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Martin_Harris

Federal Reserve Raises Cap on Debit Card Swipes

 
By Martin Harris in Banking, Credit Cards
June 30th, 2011

The Federal Reserve has raised the proposed cap on banks for debit card transactions from 12 cents per transaction to as much as 24 cents per debit card transaction.

Debit Card Swipe

After much deliberation, financial institutions and their lobbyists won major concessions to the Federal Reserve’s proposal for capping what banks could collect on debit card swipe fees.

Originally, the fees were to be capped at 12 cents per transaction but the Fed issued a final ruling on June 29 that will raise the cap to 21 cents per transaction.

This new ruling gives additional concessions to banks where card issuers can charge an additional cent to each transaction if the institution can show it has a substantial fraud protection systems in place. The additional transaction fees potentially raise the cap to 24 cents per transaction.

In a related article, JP Morgan analyst Tien-tsin Huang explains why the change in swipe fees is good for Visa and Mastercard :

* The 21 cents cap on swipe fee has weakened the case for a reduction in network fees for card issuers which has hurt Visa and MasterCard shares for over a year.

* The Fed has banned banks form routing debit card transactions through any one payments network. The new rules require at least one unaffiliated network on all debit cards. Issuers could satisfy this requirement by adding an independent PIN network which is great for Visa because of its dominant market share, but it could also mean higher share for Mastercard.

* The interchange cap of 21 cents was higher than the 12 cents proposed by regulars last year, and makes room for an additional charge to cover fraud. Network fees earned by Visa and Mastercard are now part of a list of recoverable expenses. This would weaken the case for a dramatic reduction in card issuer network fees.

So what does this news mean for consumers?

The average consumer probably won’t notice any difference as the new fee structure only applies to fees charged to merchants for accepting credit and debit cards. While it may result in increased prices wherever credit and debit cards are accepted (which is everywhere), the offest is not likely to cause alarm.





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Martin_Harris

Discover Card Review

 
By Martin Harris in Credit Cards
June 26th, 2011

The Discover Card is one of the best credit cards available for well qualified consumers. Apply online today and get $50 cash incentive or 5% Cash Back rewards bonus.


Discover More CBB
If you’re a consumer with reasonably good credit and are not already overloaded with credit card debt, one of the best credit cards you can possibly apply for is the Discover Card.

Discover has a wide variety of card offerings, each with significant incentives and benefits for consumers and small business alike. While Discover is not as widely accepted as Visa and Mastercard, they are certainly a card for those of us who have shown we are capable of managing our finances properly.

Applying for the Discover card is simple as filling out an online form but getting accepted is not as easy as with many Visa or MasterCards, which makes Discover an outstanding line of credit to have open for any consumer who is working to increase their credit score.

Beside American Express, Discover is highly regarded in financial circles and if you are intending to finance a large purchase such as a home or a new car or if you are intending to re-finance a home or property loan, it can be beneficial to you as a consumer to open a line of credit with Discover as an extra step to insure your credit worthiness and to lock in a lower rate.

Discover offers generous lines of credit to their members and their rates are extremely fair in comparison to the vast majority of Visa and MasterCard issuers. They have outstanding consumer fraud protection and top notch customer support.

Discover Card Benefits

  • Great low rates
  • No annual fee
  • 5% Cashback Bonus on purchases in categories like gas, groceries, and travel
  • Up to 1% Cashback Bonus on all other purchases
  • Easy Online Account access and much more!
  • $0 Fraud Liability guarantee and advanced fraud alerts
  • Fraud specialists dedicated to helping you 24/7
  • Live phone support within 60 seconds, guaranteed

Click on the banner below at the left to apply with $50 cash incentive or click on the banner below to apply with 5% Cash Back bonus.


Discover Platinum Clear Card Application





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Martin_Harris

Prepaid Visa RushCard Review

 
By Martin Harris in Credit Cards
June 12th, 2011

The Prepaid Visa RushCard is an excellent choice for consumers struggling with bad credit or building credit

Bad credit? No credit? No longer do you have to be embarrassed by not having a credit card to make online purchases, rent a car, make hotel reservations, pay bills online and many other situations that require the use of a Visa or MasterCard.

The Prepaid Visa RushCard can be used anywhere the Visa logo is accepted. You can use it at a restaurant, at an ATM, at the grocery store and millions of other locations where Visa is accepted.

If you are having credit problems and cannot open up a checking account, the Prepaid Visa RushCard works as a virtual banking account that provides direct deposit. Checkbooks are a thing of the past. Pay your rent, utilities, even the babysitter, electronically or by check using Rush Bill Pay.

If you’re on a limited budget, the RushCard is better than a traditional checking account because the card offers free direct deposit so you won’t have to deal with expensive check cashing fees to cash your paycheck. There are no Credit history checks or ChexSystems verification. There are no hidden security fees. You also get free online bill pay for up to seven transactions a month.

Using RushPath to Credit, simply Paying your rent, utilities and other household bills using your RushCard will help build your credit history. RushCard automatically reports your payment history to LexisNexis and PRBC, both national credit reporting agencies.

There is no application fee and no credit check required.

The Prepaid Visa RushCard features

  • Apply for Free With No Credit Check
  • Pay virtually anyone online, includes sending checks to friends
  • Free Direct Deposit. No more check cashing fees
  • Build Credit with RushPath to Credit Feature
  • Discount Health Plans - Save on doctor visits and healthcare
  • Online Money Tools - Take control of your money with FREE tools

The Prepaid Visa RushCard is one of the best prepaid credit card both in terms of cost and fees and also for those looking to rebuild their credit. It has lower fees than most prepaid credit cards and also offers a number of value added services for cardholders. We highly recommend this card for people trying to build credit.


Vision Premier Prepaid Visa Debit card





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