| Frommer: Check bank charges before using credit card overseas
What credit cards should you use if you plan to travel abroad? The mathematics are fairly clear. You start with the fact that all the big banks issuing credit cards charge as much as 3 percent of the total when that card is used for a transaction in a foreign currency. And that expense is over and above the 1 percent charged by Visa and MasterCard for converting the foreign currency payment into U.S. dollars. Visa and MasterCard perform a service in return for their 1 percent charge. The largest credit-card issuers in America -- Bank of America, Citibank, Fifth Third Bank, JP Morgan Chase, Simmons First Bank and Wells Fargo -- all charge 3 percent for doing nothing. American Express charges 2 percent. Wachovia and Washington Mutual charge 1 percent.
Dartmouth subpoenaed in loan investigation
HANOVER, N.H. (AP) _ New Hampshire's Dartmouth College has been subpoenaed as part of New York state's investigation of the student loan industry.
The subpoena, dated February 14 and recently made public, was brought by New York Attorney General Andrew Cuomo.
The subpoena addresses the college's arrangement with Bank of America that allows the bank to offer "affinity" credit cards to Dartmouth students and alumni. These cards allow individuals to give back to their alma mater or to another charitable cause as they spend.
Dartmouth is among over 80 colleges and universities that offer affinity cards to their students in conjunction with Bank of America, according to the bank's web site.
Cuomo has alleged that these card programs may represent a conflict of interest if they encourage colleges to promote the banks' lending programs.
BofA, Wachovia stand to reap windfall
Bank of America, the country's No. 1 credit-card issuer, is in line for big money from Visa's potentially historic stock listing. The Charlotte bank is Visa's second-biggest customer and the second-biggest holder of its Class B stock, behind JPMorgan Chase & Co. in both categories. Bank of America holds 46 million shares, or about 11 percent, of Visa's Class B stock. Class B stocks generally carry no voting rights. It's unclear how much Bank of America stands to make from Visa's initial public offering, which could raise $18.8 billion. In November, the bank's chief financial officer, Joe Price, said the bank would pay $230 million as a result of a Visa settlement with American Express, but that the bank's gain from Visa's IPO would be "substantially more than the settlement." In a filing in November, Charlotte-based Wachovia said its share of Visa's IPO would more than cover its share of the settlement; it took a $115 million expense for the settlement in the third quarter of last year.
Ecommerce sites face security crackdown
Online shops face increasing regulation, with credit card companies handing down strict guidelines on the protection of customer data. After 30 June, companies selling goods online will be required to apply annually for certification under the new tighter guidelines providing consumers with greater guarantees of security when transacting online. Mastercard, Visa and American Express are all involved in the scheme, which is intended to encourage more shoppers to spend online and counter some recent negative publicity relating to the security of data provided online such as Bank of America's lost accounts, the attempted e-heist at Sumitomo Bank and past data protection issues involving the likes of Argos, B&Q and utility firm Powergen. Firms processing more than 20,000 transactions per year will be required to scan their networks each quarter and conduct annual audits of their compliance with the standards in order to qualify for certification.
WPS Parking Systems Adds Shift4's Dollars on the net(R) Payment ...
LAS VEGAS, Jan. 7 /PRNewswire/ -- Shift4 Corporation, a leading developer of enterprise payment solutions, and WPS Parking Systems, a member of the Imtech Group, announced today a certified interface to provide the Doubletree Hotel in San Jose, Calif., a complete parking payment solution to process credit cards quickly, accurately and securely. Integrating Shift4's Dollars on the net(R) payment system into WPS's barcode automated parking provides the hotel with more processing flexibility than what they would receive from most banks and processors. This, in turn, helps provide their customers with better service. "As we continue to deliver seamless systems to lower our customers' total cost of ownership, Shift4's Dollars on the net(R) gateway provides the most comprehensive payment processing solution available in the automated parking system industry," said Derek Kiley, President, WPS North America, Inc.
Postal Service Feels Weight Of 'Junk Mail'
The souring economy and changing lifestyles are dramatically affecting one of the most dependable institutions in American life: the U.S. Postal Service. Troubled banks are mailing fewer credit card offers. Declining new-home sales mean vacant houses sitting with empty mailboxes. And as consumers switch to paying bills online, first-class mailings are drying up. .
Bank of America Card Services Executive Struthers to Present at Credit ...
CHARLOTTE, N.C., Feb. 1 /PRNewswire/ -- Bank of America North America Card Services Executive Ric Struthers will participate in the Credit Suisse Financial Services Forum on Thursday, February 7, 2008 at 2:45 p.m. EST in Naples, Florida. The live webcast and presentation will be accessible through the Bank of America Investor Relations Web site at http://investor.bankofamerica.com. Bank of America Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 19,000 ATMs and award-winning online banking with nearly 24 million active users.
Higher Credit Card Rates May Be Lurking in Your Mailbox
You'd think that an economic environment chock-full of interest rate cuts from the Fed would lead credit card issuers to gradually decrease the rates they charge us on our plastic. But no -- many cards have actually been raising their rates recently. Bill Hardekopf of LowCards.com, for example, has noted rates moving in directions other than down at cards from American Express (NYSE: AXP), JPMorgan Chase (NYSE: JPM), and Bank of America (NYSE: BAC). What's going on? Well, there's been a bit of a financial crisis at many banks (you may have heard about it). It's related to their having issued a few regrettable mortgages to risky borrowers. So, perhaps feeling pressured, they're seeking out additional income from the likes of you and me, via the debt that we carry. We don't have to be their suckers, though.
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