When you look at the RevolutionCard you will notice that is very different to the credit card you may have in your pocketbook. Having no cardholder name, signature or account number displayed on the card, this card offers secure payments in which transactions are authorized by using a PIN number, in the same way debit cards are generally used. When it comes to making purchases online or by phone, cardholders are able to use a one time pin number of their choosing. This allows the cardholder the ability to make safer purchases by not giving out their primary number. When it comes to rewards, cardholders receive the same rewards that they do with other credit card issuers and more. With the RevolutionCard cardholders get exclusive offers, discounts on many purchases, and even have access to loyalty programs offered directly from retailers.

Do you have a RevolutionCard? If so, I would love to know how you feel about it.

At the moment there are a couple of things that should have issuers worrying. The first, which has an immediate effect is the current level of unemployment. As far as analysts are concerned, unemployment has one of the most direct influences on the profit or losses for issuers. History has shown that late payments have risen dramatically in times with high unemployment rates and this time is no exception. The second factor effecting issuers is the implementation date of the Credit Card Accountability, Responsibility and Disclosure Act, which was signed in May. The date which is in early February is quickly approaching and issuers, for the time being, are still scrambling to find ways to make up revenue that will be lost. This is mainly due to the fact that the CARD Act requires promotional rates to remain in effect for at least six months, limits the ability for issuers to raise interest rates on existing balances and restricts fees for sub-prime cards among other things.

With so many things going against credit card issuers at the moment, what do you think the future is for issuers? For many including myself, it doesn’t seem that issuers will return to where they were for some time to come. With cardholders now receiving annual fees (where they didn’t before), interest rates at and above 30 percent, increased fees and lower credit limits, it doesn’t seem that the credit card issuers are trying to help themselves. Card companies instead are isolating themselves from the very consumers that relatively kept them in business throughout the years.

How does it work? For those cardholders that decide to opt into receiving real-time alerts, they will receive messages (email and/or text messages) from "VisaNet", which is Visa’s global processing network. The alerts will detail information such as amount spent, time and date of the transaction, and merchant information (name and location). When it comes to when you will be notified, cardholders have many options to choose from which include:
 

• Transactions exceeding purchase amount chosen by the cardholder
• International transactions
• Online or telephone payments
• Gasoline transactions
• ATM cash withdrawals
• Declined transactions
   

So what does Visa hope to achieve by giving cardholders real time alerts on potential fraud purchases? According to a Visa representative, they are hoping that their new alert system will help cardholders to become more active when it comes to managing and protecting their account. For Visa itself, the move to a faster alert system will allow them to become more competitive in the market as advanced notifying systems have increased customer satisfaction for their competitors.

Named the PenFed Premium Travel Rewards American Express Card, this credit card will have rewards like none other within PenFed’s card portfolio. Cardholders will have the following benefits when it comes to using their cards:
 

• Earn reward points in multiple categories (including air travel, hotel stays, and dining)
• No caps or limits on reward points earned
• Travel Accident Insurance
• Trip and Baggage Delay Insurance
• Roadside Assistance
• Car Rental Loss and Damage Insurance

With credit unions growing in popularity and slowly looking more consumer friendly than many of their big bank counterparts, it comes as no surprise when credit unions announce new products such as this one. Although this is an exclusive agreement, we should hear more offers such as this coming from more credit unions in the near future.

For those who have had recent changes to their accounts overturned or absurd interest rates lower (if only by a little), many will tell you that "losing your cool" will not help. Although it may be hard, you must try to remain calm and stay polite even if the conversation does not seem to be moving in the right direction. If the initial person, who is more than likely the customer service representative, is not able to help then it is time to ask for a supervisor, a manager and so on. For tips on some things to say that may help you get the changes that you are looking for, check out a recent post entitled "Credit Card Tips to Try before Opting Out".

Have you gotten changes made to your account that you requested? If so, I would love to know what changes were made and who you had to speak with to get them.

