The Credit Card Blog

From Credit Card Cool - Bank of America Signs NFL Sponsorship Deal

thecredi — Thu, 10 Apr 2008 02:15:54 +0000

Bank of America has apparently signed up to a 3 year sponsorship deal with the National Football League.

This is an expansion on a previous agreement that incorporated NFL and team identified credit cards as well as a sports rewards program. It sounds similar to the rewards program set up by the UK’s Barclaycard Football Credit Card - 0% on All Season Tickets.

According to BizJournals:

“Under the new agreement, …
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From Credit Card Cool - www.creditcardcool.com

From Business Credit Cards Blog - Top Small Business Lender Joins with MBNA to Offer 2 New Business Credit Cards

thecredi — Wed, 09 Apr 2008 19:18:11 +0000

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From Business Credit Cards Blog - www.businesscreditcards.cc/creditcards/bcc-blog.htm

From Digital Money Blog - Back to the trenches

thecredi — Wed, 09 Apr 2008 05:19:20 +0000

Summary

banking, cashless, SEPA

[Dave Birch] Peter Jones of Payment Systems Europe, a long time friend of the Digital Money Forum and this year’s chair of the European Perspectives session on 24th April, has written a typically excellent piece for European Card Review called “Europe set to lose its ‘war on cash’”. He says that “Despite its high profile there are indications that the eurozone may lose its ‘War on Cash’. The banking sector appears unable to deliver a strategy and vision… The eurozone remains highly cashcentric and there is evidence that the current cash growth outstrips substitution by cards and electronics”.

Oh dear. So much for the Lisbon agenda and all that.

The central banks are charged with making the European economy more competitive, and replacing cash with electronic transactions is an easy win in this regards. Yet the central banks income, as we drone on and on about here, comes from the least efficient payment mechanism of all, cash. Surely there’s some tension here?

Peter concluded “So will the EU win the ‘War on Cash’ and achieve improved efficiency in payments? Without focus and leadership this appears unlikely. Fragmentation will grow as will the eurozone’s costly cash mountain. Sadly the indications are Europe’s payments sector productivity will take years to achieve best in world performance”. A disappointing conclusion, but Peter is, of course, right.

Is it merely a question of introducing a functioning market with proper pricing, or are there some entrenched interests (eg, drug dealers) set against cash replacement? Peter quotes Gertrude, as I did, to show the European Central Bank’s leadership, but I would argue that if Gertrude wanted to take some practical action she has plenty of options: she could stop printing 500 euro notes, for one thing. The alternative (my favoured strategy) would be to rely on competition and enterprise rather than regulation to deliver the improved competitiveness that she wants in Europe. The ECB should be agitating to make the KYC/AML requirements less onerous for small payments, to make it easier for non-banks to compete in the payments world and to make national governments use electronic means for welfare, benefits and pensions. If they took some positive action in these directions, then Peter’s analysis might take a turn for the better.

These opinions are my own (I think) and presented solely in my capacity as an interested member of the general public [posted with ecto]

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From Digital Money Blog - digitaldebateblogs.typepad.com

From Business Credit Cards Blog - A New Small Business Credit Card from Discover

thecredi — Sun, 06 Apr 2008 18:17:59 +0000

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From Business Credit Cards Blog - www.businesscreditcards.cc/creditcards/bcc-blog.htm

Credit Card Articles - Are Low Interest Credit Cards Really a Good Deal?

