money.

Visa 2005 US volume rises to $1.23 trillion

Here’s some good news from Visa USA. Visa, which is the largest U.S. credit card association, recently issued a statement, which said that its cardholders had spent $1.23 trillion last year. This is 17.5 percent more than the previous year. The big growth sector in 2005 was online transactions.

Visa also informed that it had 510.9 million cards outstanding in the United States at year-end, up 12 percent. And what do all these figures mean to individual consumers like you and me. Well that we are reveling in the use of our credit cards. Check this for size: U.S. consumer credit card sales volume are said to have risen 8.6 percent to $563.5 billion, while check card volume rose 18.7 percent to $410.5 billion. Today.reuters.com reports:

Visa last November said that to improve governance practices, it would make a majority of its board of directors independent. Analysts interpreted that move as a possible precursor to Visa eventually going public.

Read more: Visa 2005 US volume up 17.5 pct to $1.23 trillion

Card companies face increasing security breaches

Suspect transactions seem to have become the rule rather than exception as increasing numbers pop up throughout the United States and other countries. According to officials investigating the case, a large number of these transactions may be related to a security breach that happened at a merchant facility in California last year. The fallout from this event is only now becoming known. Visa USA was one of the first companies that gave an indication that everything was not all right. Recently released figures from the company indicate just 17% of 231 large retailers comply with industry wide data-security rules. Data-security experts believe that this is the proverbial tip of the iceberg. They believe that more such reports will be forthcoming in the next few months.

Sadly, most of the card companies have been trying to take adequate precautions to avoid just such a problem. Visa, MasterCard International, American Express Co., Discover Financial Services LLC, and other card companies harmonized their individual data-security rules into a common set of rules known as the Payment Card Industry data-security standard. This was done a year back. The rules mandate measures such as data encryption, firewalls, and regular anti-virus scans and apply to all organizations, including merchants, that handle card data. However, more than 80% of the large merchants are not yet in compliance.

Businesses can use credit cards for taxes

I am not one of those who subscribe to the idea of having multiple credit cards and flashing them wherever I go. My belief is that credit cards and their use doesn’t spell good news unless you are a careful and thrifty spender. But every once in a while, credit card companies, and sometimes the government spring certain surprises that make me want to change my opinion that credit cards are dangerous.

So, now that I’ve psyched you enough, let’s get on with the news. If you are a businessperson, then get your credit card out and ready for the IRS. The IRS or Internal Revenue Service has now begun accepting credit card payments for certain business taxes. Another piece of good news is that the convenience fee paid or incurred by a business making a tax payment with a credit card can be deducted as a business expense.

In case you are interested in making secure federal tax payments with your American Express, Discover, MasterCard and Visa cards, all you need to do is visit their official site at officialpayments.com

A look at the Chase Platinum

Did you know that there are nearly 1000 Chase credit cards for consumers to choose from? If you didn’t, then join the gang. Not many people are aware about this awesome number. Most of these cards are ‘affinity’ cards. This means they have direct tie-ins with certain types of stores or manufacturers. While you may have encountered a few of these cards at some point of time, let’s have a look at one card that seems to stand above the rest of the Chase cards.

The Chase Platinum is the one of the most popular Chase cards. You can get it as the Chase Platinum MasterCard or Chase Platinum VISA card. Its plus points include 0% APR for the first 12 months. It has no annual fee; a fixed low rate once the introductory period is over; and lots of other benefits.

Visa gets an all-new look

This may sound like old news, coming as it does a few weeks later. But for those who still don’t know, Visa USA recently announced that it's launching a new logo for the first time in 30 years.

You will now get to see this most recognizable of cards in a set of different colors. Instead of the colored bands that have served as the unmistakable identity of the Visa credit card, now you will find the card sporting three colors. Its famous blue, white and gold colors that are there in the Visa brand name will now adorn the card as well.

Don’t go yet. There’s more. The card company has also redesigned its cards. The dove hologram that was on the front will move to the back of the card and will be integrated into the magnetic space. As part of the redesigning, the three-digit security code will no longer be over the signature panel. To make it easier to read, the code will now occupy a separate panel next to the signature panel.

