Infographic On Identifying And Fighting "Grey" Charges On Credit And Debit Cards

Today, on Visual.ly, I came across an awesome infographic which highlights "deceptive and unwanted charges" that might appear on your credit or debit card banking statements.  According to the graphic, which was designed by Bill Guard, a service I use to help prevent fraudulent transactions, Americans are being scammed to the tune of $14 billion in so-called "grey" charges every year.  $14 BILLION.  I think Americans deserve better, and while some of the perpetration happens here, an untold number of scams originate abroad.  But, you can fight back.

To help remedy this problem, Bill Guard scans your statements for irregular or suspicious looking merchants and alerts you of possible fraud.  It is free for up to three credit/debit cards, or $45/annually for up to 10 cards.  You have to register your credit/debit card number in order for the system to work, but I trust the site, as it has definitely flagged some odd transactions which forced me to double-check their authenticity.  In addition, typically, if you are the victim of fraud, your liability will be $50 or less.  Unfortunately, it does mean that banks must pass these charges on to consumers in the form of higher rates and fees.

Let's take a look at the graphic.

Consider signing up for Bill Guard.  It works very quickly and alerts you every month if there are any grey charges.  It's not a bad idea to have a watchdog looking over your finances when you are busy doing other things in life.

--The Edge.

Going Abroad? You Could Be Hit With A Double Whammy Hangover Of Currency Fees And Sales Taxes

Mr. and Mrs. Edge just came back from an awesome trip to British Columbia.  It's beautiful, trust me. While I was prepared for the potential currency exchange fees, and used a credit card that does not charge them, I was hit by the sticker shock of Canada's sales taxes: Goods and Services Tax (GST), Provincial Sales Tax (PST), Harmonized Sales Tax (HST), and Municipal and Regional District Tax (MRDT).  Yikes!  it's a wonder more people don't move, must be the "free" health care.  Worst of all, these sales taxes aren't refundable, according to my chat with the Canada Revenue Service yesterday. Only in certain circumstances, listed on their website, they are at least partially refundable.  But since we weren't exporting pieces of art, we got had  

O' Canada!  OMG taxes!

While you should definitely still travel to Canada, here's what you can do to help lessen some of the other bite that you might experience.  If you don't have one already, apply for a credit card which does not charge currency exchange fees.  What I mean by this is if you use a credit card in a foreign country, and it converts the transaction to the local currency, you might be assessed with a ~2.7% fee.  Think of it as yet another tax.

And, if you don't have a bank that refunds ATM fees, expect to be whacked by those, too.  Canada is pretty advanced when it comes to credit card use.  And, unlike the U.S., expect to be presented with a mobile credit card machine for you to swipe.  Kind of odd, but you get used to it.  But, like the U.S., you will still find the odd Mom and Pop shop that won't take them.  Search for a bank that does not have "foreign" ATM fees here.  This strategy will also work in the U.S., too.

-- The Edge

Traveling Abroad? Don't Get Stuck With Currency Fees

Traveling abroad for work or pleasure can be a lot of fun.  Depending on where you go, it can be quite a bit cheaper than an average day in the U.S.  But, what you might not have thought about if you don't plan on converting to local currency is what your credit or debit card might charge you extra for using it abroad.  These are called foreign transaction fees.

Foreign transaction fees are what banks will charge a customer, around 2-5%, for converting into the local currency.  Ouch.  Suddenly, that hotel room is not quite a bargain.  

But, you can fight back.  Many credit cards waive foreign transaction fees, but you have to look closely.  For example, my United MileagePlus Explorer Card charges these fees, while my Chase Hyatt Card does not.  For a list of cards that do not charge fees, check out this site.

--The Edge

More Visa Offers...Just In Time for Mother's Day

Yesterday, I discussed an offer I got for Choice Hotels through Visa Offers.  If that wasn't going to be useful for you, check out the April Visa Offers page to see if anything else does.  A few things caught my eye right away, namely for FTD flowers.  Given that Mother's Day, May 12, is about a little over a month away, it's not too early to think about something special for mom.

Don't have a Visa?  Check out this page to help you selecte the best Visa card for you.

Prevent Credit Card Fraud With Bill Guard

Friends and family know that I love my loyalty points, especially earned from using my credit cards.  It's like a game to me: charge as many purchase types I can, big or small, I will take them all.  Since using your credit card frequently, especially for on-line purchases, does make you more vulnerable to theft, fraud, or both, it is critical to check your credit card statements frequently.  I do this mainly because I pay off my credit card bills every few days, but also to make sure charges are legitimate, too.

