Protecting Yourself Against Credit Card Fraud

While credit card fraud is a problem, here are a few simple steps you can take to greatly reduce the risk of becoming a victim. These are my tips for you.

1. Sign new cards immediately. When you receive your new or replacement card in the mail, sign it, in ink, right away. If it is a replacement card, destroy the old card by cutting it into many small pieces.
   
2. Shred old credit card receipts. You can purchase an inexpensive paper shredder at an office supply store. All old receipts with your credit card number and any unneeded documents with your social insurance number or other sensitive personal information should be shredded before disposal. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity
3. Never fax your credit card number. Your credit card number can lie for hours in the fax basket at the other end. Anyone passing by can record your number and begin to use your card number fraudulently. It is even possible for criminals to intercept your credit card number while the fax is in transmission.
4. Use caution when giving your credit card number out on the phone or on the Internet. Only give out your credit card number on telephone calls you initiate to business or organizations you trust. Never give your number out to callers who call unannounced, no matter how legitimate the call sounds.
5. On the Internet, look for an Internet address that begins https:\\. The “s” indicates that it is a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen, indicating it is safe to transmit your credit card number.
6. Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. If you lose your wallet or purse or have it stolen, call without delay! Much fraud happens within the first hour or two, before the victim realizes the cards are missing. Your credit card company will block your cards from being used and stop you from being responsible for any charges thieves incur.
7. Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.

Read rest of entry

Credit Card Companies, Friend or Foe?

Have you ever wondered exactly how credit card issuers stay in business? The credit card companies mail an approximate 4 billion solicitations each year. Despite the fact that they come in different colors and sizes they all have one thing in common. They are all trying to convince you to apply for one of their credit cards. Depending on what source you believe, the industry will mail between 16 and 20 times to each credit-qualified consumer in the United States. In layman’s terms this means each of us gets, on average, sixteen to twenty pieces of mail annually from credit card companies trying to convince us to apply.

The response rate of these mailings, also known as “pre-approval” mailings, is abysmal. The industry averages no more than a 0.6% response rate. And, of the 0.6% who respond, fewer will actually ever open and use the account that they’ve applied for. And, of those few who do open an account, even fewer will actually revolve a balance from one month to the next. And, of those who do revolve a balance, fewer still will actually pay their bills on time. So, again, the questions is…how do these companies stay in business?

Don’t be swayed by the pessimistic tone of the introduction. These companies make piles and piles of cash from their credit card portfolios. So, please put away your checkbooks and stop thinking of sending your charitable contribution to Delaware and South Dakota, where most of the large credit card issuers are based because of favorable state laws.

The problem is that none of them have figured out what to say, how to say it or what kind of envelope to put it in to convince us to apply for their wares more than 6 times out of every thousand envelopes they mail. For every 1,000,000 pieces of mail they will get 6,000 responses. If only 80% of those responders actually open and use an account then that’s 4,800 new accounts. If each of those new accounts generates only $30 each month in interest (a very reasonable amount) then that’s $144,000 each month or $1.73 million dollars per year. Now you’re getting the picture on how these companies stay in business. And, to boot, 1,000,000 pieces of mail is nothing for the large credit card issuers who will send out several hundred million solicitations this year.

Once you are on their books as a customer the fun really begins. They love you when they are trying to get your business but you will eventually lose your luster. You are no longer the flavor of the month. You are now a living breathing profit center to them. And they’ve figured out plenty of ways to separate you from your hard earned dollar. Further, they’ve managed to self justify the means almost as to seem normal. Here are the most common ways credit card issuers will make money from you once you’ve started using their cards.

So, Friend or Foe? A compelling argument can be made for each side of the debate.

Friend — The credit card environment in the U.S. is more inviting than any other country. The reality is that pretty much anyone can get a credit card. In other countries the protocol calls for saving your money and paying cash for your belongings. In this country as long as you have a salary and a decent credit rating you can buy a car and a home complete with furnishings all using someone else’s money.

