If your credit card offers you cash back, you’ve probably noticed that the percentage rebate varies by category.  For example, American Express advertises 5% cash back on gas, groceries and drugstores, and 1.5% cash back on everything else.  Discover offers 5% back on gas and groceries, among other categories.  Citibank actually offers 2% cash back on “rotating categories”. 

Turns out, “Gas and Groceries” are habit-forming.  While they may make up a small part of your household budget, you probably purchase them one, twice or even three times a week.  And the card companies are hoping that you’ll get used to pulling their card out for the small purchases, so that when it comes for a big purchase, their card will be “top of wallet.”

I don’t think this falls in the “dirty tricks” category.  In fact, you can use it to your advantage.  You can maximize your cash back by making sure you put these small purchases on your card.  And you might consider carrying multiple cash back cards to maximize your rebates when one has a higher rebate on a category.

The “big news” in credit cards last week was mostly about cell phones.  Three of the largest carriers, AT&T, Verizon and T-Mobile, joined with Discover Financial Services (the world’s fourth largest plastic payments network after Visa, MasterCard, and American Express) to enable payment by cell phone. 

Sounds cool, right?  Rather than pulling out your wallet, you’d just waive you smart phone in front of the register.  You’d get an electronic receipt right on your phone.  This method of payment is already big in Japan. 

But don’t write off plastic just yet.  For consumers, there are issues of convenience and security.  At $200 per register, merchants may be reluctant to install new readers.  This means that the places that accept pay-by-phone may be limited.  You’ll still have to carry your card anyway.  And some experts fear that a lost or stolen cell phone could pose more of a risk than a card alone.

Personally, I don’t see the advantages of pay by phone.  Not having to carry a card? I’m still going use a wallet to carry driver’s license, cash, business cards, library cards, grocery lists, etc.  Not having to swipe? Yea, that’s huge labor savings.  Not having the theft risk of my credit card numbers exposed? I’m sure thieves have already figured out how to intercept the signal between my smart phone and the register.  Plus, do I really want to migrate my credit account every time I get a new phone or carrier?  I think I’ll keep my card and my phone separate for now.
 

When it comes to the type of plastic many people are opting to get in their pocketbooks this summer, there is no doubt that rewards credit cards are the one. Over the last couple of months, within the card industry we have seen a complete overhaul of rewards consumers’ receive. Nearly every issuers has introduced something new that would hopefully give them the edge among cardholders, and one issuer in particular has recently announced their newest program. That issuer is Citi Bank, and with their "Extra Cash" rewards program they are looking to become the leader when it comes to putting more money in cardholders’ pockets.

So what exactly is "Extra Cash"? In short it is a way that Citi cardholders can earn discounts in many of the most popular reward redemption categories in the credit card industry (travel, entertainment and merchandise). As those carrying eligible cards are automatically enrolled in the program they will receive the equivalent of 10% of their purchase amount in "extra cash dollars" which can be used on a wide range of items within an online shopping mall. In all, Citi Bank says that these cardholders can save up to 40% on merchandise bought using the extra cash dollars.

Already this year we have seen great rewards such as cash back, increased points and increased mileage offered just for making purchases that are normally made every day. As the year goes on consumers should be able to expect that issuers will become even more aggressive in their fight for gaining cardholders and market share. We have yet to get to the time of the year where rewards really seem to give consumers the most for their money, so for cardholders 2010 could be one of the most rewarding ever.

Believe or not, issuers are now competing more than ever on many levels to get your attention. As many cardholders today are still unsatisfied with their issuers and are looking to get a better deal, issuers have become more adaptive to what could get you to swing their way. While some have focused more on the rewards offered to consumers, others are competing in an entirely different way. They are using introductory periods on purchases, balance transfers, and even cash advances to get their plastic in your pocketbook.

So what offers seems to be getting the more attention from both issuers and consumers? Over the last couple of months many of the credit cards that consumers have migrated to were offers giving the lowest rate and best deals on balance transfers. While it is not the case for everyone, many people are looking for a way to help ease the stress of minimum payments rising on existing balances as well as tough economic times. Knowing this, issuers have become more aggressive by offering consumers deals on the length of no or low interest rates on transferring their existing balance from a competing issuer. Two of the newest deals that seem to be gaining traction with cardholders are Citi Bank’s offering of 18 months and Discover’s offering 15 months, both at zero percent interest.

