Credit Card Quick

Safer Ways to Make Online Purchases

Identity Theft News

If you’re a bit worried about making online purchases with your credit card – and let’s face it, who isn’t? – don’t despair. There are a number of steps you can take to make sure your next purchase is a bit safer.

The sheer number of online security breaches and sophisticated computer hackers has left many consumers weary about making online purchases. Although the only way to ensure safety from online hackers is to completely eliminate making online purchases, there are a few things you can do to greatly reduce the chances that you will become the next victim of online credit card theft:

• Ask your bank if you are able to create a “disposable” credit card number.  Consider ShopSafe, through Bank of America, for example. If you have a Bank of America Visa or MasterCard credit card, you can simply sign into your Bank of America account online and follow the ShopSafe prompts to sign up for a temporary, 16-digit credit card number, which can then be used to make an online purchase. This temporary card number, which even comes with its own expiration date and security code, is valid at only one online vendor. Therefore, you must sign up for a new card number for each online purchase. However, if you frequent a certain online vendor, you can continue to use that same temporary credit card number.
• Consider using an online payment service, like PayPal or Google Checkout. These online payment services eliminate the need to provide online vendors with credit card numbers and other personal information, and instead allow you to sign into the service and make the purchase. In addition, they also offer protection against unauthorized purchases, provided you report the fraud within 60 days.
• Consider purchasing a prepaid credit card. If you really want to avoid entering your credit card information online, you may want to purchase a prepaid credit card. To activate one of these cards, simply load it with the desired amount of money. Then, every time you make a purchase, the purchase total is deducted from your account balance, like a debit card. Be careful, however, of the fees that are often associated with prepaid credit cards, as they can come with their share of sneaky fees, such as activation fees and “load” fees.

Study Ranks the Best and Worst Banks for Small Business Credit Cards

Choosing Credit Card

A recent study by Card Hub ranked the best and worst credit cards for small business. The study, which ranked the top 10 credit card companies according to their transparency and the extent to which they extended the new CARD Act protections to their business credit card customers, showed that not all credit card companies were fair and forthright to their business cardholders.

Because the CARD Act, which was enacted in 2009, does not apply to business credit cards, not all credit card companies extended the protections of the law to their business credit card customers. There were a few exceptions, though. Bank of America, in particular, was the only major credit card company to extend all of the protections of the CARD Act to its business customers.

Although many suspect that small business owners will soon be given the same protections under the CARD Act that individuals consumers are now afforded, the fact of the matter is that, at the current time, it can be quite tricky to be a small business owner with a business credit card.

Some of the results of the Card Hub study include:

• Wells Fargo, HSBC and U.S. Bank failed to provide any of the CARD protections to small business owners, and they also failed to provide transparency to small business owners about their policies.
• Citi, Chase and Discover ranked slightly higher than Wells Fargo, HSBC and U.S. Bank because they were upfront when it came to informing small business owners that the protections afforded to individuals consumers under the CARD Act did not apply to their small business credit cards.
• American Express and Capital One extended many (but not all) of the CARD Act protections to their small business credit card owners. It is important to research these credit cards before opening an account so you fully understand the card’s terms and conditions.
• Bank of America was the only credit card issuer to give its small business customers an important part of the CARD Act: They do not increase interest rates on its small business cards until the account is 60 days delinquent.

Bank of America Customers: Take Note if you’re a Late Payer

News

Bank of America recently announced changes that will make it more difficult to rebound after a missed credit card payment.

If you are a Bank of America customer, you will likely get word that missing a payment could mean stiff repercussions for future purchases. In particular, the Bank of America Corporation announced that customers who miss a credit card payment may be charged a higher penalty interest rate on all future purchases. Most Bank of America customers have dodged this bullet for some time, even as other credit card issuers have been implementing the concept of a penalty interest for some time.

Bank of America Introduces the Penalty Interest Rate

The penalty interest rate, which may start as soon as June, could be a whopper, too, as the company announced it may charge its customers as much as 30 percent on future purchases. The company was quick to report, however, that the 30-percent penalty interest rate may not apply to every customer who misses a payment.

Determining Customers’ Credit Risk Factors

Bank of America says it will review a number of factors if a customer misses a payment before initiating the penalty interest rate, including the customer’s risk factors (such as the customer’s credit history, late payments and maxed-out balances), and all customers will receive a 45-day notice of the changes before the penalty interest rate goes into effect. Bank of America will only apply the penalty interest rate to future purchases, and it will not affect existing balances.

Bank of America, up until this point, had only charged late fees, but it is now following the path of other credit card companies and charging a penalty interest rate, likely to recoup some of the money lost as a result of the CARD Act regulations.

Bank of America is also in the process of testing a new checking account concept in some states. The new checking account concept is likely to have monthly fees. In addition, Bank of America has informed its customers that it would charge an annual $59 fee for their credit card. Customers can either accept the $59 or reject it and cancel their credit account.

