Lay down your cradit cards, Jimmy Wales
The cofounder defines the gold (and platinum) standard for card management
By Karen Bruno
Melvil Dewey organized all knowledge into 10 categories as America's first librarian, creating a "search engine" powered by a decimal point. Jimmy "Jimbo" Donal Wales, who founded the popular online , hasn't tamed knowledge as much as he has amassed it. Since the nonprofit's launch in 2001, which is edited by volunteers and is free, has become the world's seventh most visited Internet site; the English version has more than 1.8 million articles on subjects as diverse as fish and chips and ozone depletion, and is translated into 200 languages.
Jimmy WalesWales, a former options trader, was named one of the world's 100 most influential people by Time magazine in 2006. He counts Sir Richard Branson, the founder of Virgin Records, as a friend. Yet he lives a modest life with his family in sleepy St. Petersburg, Fla. Boyish-looking at 40, he is still indeed young by the standards of the nondigerati. He peppers his conversation with the word "cool," and on a recent trip to New York City, he was taken aback by the high prices for a sandwich and a tuxedo rental.
In 2004, Wales launched a for-profit business, Inc., in Silicon Valley, with $4 million from private investors. The 35-employee start-up plans to unveil a turbo-charged version of his -based search engine, Search , by the end of 2007. Not surprisingly for a man who extols personal freedom, Wales uses his two primary credit cards, listed below, judiciously. "We have a right to choose how to live, but debt interferes with freedom," he says. "People should be very careful."
Type of card: American Express platinum
Issuer: American Express
Year obtained: 2006
Business or personal: Personal
Interest rates over its life: None
Fees: $295 a year
Credit limit: None
Perks (miles, rewards, etc.): "I get free membership in airline-lounge clubs and in car-rental gold programs."
Customer service: "It seems good."
Current usage: "I use it a lot. It’s a pretty good deal because I travel so much."
The bottom line: "It's been great. It's widely accepted. I figure I'm saving money because I don’t have to pay separate fees to become a member of airport-lounge clubs and the rental-car gold programs."
Type of card: AAdvantage Gold MasterCard
Issuer: Citibank
Year obtained: 1987
Business or personal: Personal
Interest rates over its life: "I have no idea. I'm a terrible consumer." (The APR starts at about 10 percent.)
Fees: $50 a year
Credit limit: "I have no idea."
Perks (miles, rewards, etc.): "The reason I chose it is to get miles on American Airlines. I travel constantly and redeem the points when I can, even though American doesn’t fly to some of the out-of-the-way places I go."
Customer service: "They're very good about calling me when I have unusual charges, and I have a lot of them. I could be in Hong Kong or a little town in India and make a charge that they'll question."
Current usage: "I use it constantly and I pay it off every month. Everyone should do this."
The bottom line: "The great thing is that Citibank is very global; there are branches all over the world."
Showing posts with label cards. Show all posts
Showing posts with label cards. Show all posts
Monday, July 20, 2009
Airline Credit Cards with Frequent Flyer Miles
Airline Credit Cards with Frequent Flyer Miles
The following Airline Credit Cards offers frequent flyer programs. You can earn airline mileage credits as you spend with frequent flyer credit cards. If you are a Frequent Flier or travel a lot, an airline credit card could help save you money.
* Click "APPLY HERE" to apply online or call (866) 592-0808
* 1.25 miles for every dollar spent on purchases
* No limit on the miles you can earn and miles don't expire
* No blackout dates and no seat restrictions
* 0% APR on purchases until April 2010
* No annual fee
The following Airline Credit Cards offers frequent flyer programs. You can earn airline mileage credits as you spend with frequent flyer credit cards. If you are a Frequent Flier or travel a lot, an airline credit card could help save you money.
