credit card forum [the blog]

Posted on Monday, 17th November 2008 by Nicole

Credit cards were created over fifty years ago, long before there was such thing as the personal computers, the internet, and of course online shopping. The credit card industry has tried adding security codes and using elaborate fraud detection algorithms, but credit card fraud still thrives everyday. Even though the actual cardholder is never responsible for the costs incurred from fraud, the credit card company is.

Visa is designing a credit card with a built-in random number generator. There would be a small LCD screen on the card which would generate an 8-digit pin number which would be used for one transaction. A new number would have to be generated for the next transaction. Therefore the thief could have your credit card information, but it would be useless without having the pin number. Since the pin number would constantly change from transaction to transaction, it would be virtually impossible for a thief to guess it.

Tags: credit card fraud, credit cards, online credit card fraud, visa
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Posted on Thursday, 13th November 2008 by CreditCardGuru

Just days ago we reported about a proposal by the financial institutions to set up a program which would forgive up to 40% of consumers credit card debt if they were underwater with payments.

The Office of the Comptroller of the Currency, which regulates banking, came back and said:

The agency does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us.

So let’s get this right. Spending over $100 billion to bailout AIG whom spends it on luxurious spa retreats for executives… Good! Spending money on the people who actually pay these taxes, the consumers… Bad!

…So much for our government being by the people, for the people.

Tags: bailout, credit cards, credit crunch, debt relief, financial meltdown
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Posted on Sunday, 9th November 2008 by CreditCardGuru

Most financial institutions are struggling left and right, but others apparently are not - such as the case with Kazkommertsbank, who has recently announced they will be issuing a diamond inlaid credit card for their richest customers.

The Diamond credit card will have a 0.02 carat diamond embedded in its center. But the $1,000 annual fee only gets you a $50,000 credit limit, a limit that is not uncommon on credit cards in the United States. The card will feature the graphic of a peacock for female cardholders and a winged horse for male cardholders. Borat would be proud.

However this is not the first credit card made of diamonds and gold. The Dubai First Royale MasterCard (pictured above) is by invite only and issued to the VIP’s of the UAE. It looks like the American Express Centurion now has serious competition.

Tags: credit cards, diamond credit card, mastercard, mastercard diamond
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Posted on Wednesday, 5th November 2008 by CreditCardGuru

The day after the election, turn on any news station and you will hear all the talking heads trying to figure out exactly how Obama ran what may have been the best presidential campaign in the history of the United States. Of course there are many reasons for the success, but as funny as it sounds, credit cards played a very important role in giving Obama the financial resources needed in order to get his message out there.

Before he even secured the Democratic nomination, the campaign has been focused on small donations. They took a huge gamble and skipped public financing, a move that hasn’t been done by a major party since the option was introduced in ‘74. By utilizing the internet, the campaign gathered millions of smaller donations by the time the campaign was over. Many people wouldn’t bother the tedious process of mailing a check for a $5 or $10 donation, but when it was as simple as clicking on a Facebook ad and entering your credit card number, those small donations made more sense to do. The small donations even incorporated contests, such as the one a week before the election; where if a user donated $5 or more with their credit card, they would have the chance of winning a backstage VIP trip to Obama’s rally in Chicago on the eve of November 4th.

When all was said and done, Obama pulled in over $650,000,000 (the final numbers have not been reported yet). Of course money is not why Obama was elected, but in the cut throat world of politics, big money is needed to get your message out there and defend yourself against negative campaigning…. and that big money came from little credit card donations.

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Posted on Sunday, 2nd November 2008 by CreditCardGuru

Banks advocating debt forgiveness? That’s a line you’d never expect to hear. But in an unusual move, banks have joined forces with consumer advocates to pitch a proposal to the government, where up to 40% of an individual’s credit card debt would be forgiven. The remainder could be repaid over several years at a favorable interest rate. Banks have came to the realization that it will be better to settle the debt for something, then get nothing.

Over 100 of the biggest financial institutions are behind the initiative. If approved, it would start as a pilot program involving as many as 50,000 Americans. The severity of an individual’s financial situation would determine the percentage of the debt to be forgiven.

Tags: credit cards, credit crunch, debt consolidation, mortgage meltdown
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Posted on Wednesday, 29th October 2008 by Sam

Most credit cards offer rewards on purchases. Now what if those rewards were put in the government’s pocket instead of your own?

