Where's My Smart Card?

Citi® MasterCar®d with PayPass® Sticker

I was so envious reading about people getting their new smart credit and debit cards from card issuers, and I was starting to wonder why the banks I deal with hadn't sent me new smart cards automatically (smart card, also known as smart chip cards, EMV cards and chip-enabled cards.)

The tiny chips in smart cards work together with smart-card terminals to create a unique and secure transaction at the point of sale, which makes shopping with these cards much safer than cards that only have a swipeable magnetic strip. 

I'm not interested in having a radio-frequency identification (RFID)-enabled chip in my credit and debit cards, because of this, but I am interested in upgrading to smart credit and debit cards without the RFID.

OK, so it seems that banks like +Citi® have figured how to keep wary cardholders like yours truly happy by separating the RFID from the EMV, via a sticker (pictured, top left.)  You can attach the sticker to your smart phone, or to your credit or debit card, or to anything you'd like to use for contactless payments (like your car's key fob.)  This system lets cardholders use contactless payment technology (either RFID or near-field communication [NFC]) if they want to, and opt out very easily if they don't.

I Just Ordered My Citi EMV Card

With my Citi Dividend World MasterCard®, I clicked the Account Management link in the top left navigation bar, which took me to a page where I found a link for Replacement Card/Chip Upgrade.  Alternatively, I could have waited for my current card to expire, at which point Citi would have sent me a new smart card automatically.

I'm looking forward to the arrival of this smart credit card, as it means no more handing over my card to strangers who may do bad things with it while it's away from my eyes.

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Note that:

• Even with smart cards that have no RFID technology in them, the system can still be hacked, but it's still much safer than the fading standard of magnetic-strip swiping.

• I've read of people complaining that they can't execute a convenient cash withdrawal on top of a purchase when using their smart debit card.

• Also heard that some merchants are rejecting the old magnetic-strip cards now, because if the transaction turns out to be fraudulent, it's likely that the merchant will have to eat 100% of the cost, whereas before the cost would often be shared between the card issuer and the merchant.

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How To Disable An RFID Chip In A Debit / Credit Card

Having an RFID chip in your credit or debit card can be a security risk, as posted here, so here's a YouTube clip explaining how to disable these chips permanently...

Cards that use RFID chips include Visa® PayWave®, MasterCard® PayPass®, American Express® ExpressPay® and Discover® Zip.

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The Future for Credit-Card Rates and Fees

BankRate's Greg McBride commented on credit-card and other interest rates in the following WSJ video clip:




I agree with Mr. McBride. For those with excellent credit, credit-card offers have been improving and will very likely continue to get better as 2011 progresses. Zero percent intro APR credit cards -- our favorite type of credit-card offer -- Keep getting more and more generous.

It's a shame that Discover's No Balance Transfer Fee 0% card is no longer with us. It was a special offer which expired at the end of February. Which bank will offer the next great 0% card? Bank of America? American Express? No one can know for sure, but I think it's a safe bet that the American consumer will be able to apply for at least one juicy, new, no balance transfer fee 0% card before the end of the year.

NB: Discover decided to keep their 24 Month Balance Transfer card alive (0% intro APR on transferred balances for a full 2 years!), so anyone can apply for it right now. This card is easily the best 0% credit card in the American market.

And what about the future for credit-card fees? Here's a clip from a great WSJ article titled "Surprise: Banks Ease Card Fees":

"...Some analysts, however, say lenders also are calculating that bad publicity from imposing fees is itself a threat to revenues. Amid persistent unemployment and a still-sluggish economy, credit-card companies want to tamp down on controversy.

'The motivation behind [easing credit-card fees] is to improve the persistent perception that card issuers are simply price-gouging,' says Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods.

That is especially important now, as the new Bureau of Consumer Financial Protection sets its enforcement priorities, say banking industry analysts. 'Banks would like to keep a low profile right now,' says Dennis Moroney, research director at advisory firm Tower Group..."

I'm totally on board with the reasoning and analysis in the above article. The folks at the nascent Consumer Financial Protection Bureau (CFPB) are very busy setting up shop, and setting up policies that are likely to influence how much profit banks can make from credit cards. So, right now, banks are highly motivated to play nice.