As issuers become even more aggressive to get your attention by offering great incentives like that of introductory periods, as with any credit card one needs to completely understand everything about their future plastic before signing their name on the dotted line. In many cases, just by simply reading any terms associated with the plastic one will find any fees that are commonly associated with such things as transferring over balances or taking out a cash advance. By overlooking things such as this, it could end up costing you more money than you think negating any saving that you are trying to get by moving to a new plastic.

When you think of reloadable prepaid cards what generally comes to mind? For many consumers it is normally the thought of just paying for something when you are skeptical of using your credit cards or a way for those who cannot get a credit card to make purchases. While these answer are correct to some extent, prepaid cards are more than that and continue to evolve as these types of plastic become more universally excepted across every demographic. A perfect example of how prepaid cards continue to grow is the very fact that more parents are using them as a way for their children to make purchases and learn about correctly maintaining finances. Known as teen or student prepaid cards; these cards are more than just any normal reloadable plastic.

When it comes to prepaid cards for teens and young adults in many cases they are much like credit cards, but with a controls that allow parents to still be in charge. In many cases, parents order the cards and load money directly from their bank account or in some cases with their credit cards. With many parents can view where purchases were made and for how much, and some even allow parents to block purchases or certain goods and services such as alcohol and tobacco.

Over the last couple of years we have seen prepaid cards geared for children grow in number, which is expected to continue as prepaid card increase in popularity. Many more parents have decided that financial smarts will only get taught if they teach it themselves. In addition to that they many do not what their children to go down the same road of accruing debt as they may have. In any case, for majority of parents it is a way to allow their children to pay for goods and services without having them spending more than an allotted amount, unlike paying for purchases with a credit card.

Since the beginning of the year we have seen many local banks push harder to compete with many of the national financial institutions and credit card issuers. While most attention was garnered by the outrage many cardholders had of the increasing of interest rates and changes of terms, some of the attention was given by consumers to find ways to keep money within their community. Since more people than in the past have started using their local bank’s plastic it is only reasonable that these financial institutions give them the same tools and resources via mobile device apps that their national competitors do.  In fact many region and community banks have realized that more than 30 percent of smart phone users check their bank balances using mobile technology and a quarter of them regularly conduct credit card transactions via the devices, making this a priority as well as a way to keep and gain cardholders.

While national banks and issuers have already started on and released several applications to compete with this market, majority of local and regional banks have really not gotten into the space until now. Although many local banks did not see the necessity of creating apps, mobile technology is accelerating faster than many predicted and what is offered now by banks could be the difference of consumers choosing them or someone else. Some reports show that more than 60 million people in the United States have mobile devices such as smart phones, and predict that around 80 percent of Americans will be using them sometime within the next five years. In fact as we stand now, a recent study from a Dallas marketing firm showed that will number more than 1 billion worldwide by 2014.

When traveling, many people can agree that credit cards can make it easier to travel both throughout the United States as well as internationally. While most of us do a great job protecting our cash and personal documents while on vacation one thing that is often overlooked is our plastic whether it is debit or credit cards. By neglecting these critical items, many cardholders find the time that was set aside for enjoyment and relaxation turn into one full of headache and worries.

So what are some ways to help keep your plastic safe? While many may seem effortless, in many cases it is just simply taking the time to do the little things that are often overlooked when one is in a hurry or is excited. Some tips include:
 

• Notify issuer or bank before leaving
• Give ways for issuer or bank to contact you
• Use cash when able and diversify on your ways  to pay for purchases
• Keep any and all receipts of products and services
• Keep your bank and credit card contact information handy
   

As with most things, the proper precautions can help keep your travel plans as intended and can even make them better by being worry free. Of the tips listed above, one of the most important things that any cardholders can do is reach out to their financial institution. While many of us only contact our issuers when unwelcome changes have occurred to our credit card terms or when a charge needs to be disputed, those traveling should contact them before they leave out the door. Letting your issuer know when and where you will be on vacation could help prevent your issuer from freezing your account due to what could be taken as "suspicious activity". This will also help in any event of your card being lost or stolen while you are on vacation.

