Are you planning to go on a dinner date with your beloved? When you go out for dinner with your beloved, it’s a wonderful experience as you enjoy delectable food along with the person’s company. According to the recent research, young people prefer using cards over cash, especially in posh restaurants or shopping malls.

After the recent economic meltdown, many people suffered job loss or wage deduction. So, some of the people are involved in fraudulent activities to make money in this tough economic situation. Recently, these fraudsters are taking advantage of the situation to misuse the credit card of the consumers. A large number of people in America are filing complaints on fraudulent credit card transactions. Therefore, to avoid enrolling in a credit card settlement program, you can inform the credit card company regarding the fraudulent activities. If your card is misused without your knowledge, you may have to pay the bills even if you’re not responsible for the transaction.

Here are a few effective tips to prevent credit card scam:

Beware of restaurant fraud:
Generally, consumers use their credit cards while shopping or paying restaurant bills. In this case, the restaurant employee may swipe the card and your card information can be recorded in the electronic device. The information stored in the electronic device can be used by the fraudsters, and the card information can be misused. Any trickster in the restaurant can write down your card’s number, expiration date along with the security code. The vital information can be used for online purchases and transactions made over the phone. Therefore, you need to be cautious while handing over your credit card to the restaurant staff.

Tips to prevent credit card scam in a restaurant:
When you use your card to pay bill at a restaurant, you can insist the wait staff to swipe the card in the electronic device before you. You can avoid credit card fraud if you keep tab on the transaction process. Once you get the receipt, make sure you check the amount on the credit card receipt. Avoid handing over the card to the restaurant staff. You can directly go to the counter and pay the bill yourself.

Avoid throwing the carbon copy receipt in the trash:
The fraudsters can use the carbon copies of the receipts you leave behind in the trash. The receipts may contain your credit card information like your name, credit card number and signature on them. Make sure you cut up the carbon copy of the receipt properly before you throw in the bin.

Use cash instead of card:
You can use cash instead of credit card so you can avoid fraudulent activity. When you use cash, the miscreants may not get access to your financial information to initiate any fraudulent activities.

Therefore, the cardholders need to keep in mind the above mentioned tips to prevent credit card fraud.

Credit or debit? No doubt you’ve had a cashier ask you this at some point recently. Perhaps you have paid a bill over the phone and gotten a prompt to choose between processing the bill using a credit card or processing the bill as a debit transaction. If so, you may be wondering exactly what the difference is between a debit card and a credit card.

It can be confusing for consumers to tell the difference between the cards. After all, most debit cards can also be processed as a credit card and usually have a credit card logo at the bottom right hand corner. In addition, most stores take both cards. The main difference between the cards is how they are processed.

A debit card offers consumers the convenience of a credit card except that you might need to use a PIN number or primary identification number in order to complete the transaction. Some stores may process debit transactions under a certain amount automatically and without asking the customer to punch in a PIN number. When you use a debit card to purchase for your items, the money for the transaction is taken out of your bank account immediately. In addition, some banks or financial institutions charge customers a fee when they use their debit card.

A credit card is a card used to get credit or borrow money. When you use your credit card at a store, you are borrowing money from the lender that issued you the credit card. For the privilege of allowing you to borrow money from the card lender, you will be charged interest based upon the amount of money that you have borrowed. When you use a credit card, you will receive a bill each month telling you how much money you have borrowed. You can pay off your bill in full or you can partially pay your bill each month. You are limited as to the amount you can borrow by a credit limit established by the lender.

Of course, you can also use your debit card as a credit card; this is where the lines between debit and credit can get blurry and confusing. When you use your debit card as a credit card, the money used to pay for your purchases will eventually come out of your bank. However, the transaction usually takes a bit longer to process than a debit transaction. In addition, smaller stores may ask that you refrain from using your debit card as a credit card due to the hefty processing fees incurred by merchants when they process such transactions.

