Taking Credit » money

MasterCard: There’s an App For That

Phil Edwards — Thu, 10 Jun 2010 18:13:29 +0000

Businessweek reports that there’s an app for that.

You can now send and receive money online through your phone. It’s the latest announcement that’s part of a bona fide trend.

A New Financial Specialty Site

Phil Edwards — Mon, 03 May 2010 19:15:43 +0000

Want to know more about how you spend your money and where exactly it’s going?

Check out Your Ethical Money and learn a little more.

Should You Get a Target Credit Card?

Phil Edwards — Tue, 20 Apr 2010 16:45:57 +0000

Target addicts may have a new option.

The company has announced that it’s offering a Target only credit card.

Is it a good idea?

There aren’t enough details to tell. Broadly speaking, it may not be bad. It could be an opportunity to save money through discounts.

However, whenever you use a store credit card, you should be aware of predatory interest rates, unusual payment conditions, and other quirks. That’s something you want to watch for when applying for any card.

Defending Interchange Policies

Phil Edwards — Tue, 16 Feb 2010 00:29:10 +0000

Payment industry blogger Aneace Haddad has an interesting interview with MasterCard Group Head Shawn Miles.

Regardless of your stance on the controversy about how credit card companies make money, it’s interesting to read a cogent defense of the policies and, of course, comments that disagree.

Using Your Credit Card to Donate To Haiti

Phil Edwards — Thu, 14 Jan 2010 17:34:38 +0000

Credit cards and Haiti have created a small controversy on Twitter.

Many potential donors are turned off by the fees charged by credit card companies on donations. That’s an understandable reaction.

However, we’d provide a counterpoint- to get money quickly, credit card payments are often the only way. There are obviously other ways to transfer money, but many involve a fee or a time constraint. The Red Cross online alternative to credit card payments, Amazon Payments, has a transaction fee as well.

It’s easy to take umbrage at charges off a tragedy. Still, it’s worth considering the benefits of credit cards in a tragic situation as well as assessing the negatives. Maybe that can generate reform after the fact.

A Visual History of the Credit Card

admin — Tue, 15 Dec 2009 19:01:46 +0000

Pglyman pointed out a cool visual history of the credit card:

Check out these vintage credit cards http://bit.ly/4mPdzy (via @FinancialBrand) HA! I’m breaking out my players club http://bit.ly/5INXB7

We love it! The original version, via Slate’s Big Money site, can be found here.

Take a look- you’ll be amazed to see the different versions of credit cards from the past.

Revolution Money and the Future of Credit

admin — Thu, 10 Dec 2009 16:36:52 +0000

Today, we were alerted to some interesting analysis of American Express’s purchase of Revolution Money.

We don’t know what it signifies for the rest of the payments industry. However, it is true that credit card companies are willing to evolve and grow. What exactly that means has yet to be determined.

American Express Buys Revolution Money

admin — Wed, 18 Nov 2009 17:08:31 +0000

Ironwolfpayment tweets today’s big news:

American Express Says It Will Buy Revolution Money http://bit.ly/jW66N

As Bloomberg reports, American Express is buying the payments startup Revolution Money.

What is Revolution Money?

Revolution sought to capitalize on retailers’ discontent with traditional credit cards by charging a flat transaction fee of half a percent. U.S. banks deduct merchant-discount fees averaging about 2 percent of purchases made with most cards, including those processed on the Visa and MasterCard networks. AmEx’s merchant-discount rate averages more than 2.5 percent, the highest of the four biggest payment networks.

It’s unclear what the purchase will mean for the future of the company or for consumers. However, it will be interesting to see these two leaders combine forces.

Mastercard’s Mobile Payment Gateway

admin — Tue, 17 Nov 2009 16:26:11 +0000

Show_Dont_Tell tweets news that’s been bouncing around the web:

MasterCard announces first commercial launch of mobile payments gatewayhttp://ow.ly/D1yc

What are mobile payments? And why should they matter to you?

Mobile payments allow consumers to transfer money via their mobile phone. As the full article notes, Mastercard’s mobile payment system will work primarily in the developing world to assist consumers without bank accounts.

If you’re in the United States, the mobile payment system might not mean a lot for you immediately. However, many sources argue that mobile payments have improved living conditions worldwide by providing financial access. Now you know exactly how they do it.

Convenience Stores and Credit Cards

admin — Tue, 01 Sep 2009 16:46:29 +0000

Bgcallam is curious about convenience stores and credit cards:

If you’re a convenience store, what reason besides tax evasion would you not accept credit cards?

Why do some convenience stores refuse credit cards? Simple- every time a customer uses a credit card, it costs them money.

The National Association of Convenience Stores has lobbied to change the way that credit cards and convenience stores work together. The processing and transaction fees card companies charge frequently sap away whatever profits a convenience store makes. A representative of the Circle K chan says that most convenience stores pay a fixed fee per transaction and a percentage fee based on the price of the item. As you can imagine, it’s easy for the profits on a $.50 candy bar to be eaten away pretty quickly. The NACS estimates the yearly cost at $8.4 billion, which it says exceeds total profits made by the stores.

That’s the reason that your local convenience store may refuse to accept a credit card or have a minimum purchase price. Increasingly, convenience stores and other retailers are preparing for a legislative battle to change rates that they believe are unfair. You may have seen petitions to change rates as well. Frequently, customers are caught in the middle and forced to choose between the convenience of their credit card and the preference of the merchant. Chances are that the dilemma won’t be resolved anytime soon.