Here are some clips from the CFPB site:

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Credit Card Rakings for January 2011

Here are the credit card rankings for January 2011. These rankings are based on the cards we recommend here on www.BalanceTransfer.cc. As always, these rank are based on both the volume of applications, and approvals. Here's the list:

1. The Discover® More No Balance Transfer Fee Card (click here)
   
   
2. Discover More Card - 24 Month Promotional Balance Transfer Card (click here)
   
   
3. The Classic Discover More Card (click here)
   
   
4. Slate from Chase (click here)
   
   
5. The Chase Freedom® MasterCard® with $100 Bonus Cash Back (click here)
   
   
6. The Chase Freedom® Visa® with $100 Bonus Cash Back (click here)
   
   

Not surprisingly, Discover's No Balance Transfer Fee card, and its 24 Month Promotional Balance Transfer card, were extremely popular last month, as these two cards are easily the best 0% credit cards in the United States right now. Here what these two cards are currently offering:

Discover® More No Balance Transfer Fee Card

• 0% Intro APR on transferred balances for 12 months.
• 0% Intro APR on new purchases for 12 months.
• No balance transfer fee
• No Annual Fee
  

Discover More Card - 24 Month Promotional Balance Transfer Card

• 0% Intro APR on transferred balances for 24 months.
• 0% Intro APR on new purchases for 6 months.
• Balance transfer fee: 5% of each transfer made, with a minimum transfer fee of $10.
• No Annual Fee

Moreover, both of the above cards come with Discover's industry leading cashback rewards program.

If you want to take advantage of the best 0% credit cards in the market right now, you have until the end of February to do so. Discover plans to shelve both cards on February 28, 2011.

The Classic Discover More card is still popular, because it's still offering a lot of value:

Classic Discover More Card

• 0% Intro APR on transferred balances for 12 months.
• 0% Intro APR on new purchases for 18 months.
• Balance transfer fee: 4% of each transfer made.
• No Annual Fee

And, of course, excellent cashback rewards.

The Blue from American Express® and Blue Cash® from American Express cards both generated a lot of interest from visitors to this site in January. Unfortunately, however, Amex approved a small fraction of the applications generated here at www.BalanceTransfer.cc. We're hoping Amex approvals improve over time, and they should as the economy continues to heal and the jobs picture gets better. But, for now, it's best to try one of the 3 top Discover cards from our January rankings above. Though American Express offers the best customer service around, Discover's customer service record is also very good. Bottom line: If you're attracted to the Blue from American Express or Blue Cash from American Express cards because they offer 0% intro APR on purchases for 12 months, you'd probably be better off going with one of the Discover cards discussed above, because your application has a better chance of getting that stamp of approval.

As always, your comments are very welcome.

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Discover Receives Prestigious Award for Customer Satisfaction

If you have a Discover credit card, then perhaps today's news really isn't news to you. For those of you thinking about signing up for a Discover credit card, and you really like the idea of a credit-card bank providing first-class customer service, then read on.

Discover just got top honors from the Service Quality Measurement Group (SQM) for providing the best call-center customer service in the credit-card industry. This is no easy feat, as American Express is very well known for their excellent customer service. I guess Discover just stepped up to the plate, and belted out a grand-slam home run.

Another interesting note: with so many American companies outsourcing their call-center business to Asia, it's refreshing that most of Discover's call centers are based right here in the US of A. Kudos! This is significant, considering that the unemployment rate is the US is still painfully close to 10% (the October 2010 figure was 9.6%), and probably won't ease in the near term.

Here's a clip from today's press release:

"...Discover finished with top honors in the first targeted customer service evaluation of credit card industry call centers by Service Quality Measurement Group (SQM), the leading benchmarking firm for more than 450 leading North American call centers.

Discover received SQM's award for Highest Customer Satisfaction for the Credit Card Industry, which was based on 400 random telephone surveys of Discover cardmembers within two business days of their calls to the company. SQM measured whether the call was resolved, the customer's overall satisfaction with the service representative and their overall experience.

