Banks make the switch from Maestro

It has been reported that a number of UK banking giants are working towards replacing their Maestro payment cards to alternative such as Mastercard and Visa payment cards. Read more

Tags: Maestro, Debit cards, Credit Cards, personal finance, Visa

Debit card spending overtook credit card spending last year

Recently released figures have shown that UK consumers spent more on their debit cards last year than on their credit cards, indicating that many are becoming more cautious about getting into debt in the current financial climate. Read more

Tags: card, Debit cards, transparency, debit card spending, processing, slight increase, credit card spending

Is HSBC favouring its richer customers?

A recent report has suggested that High Street bank, HSBC, is giving more favourable treatment to its better off customers with its Internet arm First Direct than to its poorer HSBC customers. Officials claim that the customers of First Direct, who tend to be better off due to changes that were made by the bank a couple of years ago, are getting a far better deal than customers with its parent company, HSBC. Read more

Tags: better-off customers, surprise, cheque, Debit cards, hsbc, better deal, rate cut

UreLife promotes “earn before you spend” mentality

Consumers should be careful with their finances and manage their money sensibly during the current credit crisis, advises UreLife.

The Urelife card, which combines prepay Visa debit with proof of age and a colour photo of the cardholder, encourages an “earn before you spend” mentality, according to Mark Dalton, a spokesperson for the company.

Since the market is moving away from credit facilities, consumers should be looking to set a monthly budget which they do not exceed.

“Increasingly, people have been maxing out their credit cards and the prepay debit card is the ideal product for people who want to take full responsibility for their finances,” Mr Dalton comments.

Credit Action recently said that although credit card spending is still a “very popular” form of borrowing, the growth rate has slowed over the past year.

This is partly due to banks tightening their lending criteria, however it also suggested that consumers are becoming more aware of the importance of managing their finances in a sensible way.

Tags: Visa Debit, action, rate, money, Debit cards, age, credit facilities, borrowing

Having multiple credit cards ‘can be confusing’

Having a number of different credit cards can be “confusing” for spenders, claims a consumer guidance charity.

The Consumer Credit Counselling Service (CCCS) said that there are many reasons for people having more than one card – plastic may be used for work, one could have a transfer balance with a low interest rate and another one could be used for purchases.

However, James Ketchell, spokesperson for the CCCS, said: “It can become confusing and people have to really stay on top of their credit card spending and finances as a whole”.

He adds that in the UK, the economic model is similar to the US more than Europe due to the ease with which credit can be obtained when making purchases.

According to a report by Datamonitor, the average Briton held 1.4 credit cards at the end of 2006.

This figure is twice as many as second place Norway, while the UK has the highest number of payment cards overall – 2.8 credit or debit cards each.

Tags: Debit cards, charity, Debit card, europe, consumer guidance charity, Credit card, different credit cards, US

NatWest overseas card hike

NatWest has hiked the cost of using their debit card abroad by two-thirds.

From June 5th, anyone using a NatWest debit card will be charged £1.25 rather than 75p for each transaction, while the maximum charge incurred for a cash machine withdrawal has been raised from £4 to £5.

“This is the latest in a long line of fees that banks are now charging to try to squeeze more money from their loyal customers. It follows closely after the RBS group’s decision to charge credit card customers £12 if they move house and do not update address details,” commented Nick White, director of financial services at price comparison website uSwitch.com.

“We estimate that this move could rake in an extra £10.18 million for the bank – a savvy move by NatWest.”

Many people prefer to use their credit card instead to make transactions as charges can be less, although withdrawing cash on credit can incur large fees.

However, NatWest said that as it had lowered its cash withdrawal fee from 2.25 per cent to two per cent, although on a £100 transaction this will only save 5p.

Tags: cash withdrawal fee, National Westminster Bank, transaction, Debit cards, com, loyal customers, withdrawal fee