Foe — Opponents will counter that the credit card issuers are allowed too much leeway to aggressively market. This has lead to predatory lending practices from unscrupulous lenders and an increase in amount of household credit card debt. There are also too many offers targeted specifically to new credit users, typically students, who end up entering the workforce in severe debt and close to bankruptcy.

You can also make a good argument that without a credit card you can’t function efficiently in today’s environment. This can be a pro or a con. You can’t rent a car, check out a movie, buy anything online or reserve a hotel room. You have to have a credit card to function today. It’s that simple.

The bottom line is that credit cards are what you make of them. If you let them, they can easily overwhelm you. However, if properly managed then credit cards can be your friend and ally in accumulating wealth and security…all while using someone else’s money.

Read rest of entry

Credit Card Reform Comes Back

The call to reform the most abusive and restrictive practices of the credit card industry was once again heard on Capitol Hill yesterday, as two separate hearings emphasized both the need for more oversight and new legislation to protect consumers.

The Senate Judiciary Committee convened a hearing over S. 2359, aka the "Consumer Credit Fairness Act," introduced by Senators Sheldon Whitehouse (D-RI) and Dick Durbin (D-IL). The bill would, if made law, amend a portion of the 2005 bankruptcy legislation to enable consumers to divest a portion of their debt in bankruptcy.

Under the terms of the Act, if a filer's consumer debt threshold — including credit card debt, payday loans, or other debts — exceeded 15 percent plus current rates on 30-year Treasury bonds, they could have it liquidated in bankruptcy. The Act would also exempt filers with debt levels above the threshold from the "means test" mandated by the new bankruptcy law.

"The standard credit card agreement gives the lender the power to bleed their customers through evolving and ever more crafty tricks and traps," Whitehouse said in his opening statement. "The typical credit card agreement, which twenty years ago was a page in length, has grown to a 20-page, small print contract filled with legalese. In substance, it gives the companies the right to raise interest rates for almost any reason, and in some cases no reason at all."

The committee heard testimony from Douglas Corey, a Bank of America customer who had been paying his card debt on time for years, until he accidentally paid less than his normal minimum payment in August 2008. That triggered a spiral of rate increases and penalty fees that threatened to bury Corey under even more debt.

"With my next statement in October 2008 came the devastating news that my interest rate had skyrocketed to an astonishing 28.99 percent," Corey said. "I went from paying $360 in interest to $792 in one month and I was charged a $39 late payment fee. The following month, I was laid off from my sales representative position of seven years."

Corey's debt troubles increased to the point where he was missing payments on his mortgage, but, he said, he struggled to keep current on his loans. "Bank of America has come before you asking for help, understanding, and, with both hands open, for financial support," he said. "Yet when we the consumers go to these institutions looking for the same help, understanding and financial support, we get roughed up and receive no compassion."

Whitehouse introduced the Act in the previous session of Congress, but no action was taken on it. The House of Representatives passed the "Credit Cardholder's Bill of Rights" last year, but that bill did not come to the Senate for consideration. The House Financial Services Committee is expected to act on credit card legislation next week.

Read more: http://www.consumeraffairs.com/news04/2009/03/credit_card_reform.html#ixzz1puT3kDUH

Read rest of entry

Good Credit Card Processor for Your Business

Must be recognized that at this time have a credit card is not something extraordinary. You try to run one of the shopping center, and then you will find a lot of credit card ownership bid. The terms more easily and more people may also have them all. Basically have a credit card it is important. Moreover, the possibility not all transactions conducted in cash. For we all also know, how safe is not at this time when you have large amount of money.

If you run a business, you maybe want to offer your costumer to pay with credit card. Are you looking a good credit card processor, which can accept all major credit card type, like Visa, MasterCard, AMEX etc? If yes, now you can apply to America Processing. They have experience in 20 years helping any businesses to setup merchant processing. America Processing know that. They are experience in 50 states in US, small and large businesses.