'Our commitment to the finest customer service available is a fundamental reason we have the most loyal cardmembers in our industry,' said Carlos Minetti, president of consumer banking and operations for Discover. 'We're honored by SQM's recognition and remain committed to making the necessary investments to maintain our leadership position in customer service.'

Discover employs more than 10,500 people, with the majority based in its call centers in Arizona, Delaware, Ohio and Utah. An industry leader in customer service, Discover won the 'Best Performance Leveraging Customer Service Feedback' category in the 2010 Call Center Excellence Awards from the International Quality & Productivity Center, finished first in the 2010 Brand Keys Customer Loyalty Engagement Index® for the past 13 years and was recently honored by InformationWeek magazine for creating technology that assists customer service representations during cardmember calls..."

It comes as no surprise to us that Discover has such loyal customers. The feedback we receive from Discover cardholders is invariably very positive. Discover cards offer a lot more value (great cashback rewards, long interest-free periods, etc.) than comparable credit cards offered by other reputable credit-card banks in the American market. That's why we've been recommending them for years. We're quite confident that Discover will continue to provide the kind of customer service that credit consumers want and deserve.

To review a list of the Discover cards we recommend here at www.BalanceTransfer.cc, visit this link.

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Treasury to Sell Citigroup Common Stock

Yesterday, the U.S. Treasury Department announced that it plans to sell all 7+ billion shares of Citigroup common stock during the rest of 2010. Here's a clip from the press release:

"...The U.S. Department of the Treasury today announced its intention to fully dispose of its approximately 7.7 billion shares of Citigroup, Inc. common stock over the course of 2010 subject to market conditions. Treasury received these shares of common stock pursuant to the June 2009 Exchange Agreement between Treasury and Citigroup, which provided for the exchange into common shares of the preferred stock that Treasury purchased in connection with Citigroup's participation in the Capital Purchase Program. Treasury has engaged Morgan Stanley as its capital markets advisor in connection with its Citigroup position.

Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion. Treasury intends to initiate its disposition of the common shares pursuant to a pre-arranged written trading plan. The manner, amount and timing of the sales under the plan is dependent upon a number of factors.

This disposition does not affect Treasury's holdings of Citigroup trust preferred securities or warrants for its common stock..."

This is certainly good news for the American taxpayer, as the government will reap a tidy profit as a result of its emergency investment in the bank.

Treasury is going take its sweet time selling these assets, so it'll be some time before we can know how Citi will fare without the government crutch.

Are we ready to start recommending Citi credit cards as a result of this news? Nah. Once the government has divested itself from Citigroup, we'll be engaging in at least another 12 months of watching before we make a decision on Citi cards.

For now, we are still very keen on the Discover More card, or any card issued by American Express.

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American Express or Discover: Which One is Right for You?

Summary: American Express and Discover have some of the best consumer cards out there now, but choosing which company to go with can be difficult. By gathering information about each company, it will help you make the right choice for you and your family.

Making the decision to get a credit card should not be taken lightly. You need to be sure that you are in a place financially to meet the obligations of the card should you be approved. In addition, you also need to decide the type of borrower you are to determine which card will work best for you. Both American Express (also known as AmEx) and Discover offer rewards cards, but if you are not able to pay your balances in full each month your cash back rewards could be negated. Once you determine the type of borrower you’ll be and what you are looking for in a credit card/company, the fun part begins-applying for the card, (hopefully) being approved, and using it to reap the rewards.

American Express: All in Favor?

American Express is different from most credit card companies in that it actually issues, authorizes, and settles all the accounts themselves. They introduced the plastic credit card in the late 1950’s as a charge card whose balance had to be paid in full each month. It wasn’t until 1987 that AmEx gave their customers the option to pay over time. There are many excellent reasons to choose AmEx:

• Great cash back rewards. On some AmEx cards you can earn up to five percent cash back on your purchases. You should read the fine print of the card(s) you are interested in to be sure of its terms.

• No preset spending limit. As an AmEx cardholder, you will be able to breathe easier knowing your card will not be declined in the event you go over your limit. In addition, your superior credit rating coupled with the length of time you are an AmEx customer will give your account even more flexibility in the future.

