PayPass Offers Multiple Benefits to Credit Card Users

by John_S on January 22, 2012

Canadian consumers are offered plenty of ways to make payments, from SMS-based transactions to mobile web payments, near-field communication, and more. These are cashless ways to pay for gas, merchandise, and even your café latte.

The Mobile PayPass Tag, featured by the Bank of Montreal is a new addition, which makes it possible for cardholders to buy items through a sticker on their mobile. An email verification is sent for every transaction. Customers can make small purchases without having to carry cash with them. Tapping a phone over the reader is sufficient so that the transaction is processed.

What other benefits does the new technology offer? According to payment products division’s vice president David Heatherly, the Mobile PayPass Tag offers customers convenience and speed when it comes to making small-value purchases. Apart from instant processing, which is a major advantage, customers may choose to receive email notifications, reporting the merchant name, the amount, and the location of every purchase. Moreover, Heatherly assures that the PayPass Tag is durable and will stay affixed until the expiry date. It is manufactured to withstand wear and tear, and the chance is that users will change phones before the Mobile PayPass Tag stops working (Credit Cards).

PayPass offers other advantages, regardless of whether customers choose to tap their mobile phone, key fob, or credit card. Customers do not have to worry about fishing for coins or carry a lot of cash. Moreover, it is a secure and safe way to shop because cardholders are in control – it stays in their hand at checkout. It is handy to have at locations where speed is important, including gas stations, fast food joints, stadiums, and other places. In addition, PayPass allows for enhanced record keeping when it comes to small purchases (MasterCard).

PayPass offers benefits to businesses as well, making it possible to serve more clients, strengthening loyalty and enhancing security. According to MasterCard Worldwide, the Tap & Go Technology featured with PayPass speeds up in-store transactions by up to twenty percent. It is faster than using traditional credit cards and cash. For business owners, this translates into a larger volume of sales, and for clients, it makes for a valued and pleasant shopping experience. After all, what clients expect is positive and hassle-free customer experience.

What is more, merchants accepting PayPass have reported an increased spend ranging from 28 percent to 42 percent. The volume of transactions has increased up to 52 percent as well. Close to 80 percent of all purchases made is under $25, proving that the new technology is an excellent alternative to cash (MasterCard Worldwide). A major advantage is that in most cases, signature is not required for purchased items totaling under $50. This speeds up the check-out process at convenience stores, cafes, newsstands, fast food restaurants, and other locations. One enhancement is that even if the customer taps his credit card twice, he cannot be billed more than once. Notably, security features are a major benefit. Given that the client’s plastic sticker, key fob, or credit card never leaves their possession, this helps prevent identity theft (Let’s Geek).

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How to Defeat Post-Holiday Credit Card Debt

by John_S on January 14, 2012

Many Canadians have added to their credit card debt due to a generous bout of holiday shopping for their friends and family. They have overspent and know what is in store when their statement arrives in January. According to experts, the way to defeat post-holiday credit card debt is to curb impulse spending, pay cash, and let the credit card chill.

To reduce your debt load, you may want to return some unused purchases. If your eyes got bigger than what was in your wallet, you may go ahead and do this rather than leave unused purchases lying in the closet only to throw them away later on. Rather than this, return them to the store/ mall and get the money on your credit card. If you paid cash, but you wouldn’t be reading this if you did, you can use the refund to repay a portion of your card debt (About.com).

This, by itself, is not enough to deal with debt. When the holiday season is over, it is important to avoid using credit cards because most probably, they are still warm from holiday shopping, explains ABC Life Literacy Canada’s program director Mack Rogers. The first thing to do is make efforts to create a cash economy at home. Rather than using your Visa or Interac card to make purchases, use cash.

Solutions Credit Counselling Service’s president Margaret Johnson notes that if a person has piled between $2,000 and $3,000 in credit card debt, they can pay it in a couple of months by saving $500 a month (The Spec).  While a balance of $3,000 does not look like much, interest expenses should be factored in. Debt will cost you about $450 at an annual interest rate of 15 percent.