We kno that not all business run the same type, and for that you must setup different payment processor for different business. America Processing know that. They work with every business you run. They specialize in attorney, automotive, ecommerce, insurance, lodging, petroleum, restaurant, retail, telephone etc. With good customer service, they will help you setup your payment processor. What are you waiting for, let's apply now.

Read rest of entry

Requirement for Take Credit Card Application

We will talk about how the terms of a loan in the bank. You will be asked submit a copy identity such as ID cards, driver's license, or passport. You are also requested to fill out a form of savings that contain personal ID yourself. The goal is that the Bank has the correct information, so that they can identify yourself as a legitimate and entitled to perform transactions from your account.

That is, if you want to save money in the bank. Now what if you want to borrow money from the bank? Here, the bank as a loan fund called the creditor and the borrowing of funds from the bank called the debtor.

Requirements to apply for credit in the bank are not expected by people. Even the terms actually quite easy. But of course, there is more data that must be completed than if you open a savings account. This is only fair. You certainly do not want to lend money to the board if any person does not believe that your money will be returned. Like others, if you give as gifts or donations.

Nah, to assess whether the candidates are given credit worthy borrowers, the bank must get the information correct and accurate, such as the character of the debtor, the funds held at this time, the influence of economic conditions at this time against the debtor, the security submitted, and many more.

More or less the same as you, the bank also received a proposal in which the credit entry implement the principles lend money. This is required by the banking in Indonesia, even in the world.

Remember that every cent of which was distributed to the public by the bank is owned by the community as well. For each client funds that are saved in the bank, the bank promised to return it to the customer at any time following the interest rates. Because the bank always performs a range of credit analysis to assess the feasibility of the credit will be given to prospective customers.

Anyone can submit a bank providing credit to qualify. In general, the debtor bank divides into two major groups, the individual debtor and the debtor company (once again, is the debtor who borrowed money from the bank).

The following are the requirements that banks are required from each group.


Individual debtor

Individual debtor consists of a variety of professional backgrounds. Can be doctors, artists, civil servants, clothing designer, architect, private employees, vendors, and others. Each profession has something special for themselves by the bank divided into three groups, namely entrepreneurs, employees, and professionals.

Requirements that are required for each individual debtor is, in general, is the same as:

1. Copy identification (ID card, driver's license, or passport)

2. Copy marriage certificate (for married)

Bank asks for a copy of marriage certificate for the debtor who is already married to see if the property is a property guaranteed husband-wife or not, so that both husband and wife or debtor approval and can take part responsible for the property to the guaranteed following a number of bank debt.

3. Copy card family.

Same as number 2 above and also to determine whether the prospective borrowers also bear the cost of living money other than himself.

4. Account newspaper, copy / copy or checking account in a bank savings book anywhere between 6 s and d last 3 months.

Data Bank is required to perform financial analysis the debtor candidate, so it can be measured in how much revenue can be a debtor to pay the loan installment every month.

5. Copy salary slip and a letter from the company's work.

This requirement only applies to prospective borrowers who work in a company, government or private sector. The goal is to ensure that prospective borrowers are working there and have a fixed income every month.


Business / Company

Debtor in the form of a body corporate includes a business such as CV, PT, firm, and others. Requirements that are required are:

1. Copy of the identity of the management company (director & trustee)

2. Copy NPWP (Main Number assessable)

3. Copy SIUP (Surat Ijin Usaha Perdagangan)

4. The Copy Company's Akte Notaris

5. Copy TDP (Company Registration Number)

Points number 1 s / d 5 will be used by the bank to check the validity / legality of what is listed on the deed to the field of business, all of the license and tax obligations to the country.

6. Copy newspaper account / giro or savings book at any bank for 6 s / d last 3 months.

7. Other financial data, such as balance sheet, profit loss report, the sale & purchase of notes daily, and other bookkeeping data.

Points number 6 and 7 are used to perform various Bank financial analysis of prospective the debtor. Competence in the debtor to pay back debts will analyzed from various sides, such as: ability to pay back debt in the short term, management capacity and effectiveness in managing resource held, the ability to print in return, and so forth.