Many consumers however choose to use their debit cards as credit cards when given the option simply because it is cheaper to do so. In many cases, consumers will not have to pay transaction fees if they use their debit card as credit. Although fees are minimal, they can really add up quickly. If your bank charges $1 for each debit transaction, you can incur quite a bit of fees over the course of a day if you use your card to pay for your purcharses. Other consumers use their debit cards as credit cards because some banks offer a cash back option on all transactions processed as credit.

Debit or credit? That is a good question. Know the facts and make your choice carefully before you swipe that card.

People who have difficulty obtaining a traditional credit card due to poor credit or lack of a credit history have another option with secured credit cards. A secured credit card is one that is obtained by putting money down as a security deposit. In most cases, the amount of money the applicant is allowed to spend on his or her revolving credit card is equal to the amount of money put down as collateral.

Secured Credit Card Advantages

There can be several benefits of a secured credit card for consumers who use it responsibly. After having the account for several months, the credit grantor may review the payment history and upgrade the account to an unsecured status. The account holder would also have his or her security deposit refunded at that time. It is a good way to rebuild credit after a bankruptcy, and bankruptcy attorneys often recommend secured credit cards to their clients who are interested in doing this.

Fees for Secured Credit Cards

Each company that offers a secured credit card has their own fee structure, but fees with this type of credit card are generally higher and more prevalent than fees for an unsecured credit card. Consumers may be subject to an application fee, a monthly maintenance fee, a set up fee and fees for using the card to withdraw money from the account. The interest rate charged on secured credit cards is also higher than a typical credit card. Consumers who are considering applying for a secured credit card should ask for a list of all associated fees and make sure that having this account will fit in with their budgets.

Where to Get a Secured Credit Card

Most banks and credit unions offer secured credit cards to their customers. It is also a popular product among alternative financial institutions. People who are interested in this type of card who don’t have a checking or savings account with a bank should have no problem find a company to apply with over the Internet.

Partially Secured Credit Cards

People who have some poor credit, but nothing major like a bankruptcy or foreclosure, can apply for a partially secured credit card if they are having trouble getting approved elsewhere. As its name implies, a partially secured credit card requires the applicant to put down some money as a security deposit in order to obtain the account. The typical amount is 50 percent, so if the consumer was given a credit line of $1,000, he or she would need to put down a $500 security deposit. With a partially secured credit card, credit lines can be regularly increased when the account holder puts more money down as collateral.

You get the junk mail offering you a low rate card. You’ve been pulled aside in the airport and told you’ll get a free trip if you sign up for a card. Is it too good to be true?

You’ve probably been offered half a dozen credit cards this month, either by mail, or some person trying to sell one to you. Credit cards can be a great tool, but take some care when choosing based on the features, as sometimes these features are not as good as they’re made out to be. Reading the fine print is always a good idea.

Travel Cards

Travel cards seem to be a great deal. Sign up for a card, get a free flight, usually in the form of reward miles. But be careful:

• You usually have to do something to get the miles added to your account
• There are often restrictions on who can get the miles, such as “new customers only”
• You are often responsible for fees and taxes, so the free flight can still cost real money
• The number of miles is limited, so your destination may not be in reach of your free flight
• You are subject to blackout rules and other limitations

Annual Fees

Cards with extra rewards often come with an annual fee. More often than not, this fee will be waived for the first year. But be careful, when that anniversary date comes up, you’ll be slapped with a fee of between $75 and $250 depending on the card. Always ask about the annual fees after the first year.

Some cards come in a “free” version and a “fee” version. The free version will have limited rewards. So if you sign up for a free card thinking you get free rental insurance, you might find out that you’re out of luck because that only came with the paid version.

When evaluating fee based cards, figure out what the rewards are worth. Paying $200/year to get to a new cash rewards tier when you will only get an extra $100 might not be the best use of your money.

If you use the card a lot, call your credit card company before the anniversary day and ask to have the fee waived. Often the annual fee is nothing compared to what they make from you as a loyal customer.

Cash Back

The idea is simple. Get a percentage of your monthly spend back. What’s the catch?