* Click "APPLY HERE" to apply online or call (866) 592-0808
* 1.25 miles for every dollar spent on purchases
* No limit on the miles you can earn and miles don't expire
* No blackout dates and no seat restrictions
* 0% APR on purchases until April 2010
* No annual fee
Citi ForwardSM Credit Cards for College Students
Citi ForwardSM Credit Cards for College Students
* The credit card that rewards you for good behavior
* Up to a 2% purchase APR reduction when you make a purchase, stay under your credit line and pay on time 3 billing periods in a row
* 6,000 bonus points after $50 in purchases are made within 3 months of account opening
* 5,000 bonus points when you sign up for paperless statements within 3 months of account opening
* 5 rewards points for every $1 you spend on dining, books, movies and music. 1 reward point for every $1 you spend on other purchases
* 0% APR for 6 months on purchases and balance transfers
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfers Credit Needed
0%* 0% APR* for 6 months on purchases & balance transfers* 14.24%* None* Yes* Good Credit*
* The credit card that rewards you for good behavior
* Up to a 2% purchase APR reduction when you make a purchase, stay under your credit line and pay on time 3 billing periods in a row
* 6,000 bonus points after $50 in purchases are made within 3 months of account opening
* 5,000 bonus points when you sign up for paperless statements within 3 months of account opening
* 5 rewards points for every $1 you spend on dining, books, movies and music. 1 reward point for every $1 you spend on other purchases
* 0% APR for 6 months on purchases and balance transfers
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfers Credit Needed
0%* 0% APR* for 6 months on purchases & balance transfers* 14.24%* None* Yes* Good Credit*
Visa Cards for mail, telephone and Internet use only
Cards for mail, telephone and Internet use only
Special pre-paid Visa cards for Mail Order/Telephone Order (MOTO) and Internet use only are made available by a small number of banks. They are sometimes called "virtual Visa cards", although they usually do exist in the form of plastic. An example is 3V. Recently, these virtual cards have been increasingly issued by non-financial institutions such as grocery and convenience stores to consumers as a replacement for money orders (such as PaidByCash in the United States). Such cards can be used whenever the remote store accepts Visa cards. Before making the transaction, the customer transfers the required amount of money from his main account to the card's sub-account using the bank's website or the telephone. Next, the customer gives the card number and the CVV2 code to the merchant, who authorizes the transaction electronically, as with a regular Visa card. If there is enough money on the sub-account, the bank grants the authorization and locks the adequate amount on the sub-account.
Such a card prevents fraud by a card number thief even if the card is not blocked, because the customer normally does not store any money on the sub-account and fraudulent transactions do not get authorized by the bank. For extra security, the CVV2 code is not printed on the card but rather sent separately to the customer in a secured envelope.
The bank also rejects local transactions, that is ones that are not made over the Internet, mail or telephone. However, some merchants use software incompatible with Visa regulations and send authorization requests that wrongly tell the bank that the transaction is not a MOTO/Internet one, in which case the bank rejects the request. Additionally, some merchants do not use electronic authorization at all, in which case the transaction cannot be completed as well. For these two reasons the card is unusable with a small minority of Internet, telephone and postal stores.
Special pre-paid Visa cards for Mail Order/Telephone Order (MOTO) and Internet use only are made available by a small number of banks. They are sometimes called "virtual Visa cards", although they usually do exist in the form of plastic. An example is 3V. Recently, these virtual cards have been increasingly issued by non-financial institutions such as grocery and convenience stores to consumers as a replacement for money orders (such as PaidByCash in the United States). Such cards can be used whenever the remote store accepts Visa cards. Before making the transaction, the customer transfers the required amount of money from his main account to the card's sub-account using the bank's website or the telephone. Next, the customer gives the card number and the CVV2 code to the merchant, who authorizes the transaction electronically, as with a regular Visa card. If there is enough money on the sub-account, the bank grants the authorization and locks the adequate amount on the sub-account.
Such a card prevents fraud by a card number thief even if the card is not blocked, because the customer normally does not store any money on the sub-account and fraudulent transactions do not get authorized by the bank. For extra security, the CVV2 code is not printed on the card but rather sent separately to the customer in a secured envelope.
The bank also rejects local transactions, that is ones that are not made over the Internet, mail or telephone. However, some merchants use software incompatible with Visa regulations and send authorization requests that wrongly tell the bank that the transaction is not a MOTO/Internet one, in which case the bank rejects the request. Additionally, some merchants do not use electronic authorization at all, in which case the transaction cannot be completed as well. For these two reasons the card is unusable with a small minority of Internet, telephone and postal stores.
Debit and check cards,Advantages and Disadvantages
Advantages and Disadvantages
Debit and check cards, as they have become widespread, have revealed numerous advantages and disadvantages to the consumer and retailer alike. Advantages are as follows (most of them applying only to a some countries, but the countries to which they apply are unspecified):
* A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions.
* Use of a debit card is limited to the existing funds in the account to which it is linked, thereby preventing the consumer from racking up debt as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards.
* For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the user's account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to pay a credit card bill at a later date, or to write an insecure check containing the account holder's personal information.
