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Nigeria’s National ID Cards Double Also as Debit Cards

Nigeria’s New Biometric Identification Cards Can Be Used At Stores and ATM’s

In an announcement at the World Economic Forum on Africa last month, MasterCard and the Nigerian National Identity Management Commission announced their partnership to release 13 million ID/Debit cards. The combination government ID/debit cards will be rolled out over the next year as part of a pilot program, after which, the government hopes to deploy 120 million ID cards/debit cards to all of its adult citizens. The ID cards contain demographic and biometric data belonging to each Nigerian citizen encoded on a microchip and linked to bank accounts. For one of the first programs of its type, Nigeria’s national ID cards double as debit cards.

Nigeria is undergoing an economic boom fueled by new businesses and mobile phones, but there is a fear that ethnic violence and omnipresent corruption could slow down growth. One way the Nigerian government hopes to combat this is through the tracking capabilities, security and built-in paper trail of a cashless currency.

The cards use chip-and-pin technology more sophisticated than American debit or credit cards and “will allow cardholders to deposit funds on the card, receive social benefits, pay for goods and services, withdraw cash from all ATMs that accept MasterCard, and engage in many other financial transactions that are facilitated by electronic payments,” MasterCard’s Michael Miebach told Fast Company via email. “In addition to the various functionalities of a Smart ID, the scheme will allow Nigerians, 70% of whom currently having no bank account, to participate in the global economy.” Experts believe they have amazing potential and have the potential to cause a banking boom in Nigeria by connecting the over 70% of unbanked Nigerian citizens with bank accounts.

“The reality is that combating poverty means finding ways to get people access to basic financial services and that can’t really happen without money in electronic form. It’s not a panacea, obviously, and no one can predict if this particular program will succeed or flop. But that doesn’t change the fact that services of this sort are desperately needed.”

According to World Bank statistics, Nigeria has a massive 7.3% GDP growth rate—but 62.6% of the population lives below the poverty line.

For more information, visit: http://www.worldbank.org/en/country/nigeria

June 3, 2013
Community Banks Aren’t Hurt By Debit Card Fees

A provision in the Dodd-Frank Act originally had community banks worried. The new regulation would reduce the amount of money that larger banks could charge for debit card swipes by half. Targeting banks with assets of more than $10 billion, this meant smaller, community banks would be exempt from the regulation.

According to a recent article in Albuquerque Business First by Dennis Domrzalski, smaller banks, feared that the companies responsible for collecting the money from the swipes would not be able to establish the two-tier system necessary that would allow them to be able to identify the cards from smaller banks from those of larger banks.

The law took effect in October 2011. In 2012, the average interchange fee received by small banks was 43 cents per swipe, about the same as before the law took effect, the Fed said in a report on interchange fees. “In 2012, exempt issuers (small banks) received $7.4 billion in total debit card interchange revenue, compared with approximately $5.3 billion in debit card interchange revenue in 2009,” the study said.

For more information, visit: http://www.bizjournals.com/albuquerque/blog/morning-edition/2013/05/debit-card-fees-arent-hurting.html

June 3, 2013
Debit Cards Are A Good Deal After All
A few years ago, you couldn’t use “debit card” and “good deal” in the same sentence, but now with the high rate of competition, banks are easing off a lot of their fees. In fact, with a few smart moves, you can use a prepaid debit card without any fees at all.

“We’re seeing new entrants to the market with some pretty compelling offers,” said Greg McBride of Bankrate.com. Even consumer advocates have started to take notice of the kinder, gentler nature of the debit card citing them as a real alternative for the more than 10 million unbanked U.S. adults.

According to a report from bank consultancy Mercator Group, gift card purchases dropped slightly from 2011-2012, but debit card purchases were up by 12%.

In the past, consumers were often forced to buy debit cards at grocery stores or other retail outlets without being able to see a full list of quirk fees which were sometimes only available online. But newer card issuers have adopted simplified, single monthly fee structures that are winning over customers. “We feel like these products are headed in the right direction,” said Jennifer Tescher, CEO of the Center for Financial Services Innovation. “Debit cards are becoming a mainstream product. I am quite excited about the possibilities.”

New prepaid cards come with some great benefits once limited to checking account users such as:
- Free Direct Deposit
- Monthly Fees Waived With Direct Deposit
- Free Online Bill Pay
- Some Offer Paper Checks
- Get Cash Back With Purchase and Skip the ATM Fees
- Costs are strikingly less than that of a checking account.
With all the things the debit card has going for it, there are, however, some drawbacks. They enjoy none of the standard federal consumer protections that credit do. There are no refunds for fraud and no dispute resolution requirements.

Thanks to their growing popularity with government agencies for disbursing funds, a growing number of middle-class consumers are using debit cards. A report issued last year by the Aite Group says 34% of users hold college degrees, and one-third earn more than $45,000 annually.

