Credit Card Lowdown

Credit Card Classification

The types of credit cards that are being offered are simply mind boggling. Co-branded credit cards have flooded the market and a credit card aspirant can understandably be confused as to which card to go for.

Here is a list of types of credit cards and the options available within each category that can help you somewhat negotiate yourself in the credit card maze.

Type of card - Standard Credit Cards
Options available - Citi® Platinum Select® Card, AT&T Universal Platinum Card, HSBC Platinum Mastercard®

Type of card - Cash Rebate Credit Cards
Options available - Citi® Dividend Platinum Select® MasterCard®, Chase Perfect Card, American Express® Blue Cash, Discover® Platinum Clear Card, Discover® Platinum Card, Discover® Gas Card

Type of card - Airline Miles Credit Cards
Options available - The Gold Delta SkyMiles® Credit Card, United Mileage Plus Visa® Card, The Miles Card from Discover® Card, WorldPerks® Visa® Platinum

Type of card - Shopping Reward Credit Cards
Options available - Universal Entertainment Mastercard® from Chase, The GM Platinum Card®, Hilton Honors Platinum Credit Card, Subaru® Mastercard® From Chase

Type of card - Student Credit Cards
Options available - Citi mtvUTM Platinum Select Visa Card, Citi® Platinum Select® Visa® Card for College Students, Universal Entertainment Student MasterCard®, Discover® Student Clear Card

Type of card - Business Credit Cards
Options available - Advanta Platinum WIth Rewards, Blue Cash® For Business From American Express, American Express Business Gold, CitiBusiness® Card

Type of card - Cards For New or Damaged Credit
Options available - Orchard Bank® Secured MasterCard®, Orchard Bank® MasterCard®, Aspire Visa, New Millennium Bank Secured Gold Visa® or Mastercard®, Imagine Gold MasterCard®

Citi Student Credit Card – Is it really good?

Here is one credit card that a student would always want to have. Not only does it give the student the sense of power that a credit card brings with it, but also helps instill good and wise spending habits.

This card goes by the name of ‘Citi Platinum Select Card’ and is ideally suited for young adults since they can have it despite not having a credit history. They do not have to pay annual fees and can enjoy the cash back reward program. They can get back cash up to 5% for purchases made at supermarkets, drugstores and participating merchant partners. Cash rebates are issued through $50 checks with rebates for general purchases are limited to $300 a year. And the card holders enjoy a 20 day interest free grace period every month.

However they must not ignore the fact that the APR of their card is based on a variable rate with the figure tied to the prime rate. The APR of the student card is also higher than other credit cards. Therefore it is advised that the card holder be wise in using this card!

New card for small businesses courtesy Discover

Discover Financial Services recently launched their first credit card for small businesses. With the new Discover Business Card, which will carry cash-back bonus rewards, the company is targeting the small business market to make it easier for them to make payments. Business.techwhack.com reports:

Roger C. Hochschild, president and chief operating officer of Discover Financial added that small businesses would be able to obtain fee-free checks to pay merchants and suppliers who do not accept credit cards for transactions.

Read more:Discover to launch credit card for small businesses

Reward cards

What is it about cash-back reward cards that has people gunning for them? It probably is simple human nature. Not many people can say no to rewards that are offered for doing what you like to do most – shop. And the market for these cards is growing enormously – at last count, over 32 million people across the country were using reward cards!

So, why is the credit card industry, which is not known for its generosity, making such a magnanimous gesture? When any credit card company offers a cash-back or reward scheme for using its credit card, customers are known to usually use this particular card more than the regular ones. So now you have companies like Discover giving away almost $500 million in 2005 alone. Discover was the company that introduced the cash-back scheme nearly two decades ago. Soon other credit card companies like American Express, Citibank, Visa, and many others were offering reward cards and business was booming.

Tiring Taxes? Try using your credit cards

Tax season is well upon us and the IRS is busy giving last minute tax tips to the young recruits. You can now charge federal income taxes to an American Express, Discover, MasterCard, or VISA account by contacting one of the two companies authorized by the IRS to process credit card payments. Thecitizen.com reports:

There is no IRS fee for credit card payments; however, the service providers do charge a convenience fee based on the amount charged. Once you’ve completed the transaction, be sure to write down the confirmation number and the amount of your tax payment.

