Print Article for : Offers On Credit Cards

Your Online Guide » Credit Cards » Types of Credit Cards

[O41]Offers On Credit Cards

by Eric Wasselman, Eri

Last year, much talk followed the release of credit cards from Chase with which the bank refers to as ‘Blink’, their version of contactless Visa or MasterCard. While the technology behind ‘Blink’ may seem new, the idea behind contactless credit cards isn’t. Radio Frequency Identification, or RFID has been used by Exxon-Mobil and others since the late 90’s and the technology and concept behind RFID has had it’s beginnings in the 1920’s.

But it was only in the turn of this century that credit card issuers began to look at contactless credit card technologies seriously. With incidence of credit card “skimming" occurring more often, many consumers had been losing confidence on the security provided by traditional magnetic stripe cards. The search was on for a replacement and card issuers like American Express, Visa and MasterCard introduced ‘contact’ smart cards with chips in them as a means to combat fraud.

Merchants and banks in the United States were initially uninterested as the initial costs seemed high and there didn’t seem to be much benefit to them other than added security on the consumer’s part. Still, regular ‘contact’ smart card technologies were adopted widely in the Asia Pacific region in the face of increased cases of credit card fraud. In other words, it made economic sense.

Meanwhile in the States, credit cards were starting to become accepted at more and more ‘frontline’ retail outlets and stores such as convenience stores, gas stations, movie theatres, fast-food restaurants and drive-throughs. The stage was set for contactless credit cards to be introduced in the markets, as the technology would allow for faster transactions at the point of sale.

The technology behind contactless credit cards is simple on paper. A tiny chip measuring less than a millimeter in length with an antenna the size of a postage stamp but thinner than a sheet of paper is embedded in a credit card. When the card is waved in front of the reader, the radio field near the reader generates an electric current in the antenna that powers up the tiny chip. The chip then transmits back a response through a process called ‘backscattering’ to the card reader, all without having to make any physical contact.

Not all contactless credit cards are compatible with one another. Card issuers have yet to agree upon a standard and as such different systems are in place for different cards. For instance, American Express has its ExpressPay system, the MasterCard system is called PayPass and both Visa and Discover are holding back on a launch of their contactless card systems, with both companies showing more interest in mobile phone card technologies.

One of the first concerns the consumer had was of course, security. How safe is the card? Chase argues that the card is safer because it never has to leave your hand, so skimming isn’t going to happen. Perhaps so, but 20 years ago nobody thought people would come up with small, hand-held devices that can ‘skim’ the account information off the credit card. However, the thief would have to very technologically savvy to get this information, and even if he gets the account number used on the contactless card, it is not the same number but a unique number only used in the RFID system. That means the risk of a ‘carder’ intercepting the signal and going on a shopping spree online is negligible.

Whatever the concerns, it looks like contactless credit cards or systems similar to it are poised to come into widespread use. Just at the end of April this year, Nokia and Visa had announced a system they are working on that would allow consumers to make payments with their mobile phones – the Visa Wave. With people becoming more and more reliant on their mobile phones, it looks like this type of contactless electronic payment systems are the next logical step.

For people that are not yet in this situation, good for you (and read on anyway to make sure you recognize the danger signals) but for those who are just inches away from that situation (or worse), pay attention because this might actually save your life from overspending your credit cards.

1. Know your credit limit

The first thing that you should know is your credit card limit so that you know if you are going overboard. Always keep in mind that once you cross that limit, there is no turning back.

2. Set your own credit limit

Aside from the credit limit set by the credit card company, it is advisable that you set your own credit limit that you can follow. It would be good if it is significantly lower than your standard credit limit so that you could actually be in control.

3. List down all your expenses

Having a list is really helpful in determining the things that you are buying and purchasing. Listing it will help you track down the things that you put your money into and trust me, half of it is really not that important to your life.

4. Don't succumb to the following sales pressures

Advertising on TV, radio, or elsewhere is meant to not only inform but to tempt you into making purchases you would otherwise do without. Some common techniques are associating the product with heroes, as a status symbol, as a way to be more attractive, sexy, or smart. Avoid purchase decisions based on advertising techniques because they are cleverly done solely as a way to get you to transfer your money to the company that's doing the advertising.

5. Avoid shopping unless it is really needed

It is not easy to resist temptation especially if the name of that temptation is the word, “sale”. Avoiding stores would help you overcome the instinct of buying and using your credit card unnecessarily. It would be better if you did not see the things that would tempt you. Just use your imagination! Also avoid buying just because there is a coupon, free gift, or other incentive attached, unless you really need the item.

6. Keep your credit cards at home

If you are the type of person that carries at least 5 types of credit cards in their wallet, I suggest that it would be better if you just carry one or two so that you will not be tempted to use all of them. If you cannot avoid the shops, then just leave your non-emergency credit cards at home.

7. Keep your receipts

If you are still not aware that you are on the verge of overspending, keep your receipts for a week and then total all the expenses that you did for that week. This would really be an effective wake-up call, more so even than coffee for your body!

8. Carry cash

Instead of making the habit of paying through credit cards, develop a habit to depend on paying transactions by cash so that you could really be able to keep track of your expenses. Cash is easier to count rather than card transactions. It will also make you more resistant to impulsive purchases.

Do this exercise: Sit down and try to remember the major purchases you've made in the last year or more (or go through your old receipts to jog your memory). How many of those purchases would you consider to be a “bad” purchase? In other words, was it something that you haven't really used, worn, or wasn't as important as you thought at the time?

Of those major purchases (items that cost maybe $100 or more that weren't necessities), how many of those purchases would you repeat if you knew then what you know now?

You'll probably find that at least half of your purchases were “bad”. So use that as a guideline to help you avoid making similar bad purchases in the future, perhaps by postponing instant gratification by “sleeping on the decision”. More often than not, you'll wake up in less of a buying mood than you were the day before, and you won't miss the item you would have purchased in the slightest.

9. Recognize the signs that you are overspending

Once you realize that you are having a hard time paying your monthly credit card statement, that is already a sign that you are losing your control over the matter. Be aware of these things because it is a warning to be heeded.

10. Know your limitations

Being aware of yourself could actually save you a lot of money because you already know the things that you need and the things that you don't. Knowing your limitations could help you stop the unnecessary spending through the use of credit cards.

Credit cards are convenient to use, and absolutely necessary sometimes, but if one abuses the usage of their convenience, overspending results and it can really be a big burden for a person.

Article Source : How To Make Cards Come Out Of Your Mouth

About Author

Both Eric Wasselman & Dennis Becker are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Eric Wasselman has sinced written about articles on various topics from Airline Credit Cards, Visa Credit Cards and Credit Cards. Eric Wasselman recommends that you learn more about contactless credit cards. Visit for more information.. Eric Wasselman's top article generates over 246000 views. to your Favourites.

Dennis Becker has sinced written about articles on various topics from Credit Cards. . Dennis Becker's top article generates over 880 views. to your Favourites.