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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Visa-Branded Debit Cards More Popular Than Visa-Branded Credit Cards

If you've been questioning the popularity of debit cards, here's some irrefutable evidence -- in the form of a WSJ article -- that not only are they here to stay, they may even become more popular than standard credit cards in the near future. Here a clip:

"...'The reality is that the vast majority of consumers want to pay as they go,' said Stacey Pinkerd, who oversees Visa's debit-card business.

Visa's net income leapt 71% to $536 million, or 71 cents a share, in the fiscal second quarter ended March 31, from $314 million, or 39 cents, a year earlier.

The surging popularity of debit cards largely reflects the growing use of plastic by American consumers. Credit- and debit-card purchases of retail goods and services vaulted past cash and checks in 2003. Now the recession is giving many consumers second thoughts about their credit cards. Lenders also are making it more expensive to charge purchases and lowering credit limits on credit-card users.

The U.S. government said last month that the personal savings rate rose to 5% in January, the highest level in nearly 14 years. Revolving debt, which mainly reflects credit-card loans, fell 9.7% to $955.7 billion in February, the Federal Reserve said.

'A big group of consumers like the discipline that debit spending can bring them, and that is particularly relevant in this kind of environment,' said Tim Murphy, who oversees MasterCard Inc.'s main payment products around the world.

The Purchase, N.Y., company's debit-card processing volume rose more than 13% last year, compared with a 2.2% decline in credit-card processing. MasterCard, a Visa rival, is likely to offer more details about the spending habits of Americans when it reports quarterly results Friday.

Unlike credit cards, which have balances that can be carried month-to-month, debit cards immediately deduct funds directly from a checking account. Debit cards are especially popular with younger consumers.

Debit cards are less profitable for banks than credit cards, but merchants still pay banks to accept the cards. In the past couple of years, banks have encouraged debit-card use through rewards programs. Those rewards typically are less generous than credit-card rewards.

To be sure, growth rates of debit-card transactions have slowed as Americans rein in their spending. Volume is widely expected to climb by a single-digit percentage this year, compared with more than 10% annually during the past few years. But credit-card usage is expected to keep declining.

At U.S. Bancorp, debit-card transaction volume rose more than 2% in the first quarter from a year earlier. Credit-card purchase volume fell more than 4%.

'Consumers are being more conservative in the way they manage their finances and that leads to a greater willingness to put transactions on debit cards,' said Cliff Cook, chief marketing officer for retail-payment solutions at the Minneapolis bank.

The debit-card business also gets a boost from Americans who got their first card as teenagers a decade or so ago. "As these people move into the family stages and career stages of their lives, the level of their household spending on debit cards goes up," Mr. Pinkerd said..."

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If You Hate Fees, Then You'll Like The New Commerce Bank Small Business Credit Card

Commerce Bank

Have you had enough with credit card fees? Have you ever wished for a credit card that doesn't charge any fees? What if I were to communicate to you that there's a new small business credit card on the market that doesn't assess any of the following fees:

• Annual fee
• Late payment fee
• Over-the-limit fee
• Cash advance fee
• Balance transfer fee

Would you believe me?

Well, it's true. According to a recent press release, the folks at Commerce Bank are offering a new, small business Visa® credit card that is literally feeless. Believe it!

Now, I know what you are thinking: if a credit card doesn't have any fees, then the annual percentage rate (APR) -- the interest rate charged on outstanding credit card balances -- must be high. Well, here's another surprise for you: the APR associated with the new Commerce Bank Visa credit card is a reasonable Prime + 4.99%. So, if you were to signup for the new Commerce Bank business card today, the APR would be 8.25% + 4.99%, or 13.24%, which is quite competitive, considering the number of business and consumer credit cards out there which currently have APR's that are higher than 13.24% -- and some that are much higher!

If the absence of annoying credit card fees and a competitive APR aren't enough for you, here's another great feature associated with the new Commerce Bank business Visa card: it's a rewards card.