Recently, I read in Money Magazine about a service called Bill Guard which takes a way a lot of the burden in monitoring your credit cards.  This short video below explains how the service works:


The tool is really easy to use.  As long as you have your credit card log in information handy, preferably in your head, it should only take a few minutes to set up.  In no time, Bill Guard will scan your credit card transactions and flag those that appear suspicious, or at least it hasn't seen before.  It's up to you to then indicate whether the credit card charge is legitimate, or if it is potentially fraudulent.

Signing up for Bill Guard is free for the first three cards.  If you'd like to register more, then you can either refer someone, or pay $79/year for up to 10 cards.  Most people will probably be covered with three cards, especially if they typically only use one card.

Buyer's Regret? It doesn't have to be...

One of the many great benefits of having a credit card in addition to loyalty program rewards is price protection.  For example, you buy something at a major electronics store one day and the next it is substantially marked down.  Will the store reimburse you?  Yes?  Great!  No?  Typically, this is not an issue to get a refund of the difference if you are willing to a bit of homework and follow-up.

First, let's distinguish between "price protection" and "purchase protection" or "return protection "  Price protection is simply coverage of the difference in price if a purchase is made, and within a given period, let's say a week, it gets marked down.  If the store does not have such a policy, than your credit card issuer may.  

Second, "purchase protection" is the theft or damage to an item within a certain time frame, say 90 days from purchase date, and that is no longer returnable to the store.  If the item was stolen, it's not the store's fault, is it?  And, of course also subject to limitations, overall dissatisfaction with the merchandise can be reason enough to have the credit card company accept a return item that a store otherwise wouldn't.

To see if the cards you currently have cover these protection areas, you should visit your card's website, or do a general Google search on keywords such as "price protection" + chase and look for their benefits page.  Typically, major card issuers such as American Express and Chase have very robust return programs for a variety of reasons. 

While you are it, review those lengthy, "mice type" documents that periodically come in the mail to see what other benefits you might have with your card.  You might be surprised at what they are offering as a card holder.

Tax Time Tips

Income tax documents are probably already available to you to start completing your taxes.  One excellent source for tax records is your credit card statement--specifically the year end one.  I just got a notification from Chase that my 2011 year ends are available.

Here is why they are good to have:

1-Purchases are categorized, such as charity, travel, dining, and entertainment.  If you engaged in any of those activities on a volunteer/non-profit basis, and itemize your taxes, they are a good back up to your receipts.  Be sure to verify that the organization is in fact a registered non-profit.

2-In a pinch, you can reference these documents while filing your taxes.  Receipts are cumbersome and clutter your filing records.  Year end statements, saved to a computer, are much more efficient.

3-In an audit situation, handing an auditor a print out of neatly categorized purchases is much better for appearances than a stack of paper, odd-shaped receipts.  Think about it.

I am sure there are other good reasons to keep your year end statements for tax purposes and I would like to hear from you on them.  In general, they also help with tracking where you spent money and for what purpose.

In closing, a good strategy for filing taxes painlessly, and at little expense, is to use a service such as Tax Act Online.  I have been using it for years and there is a lot of basic functionality that is available for free that will help you on your way.  Helpful functions include instant calculation of the refund or taxes due, filing tips, simplified language describing complex tax topics.

The credit market must be picking up again

There are some signs now that the credit (or at least credit card) market is starting to wake up from a long slumber.  Credit card balance transfer offers (circa earlier last decade) are stopping to pop up again in my inbox and mail box just like the good old days.  But as always, must be read carefully.


The fundamental changes I have seen with these balance transfer offers, from both my bank, and credit card companies, are two-fold: 1) the fees are higher, meaning no more "free" transfers like I have seen in the past; 2) quick turn around requirements.  From what seems like ages ago, I used to get offers all of the time to consolidate balances at 0% interest for 10 months or so.  Occasionally, they would be "no fee" transfers, meaning all one had to was send the check in and pay off another balance.  If used properly, one can essentially beat the system for a while.  Of course, if one forgot to pay the minimum balance one month, or went past the "teaser" period to pay it off, one would be subject to huge interest rate increases. 