Bank of America to Hit Customers with Annual Fees

News

It is clear that credit card companies are still reeling from the ill effects of the CARD Act legislation. From raising interest rates to becoming much more selective regarding whom they will offer credit, the effects of the CARD Act continue to reverberate throughout the credit card industry.

Bank of America, though, appears to be taking things one step further, as they recently announced that they will begin charging annual fees to millions of its customers. Although it is still not clear how many people will be affected by these new annual fees, even consumers with a good history and a good credit score may not be in the clear regarding annual fees.

Fees to Start Soon

Bank of America is expected to begin sending letters to its current credit card customers as early as this spring. The letter will state that the company will begin charging many of its customers a $59 annual fee. The letter also states three reasons why credit card customers may be charge this annual fee, but it falls short on spelling out who exactly will be targeted.

The letter goes on to state that the company is making the changes due to “derogatory public record or collection filed” and that they will review their banking relationship with each customer.

Who is being Targeted?

It appears that the company is targeting customers with outstanding balances and why they are doing this is quite simple. If the company charges a customer with a large balance the $59 annual fee, they can either accept the fee or close the account. However, before they can close the account they must pay off the balance — and this is simply not possible for some customers. In short, the company can get away with charging the $59 fee to customers with higher balances because, unless they pay off their balance, they must keep the card open and pay off the fee.

Bank of America, although it doesn’t state this, of course, says that every account undergoes a periodical review, and that every customer will either have the choice to accept the fee or close the account. Bank of America also states that the “majority” of customers will receive the annual fee.

Can You Really Save Money for College with Your Credit Card?

Credit Card Rewards

You bet you can save money for college with your credit card. Sure, it is going to take some time to add up, and probably won’t cover your entire education or that of your child, but still, it adds up to additional money you can use toward educational purposes. With the ever-rising cost of a college education, it’s nice to have one more option to help pay the bills.

UPromise

UPromise is a program that allows consumers to sign up to receive points toward money for college education. It can be applied to several different things, including store savings cards and credit cards. When you purchase items with the UPromise logo, you get rewarded.

Bank of America

UPromise and Bank of America have teamed up to bring you the UPromise credit card. With this card, which is linked directly to your UPromise account, you are given the opportunity to earn more and more toward and education. The first use of a card will bring the cardholder a $25.00 bonus. After that, there is added savings and 1% cash back will be deposited into the cardholder’s UPromise account for each purchase. Bank of America also offers bonuses on these cards. For every qualifying grocery store or drugstore purchase made, the cardholder will get an addition 10% in their account. The savings can really add up! There are also gas card and dining card options which will bring you some nice cash back for college and additional savings on fuel and food. With so many participating merchants, these cards are a great choice for those wanting to save up some cash for that expensive but valuable education.

To top it off, UPromise credit cards carry no annual fee and have no cap on the rewards that can be earned. as long as you pay your balance and use your card often but responsibly, the UPromise card can bring you a lot of educational expense benefits as well as tons of savings on everyday grocery purchases, a trip to the drugstore, filling up your tank and good eats! Sounds like a credit card worth having for the parent or student who really needs to save up for college.

New Credit Cards Tout Simplicity

Choosing Credit Card

If reading and understanding the terms and conditions of your credit card make your head spin, you’re not alone.

With credit card companies constantly changing their terms and conditions, and with the new regulations and restrictions being placed on creditors, the process of understanding your credit card has become all that more complicated.

However, some banks have recognized this and have begun to offer credit cards that tout the concept of simplicity.

Sounds nice, doesn’t it? Now we no longer need a degree in finance to understand our credit card statement, as well as its terms and conditions.

Bank of America Basic Visa

Bank of America was the first to jump on the “simplicity” bandwagon, with a “basic” credit card for customers that want straightforward language that is easy to understand.

Called the Bank of America Basic Visa card, this new credit card, which was recently introduced, features an easy-to-read, one-page explanation of its terms and conditions and a simple, $39 late payment fee.

Bank of America has responded to many customers’ desire for more transparent credit cards. Bank of America hopes this new card will eliminate confusion among customers.

Bank of America was also one of the first banks to introduce basic mortgages, as well, and backed up their promise of simplicity with a “clarity commitment.”

The fixed rate on this Bank of America Basic Visa applies to any type of transaction, including cash advances. The fixed rate will be the U.S. prime plus 14%. This rate will not change, regardless of the customer’s payment history or credit rating. In addition, there will be no fees if the customer exceeds their credit limit.

JP Morgan Chase Blueprint

JP Morgan Chase, likely in response to Bank of America’s new Basic card, has also rolled out its own version of a simplified credit card, called the Blueprint Card. This card provides greater flexibility to customers regarding how they pay their credit card balances every month.

As more and more customers become disheartened by forever-changing credit card practices, charges and fees, credit cards are being used less and less. It is now up to the credit card companies to follow the direction of Bank of America and Chase and start offering consumers what they’ve wanted for years: simplicity.