As we move throughout the summer and credit card issuers look to find ways to get consumers to make more purchases on their cards, there has been one type of card that has literally stolen the spotlight. That type of plastic is a rewards credit card and many people have started choosing this type over many others that they may have primarily used in the past. Because of the amount of attention these cards have garnered we have seen quite a few issuers release new reward cards in hopes get consumers’ attention.  Overall in the last couple of months it seems that even with that focus, issuers have yet to keep up with Discover, whom once again made news with their reward program.

It was recently announced that cardholders can now look forward to new ways to spend their hard earned rewards points as they have redesigned their reward redemption site. With the redesign, Discover states that there will be hundreds of new brand-name merchandise as well as other options which include charity donations, cash via direct deposit as well as statement credits. Many of the newer merchandise allow cardholders to snag great things for as little as $20 that would be earned by making purchases with their plastic. For many if not all of the merchandise that is redeemed cardholders will even receive free shipping which is a plus no matter how you look at it.

Besides a redesign of their redemption process, Discover has made other big moves dealing with rewards. At the beginning of the year a contest named "It Pays to Discover Everyday Giveaway" was launched which gives cardholders the opportunity to win a grand prize of 1 million dollars as well as other cash prizes. Another way that Discover has decided to give extra rewards was by giving those that serve in the United States military double cash back and miles on purchases made on military bases from Memorial Day through Labor Day. Lastly they recently were named the official card of Six Flags Theme Parks and give cardholders the opportunity to receive savings as well as bonus points for using Discover plastic for tickets as well as other purchases within the park.

When it comes to reward credit cards that give cash back have you considered plastic that can be attached to brokerage accounts? While for some consumers this type of plastic does not seem that appealing at the moment, for many others it has been a serious thought that can end up paying off in the long run. As they have been getting more attention over the last 12 months financial reward cards are drawing much more then consumers that invest on a regular basis. Many newer cardholders have chosen this plastic as a way to save for the future by simply charging what they would have spent anyway on everyday purchases. By paying off the balances at the end of the month, the rewards are not negated and build up over time.

So have you been researching for the best financial rewards credit cards? If so, what is at the top of your list? While there are many to choose from, there a couple of cards that seems to stand out above the rest.  Each offers the cardholder something a little different, but both offer valuable rewards that have the potential to pay off big in the long run. They can be found in an article entitled "Editor’s Pick: Best Financial Rewards Credit Cards 2010". The two that are mentioned within this article are the Bank of America Upromise Card and the Fidelity Rewards American Express Cards. While the Upromise Card is connected to accounts that can help fund your child’s education, the Fidelity Rewards Card (which has three different offers) gives you the ability to do the same or direct the funds to an IRA account. In all, while these offers may be a little difficult to get approved for by some, for those that are able to get a hold of any of these plastics it is well worth it.

Earlier this month things should have gotten just a little bit easier for credit cardholders. While it may not be the changes everyone is looking for, on July 1 a provision of the Credit CARD Act which outlined new rules for credit card statements took effect. These rules are intended to help cardholders get a better understanding of their credit cards, which hopefully allows users to save both time and money. In all these changes are a good start for any cardholder, but even with this information it is up to the person carrying the plastic to use that information wisely.

According to an article entitled "A Guide to the New Credit Card Statements", when looking at your statements moving forward cardholders should see improvements as the following sections should be detailed:

• Account summary
• Payment information
• Any changes to cardholder’s interest rates
• Any changes to cardholder’s terms of agreement
• Recent transactions
• How interest rate charges are calculated
   

As a growing number of people are looking to get their finances under control, especially credit card purchases and payments, knowing and understanding your statement can go a long way. Even while it has become simplified, it is still best to calculate any interest or payments that may show up on your statements. This will not only allow you catch any mistakes that may have been made by your issuer, this will also allow you to not only see what swiping your plastic is really costing you (if you carry balances each month). In addition to that it will help show you the amount of money you could be saving by using your credit card less or paying off any balances before they accrue interest.