Now, not only do the offers have a minimum transfer cost, say 4% of the balance requested, there are no maximums on the fees assessed, unlike before.  In the past, it seemed that balance transfer fees were capped at $75, now, the sky is the limit.  That of course depends on your credit card limit in terms of how much you can borrow, too.  Thus, if you look at the interest rate being offered, if you are lucky, 0, but more like 3.99%, if paid off within the terms of the loan, and not added to, the rate is about 8%.  If not paid off, 8% is the floor and the ceiling is in the double digits.


There seems to be a pressure component now, too, with offer turn around requirements of a month or less.  It seems that credit card companies want to make consumers act (hopefully responsibly) as soon as possible.  I don't like that kind of pressure, and it's what has gotten a lot of people in trouble in the past.


In a pinch, and used responsibly, these offers are a great way to consolidate balances.  If you think about it, if you are paying 15% or more on a credit card balance, and if you know you cannot pay it in full for a while, it might make sense to pay the balance transfer fee and get the lower rate.  But, try to project out when you are going to be able to pay off the balance.  And, try not to run up the balance on the higher rate credit card while paying off the lower one.


While it's better not to get into debt, if avoidable, there are tools available to consumers again that can be used to help manage their debt better. 

Not all credit card offers are alike

Efforts to lure customers in signing up for credit cards might be getting a little desperate. Here's one incentive from a Washington, DC-area car dealer to avoid. 

It was comical, and photo-worthy, to capture this credit card offer.  Being a car dealer, one would think that perhaps a free gas card would be an incentive, but amazingly, not. Sadly, what lures many into crushing credit card debt is worthless trinkets like these. It’s a very similar ploy to what has been happening to college students for years. Sign up for a card and get a free t-shirt. However, recently, the Obama administration began cracking down on some credit card companies' unscrupulous practices. Without getting into too much legislative detail, his new law purports to halt fees and other practices deemed unfair by some that have caught many Americans in a credit card debt trap.

Credit Card Benefits

If used wisely, credit cards are an awesome tool for consumers. First, by using them, consumers don’t have to carry around large amounts of cash to make purchases. Second, credit cards are safer than cash in that if they are stolen, consumer liability is in many cases zero. If one loses their wallet, that’s pretty much the end of that. Thirdly, credit cards offer rewards, such as cash back, frequent flyer miles, and points, akin to a discount, that take some of the bite away from spending.

Credit Card Debt

Unfortunately, the misuse of credit cards, meaning rampant spending without paying off the monthly bill, has gotten many into trouble. Unable to pay bills, some will be forced to file for bankruptcy, which hurts all consumers. If possible, paying cash will help stop shopping cravings. Just as it may feel uncomfortable to carry hundreds of dollars around in one’s wallet, it should feel the same to keep spending frivolously when one is paying crushing credit card interest. If one is in debt, consider asking the lender to lower the interest rate. Banks would rather have something than nothing, after all.

Comparing Credit Card Offers

To help consumers navigate the sometimes complicated world of credit card deals, incentives, fees, and benefits, there are many websites that track on-going offers. Credit Card.com is one such site. The site has a very clean interface that allows one to quickly select a card by a particular feature, provider, and credit eligibility. Don't get carried away, however. It's not necessary to carry several credit cards and two is all what most people need.

Keep a close eye on your purchases with your receipts

After you charge a purchase, it’s a good idea, no matter how small, to reconcile it with your online statements. In a recent posting, there was a strong case made for using credit and debit cards to help keep track of your spending. But, these cards may also provide an opportunity for error, or downright fraud.  Unlike the immediate look and feel of cash, you may not notice an overcharge if you don’t look closely at your statements. Moreover, small, hard-to-notice transactions on your statement may indicate that your identity has been stolen. Thieves have been known to “test” a card by making a small purchase at first, only to set it up for a big one later.

Depending on the merchant, their credit and debit card technology may be somewhat archaic, which affects the time it takes to process and show up on your statement.  Unlike modern, point-of-sale transactions, where you swipe your own card and watch the transaction take place, signed-carbon copy transactions involve more manual data entry.  Another complication with these types of transactions is that if your hand writing is illegible, the merchant may enter the transaction incorrectly, especially if the carbon paper is crumpled. Or worse, they hope you don’t look at your statements closely and decide to slip in a digit on the invoice after you have left.