* Like credit cards, debit cards are accepted by merchants with less identification and scrutiny than personal checks, thereby making transactions quicker and less intrusive. Unlike personal checks, merchants generally do not believe that a payment via a debit card may be later dishonored.
* Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee.
The Debit card has many disadvantages as opposed to cash or credit:
* Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations, and even attempted but refused transactions by the merchant (some of which may not even be known by the client).
* Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks.
* In some countries debit cards offer lower levels of security protection than credit cards[10]. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction. However, theft of users' PIN codes using skimming devices can be equally easily accomplished with a debit transaction PIN input, as with a credit transation PIN input, and theft using a signature-based credit transaction is equally easy as theft using a signature-based debit transaction.
* In many places, laws protect the consumer from fraud a lot less than with a credit card. While the holder of a credit card is legally responsible for only a minimal amount of a fraudulent transaction made with a credit card, which is often waived by the bank, the consumer may be held liable for hundreds of dollars in fraudulent debit transactions. The consumer also has a much shorter time (usually just two days) to report such fraud to the bank in order to be eligible for such a waiver with a debit card[10], whereas with a credit card, this time may be up to 60 days. A thief who obtains or clones a debit card along with its PIN may be able to clean out the consumer's bank account, and the consumer will have no recourse.
* In the UK and Ireland, among other countries, a consumer who purchases goods or services with a credit card can pursue the credit card issuer if the goods or services are not delivered or are unmerchantable. While they must generally exhaust the process provided by the retailer first, this is not necessary if the retailer has gone out of business. This protection is not provided when using a debit card.
* When a transaction is made using a credit card, the bank's money is being spent, and therefore, the bank has a vested interest in claiming its money where there is fraud or a dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a purchase, or who has otherwise been treated unfairly by the merchant. But when a debit purchase is made, the consumer has spent his/her own money, and the bank has little if any motivation to collect the funds.
* In some countries, and for certain types of purchases, such as gasoline, lodging, or car rental, the bank may place a hold on funds much greater than the actual purchase for a fixed period of time[10]. However, this isn't the case in other countries, such as Sweden. Until the hold is released, any other transactions presented to the account, including checks, may be dishonored, or may be paid at the expense of an overdraft fee if the account lacks any additional funds to pay those items.
* While debit cards bearing the logo of a major credit card are accepted for virtually all transactions where an equivalent credit card is taken, a major exception in some countries is at car rental facilities[11]. In some countries car rental agencies require an actual credit card to be used, or at the very least, will verify the creditworthiness of the renter using a debit card. In these unspecified countries, these companies will deny a rental to anyone who does not fit the requirements, and such a credit check may actually hurt one's credit score, as long as there is such a thing as a credit score in the country of purchase and/or the country of residence of the customer.
Debit and check cards, as they have become widespread, have revealed numerous advantages and disadvantages to the consumer and retailer alike. Advantages are as follows (most of them applying only to a some countries, but the countries to which they apply are unspecified):
* A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions.
* Use of a debit card is limited to the existing funds in the account to which it is linked, thereby preventing the consumer from racking up debt as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards.
* For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the user's account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to pay a credit card bill at a later date, or to write an insecure check containing the account holder's personal information.
* Like credit cards, debit cards are accepted by merchants with less identification and scrutiny than personal checks, thereby making transactions quicker and less intrusive. Unlike personal checks, merchants generally do not believe that a payment via a debit card may be later dishonored.
* Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card may be used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee.
The Debit card has many disadvantages as opposed to cash or credit:
* Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre-authorizations, and even attempted but refused transactions by the merchant (some of which may not even be known by the client).
* Many merchants mistakenly believe that amounts owed can be "taken" from a customer's account after a debit card (or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks.
* In some countries debit cards offer lower levels of security protection than credit cards[10]. Theft of the users PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction. However, theft of users' PIN codes using skimming devices can be equally easily accomplished with a debit transaction PIN input, as with a credit transation PIN input, and theft using a signature-based credit transaction is equally easy as theft using a signature-based debit transaction.
* In many places, laws protect the consumer from fraud a lot less than with a credit card. While the holder of a credit card is legally responsible for only a minimal amount of a fraudulent transaction made with a credit card, which is often waived by the bank, the consumer may be held liable for hundreds of dollars in fraudulent debit transactions. The consumer also has a much shorter time (usually just two days) to report such fraud to the bank in order to be eligible for such a waiver with a debit card[10], whereas with a credit card, this time may be up to 60 days. A thief who obtains or clones a debit card along with its PIN may be able to clean out the consumer's bank account, and the consumer will have no recourse.
