Credit and Debit Card Ratings

Banks Are Falling In Love With the Debit Card All Over Again

When financial reform targeted the lucrative overdraft and interchange/“swipe” fees, the banking industry began to move away from debit cards, but now banks are singing a different tune. With new Federal Reserve data showing that caps on swipe fees are working as intended, banks are going a different route to make up for the lost revenue: volume. Targeting tech savvy millenials, banks are marketing debit cards now more aggressively than ever; even resurrecting rewards programs in some areas.

Last year, banks sent out 42 million direct-mail offers for new debit cards, up 6% from 2011 according to Mintel Compermedia. “It does appear that banks have regained their footing to some degree and are beginning to focus on debit card marketing,” says Susan Wolfe, vice president of research at Mintel Compermedia. Numbers don’t take into account the exponential rise in online marketing that’s taking place. With online marketing being far more cost effective than direct-mail, actual numbers are probably a lot higher.

“Interestingly, banks are promoting online banking, mobile banking and text banking as ways to stay on top of debit card spending,” Wolfe says. “Debit is also positioned as a better way to manage finances,” since users can keep track of account balances in real time via text or email alerts on their cell phones.

While debit card usage is up, credit card usage among 18-24 year-old college undergraduate students fell by 10% in just two years. Millenials are more money-conscious now, opting for debit card rewards, rather than credit card fees charging them to use their own money.

For more information on this story, visit: http://business.time.com/2013/03/28/why-banks-love-debit-cards-again/

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

Category: Best Low Fee Prepaid Cards

Millions of people are turning to prepaid debit cards as a smart alternative to carrying cash and writing checks. Almost anyone can qualify and they don’t require a credit check or a bank account.

Though they carry credit card logos and can be used anywhere a credit card is used, unlike a credit card, they do not offer a line of credit. The user can only spend the amount that has been loaded onto the card or placed into the account associated with the card.

There are dozens of debit cards on the market, many of them issued by the same bank, but fee structures are vastly different. Bestprepaiddebitcards.com has done all the research for you and provides comprehensive reviews to help you decide which card is best for you.

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  • Banks Are Falling In Love With the Debit Card All Over Again

    Banks Are Falling In Love With the Debit Card All Over Again

    When financial reform targeted the lucrative overdraft and interchange/“swipe” fees, the banking industry began to move away from debit cards, but now banks are singing a different tune. With new Federal Reserve data showing that caps on swipe fees are working as intended, banks are going a different route to make up for the lost revenue: volume. Targeting tech savvy millenials, banks are marketing debit cards now more aggressively than ever; even resurrecting rewards programs in some areas.

    Last year, banks sent out 42 million direct-mail offers for new debit cards, up 6% from 2011 according to Mintel Compermedia. “It does appear that banks have regained their footing to some degree and are beginning to focus on debit card marketing,” says Susan Wolfe, vice president of research at Mintel Compermedia. Numbers don’t take into account the exponential rise in online marketing that’s taking place. With online marketing being far more cost effective than direct-mail, actual numbers are probably a lot higher.

    “Interestingly, banks are promoting online banking, mobile banking and text banking as ways to stay on top of debit card spending,” Wolfe says. “Debit is also positioned as a better way to manage finances,” since users can keep track of account balances in real time via text or email alerts on their cell phones.

    While debit card usage is up, credit card usage among 18-24 year-old college undergraduate students fell by 10% in just two years. Millenials are more money-conscious now, opting for debit card rewards, rather than credit card fees charging them to use their own money.

    For more information on this story, visit: http://business.time.com/2013/03/28/why-banks-love-debit-cards-again/

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

  • How to Safely Use Your Debit Card

    How to Safely Use Your Debit Card

    Debit Card Safety Tips

    How to Keep Your Debit Card Information Out of the Wrong Hands

    Bank fees, regulations and credit concerns have forced a countless number of people to turn to debit cards to serve every day banking needs.  With identity theft, cyber-crimes and other criminal activities on the rise, how can you be sure your account information is safe?  Whether you’re shopping online, making a purchase over the phone, or just out for a night on the town, here are some steps you can take to keep criminal activity at bay:

    • Never give out your PIN number or write in on or near your card.
    • Don’t give out bank account information over the phone unless you are the one who initiated the contact or know the person is who they claim to be.  For example, beware of deceptive calls or e-mail phishing schemes from criminals claiming to be from your bank or other entity requiring you to verify (divulge) your account information.
    • Don’t share your PIN or security code and other account information with friends or family who are not authorized users on your account.
    • Take precautions at the checkout counter, ATM machine and gas pump.  Always stand so that no one can see the keypad as you enter your PIN.  At retail establishments, its best to use self scanners.  If you do give your card to a clerk, be on guard against a dishonest employee who runs your card through two scanners instead of one.  The second scanner could be capturing your account information to make a counterfeit card.  In general, be alert for suspicious-looking devices that may be used to “skim” information from your card.
    • If you do use your debit card to shop online, consider extra precautions with your personal computer.  Experts advise installing and periodically updating virus and spyware protection and a “personal firewall” to stop thieves from secretly installing malicious software on your personal computer remotely that can be used to spy on your computer use and obtain account information.
    • Look at your bank statements as soon as they arrive.  Or, better yet, review your account each week by phone or on the internet.  Promptly report any discrepancy, such as a missing payment or an unauthorized transaction, to your bank.  Your quick attention to the problem may help limit your liability and give law enforcement authorities a head start on stopping the thief.
    • When dining out or in any situation that requires your card to be taken out of your sight, make sure the card that is returned to you is yours and not someone else’s.
    • Check your account activity frequently and promptly report any activity that is unfamiliar.
    • Always verify your balance when loading your card.

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

Credit and Debit Card Ratings