A good rule of thumb is to keep your receipts in an envelope, or some place easy to find, until the purchase posts. And, if you do feel like you are a victim of fraud, which the Examiner reported happening to patrons of popular DC restaurants, call the merchant first. If you try to call your credit or debit card company first, they will likely ask if you have tried to resolve the problem on your own. If you cannot get anywhere with the merchant, then it’s time to call in the big guns. Call your credit or debit card customer service number and explain the situation. Their fraud department will be on it immediately.

Take Advantage Of Invitation Only Offers

These days, with everything web-driven, companies will try to steer you towards their websites at any time they can.  Television commercials very commonly feature a website, bus stop ads, toilets in bathrooms (yes, true), anywhere.  What they will also do is try to target certain market segments with some sort of discount promotion for a variety of reasons: you're a new customer, you live in an area that they are trying to build business, you are a certain demographic, etc.  But, these efforts may not necessarily be limited to the people who they are trying to ensnare. 

For example, I just received an email from PayPal about getting a 5% reward for shopping on-line through their portal after spending $20.  While the email to me says it was targeted, I would encourage you to pop in your email address (if you are currently a PayPal member) and register for it anyway.  Computers are only as smart as their programmers are and you may just get lucky.  This goes for registering for any airline, hotel or other bonus, too.  The main goal of such promotional efforts is to drive traffic to a company's website in hopes that you spend (or overspend).  If you aren't qualified for these promotions, you are usually told right away, but basically, it won't hurt to try, just like in life it never hurts to ask.

If you are catching on to what I am saying, you will also notice this tactic utilized by the likes of large, national cable companies.  They lure in potential cutomers with bargain prices that aren't available to current subscribers.  Therefore, you should always threaten to cancel your service after a while so that you can take advantage of lower promotinal prices.  Funny how they seem to have the ability to discount people who haven't even built a relationship with them yet.  That's why after you have built one, you need to remind your cable, cell phone, etc. company that you have options.

Paying Bills On-line

Everyone has to pay bills: cable, utilities, mortgage, insurance, etc.  But, are you maximizing your return on paying your bills?  If you are simply just paying these bills by writing a check, you are missing out an opportunity to earn points, miles, or cash back. 

Do this: look up your bill provider's webpage and see if the option exists to pay your monthly's on-line, with your checking account or credit card.  Chances are, the option exists.  This will not only save you time but postage, envelopes, and address labels, too.  Even better, see if you can pay these bills using your points-earning credit card.  If you are going to be spending the money, you might as well get something for it.  Not only can you get something for your bills, but you can also have better peace of mind that your utilities and other companies don't have direct access to your checking account.  The only company of mine that does is my mortgage company.  When you give out your checking account number, it's much more complicated to get your money back in the case of fraud, or double-billings.  It's generally pretty easy to get your money back from credit card companies, in my experience.  They simply remove the item from your statement as opposed to your bank putting the money back. 

Paying bills via your credit card also helps with accounting at year end, particularly if you have bought something that was eventually donated.  It also helps you track where your money is being spent.

How To Take Advantage of Credit Card Savings Programs & Rewards

While there are several other websites and blogs that track various credit card deals, I am reminded myself, especially the other day in the mail, that credit cards can often come with discounts that people either don't know about or forget. Case in point, a signature Visa card saved my hundreds of dollars this past summer for two trips I took which involved staying at Hilton properties. Clear as day, Hilton's website mentioned special savings of up to 25% if one used a signature Visa. In this case, Hilton had a handy tool for checking if your card was eligible.

Consider also Discover and Mastercard savings. While performing your due diligence in shopping for items online (a future post which will go into detail) check the discovercard.com or mastercard.com websites to see what special promos they may have. The savings may surprise you. It could be x % off of a rental car, or discounted movie tickets, just for using your card that would have otherwise. However, don't use your card if you are going to carry a balance. It's not worth the interest. Regarding the offer in the mail, Bank of America has something called "Add it up," a program whereby consumers can receive up to 20% cash back and discounts from 270 retailers, the literature reads. A link to the program is here:

Other cards may have similar offers, too. Check your card's website, or call their customer service directly and ask.

How To Negotiate Credit Card Debt

Unfortunately, most Americans are highly in debt. The recent credit crisis has only showcased this problem. While not all debt is bad, such as student loans and mortgages, credit card debt will choke the life from your finances.

If you are in debt, make sure that have the lowest credit card rate possible. To do this, depending on how good your credit is, do a little research and see if you can get your rates lowered either with your card, or with another.

To find out if you are getting the best deal for yourself, visit websites like Bankrate.