Rather than trying to defeat post-holiday credit card debt (next season), it is a good idea to plan ahead. Look at how much you spent this year and divide this amount by twelve months. This will give you an idea how much you should save a month so that you can be debt-free next January (Wise Bread).

There is a good reason to start saving now. President of British Columbia’s Credit Counselling Society Scott Hannah explains that once the holiday period is over, debt counselors witness a pike in debtors seeking to deal with debts. But personal debt is a tricky trap, and debt creeps up over time. In most cases, it cannot be flushed out without much effort. It is the same with losing weight. Many people want to lose weight quickly, but it does not happen this way, Hannah explains. It takes a person a couple of years to get into debt and about the same period of time to become debt-free.  That said, it is not only post-holiday debt that is a source of concern. It is important to find where money goes on a monthly basis as to have a good idea of your level of spending, Hannah concludes (Huffington Post).

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Why Canadians Fail to Reduce Credit Card Debt

by John_S on January 7, 2012

During the last year alone, 25 percent of Canadians have accumulated even more debt, according to a study released last week. At the same time, a consumer debt survey by Manulife Bank of Canada shows that three-quarters of consumers in the country consider it a priority to get rid of debt.

Obviously, Canadians do not use the right strategies to reduce credit card debt. The survey by Manulife shows that the majority of Canadians were not making use of the tools available to tackle debt. For example, four in ten respondents did not plan to consolidate credit card debt, which often results in a lower interest rate. This is especially true if debts are consolidated into a credit line. Credit cards, as we know, carry a high interest rate of about 20 percent, while lines of credit are offered with a 5 – 7 percent interest rate. Moreover, it seems that Canadians fail to deal with other types of debt as well. For instance, 70 percent of consumers with a mortgage loan did not make a mortgage prepayment over the last year. 65 percent did not compare financial products across lenders as to find a good deal when renewing their mortgage. According to the Manulife survey, just 56 percent of respondents expect to develop or have a debt reduction plan (The Wall Street Journal)

There are other reasons why Canadians fail to tackle credit card debt. According to TD Canada Trust, many people have a couple of credit cards, including major credit cards, gas credit cards, and retail store credit cards. Considering that the major credit cards enjoy wide acceptance, it makes little sense to use several types of credit cards. Rather than that, it is wise to hold one low interest credit card and not pay high interest on gas and retail cards. Debt consolidation is again suggested as a good solution, especially for persons who have a heavy debt load or several creditors to deal with. This is a way to save on interest costs and lower overall payments (TD Canada Trust). Other debt reduction strategies include selling one’s house and buying a less expensive apartment or car. Borrowers can sell a car and look for a used or less expensive vehicle, for example. These are ways to free up money if debt is excessive (The Globe and Mail).

Banks and other financial institutions can help their customers deal with debt as well. They monitor borrowing as to ensure that debt loads are manageable. Moreover, banks recognize the fact that borrowers have different borrowing needs, and the debt amount they are comfortable with varies. Thus, financial institutions can offer sound financial advice that is tailored to the needs of individual customers. It should be mentioned that financial institutions do not want to see clients having financial problems. Debtors are encouraged to inform their bank as soon as they find out that debt has become unmanageable. Financial institutions are the ones to help debtors deal with financial problems by offering debt counseling, advice, and alternative loan arrangements (Canadian Bankers Association).

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American Express Credit Cards

by John_S on December 16, 2011

American Express offers a variety of financial services to its individual, small business, and corporate clients. AMEX features a number of credit cards, among which reward credit cards, business credit cards, no annual fee credit cards, and more. Credit cards offered by AMEX Canada go with plenty of beneficial features, including flexible rewards, welcome bonus points, travel insurance benefits, dining and entertainment benefits, and a lot more.

