Scrutiny of credit card companies by legislators could spur credit card rate relief for credit card consumers according to an article in today's San Jose Mercury News. Chase Bank, one of the top five credit card issuers, announced that it will no longer increase a cardholder's interest rate when his/her credit score declines, starting March 1, 2008. This is imortant because your credit score could decline if you have too many credit-check inquiries, or if you close an old account, or if you increase your debt, or simply pay a bill late. Citigroup, another major credit card issuer, made changes after Congressional hearings last summer. Citi stopped the practice of "universal default" rate increases. Similar to Chase, this means Citi will no longer raise cardholders' rates over a late payment on another company's credit card. Citi will also stop adjusting cardholder's original interest rates during the intial credit card agreement term, typically two years.

We can all use a little help keeping our credit card numbers safe. Not a day goes by, these days, that I don't see a dozen stories on credit card theft and credit card fraud. Today's Des Moines Register printed an article with some really good tips for keeping your credit card information safe this Holiday Season. The article reminds us that credit card criminals don't need your card to charge up a storm. They only need to know the credit card number to make bogus charges, and cash withdrawals from your account. The Register recommends 7 important safeguards:

1. Don't carry credit cards all of the time, just when you are going to use them.
2. Sign your credit cards or put "See ID" on them as soon as you get them.
3. Photocopy your credit cards, front and back, and keep copies in a safe location.
4. Don't let salespeople copy your credit card number when using a check or social security number with your credit card.
5. Do not sign a blank receipt. Draw a line through blank spaces above the total.
6. Only give your credit card number over the telephone if you know the company is real.
7. Notify your credit card providers immediately or in advance of any change in address.


See the full article here.

Ever wonder how much merchants pay for credit card processing services? Businesses across the Nation spend millions of dollars every year on such credit card processing fees. And what they pay, of course, depends how big the merchant is. For every $100.00 you spend this Christmas, $3-4 on average goes to the merchant processor and the banks and networks they belong to. And, the costs of credit card processing have become so complicated that few merchants know enough to distinguish between good pricing and bad pricing on merchant processing fees. And now there are even businesses devoted to negotiating discounts for merchants that pay themselves on their merchant client's savings. Great idea! Get paid based on what you save the client. One such group that helps credit card merchants save big is EP Consulting in Temecula CA. Click here to learn more.

Visa was the first credit card company to block casinos from allowing (and encouraging) gamblers to load up their credit card balances with casino bound cash advances. MasterCard, American Express, and Discover followed quickly. Despite lower and lower "high risk" transaction limits, and the effects of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 which made it illegal for banks to take transactions from online casinos (except for horse racing and the lottery), despite these credit card curbs, consumer credit card abuses have become the largest issue for gambling operators. According to a recent article in OG PAPER, 70% of credit card deposits to online casinos fail. This leaves most casinos with only a few e-wallet services and ACH transaction options. Read the story here.

Presidential hopefuls join law makers on credit card reforms

US lawmakers and Presidential hopefuls urged America's largest financial companies to "clean up" their credit card practices. An ongoing congressional probe of charges and fees imposed on consumers includes shopper interviews in the high part of the Christmas shopping season. The AFP (Associated Free Press) reported that Senate subcommittee chairman, Carl Levin, said few Americans were aware of how the credit card industry's complex credit rating system can harm their financial health. Meanwhile, the American Bankers Association (ABA) warned Congress that new legislation could have "unintended negative consequences," and said it was a myth that Americans were drowning in credit card debts. Holy credit card company myth, Batman! Turns out that US credit card debt has soared in recent years to 877.1 billion dollars in 2006, up over 100 billion dollars from 770.5 billion in 2003, according to the Federal Reserve. Who should we believe? Presidential hopeful, Barack Obama promised to "crack down on predatory credit card companies using deceptive practices to make big profits while driving families deeper into debt." His proposed bill would bar banks from hiking interest rates without giving consumers an opt out option. Check out the whole political story here.