Gen P sets the pace for plastic

Consider this scenario: You are out shopping and once you buy everything you want, you reach the check out counter. What do you reach for, cash or your debit/credit card? Chances are you reach out for that card especially if you belong in the 20-30 age group!

Money has taken on a completely new meaning for the young generation of today. Or should we call them the plastic generation. People today are flashing their plastic for most purchases, even the mundane ones. And they prefer not to pay in cash. In recognition of their penchant for plastic over hard cash, Visa USA recently coined an apt name for people belonging to this age group: Generation Plastic or Gen P. As the younger lot grows up and begins to learn the advantages of using cards over hard cash, they are forcing merchants to learn new ways of doing business. One of the most prominent changes is that more merchants, shopkeepers, discotheques and other services are now open to the idea of accepting cards over cash.

But this does not mean that everyone accepts this trend as a good thing. Many people are worried about this growing fascination among youngsters for things plastic. And rightly so. Parting with cash is often more difficult than paying with a card. When we pay for purchases with a card, we don’t see the money actually leaving your hands. So, in a way, we are insulated from the feeling of having spent beyond our limits. Another problem is of diminishing savings. While a credit card may incur heavy debts on you, using a debit card is no better. According to The Nilson Report, a newsletter that follows spending trends, in over 23 billion transactions, debit cards were used as modes of payment.

Data breach at Visa

Visa USA recently acknowledged that a U.S. merchant’s credit card account information might have been compromised in a data security breach. In a statement, Visa said that it quickly alerted affected financial institutions to protect its consumers. News.com.com reports:

Data theft and identity theft came to the fore this year when a data security breach at payment processing company CardSystems Solutions exposed more than 40 million credit card accounts to fraud, primarily Visa and MasterCard cards.

Read more: Visa deals with possible data breach

Reward cards

What type of credit card do you hold – regular or reward card. Chances are you already have a reward card with your regular credit card or are planning to get one soon. So what is it about these cash-back cards that have people gunning for them? It’s simple human nature. Not many people can say no to rewards that are offered for doing what you like to do most – shop. It’s just too tempting. So let’s have a look at this segment of the credit card market, which is growing at an enormous rate – at last count, over 32 million people across the country were using reward cards!

The credit card industry is not known for its generosity. On the contrary, high interest rates, and changing terms and conditions are more de rigueur in this industry. So the very fact that these companies are today offering cash or rewards to people who shop with their cards may sound a bit absurd. But not when you realize that they are now banking on something businesses have done from time immemorial – customer loyalty.

When any credit card company offers a cash-back or reward scheme for using its credit card, customers are known to usually use this particular card more than the regular ones. So now you have companies like Discover giving away almost $500 million in 2005 alone. Discover was the company that introduced the cash-back scheme nearly two decades ago. Soon other credit card companies like American Express, Citibank, Visa, and many others were offering reward cards and business was booming.

So how good are these cards for customers? Do they come with some hidden charges or are they simply what they claim to be? Questions any persons should ask him/herself before going in for a reward card.

If you were to go by customer surveys, this industry is yet to peak. People are in general very happy with these cards. Only one thing, you need to find out which card suits you and your wallet best. You only need to remember one thing: your choice of card depends on what kind of shopper you are – you buy books, grocery, or clothes. So it is important to know more about every card before you choose the one that is right for you.

High fees for multiple-use gift card

Beware! The ‘multiple-use’ gift card that you received this Christmas may not be as great a gift as you thought it would be – especially if you are living in Connecticut. You may end up paying a huge sum as fees on these types of gift cards, which are issued through American Express, Discover, MasterCard or Visa. This despite the fact that a Connecticut law prohibits inactivity fees and expiration dates on gift cards. The catch here is that the law still does not apply on multiple-use gift cards.

But the stringent rules have ensured that at least some of the card issuers stay out of the state. While Discover Card does not offer gift cards in Connecticut, American Express does not sell its cards directly to Connecticut residents.

What has irked state representatives are the numerous types of fees that the issuing companies charge for a small gift card. When you get a multiple-use gift card, you not only have an expiration date, you have to pay a purchase fee, inactivity fee and even a processing fee if you want any money that remains on the card after you’ve used it to be returned to you.