• Exceptional customer service and complimentary concierge services. Ranked best in customer service for three years running, you’ll have the peace of mind knowing that if a problem does arise it will be taken care of swiftly. Moreover, the added bonus of having a complimentary concierge to help make important arrangements will help make anything you need to plan a breeze.

American Express: All Opposed?

Even with all the great benefits to being an AmEx card holder, there is always another side to the coin. Some factors to consider:

• Higher annual fees. Although it can be said that AmEx has many great cards out there with no annual fees, the fees on the cards that carry them can be substantial. It is important to look at the benefits of each card versus any fees that come with them. That way any potential rewards will not be negated by the annual fee to be paid.
  
  
• Not widely accepted. AmEx, although it has generally been viewed as an exclusive card, is still not as widely accepted as other credit cards. This comes from the higher fee they charge merchants who accept the cards. Having an AmEx card may make you feel good, but you may need to have a back-up card for when AmEx is not accepted.

• Know Your Repayment terms. When looking for an AmEx card, you should take careful note of the repayment plans for the specific cards you are interested in. In the past, AmEx only issued charge cards in which the balances had to be paid in full each month. Nowadays, many of their cards still require the balance to be paid in full monthly, but they do offer cards that allow payments to be spread out over time. Knowing how you plan to use the card before applying will help avoid any surprises after your approval.

Discover Cards: All in Favor?

Discover Financial Services came about from an unsuccessful attempt by Sears to become a player in the financial services industry in the late 1980’s. Growing from a small spin-off company to now being one of the largest credit card issuers in the world, they have since become a force to be reckoned with. Some of the positive attributes of Discover cards are:

• Fantastic cardholder perks. Being a Discover card holder gives you extra leverage when the unforeseen happens. Coming standard with the card are things like zero liability for fraudulent transactions, supplementary auto rental insurance, and travelers insurance. The terms for each of these varies, so be sure to check the fine print.

• ShopDiscover shopping portal. Being a Discover cardholder has its advantages, one of which is the ShopDiscover shopping portal. By shopping through this portal you can earn between 5%-20% cash back on purchases from your favorite stores, racking up your rewards very quickly.

• Lower interest rates. Some of the most popular Discover cards have a 0% APR for the first six months with as low as 11.9% APR thereafter based on your credit report. Most other card companies have a base rate of at least 14.9% which can really add up, especially if you carry a balance. Couple this with no annual fee and your rewards can add up fast.

Discover Cards: All Opposed?

With all these great attributes, it’s hard to believe that there could be any downsides to Discover. Here are a few things to consider:

• Not widely accepted. Like AmEx, Discover cards are still not accepted like Visa or Mastercards are. You should have a back-up card on you in the event Discover is not accepted.

• High cash advance rates. Pretty much all credit card companies charge insanely high rates for cash advances, and Discover is no exception. With a 19.99% fixed rate on all cash advances and a 3% transaction fee with a minimum $5 fee, this is a surefire way to lose money fast.

Knowing the pros and cons for both card issuers is only half the battle. Knowing the type of borrower you’ll be as well as what type of card you are looking for (rewards card, etc) will help you make the right decision. In addition, you should be sure you understand the terms and conditions set for each card to avoid any “surprises.” Recognizing your wants and needs and comparing them to what each company has to offer will help you determine which card is right for you.

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Is the Discover More Card Still the Best Cash Back Rewards Card in the American Market

Summary: The Discover More card boasts discounts of up to 20% off through participating partners while earning unlimited rewards. Combined with their stellar customer service and built-in perks for being a Discover cardholder, it has never been easier to make your money work for you.

It seems that rewards cards are a dime a dozen these days, but all rewards cards are not created equal. The Discover More card blasts the competition with features like no annual fees, unlimited cash back reward earnings, and rewards that do not expire. Combined with the many different ways to earn and redeem rewards, the Discover More card is continually hailed as the best rewards card out there.