* In the UK and Ireland, among other countries, a consumer who purchases goods or services with a credit card can pursue the credit card issuer if the goods or services are not delivered or are unmerchantable. While they must generally exhaust the process provided by the retailer first, this is not necessary if the retailer has gone out of business. This protection is not provided when using a debit card.
* When a transaction is made using a credit card, the bank's money is being spent, and therefore, the bank has a vested interest in claiming its money where there is fraud or a dispute. The bank may fight to void the charges of a consumer who is dissatisfied with a purchase, or who has otherwise been treated unfairly by the merchant. But when a debit purchase is made, the consumer has spent his/her own money, and the bank has little if any motivation to collect the funds.
* In some countries, and for certain types of purchases, such as gasoline, lodging, or car rental, the bank may place a hold on funds much greater than the actual purchase for a fixed period of time[10]. However, this isn't the case in other countries, such as Sweden. Until the hold is released, any other transactions presented to the account, including checks, may be dishonored, or may be paid at the expense of an overdraft fee if the account lacks any additional funds to pay those items.
* While debit cards bearing the logo of a major credit card are accepted for virtually all transactions where an equivalent credit card is taken, a major exception in some countries is at car rental facilities[11]. In some countries car rental agencies require an actual credit card to be used, or at the very least, will verify the creditworthiness of the renter using a debit card. In these unspecified countries, these companies will deny a rental to anyone who does not fit the requirements, and such a credit check may actually hurt one's credit score, as long as there is such a thing as a credit score in the country of purchase and/or the country of residence of the customer.
Internet purchases , Debit cards
Internet purchases
Debit cards may also be used on the Internet. Internet transactions may be conducted in either online or offline mode, although shops accepting online-only cards are rare in some countries (such as Sweden), while they are common in other countries (such as the Netherlands). For a comparison, PayPal offers the customer to use an online-only Maestro card if the customer enters a Dutch address of residence, but not if the same customer enters a Swedish address of residence.
Internet purchases may be conducted in either online or offline mode, and just as in the case where you use your card in a shop, it is (at least in most countries) impossible to tell whether the transaction was conducted in online or offline mode (unless an online-only card was used, in which case you know that it was conducted in online mode), since the mode isn't mentioned on any receipt or similar. Internet purchases use neither a PIN code nor a signature for identification. Transactions may be conducted in either credit or debit mode (which is sometimes, but not always, indicated on the receipt), and this has nothing to do with whether the transaction was conducted on online or offline mode, since both credit and debit transactions may be conducted in both modes.
Debit cards may also be used on the Internet. Internet transactions may be conducted in either online or offline mode, although shops accepting online-only cards are rare in some countries (such as Sweden), while they are common in other countries (such as the Netherlands). For a comparison, PayPal offers the customer to use an online-only Maestro card if the customer enters a Dutch address of residence, but not if the same customer enters a Swedish address of residence.
Internet purchases may be conducted in either online or offline mode, and just as in the case where you use your card in a shop, it is (at least in most countries) impossible to tell whether the transaction was conducted in online or offline mode (unless an online-only card was used, in which case you know that it was conducted in online mode), since the mode isn't mentioned on any receipt or similar. Internet purchases use neither a PIN code nor a signature for identification. Transactions may be conducted in either credit or debit mode (which is sometimes, but not always, indicated on the receipt), and this has nothing to do with whether the transaction was conducted on online or offline mode, since both credit and debit transactions may be conducted in both modes.
Debit cards around the world
Debit cards around the world
In some countries, banks tend to levy a small fee for each debit card transaction. In some countries (e.g. the UK) the merchants bear all the costs and customers are not charged. There are many people who routinely use debit cards for all transactions, no matter how small. Some (small) retailers refuse to accept debit cards for small transactions, where paying the transaction fee would absorb the profit margin on the sale, making the transaction uneconomic for the retailer.
In some countries, banks tend to levy a small fee for each debit card transaction. In some countries (e.g. the UK) the merchants bear all the costs and customers are not charged. There are many people who routinely use debit cards for all transactions, no matter how small. Some (small) retailers refuse to accept debit cards for small transactions, where paying the transaction fee would absorb the profit margin on the sale, making the transaction uneconomic for the retailer.
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