For more about the new Commerce Bank Visa credit card for small business, point your web browser to http://www.CommerceOnline.com. Here's a clip from a recent press release:

"...Commerce Bank, 'America's Most Convenient Bank,' and one of the nation's top small business lenders, has launched a new Visa® Platinum credit card for small business customers that carries absolutely no fees and provides a significant rewards program.

The new, no-fee credit card is the only small business credit card available that has eliminated all the membership and penalty fees typically charged by banks and credit card companies. Commerce small business Visa cardholders will pay absolutely no fees for this platinum credit card account:

• No annual fee
• No late payment fee
• No over-the-limit fee
• No cash advance fee
• No balance transfer fee
• No default pricing

The new Commerce Bank Visa credit card will enable small business owners to avoid paying unnecessary fees and better manage their cash flow.

'By eliminating ridiculous bank fees and penalties charged by other financial institutions, the new Commerce Visa small business card doesn't penalize business owners for being busy running their businesses,' said Commerce Bank Founder and Chairman Vernon W. Hill. 'Commerce Bank is proud to support small business, the backbone of our nation's economy, by offering the best and most convenient free products and services for small business owners.'

Commerce introduces the new small business Visa credit card at a time when most credit card companies and banks are charging more and higher fees than ever. A report issued in October 2006 by the U.S. Government Accountability Office (GAO) indicates that the average penalty in 2005 for making a late payment was $34 - a 115 percent increase from the average late fee of $13 in 1995. Late fees will make up about 70 percent of the industry's $17.1 billion in penalty-fee income this year, estimates R.K. Hammer, a bank-advisory firm. Additionally, CardWeb.com says that in the past decade, fees assessed for exceeding a credit limit jumped 138 percent, to an average of $30.81 last year.

The new Commerce Bank Visa credit card also enables customers to earn quadruple Visa Extras Rewards Points for every purchase made -- four points for every dollar spent; most rewards programs typically award only one point for each dollar spent. Rewards points can be redeemed for a variety of business, travel, dining and entertainment products, services and gift certificates from popular retailers and service providers.

Commerce Bank's no-fee Visa small business credit card will carry a low annual percentage rate (APR) of Prime plus 4.99%. Last month, the Office of Advocacy of the U.S. Small Business Administration reported a recent increase in small business loans, which came mostly from credit card use by small business. 'Access to credit is vital for small business survival,' said Dr. Chad Moutray, Chief Economist for the Office of Advocacy, commenting on the report. Noting the increase of both the number of micro business loans and the increase in the dollar amount of outstanding loans, Moutray stated, 'The small business credit card market continues to be quite dynamic.'

Commerce is one of the leading small business lenders throughout its footprint and beyond. The bank has supported the growth and prosperity of the nation's small businesses by providing more than $1 billion in loans over the last five years. Commerce has consistently ranked high among regional lenders in the industry in both dollar volume and the number of Small Business Administration (SBA) loans made, and the bank regularly surpasses its regional competitors in dollar volume of loans made to minority-, women- and veteran- owned businesses.

Commerce business customers enjoy the same convenience, advanced technology and personalized service as retail customers. Business owners and their employees can bank at 400+ retail locations, seven days a week, during extended hours, or via the Internet or phone 24 hours a day, 365 days a year. Commerce combines its community bank roots with the financial strength of a major regional bank to meet the diverse needs of commercial customers. Commerce Bank's lending professionals are local bankers making local loans, and they establish customer relationships focusing on service and the delivery of individualized financing solutions.

About Commerce Bank

Commerce Bank, 'America's Most Convenient Bank,' is a leading retailer of financial services with 400+ convenient stores in New Jersey, New York, Connecticut, Pennsylvania, Delaware, Washington, D.C., Virginia, Maryland and Florida. Headquartered in Cherry Hill, N.J., Commerce Bancorp (NYSE: CBH - News) has $45.3 billion in assets and in fiscal year 2006 achieved an 18% increase in core deposits, a 23% increase in net loans and total asset growth of 18%. For more information about Commerce, please visit the company's interactive financial resource center at http://www.commerceonline.com, or call 888-751- 9000..."