thecredi — Sun, 06 Apr 2008 17:17:15 +0000

Low interest doesn’t always mean what you’d think. Here are some tips for finding out if your low interest credit card is a good deal. You just got an offer in the mail for a low-interest credit card. That sounds great, right? Interest charges make debt pile up faster, so you’re inclined to jump on this credit offer right away.
Hold your horses, friend. Before you take the credit card company up on its offer, there are some things you need to know about low interest credit cards. They’re not all created equal, and even the phrase “low interest” can mean something very different depending on the company – or the type of charge.
When you get an offer for a credit card – any credit card – you should read the fine print before making a decision. Many companies will try and lure you in with offers of very low interest rates, or even no interest. But these rates don’t last forever. If you check out the card’s terms and conditions, you will almost always find that the really low interest rates are just part of an “introductory” period. These can last as little as three months or as long as fifteen, with six to twelve months being standard.
If you have some important purchases coming up, or if you want to transfer your debt from a high-interest card, then a low- or no-interest credit card could be a good choice for you. Pay off the balance in full before the introductory phase ends to take full advantage of the reduced rates.
Also check out the fine print to see which types of charges the low interest applies to. You might be paying 8% interest on purchases, but cash advances can spike that rate to 20% or higher. Balance transfers and over-the-limit purchases are also subject to higher interest rates. If you incur these types of charges very often, you’re better off with an average interest credit card that charges the same amount for cash advances as for purchases.
While you’re reading through the card’s terms and conditions, check out the policy on universal default. If the company participates in universal default, you should look elsewhere for your next card. Universal default means that any time you’re late on payments, your interest rate can be increased. And that increase isn’t just for late credit card payments. Your late utility bill or late car payment could affect the interest rate on your credit card. It’s best to avoid universal default.
Another factor to consider is the card’s grace period. A grace period is the amount of time you have between making a purchase and having that purchase start to accrue interest. The average length of a grace period is about 22 days, but some cards don’t even offer one anymore. Look for one that does.
Sometimes things sound like a good offer until you get into the details. Always educate yourself about a card’s terms before agreeing to become a card holder. Low interest is a great offer, but first you’ve got to determine if it’s for real.
This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. Read more…

Credit Card Articles from CreditorWeb.com - www.creditorweb.com

From Credit Card Watcher - Green Credit Cards: An In-Depth List

thecredi — Sun, 06 Apr 2008 10:20:15 +0000

With Earth Day rapidly approaching, we have a good excuse to review our green options when it comes to plastic (or corn, if you prefer). After all, even Leo DiCaprio has recently been touting a new HSBC green credit card for the Hong Kong market. What does it mean for a credit card […]
With Earth Day rapidly approaching, we have a good excuse to review our green options when it comes to plastic (or corn, if you prefer). After all, even Leo DiCaprio has recently been touting a new HSBC green credit card for the Hong Kong market. What does it mean for a credit card to be green? Well, the HSBC card is made from environmentally-friendly materials, requires the use of digital billing to cut down on paper waste, and donates a portion of each charge towards a local environmental protection project. While that card is not available in the US yet, there are a number of other green credit cards already here.

Green Credit Cards
Here’s a rundown:

The Brighter Planet Visa
Every $1,000 spent in purchases with the card earns 1,000 points that will fund an estimated 1 ton of carbon offsets. In addition, you’ll earn 1,000 bonus points with your first transaction and another 1,000 points for using paperless statements. Also, until December 2008, Bank of America will match each two base points earned with the contribution of another point, equivalent to a 50% bonus.

World Asssets Visa Signature Card
For every purchase made on the card, 10 cents will be donated to nonprofit groups like the Ocean Conservancy and Global Fund for Children. In addition, the card earns WorldPoints which can be used towards cash rewards, travel rewards and more.

Salmon Nation Visa
A percentage of the income derived from the Salmon Nation Visa program goes directly to Ecotrust, a conservation organization aiming to strengthen communities and the environment from Alaska to California.

GE Earth Rewards Credit Card
This card from GE Money allows you two rewards options: 1) You can choose to contribute either a full 1% of your net purchases to emission reduction projects or 2) 0.5% towards emission offsets and 0.5% cash back for yourself. On Earth Day each year you’ll receive a statement that shows how your reward was spent to help reduce greenhouse gas emissions.

World Wildlife Fund Card
1% of each purchase will go towards the World Wildlife Fund, an organization with a mission to save endangered species and protect endangered habitats. In addition, Chase will donate $50 for each new account opened online.

GreenPay MasterCard
For each net $1 spent on gasoline and household utilities, the GreenPay Rewards program will provide 10 pounds of carbon offsets. For each $1 spent on everything else, the program will provide 5 pounds of carbon offsets. In addition, 10,000 pounds of CO2 will be removed as a first purchase bonus.