American Express No Annual Fee Credit Cards

Clients of AMEX Canada who are looking for no annual fee credit cards can choose from a variety of cards with no annual fee. Among them are Blue Sky Credit Card, Holt Renfrew Card from American Express, and TrueEarning Card from Costco and American Express.

American Express Business Credit Cards

AMEX features a variety of credit cards intended for business owners. The Starwood Preferred Guest Business Credit Card is one such card, going with a 19.99 percent interest rate on funds advances and purchases. The annual fee is $150, with the option of being tax deductible. This card earns one point for every $1 spent in purchases, and a welcome bonus of 20,000 points is offered. These points are enough for up to five free nights. The card is also offered with preferred ticket access, car rental theft and damage insurance, baggage delay insurance, lost or stolen baggage insurance, and a lot more. Another business credit card to check is the American Express AIR MILES Platinum Business Card, going with a $99 annual fee, which can be tax deductible. The interest rate on funds advances and purchases is 19.99 percent. This business credit card goes with plenty of beneficial features, among which disability plan for small business, travel accident insurance, and hotel/ motel burglary insurance. Clients of AMEX who choose this card get 250 reward miles in the form of a welcome bonus on reaching $1,000 purchases during the first three months. For every $10 in purchases spent at AIR MILES, clients earn one reward mile and every $15 spent everywhere else earns 1 reward mile.

Another of the American Express credit cards for business is the American Express AIR MILES Gold Business Card, offered with no annual fee and free supplementary employee cards. The interest rate is set at 19.99 percent. For every $15 spent in purchases, cardholders earn 1 bonus point when shopping at AIR MILES Sponsors. All other purchases earn one bonus point for every $20. Points can be redeemed for kitchen fun, entertainment, electronics and more. Spending $1,000 on the card during the first three months earns a bonus of 150 rewards miles. This card is offered with disability plan for small business, travel accident insurance, and preferred ticket access. Additional features include online account access, 24-hour card replacement, and online fraud guarantee, among others. Finally, another business credit card offered by Amex Canada is the American Express Business Card. This card is a good choice for persons who prefer to get cash rebates. Cardholders can earn cash back up to $1,250 a year and can use their credit card for all business-related purchases, including entertainment, office supplies, business travel, and more. Cash back up to 2 percent is offered. There is no annual fee, and employee cards are issued at no added cost. The interest rate is 19.99 percent. This credit card is offered with included benefits such as travel accident insurance, preferred ticket access, 24-hour card replacement, and others. Clients of American Express can also choose from two charge business cards, the American Express Business Gold Rewards Card and the Business Platinum Card from American Express.  Both cards are offered with reward points. The Business Gold Rewards Card earns 1.25 points for every dollar in purchases and the Business Platinum Card earns 1 point for every dollar charged to the card.

American Express Cashback Credit Cards

One of the American Express credit cards with cashback is the TrueEarnings Card from Costco and American Express. This credit card goes with no annual fee and one free supplementary card is issued to current members. A special rate of 2.99 percent on purchases applies over the first 6 months, and the standard rate is 19.75 percent. The grace period is 21 days. Cardholders earn up to 1 percent on daily purchases and up to 2 percent when charging gas purchases to the credit card. Eligible restaurant purchases earn 3 percent cashback. Rebates are issued each January, and these are offered in the form of coupons. Coupons may be redeemed for services, goods, or cash at any Costco warehouse and are valid for 6 months. Plenty of benefits are offered with this card, including travel network coverage, purchase protection plan, emergency card replacement, and more. Thanks to travel network coverage, cardholders are entitled to assistance when travelling. American Express offers travel assistance at more than 2,200 travel service locations. There are even more perks going with this card, such as 24/7 customer service, Front of The Line, and purchase protection plan through which all eligible purchases are insured against theft and accidental physical damage.