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Latest Balance Transfer Offers from BJ's MasterCard (Chase)

Got a pretty good offer in the mail on Friday from BJ's MasterCard®; this was not an offer to open a new account, as I already have a BJ's MasterCard in my wallet (BJ's is a membership-based, wholesale warehouse "club" a la Costco; the BJ's MasterCard is co-branded with Chase Bank USA [a.k.a. JP Morgan Chase].) The letter began:

"We want to be your number one credit card. We noticed that you recently made a large payment to your BJ's MasterCard® account [via a balance transfer] and want to make sure we're not losing your business. That's why we want to remind you again of these low-rate reasons to stay--it's our way of showing you that your business is important to us."

OK, so far I'm liking the tone of this letter. The letter goes on:

"You can choose which offer is best for you:

• 0% fixed annual percentage rate (APR) for 6 billing cycles with check number [check #1] and [check #2].
• 3.99% fixed APR until the balance is paid off with check number [check #3], [check #4] and [check #5]

Use your low-APR checks to save with your BJ's MasterCard account, to deposit for extra cash, or consolidate higher-interest balances. Write them for any amount up to the unused portion of your available credit--and enjoy the money-saving result."

Not bad. The 0% for 6 months offer is too short for my tastes, but the "3.99% until the transferred balance is paid off" offer is quite appealing and I may use it to pay off my Bank of America Visa card which has a balance of about $3,500 right now.

If I do take advantage of the 3.99% offer, I won't be able to use my BJ's credit card until the transferred balance is paid in full; not because of a restriction associated with the balance transfer offer--no, it's because if I were to make any purchases on the card, those purchases would be subject to high interest charges, and I would have to continue to pay the higher monthly finance charges until the account balance is reduced to zero. Making purchases on a credit card to which you've transferred a balance is one of the ways that the credit card companies "get you" with these deals. It's not devious or underhanded, it simply punishes those who don't have the discipline to either a) read the terms and conditions of the balance transfer offer completely, or b) stop using the credit card to which a balance has been transferred. Make a purchase on a card to which you've transferred a balance, and most banks / credit card companies will apply any and all monthly installment payments to the lower-interest, transferred balance(s) first, leaving all other purchases and cash advances subject to the card's standard (and sometimes higher than standard!) annual percentage rate, and they'll keep doing this until the transferred balance is paid in full.

My dilemma is this: my BJ's MasterCard is currently the only credit card I'm using for temporary financing of the usual odds and ends of life. This is because all my other credit cards are either tied up in balance transfer deals or have a standard APR that is relatively high (for me, relatively high means anything higher than 9.99% APR.) I could just transfer my Bank of America Visa card balance using the above deal, then start using my Bank of America card for everyday financing, but then I would lose all the great rewards benefits that are built into the BJ's card.

No big deal, really. I'm probably going to transfer my Bank of America Visa balance and start using that card, because even though the BJ's card rewards are great, they require one to spend quite a bit in order to take maximum advantage of the rewards, and I don't plan on making any major purchases any time soon.

Thanks for reading. Stay tuned for the latest on my adventures in the world of credit card balance transfers.

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Cayman National Bank Offers New Business Credit Card

Ever thought about starting a new business in the Cayman Islands? Or maybe moving your current business to the Cayman's? Well, maybe you should. Businesses of all types and sizes often setup shop in the Cayman Islands in order to take advantage of the British protectorate's tax free way of running things. Cayman Islanders enjoy the highest standard of living in the Caribbean Sea. There's no inheritance tax, no property tax and, most significantly, no income tax. Sounds like an entrepreneur's paradise, eh? Well, it is!

And now banking may get a little easier for businesses setup in the Caymans, thanks to a new business credit card that is being offered by the Cayman National Bank. The CNB Visa Business Card has some very attractive attributes like competitive interest rates, a nominal annual fee and a rewards program. Business owners will also like having the ability to manage employee spending by utilizing the card's preset spending limits feature.

If you have a Cayman National Bank Visa Business Card, please feel free to post a comment(s) about the credit card, or perhaps you can provide us with a detailed review!

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