Nature Conservancy Visa
0.65% of your net purchases will go to the Nature Conservancy, a leading conservation organization committed to protecting ecologically important lands and waters. In addition, new card members will receive a complimentary 1 year membership and subscription to Nature Conservancy magazine.

Bass Pro Shops Outdoor Rewards Platinum Plus Visa Card
With each card purchase, Bass Pro Shops and the National Fish and Wildlife Foundation will make a contribution to help conservation efforts, with a guaranteed yearly contribution as high as $1.5 million, at no additional cost to you. You’ll also receive a $25 gift card after your first use.

Green Rewards Programs
Credit card issuers have expanded your rewards options recently, so that even general-use credit cards can earn green rewards. Here’s a sampling:

Wells Fargo Enhanced Rewards
Wells Fargo credit card users can enroll in an optional rewards program where the points that they earn can be used towards various green rewards, such as a solar charger or a garden composter. You can also choose to redeem reward points to support renewable energy projects and receive certificates for your donations. Enrolling in the rewards program costs $19 (or 2,000 points) a year for your credit card only, or $29 a year to enroll both your credit card and Check Card.

Bank of America WorldPoints
Bank of America offers any of its credit card holders who earn WorldPoints to redeem them for a wide range of eco-friendly products and projects. Any Bank of America credit card that earns WorldPoints is eligible to earn these rewards at no additional cost.

Citi Thank You Network
As part of its Thank You rewards network, Citi also offers a range of environmentally-responsible rewards. For instance, your Thank You points can be redeemed in exchange for having trees planted or for energy-saving CFL light bulbs.

Another Green Alternative
There’s also another option to consider when going green: instead of selecting a credit card specifically because it is green, you can always choose the best cash back card available and donate the cash rewards to your favorite environmental cause. It is slightly less convenient, but there at least three obvious benefits: 1) any donations will be tax-deductible, 2) you should be able to earn more rewards for your charity, and 3) you’ll have more choice as to exactly how your money is spent.

Regardless of the card you choose, chances are your issuer allows and even encourages your use of electronic-only statements. That’s one sure-fire way to get greener, and save both trees and gas.

This post is from Credit Card Watcher’s Credit Card Deals Blog.

Green Credit Cards: An In-Depth List

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From Credit Card Watcher - www.creditcardwatcher.com

From Credit Card Cool - Kids and Credit Cards

thecredi — Sun, 06 Apr 2008 03:18:03 +0000

I think there is a heck of alot of wisdom in advising your children to avoid credit cards up until the age of 20. It takes time to understand the worth of money, how to earn it and how to manage it. Youngsters given credit cards, miss out on these important principals.

However, there certainly is some sense in your offspring getting onto the credit ladder at some point and here’s why:

1. Building up a good credit history can be important for the future. Particularly when you come to obtaining a mortgage.

…
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From Credit Card Cool - www.creditcardcool.com

From Digital Money Blog - Systematic calculations

thecredi — Sat, 05 Apr 2008 16:15:50 +0000

Summary

banking, fraud

[Dave Birch] I’m reading up to try and learn more about banking as I think this will improve my understanding of the payments business, but I’ve been side-tracked today because I’m considering joining in with the lawsuit to stop CERN from switching on their Large Hadron Collider (LHC). Apparently, there is a concern that when the assorted euro-boffins start their atom-smashing antics, they may create “strangelets” and mini-black holes:

The builders of the world’s biggest particle collider are being sued in federal court over fears that the experiment might create globe-gobbling black holes or never-before-seen strains of matter that would destroy the planet.

[From Atom-smasher fears spark lawsuit - Science- msnbc.com]

These mini-black holes would suck matter out of this universe and send it into other dimensions, where it would never been seen again. I was wondering if this might be what happened to the THIRTY SEVEN BILLION DOLLARS that’s gone missing from UBS recently. It certainly cannot be explained by conventional physics. If the chairman of UBS had stood in front of a roaring bonfire and thrown $100 bills into the flames at the rate of one a second for the last two years, he would have lost a mere $6.3 billion. Oh wait, perhaps he was burning 500 euro notes not $100 bills. They have much higher money density: in that case I stand corrected and he could just about have done it without string theory or 11 additional dimensions coming into play.