If Anthony Pollina, an independent candidate for the governor of Vermont gets elected, that may happen. Pollina propose creating a “Vermont credit card” which would be issued by Vermont banks. He claims the card would carry a low interest rate and instead of earning cashback or airline miles, that money would go into a local economic development fund. Pollina states he is not advocating Vermont citizens get this credit card to run up debt, but rather use the card in-lieu of their current credit cards.

Some argue it’s big brother stepping in and trying to find away to squeeze more money with a hidden tax. Others say it is an ingenious way to increase funding without increasing taxes. Whether you are for this or against it, no one can deny it is an innovative idea.

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Posted on Thursday, 23rd October 2008 by Nicole

With all the gloomy banking news here’s something to lighten the mood…

Did you know in 1999 David Bowie had his own retail bank? They even issued a MasterCard debit card. The operation closed shop shortly after. Apparently customers don’t desire debit cards with David Bowie’s mug on them.

Other celebrities that have dipped their toe in banking include Usher who had a prepaid Visa card, and Kiss, who has issued a credit card. Capital One has issued World Championship Wresting credit cards featuring the photos of Hulk Hogan, Bill Goldberg, and Sting among others. The Cool Country Visa from SunTrust featured the faces of Reba McEntire, Billy Ray Cyrus, and Alan Jackson among others.

No celebrity banking service has ever been a huge success and most have only last a very brief time. Just because we want to buy their music does not mean we want to do banking with them… especially during a time like this.

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Posted on Tuesday, 14th October 2008 by CreditCardGuru

Although we have not had any credit card crisis *yet* during this global financial meltdown, it’s interesting to take a look at what companies are most exposed should this happen.

As expected, some of the biggest card card issuers are listed. The amount of total credit card debt is not the issue, but rather the percentage of revenue from credit cards. In other words, the more exposure a company has to credit cards, the more they will be hurt if credit cards turn out to be the next shoe to fall.

It looks like Discover generate almost all of their revenue from from credit cards.

Tags: banking, credit cards, financial crisis
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Posted on Friday, 10th October 2008 by CreditCardGuru

Depressing is an understatement when the Dow experiences the biggest one week drop in history, both in points and percentage. While Wall Street is experiencing its own financial crisis, most of us are experiencing a personal financial crisis to at least some degree. Here are a few tips to keep your own credit in check.

1. Big Picture Mentality. First get your finances prioritized. List all of your debt obligations such as mortgage, credit cards, car loan, student loan, etc. Rank them in order of importance, when they’re due, and how much is owed.

2. The Most Important Bills First. Pay things that are an absolute necessity such as mortgage or rent, car payment, and so forth. While many may view their MasterCard bill at the bottom of the list, keep in mind it’s important to make at least the minimum payments, because the last thing you want is your credit to be negatively affected with a late payment.

3. Balance Transfer Offers. In theory, you should pay off your credit cards first if the interest is higher than your other loans. Unfortunately this may not be an option for the financially strapped. This is why it’s important to look into 0% balance transfer offers to at least keep interest low if you are unable to pay off the principle right now.

4. Cut Out Extras. Do you really need cable right now? Many websites such as CNN and ABC offer streaming video for free. Downgrading your cell phone plan and canceling your rarely used gym membership are other monthly expenses you save on.

Tags: balance transfer offers, credit cards, financial crisis, frugal, saving money
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Posted on Sunday, 5th October 2008 by CreditCardGuru

This information was found on Alpha Consumer by Kimberly Palmer.

Last Monday Citigroup agreed to take over Wachovia for $2.2 billion in a deal facilitated with the help of the FDIC. This did not include Wachovia’s retail-brokerage or asset-management units. Then just four days later Wells Fargo announced it was purchasing all of Wachovia in an all-stock deal for $15.1 billion. In essence, they sold the same company twice.

This weekend the judge blocked the deal while it is under review. Meanwhile Wachovia spokesman Mary Eshet stated:

“Today, nothing has changed for anyone. As we proceed, I’m sure Wachovia and Citigroup will look at what reward programs are in place. But as of today nothing changes.”

In other words, that could be interpreted as cardholders should redeem any rewards now instead of later if they don’t want them to change. If you have a Wachovia credit card I would advise you cash out any points, miles, or cashback now instead of later.

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