In this session the question is from a woman who is like many other cardholders today who are completely feed up with their credit card issuers. Like so many others she has tried unsuccessfully to reduce her interest rate, is willing to pay what she owes, but is tempted to just walk from both the card and the issuer who is unwilling to budge.

As for the answer of walking away for the card, the author gives great options that could not only save her money, but also saves her from financial headaches down the road that could occur from non-payments. He lets readers know that when you simply stop paying on your account your credit ranking takes a hit which could have you paying more for other things in the future. Also he lets it be known that because of the "universal default clause" that is associated with nearly all credit card accounts, other card issuers could raise the interest rate on their cards because they have reason to fear that your risk level has increased. Instead of just "sticking it to the bank" he suggests looking for a balance transfer credit card that has a lower rate, and no hidden fees. He also suggest that if the balance being transferred is above 50 percent of the credit limit of the new card to look into getting two cards so your credit rating would be affected negatively.

In the case of debit cards, the shift for consumers seems to be a natural one that for the most part gives some of the same benefits that were associated with their credit card. One benefit that cardholders seem to love the most is the fact that many debit cards now offer many discounts as well as rewards (such as cash back and airline miles), that where once unheard of with the card.

In the case of credit cards, there are still many cardholders using their cards as they see them the best option for making purchases. In many cases these cards are being paid off in full at the end of each month to avoid interest charges. Also when it comes to credit cards many people are looking toward other financial institution other than the large issuers. As stated in a post entitled "Recent Survey Crowns Credit Unions "King"", many credit unions offer lower rates and consumers seem to be opting for these as their card provider.

Just like public opinion, issuers are mixed on the idea of working with settlement companies. While some have embraced the companies, others still perceive them with skepticism and have stated publicly that they will not work with them. According to a recent Nilson Report the stance of some of the larger card issuers are as follows:

Some issuers that state they are willing to work with them include: 

• USAA
• HSBC
• Wells Fargo
• U.S. Bank

Some issuers that state they aren’t willing to work with them include:

• Discover
• American Express
• Capital One
• Bank of America
• Citi Bank
• Barclays
• Chase

So what benefits do credit card issuers receive when it comes to working with settlement companies? What should come at no surprise, the answer to that question is solely based on money. Issuers that work with settlement companies agree mostly in part because they know that they will get at least a third of the amount owed to them if not more, which in most cases is paid with one or two payments. 
 
 

How do you feel about credit card issuers growing more inclined to working with debt settlement companies? Is a settlement company something you would use?

Like so many other companies, the reason behind this bankruptcy is because they feel they would not meet the obligations of paying their debt, even after listing $363 million in assets and $331 million in debt. However like many other large corporations who file bankruptcy, there is a twist. The twist in this case is that Advanta Bank Corp, which is the main operation that issued small business credit cards, is not part of the filing; simply because troubled banks are handled by regulators. Instead it is thought this branch of operations could eventually be taken over by the FDIC or sold to another company.

For at least one group of cardholders bankruptcy is not the answer they are looking for, as they are still paying skyrocketed interest rates on their card accounts. Instead they have filed a class action lawsuit, which stems from a settlement between the FDIC and Advanta over deceptive and unfair practices. These practices include habitually enticing business owners with low interest rate credit cards only to drastically raise their rates later with no reason. At the moment it is stated that over 300 thousand business cardholders still owe more than $2 billion.

So how does it work? Under this program all eligible purchases made with either the cash back card or Wells Fargo Home Rebate Card earns cardholders a 1 percent rebate which goes toward the mortgage’s principal. This rebate is then applied in $25 increments and has no cap on the amount of rebates cardholders can earn.

For Wells Fargo, cardholders using rewards they have accrued to go toward their principal on their home mortgage loan is nothing new. In fact since 2007, when their Home Rebate Card was first introduced, more than $10 million has been applied to home loans. This recent expansion however is something new as they look to capitalize on the growing amount of cardholders who now have home equity lines of credit, which have skyrocketed due to historically low interest rates. 

What is your opinion on a credit card that puts cash back earned toward your mortgage?