Governor Schwarzenegger vetoes ban on debit card #swipefees

September 30, 2010

“I am concerned that this bill will shift the burden of paying interchange fees from the holders of debit cards to all consumers regardless of payment type,” Schwarzenegger, a Republican, wrote in his veto message. “Instead of charging a customer who chooses to use a debit card, businesses would be forced to increase their prices to all customers, regardless of payment type, to cover the interchange fee. The burden of paying these surcharges should fall on those who use debit cards and not on those who choose to pay with another form of payment.”

SB399 was written by Sen. Jenny Oropeza, D-Long Beach, who argued it would prevent businesses from advertising one price and then hiking the cost at the register.

READ ARTICLE via Governor vetoes ban on debit card fees.

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7 Ways Banks Will Limit Your Credit Card Rewards –

September 29, 2010

Rewards limits

While not a new practice, rewards limits are becoming more prevalent, especially on the cards that promise the highest reward rates. There are four types of stated limits to look out for on your offers:

Annual rewards limits – an example of this would be the Citi Forward card, which limits you to 75,000 ThankYou Points in any given year

Monthly spending limits – The Chase Freedom and Discover More cards use this a lot. Their quarterly 5% cash back bonus promotions are usually capped, so you can only earn the max rewards on a few hundred dollars of spending each month.

Limits on bonus rewards – Only a subtle difference with the above, but some cards cap reward spending on very specific categories. This is a common feature of gas credit cards. Examples include the Costco TrueEarnings Amex, which only pays 3% on up to $3,000 in gas purchases each year.

Indirect limits through shorter expirations – A common feature of frequent flyer miles and other such loyalty programs, sometimes your accumulated rewards might expire after a certain amount of time, implicitly reducing your realizable rewards. For example, Citibank ThankYou Points expire after three years and BofA WorldPoints expire after five.

READ ARTICLE via 7 Ways Banks Will Limit Your Credit Card Rewards – MoneyBuilder – making sense of your finances – Forbes.

NOTE: Merchants and consumers pay these reward fees upfront as part of the merchant interchange SwipeFees, yet as you can read above, the banks and credit card companies pay out only a fraction of those prepaid reward fees.


7 Ways Banks Will Limit Your Credit Card Rewards – Forbes – #SwipeFees

September 29, 2010

Credit card companies have a lot to worry about these days. Consumers are rebelling against them, and Congress is not on their side. This is not the time for them to rest on their competitive laurels, so they are rolling out the marketing big guns to bring in more high value credit card users.

READ ARTICLE via 7 Ways Banks Will Limit Your Credit Card Rewards – MoneyBuilder – making sense of your finances – Forbes.


Paying with credit card ‘can double cost of purchase’ | Money

September 29, 2010

Credit and debit card users are being hit with high charges despite transactions often just costing firms pennies to process, research showed today.

READ ARTICLE via Paying with credit card ‘can double cost of purchase’ | Money.


Warren Worked on Banks Lawsuit While Heading TARP Panel – Bloomberg #swipefees

September 28, 2010

[Elizabeth] Warren, who at the time she did the work was head of the Congressional Oversight Panel monitoring the $700 billion bank bailout, was retained by a law firm that represents retailers suing credit-card networks Visa Inc. and MasterCard Inc., and banks including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. for alleged antitrust violations in setting card processing rates, her financial disclosure forms show.

READ ARTICLE via Warren Worked on Banks Lawsuit While Heading TARP Panel – Bloomberg.

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Business cards exploit loophole in new credit law – WBTV 3 News #swipefees

September 25, 2010

Under the CARD Act, banks have to give you 45 days notice before raising your rate or fee. Business cards do not.

READ ARTICLE via Business cards exploit loophole in new credit law – WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC-.

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New bank fees hit consumers – CNN

September 24, 2010

Bank of America: Just last week, Bank of America said it plans to raise minimum balance requirements over the next 12 months and charge a monthly account fee for customers who can’t maintain those balances.

READ ARTICLE via New bank fees hit consumers – Sep. 24, 2010.