You've choosen:
INFORMATION CENTER
News and Articles about Credit Cards...
Read about Credit Cards before Apply!
News about Credit Cards
Visa informs banks to brace for two-tier credit card fee structure
[12:00:00 AM Thursday, February 17, 2011]
Visa has revealed its plans of a two-tier structure for its credit cards that will be in compliance with the new laws that have come into existence; the implementation of the CARD Act was introduced in 2009. Representatives from this company, which is one of the biggest payment processing companies in the world, held webinars and conference calls with banks and other financial institutions and informed them about the impending change.
According to the most recent changes made to the credit cards, the Federal Reserve sets the upper limits for the interchange fees that can be charged by the retailers to the customers who opt to pay for their purchase using credit cards. Another amendment states that the rate caps will be decided based on the size of the bank. For small banks that have assets less than $10million, the rules are less restrictive. The large banks have had to face harsher terms as compared to the small ones.
In retaliation to this, credit card processing companies and banks has filed a lawsuit challenging the new Durban Amendment. Law critics believe that not all retailers will transfer the savings to unwitting customers. They also believe that bigger banks that have had to face tough laws, will come up with new account fees in order to make up for the revenue they lose. Visa’s plan of a two-tier fee structure is aimed towards helping credit unions and small banks compete effectively with larger counterparts.
Comments not found
The Latest Articles
[October 26, 2011]
Just because you don`t have a rewards credit card, doesn`t mean that your credit card can`t reward you. According to a MasterCard survey, 55% of consumers don`t know the extent of the benefits that their credit cards offer.
[August 31, 2011]
Every adult likes to travel light. The convenience of shopping without carrying an enormous wallet is something this generation has taken for granted. Credit cards are also a huge status symbol. Every adult remembers the glee and joy he or she felt when they received their first letter from some credit card company offering them a card. It proved that they had indeed arrived.
[August 23, 2011]
Consumers are increasingly using their line of credit due to rising inflation and gas prices. This has been revealed by First Data Corp`s report called Spend Trend. Credit cards are being increasingly used to pay for daily necessities such as gas as well as other basic needs. There has been considerable rise in food and gas prices as well. This is a direct fallout of inflation, but income has not gone up substantially to keep up pace with the inflation.
[August 17, 2011]
While most consumers are rejoicing about the increase in the number of credit card offers today, there are a few who are skeptical about the number of rewards cards solicitations that arrive in their mailboxes on a daily basis. However, Bill Hardekoph, the chief executive of a leading financial website, has said that there is absolutely no cause for worry. The rewards credit cards are the latest trends by credit card lenders, both large and small, to increase the number of customers. Of the many rewards cards that are flooding the market today, here are a few that are worth a thought.