For more information, visit: http://redtape.nbcnews.com/_news/2013/05/15/18255097-surprise-prepaid-debit-cards-actually-a-good-deal-for-consumers?lite
June 3, 2013
Debit Cards, Credit Cards and Bank Accounts Could Be Required If You Want to Receive Health Coverage

According to information provided by the Federal Deposit Insurance Corporation (FDIC), more than 17 million adults in the United States are unbanked. Additionally, 43 million are considered underbanked, still relying on payday loans check cashing services to handle regular banking needs. This could be a huge obstacle for those shopping for health insurance under the Affordable Care Act.

Millions of Americans are expected to be eligible for tax subsidies under the health care overhaul that they can use to purchase coverage on new marketplaces. With few regulations about what types of payment health insurers must accept, the unbanked could run into trouble paying the monthly premiums.

According to the Washington Post, the unbanked rate tends to be higher among minority groups. The Department of Health and Human Services addressed this issue in a letter to health insurers on April 5, saying that insurance carriers must be “able to accept payment in ways that are non-discriminatory.”

One possible deterrent to accepting credit cards could be the administrative fee that comes along with a credit card transaction, which could slightly increase premium costs. “The reason this is such an issue is that insurers are increasingly saying that they will not accept debit or credit cards as an acceptable form of payment,” study author Brian Haile said. “If insurers refuse to accept premium payments made by debit cards, you’re going to exclude many uninsured Americans.”

For more on this story, visit: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/22/millions-of-americans-dont-have-bank-accounts-that-could-be-a-problem-for-obamacare/

For more from this author visit: Tameka Riley’s Author Page

May 27, 2013
eForexGold Introduces Multi-Currency Debit Card
For years, eForexGold, one of the leading players of the Digital Electronic Currencies industry, has provided customers with convenient ways to buy, sell and trade currency. Now, with the introduction of its new multi-currency debit card, they have made trading currency even more convenient.

Customers can use the new debit card to transfer funds from electronic accounts like Liberty Reserve, c-gold, pecunix, Webmoney, Solidtrustpa, Technocash and TransXpress.

Although the primary function of the card is to withdraw cash from e-currency accounts, it can also be funded by a bank wire transfer and can be used for purchases at shops, restaurants, and at most ATMs worldwide. No name appears on the card and funds are disbursed in your local currency.

The card carries a daily withdrawal limit of $1,500 and a maximum daily balance of $10,000 with loading limits of $20,000 per month. Other fees associated with the debit card are:

Fees and Charges
- ATM transactions: $3.00
- ATM declines (NSF): $1.00
- POS and Internet transactions: $1.10
- Monthly card fee: $4.95
- Lost or stolen card (or PIN) replacement fee: $35
Funding fees
- by Liberty Reserve – 8% (min. $7)
- by c-gold – 5% (min. $7)
- by pecunix – 5% (min. $7)
- by WebMoney – 5% (min. $7)
- by SolidTrust Pay – 7.95% (min. $7)
- by Technocash – 1.5%
- by TransXpress – 2.5% (min. $7)
- by bank wire transfer – 2%
About eForexGold

eForexGold is a leading e-currency exchange provider. Online since 2000. Exchanges Liberty Reserve, pecunix, c-gold, Webmoney, SolidTrustPay, Technocash and TransXpress.

For more information on this story, visit: http://www.pr.com/press-release/493691

For more from this author visit: Tameka Riley’s Author Page
May 27, 2013
Serve from American Express and Chegg Partner to Empower College Students

In a recent announcement, Serve from American Express announced its agreement with Chegg, the nation’s leading online student hub, to give college students a new way to receive payments for selling textbooks. Through this agreement, students will not only be able to receive payments through the company’s textbook buyback program exclusively through Serve from American Express, but will be empowered with online and mobile financial tools.

“Going to college requires many transitions for students; one of the most important is developing good financial habits ,” said Elizabeth Harz, vice president of business development for Chegg. “We are thrilled to partner with Serve and help students manage their money using a trusted digital account.”

Chegg is a college hub which connects students to the tools they need like homework help, course reviews & planners, scholarships, textbook options, eTextbooks and more. Originally known as the Netflix for college textbooks, Clegg’s online persona has evolved into “what Facebook might have become had it remained limited to universities,” says Michelle Hummel, CEO of digital marketing agency Web Media Expert. Students and educators are “looking for something other than Facebook that’s more targeted to their needs,” she says.

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. This new partnership provides American Express an authentic connection to this important influential audience of 18 to 24 year olds. “We are delighted to be working with Chegg and to have the opportunity to extend American Express benefits to students without the hassle of credit checks or hidden fees,” said Stefan Happ, senior vice president and general manager of Online and Mobile for American Express.

For more information on this story, visit: http://about.americanexpress.com/news/pr/2013/serve-chegg-partner-selling-student-textbooks.aspx

For more from this author visit: Tameka Riley’s Author Page

May 27, 2013