• Unless you pay an annual fee, the cash back rate is often small
• The rates are often tiered, so you have to spend a significant amount to get the cash back
• You may feel the need to spend more than you should in order to get the cash back

Introductory Rates

Many cards offer a low introductory rate for balance transfers from other cards. Be careful with these:

• The rate may only be good for the amount of the balance transfer, not the charges that happen after that
• Your payments to the card may be applied to the low interest balance transfer first, and you’ll be paying the higher rate of interest on the new purchases
• The introductory rate is only for a set period of time, then you’re put back into a high interest bracket.

A pre-paid credit card seems attractive for people with poor or low credit, or minors. But what do you look for to avoid being scammed?

A pre-paid credit card can be used wherever a regular credit card can. It is just like a credit card except that you keep a positive balance on the card and pay for your purchases out of that. When you get close to running out of money on the card, you put more money on.

Pre-paid cards are an excellent option for people with poor credit. Properly used, the cards can give you the benefits of a credit card without qualifying for one.

Pre-paid cards are also ideal for minors. People as young as 13 can go online and get a card.

Minors can be issued most pre-paid cards so that they can enjoy the benefits of having a credit card. Parents can top up their children’s account if they would like.

Because there’s very little risk for the issuer of the card, there are lots of options out there. But be careful as there are many options that will hit you with unnecessary fees or impose limitations on how you can use your card.

Some things to keep in mind when shopping for a pre-paid credit card:

• Make sure you’re not charged transaction fees or fees to deposit money into your account
• Avoid cards with monthly fees
• The card should make it easy to add money and check your balance, such as with direct deposit and online access
• You should be able to access the cash on the card at an ATM
• The card should report to credit agencies so that you build credit

The Prepaid Visa RushCard (No credit check. Instant approval. Shop online, pay bills, use ATMs) does not charge monthly fees and offers online service.

Another option is the Vision Premier Prepaid Visa.. Both give you access to ATMs and direct deposit, do not require a credit check and issue to minors.

It should also be noted that prepaid credit cards do not contribute to your credit rating.

There are many complaints about Green Dot Prepaid credit cards… Are they a scam?

If you search for a Green Dot Prepaid Credit Card you will find many opinions and experiences. The problems with Green Dot appear to be around two key issues

Customer service

Reports of poor customer service from Green Dot are plentiful. Either the agents have poor English skills or they are unwilling to help. There are many reports of the card being declined and Green Dot customer service putting up many roadblocks to getting the funds released. Other complaints allege that people loaded money on the card but the money never became available to use. The initial response from Green Dot was that they had no record of the transaction, and it is never clear if the matters were resolved.

The company, despite almost 1000 complaints in 3 years on the LA Better Business Bureau site, has an A+ rating from the BBB.

Fees

Many of the complaints center around the fees. The card costs $4.95 which is fairly standard, but there is a monthly charge of $5.95/month! If you make more than 30 purchases a month, or load $1,000 on your card, the fee is waived. However, if you are in a position to spend that kind of money on a credit card, you should have no trouble getting a regular credit card on much better terms.

You also get charged $2.50 for using ATMs outside their MoneyPass network, or $0.50 for checking your balance on a non-network ATM.

There’s also up to a $4.95 fee for reloading the card at a retail location.

In short, there are many lower cost options out there.

References

https://www.mygreendot.com/greendot/about-our-products#gd_fees

http://www.complaintsboard.com/complaints/green-dot-prepaid-visa-c246350.html

http://www.complaintsboard.com/complaints/green-dot–wal-mart-moneycard-c150702.html

http://www.trustlink.org/Reviews/Green-Dot-Corporation-205924704

http://www.topix.com/forum/city/lexington-ky/T7E5B4KN8CK3FC33G

http://www.ripoffreport.com/credit-card-fraud/greendot-visa-master/greendot-visa-mastercard-scam-ppae4.htm

Credit cards are a popular form of borrowing, but an understanding of how they work is needed to avoid running into problems.