American Express Reward Credit Cards

Clients of American Express Canada who prefer to get reward points have a number of credit cards to choose from. One is the American Express AIR MILES Credit Card, featured with an introductory interest rate of 2.99 percent during the first 12 months, a standard interest rate of 19.99 percent, and no annual fee. Supplementary cards are offered free-of-charge. Cardholders are entitled to a welcome bonus of 150 reward points and earn one bonus point for every $20 in purchases. Shopping at AIR MILES Sponsors earns 1 mile for every $15 charged to the card. Bonus miles can be redeemed toward a variety of rewards including entertainment, leisure, travel, and plenty of other benefits. Cardholders can redeem points by phone through the AIR MILES Customer Care Centre or online. Beneficial features going with the card include emergency card replacement, travel accident insurance, reserved seating, and more. To apply for this card, clients of AMEX should have a personal annual income of at least $15,000, have a Canadian residency and credit file, be of the age of majority, and have made payments on time. Applicants should not have declared bankruptcy over the past seven years.

Another of the American Express credit cards with rewards is the Blue Sky Credit Card, featured with free supplementary credit cards, no annual fee, and a 19.99 percent interest rate. Cardholders receive 1.25 bonus points for every $1 charged to the card. Clients who make $3,000 in purchases during the first six months earn 10,000 bonus points. There are no travel restrictions, seat restrictions, advance purchase requirements, or blackout dates. Moreover, there are no point expiration days or point caps.  Points can be redeemed toward car rentals, hotels, flights, vacation packages, and more. Cardholders can choose to redeem all or a portion of their travel purchases. They have access to last-minute deals and seat sales as well.  This card is featured with included benefits such as travel accident insurance, 24/7 customer service, reserved seating, and more. To apply for this card, clients of AMEX should have a Canadian credit file, be Canadian residents, and show a personal income of at least $15,000.

The Holt Renfrew Card from American Express is another reward credit card with no annual fee, free supplementary cards, and a 19.99 percent interest rate. Every dollar charged to the card earns 1.4 bonus points. Making purchases at Holt Renfrew earns 40 percent more.  Cardholders get 10 percent off with the first purchase on the card, made at Holt Renfrew. Points can be redeemed for a selection of desirable goods, including exclusive fragrances, beauty products, accessories, designer clothes, and more. It is easy to redeem points by phone. Added beneficial features include purchase protection plan, free shipping for purchases worth more than $100, Shop in-VIP style, and more.  Shop in-VIP style gives cardholders access to their own Holt Renfrew Personal Shopper, and they can get assistance and expert advice whenever needed. Those who want to buy a new outfit for a gallery opening or cocktail party, or need a second opinion on whether a pair of shoes goes with a particular bag can turn to experts for help. Holt Renfrew sends preferred mailings to cardholders, and they can browse through details on product lines, trends, and latest fashions. They are also sent invitations to Holt Renfrew Events, such as in-store appearances by celebrities and designers, product launches, and more. There are even more perks going with this card, such as complimentary basic alterations for clothes that do not fit properly. Cardholders are eligible for free-of-charge cuff and hem alterations on all in-store purchases.

The American Express AIR MILES Platinum Credit Card is another of the American Express credit cards with rewards, earning one bonus mile for every $10 charged to the card. A welcome bonus of 500 reward miles is offered with the first purchase. The annual fee is zero the first year and $65 thereafter. An introductory interest rate of 2.99 percent applies during the first 12 months, and the standard rate is 19.99 percent. The card goes with beneficial features such as travel accident insurance, car rental theft and damage insurance, American Express assured reservations, and more. The card is also offered with reserved seating, with tickets for events to be purchased by phone, online, and from the event’s box office. Front of The Line allows cardholders to buy tickets for special events, theatre shows, and sought-after concerts before tickets are offered to the general public. Likely applicants for this card have an annual income of $15,000 or more and are Canadian residents who have not declared bankruptcy over the last seven years. They are of the age of majority and have made timely payments.