Read more: IRS gives last-minute tax tips

Card companies face increasing security breaches

Suspect transactions seem to have become the rule rather than exception as increasing numbers pop up throughout the United States and other countries. According to officials investigating the case, a large number of these transactions may be related to a security breach that happened at a merchant facility in California last year. The fallout from this event is only now becoming known. Visa USA was one of the first companies that gave an indication that everything was not all right. Recently released figures from the company indicate just 17% of 231 large retailers comply with industry wide data-security rules. Data-security experts believe that this is the proverbial tip of the iceberg. They believe that more such reports will be forthcoming in the next few months.

Sadly, most of the card companies have been trying to take adequate precautions to avoid just such a problem. Visa, MasterCard International, American Express Co., Discover Financial Services LLC, and other card companies harmonized their individual data-security rules into a common set of rules known as the Payment Card Industry data-security standard. This was done a year back. The rules mandate measures such as data encryption, firewalls, and regular anti-virus scans and apply to all organizations, including merchants, that handle card data. However, more than 80% of the large merchants are not yet in compliance.

Businesses can use credit cards for taxes

I am not one of those who subscribe to the idea of having multiple credit cards and flashing them wherever I go. My belief is that credit cards and their use doesn’t spell good news unless you are a careful and thrifty spender. But every once in a while, credit card companies, and sometimes the government spring certain surprises that make me want to change my opinion that credit cards are dangerous.

So, now that I’ve psyched you enough, let’s get on with the news. If you are a businessperson, then get your credit card out and ready for the IRS. The IRS or Internal Revenue Service has now begun accepting credit card payments for certain business taxes. Another piece of good news is that the convenience fee paid or incurred by a business making a tax payment with a credit card can be deducted as a business expense.

In case you are interested in making secure federal tax payments with your American Express, Discover, MasterCard and Visa cards, all you need to do is visit their official site at officialpayments.com

Credit card companies use Websites to draw customers

According to a recent report, Discover, American Express and Chase are the top-three credit card companies in terms of the online experience that they provide for customers. The study, conducted by Keynote Systems, examined the online experience as people interacted with leading credit card Web sites. Destinationcrm.com reports:

Discover has the top site in terms of the online customer experience, based on its leadership position in credit card satisfaction, an indication of consumer satisfaction with its interest rates and fees as compared to other leading cards.

Read more: Customers Give Credit to Card Companies' Web Sites

Reward cards

What type of credit card do you hold – regular or reward card. Chances are you already have a reward card with your regular credit card or are planning to get one soon. So what is it about these cash-back cards that have people gunning for them? It’s simple human nature. Not many people can say no to rewards that are offered for doing what you like to do most – shop. It’s just too tempting. So let’s have a look at this segment of the credit card market, which is growing at an enormous rate – at last count, over 32 million people across the country were using reward cards!

The credit card industry is not known for its generosity. On the contrary, high interest rates, and changing terms and conditions are more de rigueur in this industry. So the very fact that these companies are today offering cash or rewards to people who shop with their cards may sound a bit absurd. But not when you realize that they are now banking on something businesses have done from time immemorial – customer loyalty.

When any credit card company offers a cash-back or reward scheme for using its credit card, customers are known to usually use this particular card more than the regular ones. So now you have companies like Discover giving away almost $500 million in 2005 alone. Discover was the company that introduced the cash-back scheme nearly two decades ago. Soon other credit card companies like American Express, Citibank, Visa, and many others were offering reward cards and business was booming.

So how good are these cards for customers? Do they come with some hidden charges or are they simply what they claim to be? Questions any persons should ask him/herself before going in for a reward card.

If you were to go by customer surveys, this industry is yet to peak. People are in general very happy with these cards. Only one thing, you need to find out which card suits you and your wallet best. You only need to remember one thing: your choice of card depends on what kind of shopper you are – you buy books, grocery, or clothes. So it is important to know more about every card before you choose the one that is right for you.

High fees for multiple-use gift card

Beware! The ‘multiple-use’ gift card that you received this Christmas may not be as great a gift as you thought it would be – especially if you are living in Connecticut. You may end up paying a huge sum as fees on these types of gift cards, which are issued through American Express, Discover, MasterCard or Visa. This despite the fact that a Connecticut law prohibits inactivity fees and expiration dates on gift cards. The catch here is that the law still does not apply on multiple-use gift cards.

But the stringent rules have ensured that at least some of the card issuers stay out of the state. While Discover Card does not offer gift cards in Connecticut, American Express does not sell its cards directly to Connecticut residents.

What has irked state representatives are the numerous types of fees that the issuing companies charge for a small gift card. When you get a multiple-use gift card, you not only have an expiration date, you have to pay a purchase fee, inactivity fee and even a processing fee if you want any money that remains on the card after you’ve used it to be returned to you.