Cookies on Credit: Girl Scouts Now Take Credit Cards

Feb 20th, 2012
by admin.
No comments yet

Girl Scouts, Discover rewards, a new Disney card from Chase, Taco Bell snafu, Minnesota taxicabs…What’s going on in the world of credit cards right now? A little bit of everything…

Am I alone on this?

Every once in awhile, when I walk past a Girl Scout troop selling cookies, usually at our neighborhood grocery store, I’ll say, “Sorry, I don’t have any cash on me,” even if I do. I should just say, “No, thanks,” but never wanting a young seller to take my rejection personally, I always feel like I have to have a plausible excuse for not buying cookies from them. otherwise, I feel like a heel not buying a box. so I’ve always found the, “Gee, sorry, I only have a credit card,” a pretty serviceable excuse.

Well, I may be out of luck soon.

This year, according to the Pomerado (Calif.) News, the Girl Scouts are accepting credit cards.

Not all the troops will be able to process credit card orders. Out of about 1,600 troops in the San Diego Council, 240 so far have decided to accept credit card swipers. Some troops won’t sign on because of the added hassle and responsibility; others may not want to pay the 8 cent transaction fee, which will come out of the troop’s boxes. Each box usually has a profit between 65 and 95 cents, according to the Pomerado News.

Discover announces 2012 rewards

Discover may not have a new card to tout, but the folks there are jazzed about some tinkering that they’ve done with their 2012 5% Cashback Bonus calendar, allowing cardmembers to earn more than they did in 2011.

From now until March 31, Discover cardmembers can sign up to earn 5% cashback bonus rewards on up to $1,500 in gas, movie and museum purchases.

From April through June, it’ll just be movies and restaurants, and then the last half of 2012, the bonus rewards come when consumers use the card for gas, movies, and theme parks in the third quarter, and movies, department, electronic and toy stores during the fourth quarter, which means (good grief) the Discover folks are already thinking ahead to the end-of-year holiday shopping season.

Long-term indigestion

Usually if someone talks about paying later for what you eat right now, they’re referring to all of the calories you’re consuming. in the case of a Taco Bell in Port Charlotte, Fla., according to the local news station NBC-2, customers were eating — and then paying for it days, weeks and sometimes a couple months later.

There was a computer glitch at this Taco Bell, dating back to Nov. 22, and so for quite some time, people had been eating for free. once the managers discovered the problem, they began manually putting in the credit card information, and customers were finally charged for their meals. not sure how I’d feel if I were charged for, say, a $7 meal six weeks after the fact. I don’t think I’d be too happy, although, yes, ethically I should pay for a meal I’ve eaten, and I should have noticed that I hadn’t paid for it. but what a mess. still, little anyone can do now. as the saying sort of goes, you can’t unring a Taco Bell.

Disney rewards card

If you’re going to Disneyland, Walt Disney World or pretty much anywhere Disney, you may want to take a look at the new Disney’s Premier Visa Card from Chase. The card allows customers to earn double rewards on certain purchases, and there are other perks, particularly if you’re visiting one of the theme parks or resorts.

You can earn 2 Disney Dream Reward Dollars on every dollar you spend at restaurants, grocery stores and gas stations. Clearly, if you’re a big Disney fan and don’t mind the $49 annual fee, this is not just some Mickey Mouse card. No, wait, I guess it is. well, you know what I mean.

Minneapolis taxis and credit cards

It seems incredible in 2012 that taxi drivers in some cities still don’t accept credit cards, but thanks to the interchange fees, cabbies have been slow to embrace credit cards as a form of payment. still, starting in June, as the Minneapolis Star Tribune reports, Minneapolis will join several other cities that, by law, require taxis to accept credit cards. Cities currently having this requirement include New York, Boston, Chicago, Dallas, Houston and Los Angeles.

The Minneapolis City Council passed the law last month, 11 to 2. Council member Gary Schiff was the driving force behind getting the law changed. he said he didn’t want residents and visitors to be stranded somewhere at night because they didn’t have enough cash on them, which, again, in 2012 seems like a scenario that could easily occur.

Washington, D.C. is also considering a similar mandate.

The original article can be found at CardRatings.com:Cookies on credit: Girl Scouts now take credit cards

Cookies on Credit: Girl Scouts Now Take Credit Cards

Posted in: First Credit Card.
Tagged: · · ·

Bonus or bogus: Who pays for rewards credit cards?

Feb 19th, 2012
by admin.
No comments yet

When you pay with a rewards credit card, you might get airline miles, points redeemable for merchandise, or cash back into your account. ever wonder who’s footing the bill?

Every time you pay with a debit or credit card, retailers get charged an “interchange fee” from card issuers to accept the payment. Interchange fees vary from card to card, but typically hover between 1 and 3 percent of the final purchase price, according to a study by the Government Accountability Office.