The Starwood Preferred Guest Credit Card is another option for persons who look for a reward credit card. It is offered with an interest rate of 19.99 percent, and the annual fee is $120. Supplementary cards cost $50 a year. Cardholders receive a bonus of 20,000 reward points, and every dollar earns one Starpoint. Reward points can be redeemed for free nights, and cardholders can choose from more than 100 resorts and hotels around the world. The card is featured with baggage delay insurance, car rental theft and damage insurance, travel emergency assistance, and more.

The American Express AeroplanPlus Platinum Card is a reward card that earns Aeroplan Miles. Every $1 in purchases earns up to 1.5 bonus miles, and the welcome bonus is equal to 25,000 bonus miles. The annual fee is $499 while supplementary AeroplanPlus Gold cards cost $50, and AeroplanPlus Platinum Cards cost $199 a year. The interest rate is 0 percent when the balance is paid in full but goes up to 30 percent applicable to delinquent charges. The American Express AeroplanPlus Gold Card is another card offered with rewards, and every dollar spent on the card earns 1 Aeroplan Mile. The welcome bonus is equal to 2,500 bonus points. The same interest rate applies as the one offered with the Platinum Card. Travel emergency assistance, purchase protection plan, emergency card replacement, and more are offered. The American Express AeroplanPlus Card is a third option, earning one Aeroplan Mile for every $1 charged to the card. The annual fee is $60, and supplementary cards cost $20 a year. These three rewards cards are charge cards. In addition to them, AMEX Canada offers three other charge cards, including the Platinum Card, the American Express Gold Rewards Card, and the American Express Card.

Holders of American Express credit cards can manage their accounts online, using services and tools that help them bank anywhere, stay organized, and get assistance 24/7. With the help of online tools, cardholders can schedule payments, view recent transactions, and set up text message and email payment reminders. Cardholders can also access their card accounts remotely, from a desktop computer or a laptop, using AMEX’s suite of resources and user-friendly tools. Finally, clients of AMEX Canada who have any questions may turn to their customer support 24/7.

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MBNA Canada Credit Cards

December 5, 2011

MBNA Canada offers insurance products, online banking, and a variety of credit cards to choose from. Clients of MBNA can choose from standard and specialty credit cards, such as professional credit cards, student credit cards, sports credit cards, specialty rewards cards, and many others. A leader in the credit card industry, MBNA is part of [...]

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Capital One Credit Cards

November 27, 2011

Capital One Canada takes pride in being a leader on the credit card market, featuring competitive credit card terms and a variety of cards to choose from. Clients enjoy some of the best rewards programs and rates and can look into premium, classic, and guaranteed cards, suited for persons with different requirements and standard of [...]

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TD Bank Credit Cards

November 23, 2011

TD Canada Trust offers a wide selection of financial products and services to clients who look for insurance and investment products, mortgages, day-to-day banking services, electronic banking, and credit cards. TD Bank features a variety of credit cards, including small business cards, student cards, reward and travel cards, and others. TD Bank Secured Credit Cards [...]

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CIBC Credit Cards

November 19, 2011

CIBC offers to its clients personal and business banking services, from bank accounts to insurance and investment products, mortgages, lines of credit and loans, and a variety of credit cards. The bank features credit cards intended for business owners as well as personal credit cards for clients from every walk of life. Clients of the [...]

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Scotiabank Credit Cards

November 15, 2011

Scotiabank offers a range of financial services to its business and individual clients, from day-to-day and online banking to investment products, insurance plans, loans and lines of credit, mortgages, and more. The credit cards featured by the Bank of Nova Scotia include no annual fee credit cards, rewards credit cards, low rate credit cards, and [...]

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BMO Bank of Montreal Credit Cards

November 10, 2011

Bank of Montreal offers a full array of financial services to its institutional, corporate, commercial, small business, and individual clients. Financial products and services range from day-to-day banking to investment products, loans and mortgages, specialized banking services, and credit cards. Bank of Montreal credit cards include rewards credit cards, no fee credit cards, prepaid credit [...]

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