All he had to do was resign though. The Hong Kong Standard reports a more robust line on gambling bankers who pick the wrong horse. Two employees of the Agricultural Bank of China came up with a better strategy than UBS. They took about three million quid from the bank vaults. They then used the money to buy lottery tickets: their plan was to replace the missing money with the lottery winnings and hope that no-one noticed (much the same plan as Jerome Kerviel of Societe Generale fame as far as I can tell). Generally speaking, Chinese bank employees are not familiar with the work of Adam Smith:

Adventure upon all the tickets in the lottery, and you lose for certain; and the greater the number of your tickets the nearer your approach to this certainty.

[From Adam Smith Quotes]

In the U.K you get to keep the Porche and the massive pension and take a few weeks gardening leave. In China, the rogue traders with the novel asset management strategy were executed.

Now let’s look switch to look at some small numbers. You know how much I love collecting trivia about money, so the wonderful David Owen article in The New Yorker (31st March) was a dream come true.

Primarily because zinc, too, has soared in value, producing a penny now costs about 1.7 cents. Since the Mint currently manufactures more than seven billion pennies a year and “sells” them to the Federal Reserve at their face value, the Treasury incurs an annual penny deficit of about fifty million dollars—a condition known in the coin world as “negative seigniorage.”

[From Dept. of Currency: Penny Dreadful: Reporting & Essays: The New Yorker]

You might think that losing money when you own a mint is quite hard to do, but don’t worry about them too much. Overall, their income was over $2 billion and there’s still plenty of money to be made on $20s! As I never tire of telling people, the Issuing Department of the Bank of England is the most profitable nationalised industry in history, with revenues of X and costs of only Y.

Owen’s is a super article that, like all New Yorker articles, was a pleasure to read for the sheer quality of the writing as much as anything else. It’s full of genuinely interesting facts. Perhaps my favourite figure, though, was the simple calculation of whether it is worth stopping to pick up a penny or not. In the U.S.,

Breaking stride to pick up a penny, if it takes more than 6.15 seconds, pays less than the federal minimum wage.

[From Dept. of Currency: Penny Dreadful: Reporting & Essays: The New Yorker]

In the U.K., the national minimum wage is

£5.52 per hour for workers aged 22 years and older

[From HM Revenue & Customs:National Minimum Wage]

That category includes me. So it takes 1/552 * 3600 seconds to earn a penny at minimum wage. If my calculations are correct, that’s 6.52 seconds, which reflects the more leisurely pace of life in this other eden, demi-paradise (which I mention only to support the campaign to have 23rd April, the first day of this year’s Digital Money Forum, adopted as National Shakespeare Day).

These opinions are my own (I think) and presented solely in my capacity as an interested member of the general public [posted with ecto]

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From Digital Money Blog - digitaldebateblogs.typepad.com

Payments News - Comments to WSJ Editorial On Interchange Fees

thecredi — Fri, 04 Apr 2008 06:17:48 +0000

Today’s Wall St. Journal contains several letters to the editor in response to the Journal’s editorial last Saturday “urging a market solution to excessively high credit-card interchange fees.” One commenter writes “What aggravates so many merchants and service providers is the fee surcharges that are unilaterally imposed upon merchants for accepting certain types of credit cards most often associated with the multitude of rewards programs so widely advertised.”
Today’s Wall St. Journal contains several letters to the editor in response to the Journal’s editorial last Saturday “urging a market solution to excessively high credit-card interchange fees.” One commenter writes “What aggravates so many merchants and service providers is the fee surcharges that are unilaterally imposed upon merchants for accepting certain types of credit cards most often associated with the multitude of rewards programs so widely advertised.”

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Payments News from Glenbrook Partners - www.paymentsnews.com

From Business Credit Cards Blog - New Card Added: The Advanta Platinum with Rewards Customized BusinessCard

thecredi — Thu, 03 Apr 2008 13:18:21 +0000

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From Business Credit Cards Blog - www.businesscreditcards.cc/creditcards/bcc-blog.htm