Discover More Card Basics

The fundamentals of the Discover More card look like this: there is absolutely no annual fee. Ever. Which means the money you earn stays in your pocket. In addition, you also get zero percent interest on all purchases for the first six months, and balance transfers for the first year. After the six month period and one year period, respectively, the rate jumps to as low as 11.9% for all purchases which is still below the average 14.9% of other cards. Discover cardholders also get to enjoy a 25-day grace period, five days more than any other card. You can also opt to have an additional card number for all of your online shopping; protecting your real card number in the event someone would get hold of it.

Reward Tiers

Rewards. Everyone loves them. And when you can earn unlimited rewards that do not expire, what could be better? With the Discover More card, you can do this and so much more. This card has a “tiered rebate system;” spend up to $1500 and get 0.25% back. Spending $1500-$3000 will get you 0.50% back, and once your annual expenditures are over $3000 you get a full 1% back on your purchases. There is also a program called “Get More Purchase” that gives you a 5% rebate on any purchase within the categories that rotate quarterly. You must sign up for each quarter’s program, but once you do simply use your card to start earning. This program does have a cap for the 5% reward, but anything over the cap will count toward the up to 1% reward you earn everyday by using your card.

Shop Discover

Built-in to the Discover More card is a shopping portal that can earn you up to a 20% rebate on your purchases with participating partners. Simply sign in and browse through their huge list of partners, such as Best Buy (5% rebate), Foot Locker (10% rebate), PetCo (15% rebate), and Restaurant.com (20% rebate) to earn your rewards. The amount of rewards that you can earn is unlimited, and you can even take the rebates earned and double their value by redeeming them for a gift certificate to over 100 partner stores.

Reward Redemption

Racking up the rewards is nice, but the real fun comes when you redeem them. The Discover More card gives you many different options for getting your rewards. You can redeem them for Discover gift cards or merchandise, or even make a charity donation in $20 increments. Or you can choose cash back via direct deposit or a Discover More account credit in $50 increments. You can always combine the different ways to redeem as long as each redemption type is above the minimum amount (either $20 or $50). It is important to note that although your rewards will never expire, if your account is inactive for 18 months or closed for any reason; your accumulated rewards will forever be lost. The same is true if you are late making two consecutive months payments; your rewards will be lost and reset to zero.

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The Current by Discover Card: A New Prepaid Debit Card from Discover Financial Services

Current by Discover

We've added the new Current by Discover prepaid debit card to our prepaid lineup.

An Excellent Card for Teens

Prepaid credit or debit cards are very useful as teaching tools for introducing teens to the world of money and helping young adults learn about managing their money wisely.

With this new prepaid card from Discover, the fees are reasonable, but we were really impressed with the parental controls that are included with the card. Parents can:

• set monthly, weekly or daily spending limits. Lots of parents will appreciate this feature, especially if they have kids who need time to learn about budgeting and the pitfalls associated with overspending.
• get activity alerts via email or text message. Great for monitoring how a Current card is being used -- and there's no extra charge to use this feature.
• restrict a card so that it can't be used at certain locations, like tobacconists, motels or beer distributors.

Other features we like:

• There's no charge for funding the card
• No minimum balance requirement
• Free Direct Deposit, and there's no charge for depositing funds via a credit card or a bank account.

Users of the Current by Discover card can withdraw cash for free four times per month. Additional ATM transactions will incur a $0.50 charge per transaction.

A $3 fee is assessed for replacing a lost or stolen card, or for changing to a new card design.

Though the Current card has no minimum balance requirement, each card needs to be funded with at least $20 when a new account is opened.

The membership fee is $5 per month, but if you pay for a year's membership, the fee is $50 (a $10 discount.)

A parent can have up to 3 Current by Discover prepaid cards in their account, and each card has a funding limit of $2,500.00.

COUPON: When you sign up, use coupon code BT709 to get your first month of membership free. This coupon expires on May 30, 2010.

In this deep recession we're in, it's more important than ever to teach young adult about spending money wisely. Discover's new prepaid card is a timely payment solution that parents from all walks will appreciate, and I'm willing to bet that it's on its way to becoming the most popular prepaid debit card in the American market.

Oh, and the Current card has some very cool designs to choose from. Enjoy!

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