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: personal finance, switch, MasterCard, Debit cards, Maestro, Visa, Credit Cards

Cardholders should close old accounts

According to a recent report consumers in the UK need to take more care to close their old credit card accounts when they have disused cards that they no longer use. Read more

Tags: MasterCard, consumer, dormant cards, close credit card accounts, Cardholders, credit card fraud, fraud

Egg charges monthly fee on new card

Internet financial giant Egg has recently announced that it will be charging a monthly fee of £1 on its new credit card, which is the Egg Money World Mastercard. Read more

Tags: ban, mainstream products, Electronic commerce, MasterCard, Egg Money World, annual fees

Credit cards recommended for online Christmas shoppers

Brits enjoying a more relaxed Christmas shopping experience online are advised to use their credit cards for enhanced protection.

According to Simon Crisp, director of Shopsafe.co.uk, consumers can improve their legal security by using a credit card for online purchases.

He added that, if doing so, they should also take the measure of registering the card with their bank with the new schemes available from Visa and Mastercard.

“There’s actually new schemes being launched by the credit card companies – one’s called Verified by Visa, the other is called Mastercard SecureCode.

“Both let you register your credit card with your bank, and put a password on your credit card, so that only you can use that card.”

He said that this will protect the user against identity fraud and theft as the retailer knows that only the consumer is in possession of the password.

According to consumer group Which?, 69 per cent of Brits will do their Christmas shopping on the internet this year to avoid the “crowds” and be able to “compare prices more easily”.

Tags: security, Credit Cards, MasterCard, fraud, cent

Chip and pin revolution boosts online fraud

One surprising outcome of the chip and pin revolution is that online fraud has risen, the trade association Apacs said today.

The massive increase in UK consumers shopping online has proved fertile ground for thieves, as the rise of chip and pin has left them looking for “other areas to exploit”.

The association has also found that one in eight have failed to log out while shopping – leaving their financial details accessible by others. One in four do not perform background checks on the websites where they conduct their transactions, leaving questions of security unanswered.

Apacs spokesperson Mark Bowerman said: “Certainly as you close down one avenue for the fraudsters, we know that they’re not going to pack up shop and get legitimate jobs, they’re going to look for other areas to exploit.

“Certainly the fact that this type of fraud has gone up would indicate that they’re doing that.”

Apacs figures from March this year show that online banking fraud cost £33.5 million in 2006, up from £23.2 million the previous year. Set against this was an overall decline in fraud from £439.4 million to £428 million.

Tags: financial details, MasterCard, surprising outcome, United Kingdom, fertile ground, background

The changes brought about by debit cards

The debit card turned 20 on June 3rd and the banking industry has been looking back at how our lives have changed as a result.

Apacs, the UK payments association, has released a report called 20 Years of the Debit Card and it highlights how the cards have allowed our lives to alter in the past two decades.

Barclays was the first UK bank to provide customers with a debit card back in 1987 and 20 years on, 84 per cent of the adult population now owns one.

A total of 41 million people hold a debit card, a massive increase on the 27.8 million who had one in 1996.

The popularity of debit cards continues to grow, with Brits spending £194.9 billion on their cards in 2006, five times what we spent on them in 1996.

“It’s hard now for most of us to remember what life was like before the debit card, as it’s become one of those things we’re unlikely to leave home without,” said Jemma Smith from Apacs.

“Before 1987, most of us were totally reliant on cash or cheques, and although credit cards were used in supermarkets at that time, they only made up six per cent of transactions.

“Today, cards account for 66 per cent of supermarket spending, and most of this is on debit cards. In fact, over a third of all debit card transactions are made at the checkout,” she added.

It seems that debit cards will continue to be popular among consumers in the years to come, with spending on them expected to reach £400 billion by 2016.

Tags: life, MasterCard, Electronic commerce, cash, massive increase, apacs, payment, Jemma Smith

Easter credit card warning for travelling Britons

Consumers planning on making a trip abroad over the Easter period are being encouraged to avoid the “unnecessary” charges that may be imposed upon them when making debit and credit card transactions.

Research carried out by Nationwide shows that the 15 million Britons who travelled abroad over the Easter period last year wasted nearly £16 million in charges imposed upon them by financial providers.

Jeremy Wood, divisional director at Nationwide, said: “People who are planning to go abroad this Easter should be aware of the hidden charges that most card providers impose which are both costly and unnecessary.”

“Anyone using a Nationwide debit or credit card will not be charged any foreign usage fees on purchases and will therefore have extra money to enjoy while on holiday,” he added.

With over 24 million Visa outlets around the globe, Nationwide also claims consumers will have no trouble accessing cash when they go abroad

Tags: Visa, credit, period, credit card transactions.Research, MasterCard, Easter, GBP, Nationwide debit

Credit card market lacks competition

There is a lack of competition in the debit and credit card market, meaning consumers are getting a bad deal.

That is according to a new report published by the European Commission (EC) and it backs claims previously made by the British Retail Consortium (BRC).

For some time now, the BRC has been arguing that there is a lack of competition and that fees charged for transactions are an unjustifiable tax.

The BRC has revealed that the fees we pay are fuelling excess bank profits and figures from the EC report show that credit card issuers are making profits of 40 per cent.

Calls are now coming for the Office of Fair Trading to recognise the findings of the EC report in its current case against Mastercard and Visa’s fee arrangements.

“This report is a welcome indication that the commission agrees with us that banks are abusing their position,” said Kevin Hawkins from the BRC.

“The report sends a clear signal to member states, including the UK, that consumers and retailers have been bearing the costs of that abuse.

“We’ve long argued that high charges are an unjustifiable tax on consumers leading to excessive profits for the banks,” he added.

Customers looking to get a credit card should shop around and try to find the best deal to suit their personal needs.

Tags: BRC, fee, Credit card, credit, United Kingdom, MasterCard, kevin hawkins, tax