Warranty

When a loan to the bank, usually you will be asked to guarantee a property that you own the bank so if you can not afford to make repayments, the bank will foreclose the property you are guarantee instead of money you borrow. Of course, the value of goods that guarantee must be greater or at least should be the same as the value of money you borrow.

Assurance required by the Bank Credit for Home Ownership is usually home to be purchased it. Car Ownership in the Credit, the car will be purchased it is usually made the guarantee.

While for the Business Credit, the required insurance is usually more varied, such as land, houses, shop, apartment, vehicle, factory and others.

To assess whether the proposed collateral eligible for the guarantee the Bank will assess the proposed re-insurance, usually the Bank has its own team of assessors in the insurance rate, although it sometimes is also a bank wearing a team from outside the insurance assessors.

Well, hopefully with this description you will not need to hesitate to borrow money from banks. Whether it needs to buy a house, car, business capital, and so forth.

Read rest of entry

How Many Your Credit Card

Open your wallet, note carefully, how many credit cards you have? I had a little peek credit card owned by a mother at the checkout one hypermarket in Jakarta, I was upset, the mothers have at least 6 units credit card debit card outside.

How do I know? It may answer your questions. Easy, try to see. Credit card companies from the same publisher, often have the same style, and generally come from the same company network that is also a Master and Visa. Tell the mother that I have now been on 3 pairs of cards of the same type; means he has at least 3 pairs of output card visa and master. Easy huh?

Own Credit Card

Must be recognized that at this time have a credit card is not something extraordinary. You try to run one of the shopping center, and then you will find a lot of credit card ownership bid. The terms more easily and more people may also have them all. Basically have a credit card it is important. Moreover, the possibility not all transactions conducted in cash. For we all also know, how safe is not at this time when a large amount of money. Not with the number of crimes the "smart" as counterfeiting money. Besides safety, the transaction is digital and not directly with the physical money are also more sparingly. Why? How to deal with the digital before we can make to pay bills in accordance with that listed in the cashier's table. For at this time do not wonder if the price of goods after a transaction to be "bizarre". For example you buy perfume at US$ 150 and after the discount, and additional tax and the other to be at US$ 127. Imagine how difficult it is worth the money to set up above.

Whatever the form of a credit card, the function is basically the same, namely to provide a facility to use our rights and obligations and then run. And it again, that obligation can be paid in gradually. But, of course, subject to compensation in form of flowers.

So if we know its function, then we should be able to use the smart card is the use if you already have the money; means before using make sure you have the money to pay for them. Example only when you have a deposit ready to be melted when the bill comes. Both uses when you believe you can pay. For example, your salary should be enough to pay for them, payment or project specific work with some of the funds used for payment cards and so forth. So if you have friction card, make sure the card payments as a priority. Do not just 10%, that can be settled or at least 30% of it.

Purposes and how large

we have discussed what should we do with our card. And we also know that was basically a credit card that provides the same facility that is not additional money. If so use the money to have it or believe that there will be money to pay for them at least 30%.

So therefore, we know that the usage is pay obligations to us. So my suggestion to use it. Pay that is all we need. So if you need payment with just one card NDA issue. This means using only 1 card for shopping, paying bills, insurance, reserve fund, and so forth. But if you feel that you need more than just 1 card for transactions such as your credit card for shopping A, B, to the credit card bill-payment charges, credit card C to the payment of insurance, and credit card for back-up D and so on, then you can also do. But just remind me, the more cards you will be the greater burden of administrative costs should be, and of course will also create a greater temptation to use them.

So how much do we should have a credit card?

Once again there is no definitive figure. But if I can give advice, have a maximum of 3 cards is: One card is used as facilities for shopping and consumption needs (for example, to a monthly expenditure, the purchase of consumer goods etc).

One card is used for routine bill obligations of the cost and investment / protection (for example, to pay electricity, PAM, internet, phone etc.).

One card is used for the facility means the reserve fund as a means of payment before your funds can be disbursed from the deposit.

So just 3, not more.

Read rest of entry