Since rewards and cash back cards usually come with higher interchange fees than traditional credit and debit cards, critics argue that the benefits of these cards may not be worth the increased cost they place on retailers. Do retailers pass these costs on to their customers? Are your rewards cards really rewarding you?

No free lunch for the consumer

The major reason that interchange fees for rewards credit cards are higher than those for traditional cards is because banks use the interchange fee to help subsidize the cost of the rewards program, says Scott Schuh, senior economist, policy advisor and director of the Consumer Payments Research Center at the Federal Reserve Bank of Boston.

“[Rewards are] a cost to the bank and like any economic unit, they typically try to recover their costs with the price of the product,” Schuh explains. “… A card that does not pay rewards is a low-cost card to the bank and a card that pays high rewards is a high-cost card to the bank.”

Higher interchange fees generally mean a higher cost of doing business for the retailer, adds Schuh, which may translate to higher costs for the consumer, particularly in highly competitive markets. they can also translate to actions retailers take to minimize or eliminate interchange fees and reward consumers who pay with cash or check rather than plastic.

Why some merchants prefer cash

Under current law, merchants can choose if they want to accept credit cards at all and, if so, which cards they want to process. It’s illegal to add a surcharge for paying by credit card, but retailers may offer a discount for consumers who pay by cash or check.

Trish Wexler, spokeswoman for the Electronic Payments Coalition, a Washington, D.C., nonprofit that represents the interests of banks, credit unions and major payment networks including Visa and MasterCard, says that a discount for cash payment makes sense in certain industries.

“Particularly from gas retailers you’re more likely to see [cash discounts] because…people will tend to pay at the pump, but the real profits from that industry are inside the store,” Wexler says.

The incentive for you to use cash instead of your gas credit card sidesteps interchange fees and gets you inside the store, walking past marked-up goods as you get out your wallet. in other businesses, making room for rewards credit cards, even with their higher fees, can still make good financial sense, says Wexler.

“[Reward and cash back card holders] bring with them higher value to that retailer because rewards card holders tend to spend more at those stores,” Wexler explains. “It’s a better business proposition for that retailer.”

How to fight back

Interchange fees are actually just a portion of what merchants pay to process credit card transactions, says Heather Petersen, CEO of the National Merchants Association, an advocacy group in Burbank, California that focuses on optimizing credit card processing for small and medium-sized businesses. On top of interchange fees, retailers also pay smaller surcharges to the card processor, the consumers’ financial institution and other parties.

“The FTC has regulated some of it, but you [could] see everything from customer service fees to debit access fees, statement fees, PCI [Payment Card Industry] compliance fees,” Petersen says. “You name it, you can find it, I’m sure.”

While business owners can’t eliminate interchange fees, they can ensure that they’re not overpaying by having a third party group like the National Merchants Association optimize their processing contracts, says Petersen.

Likewise, if you’re a consumer, you can’t get rid of the increased cost caused by interchange fees, but you can save money by not overspending on your rewards credit cards and by maximizing your rewards to ensure that the markup you’re paying pays off in the end. That means using rewards points or miles in a timely manner, taking steps to ensure that rewards don’t expire and staying within the limits of the reward card program.

The original article can be found at CardRatings.com:Bonus or bogus: Who pays for rewards credit cards?

Bonus or bogus: Who pays for rewards credit cards?

Posted in: Get A Credit Card.
Tagged: · ·

Woman says restaurant employee stole credit card

Feb 18th, 2012
by admin.
No comments yet

 

By Mike Petchenik

SANDY SPRINGS, Ga. —

Sandy Springs Police are investigating claims that a restaurant employee stole a customer’s credit card and went on a spending spree. Autumn Lingle told Channel 2′s Mike Petchenik she used her credit card at Evos, a hamburger restaurant in the Prado Shopping Center on Roswell Road. ”By Monday, I noticed my credit card was missing and this was the last place I’d actually used it,” she said. Lingle said when she checked her online statement, she noticed $4,000 in fraudulent charges at a Dillards and Express for Men at Perimeter Mall in Dunwoody. “I was just outraged, she said.  “I can’t believe someone would spend that kind of money at the expense of another person.” Lingle told Petchenik that on the same day she discovered the bogus charges from the mall, she also noticed another charge at the restaurant where she’d lost it. According to a police report obtained by Petchenik, detectives reviewed surveillance video of the transaction and saw a store employee using Lingle’s card. ”You really can’t trust people anymore,” she said.  “It’s sad, but that’s the reality.” a store manager told Petchenik when he learned of the alleged theft, he immediately fired the employee.  Police told Petchenik they are still investigating and haven’t charged the employee for it.  Lingle has a warning for other credit card users, “Be very careful.  Always be aware of where your credit cards are and always be aware of your transactions online.”

Woman says restaurant employee stole credit card

Posted in: Southwest Credit Card.
Tagged: · · ·

← Earlier Posts Newer Posts →