Credit cards let you buy now and pay later. When you buy something on a credit card, the merchant sends a transaction to the credit card company saying that a certain card spent a certain amount. The merchant’s account is credited, and the amount is added to your credit card bill.

Paying the bill

Once a month you’ll get a bill. The bill will itemize the purchases in the past billing period, and provide a total amount owing.

Credit cards also provide a grace period between the time the bill is totaled and the time the payment is due. So you’ll see something like

1. Jan 13th – billing period starts
2. Feb 12th – billing period ends
3. Feb 28th – payment for the Jan 13th – Feb 12th due

Besides your purchases, you may see other items on your bill:

• Interest charges
• Balance protection insurance
• Annual fees or other payment for credit card perks

Even though your bill might be due on the 28th, you can pay the bill earlier.

Carrying a balance and credit card interest

It is up to you to pay the entire bill outstanding, or you will be carrying a balance. For example, if your credit card bill due on Jan 31st was $1,000 and you paid $600, you will have a $400 balance on your credit card as of the next statement, even if you didn’t buy anything.

Interest is charged on the outstanding balance. At an annual interest rate of 19% you will pay about $6.33 of interest per month on that $400 balance. So if you don’t charge anything on your card above, your new balance will be $406.33.

Minimum payments

Credit cards institute a minimum payment, which is usually a percentage of the balance or a number like $20, whichever is higher. If your credit card bill is $1,000 and the minimum payment is $50, you must pay at least $50 or you will be in arrears.

At 19% interest, it will take you just over 2 years to pay off that $1,000 by only making minimum payments. That $1,000 will end up costing you about $1,210.

The option to make minimum payments is available to you, but you should never use it unless the situation is dire. Credit cards are among the most expensive ways of borrowing money.

Credit limits

A credit card has a credit limit on it, which is the maximum amount you can have outstanding at any given time.

Consider the following:

1. Feb 12th – billing period starts. Credit limit is $500
2. Feb 20th – You spend $200. You can spend $300 more
3. Mar 10th – You spend $300. Your balance is $500, and you can’t spend any more on the card.
4. Mar 12th – billing period ends. Bank sends out a bill for $500, due on March 30th.
5. Mar 20th – you want to spend something, but you can’t. You’re out of room on your card
6. Mar 30th – you pay your bill of $500, your limit goes back to $500

So even though the limit may be $500, even by paying your bills on time, that doesn’t mean $500/month.

Also, if in step 6, you only pay $200, you will only have $300 of room on your card.

Credit reports and credit scores

Credit cards affect your credit score in a few ways.

First, a regular credit card reports to a credit agency. They will send your credit limit, the highest balance, and your late payment history to the credit reporting agencies. This happens anywhere from every 6 months to every 2 years.

• Ideally you want to keep your balance under 30% of the credit limit. This is widely cited as the watermark that FICO uses to determine responsible credit usage
• Carrying a balance, or paying minimum amounts, is not considered a late payment. If you pay less than the minimum, or fail to pay, that is reported as a late payment.
• It may take up to 2 years before a credit card hits your credit report and starts moving your score up.

Second, a credit card will report any late payments, failures to pay, or account closures to the credit agency. If you close your account on your own that’s ok, but if you’re kicked out as a bad paying customer, then that’s bad.

Your best way to manage your credit score is to pay your credit card bill on time and not to carry a balance.

There are many prepaid credit card options, but with a variety of fees.

If you’re in the market for a prepaid credit card, then you’ve probably seen there are a lot of options. One thing that separates a good card from a bad card is the monthly fees.

Some prepaid credit cards prey on people who don’t know better by signing them up for insurance packages that cost $25/month, or impose other high fees.

If you want a credit card just for convenience and don’t want to get charged every month for having the card, then you have fewer options.

The RUSHCARD has a pay as you go option that charges no monthly fees. You must use it once every 90 days to avoid a $1.95 fee which should not be a problem. Some transactions are charged a convenience fee of $1, which is capped at the normal monthly fee. This makes the Rush Card pay as you go option quite attractive for people that want the benefits of a credit card without the monthly fees or risk of other options.