Here’s a quick rundown of things that merchants cannot require when it comes to credit cards:
They cannot require you to provide personal information (phone number, driver’s license number, etc.)
They cannot require you to present an ID.
They cannot require a minimum charge (though many do).
They cannot charge extra for using a credit card. Credit card companies [...]

Posted in Credit Card Facts 6 Comments »

I wrote the other day about the safety of RFID-based, “contactless” credit cards. In that piece, I cited another article that made a variety of claims about the security of these cards, including the fact that your data is encrypted prior to transmission.
As a followup, I just wanted to point out a NY Times article [...]

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A common misconception out there is that business credit cards can only be held by “real” businesses. Guess what? That’s not the case at all.
Who can apply for business credit cards?
As it turns out, anyone can apply (and be approved) for one. You don’t have to have own an “official” business at all. When filling [...]

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I recently ran across an article talking about the advantages of “contactless” credit cards that transmit your account information via Radio-Frequency IDentication (RFID). While a lot of people are concerned about their account information being stolen from cards with embedded RFID chips, it seems that there are a number of security measures in place.
Here’s what [...]

Posted in Credit Card Facts, Identity Theft 2 Comments »

While most of what you’ll find here is information related to plain old, run-of-the-mill credit cards, I thought I’d take a bit of time to write about “secured” credit cards. A secured credit card is a special type of card that is targeted at high-risk borrowers with low credit scores.
How secured credit cards work
Secured credit [...]

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As a followup to my earlier article about merchants being unable to require a minimum purchase for credit card transactions…
Did you know that merchants can’t require you to show an ID in order to complete a transaction?
According to a recent Q&A in the Baltimore Sun:
Although Visa rules do not preclude merchants from asking for cardholder [...]

Posted in Credit Card Facts 5 Comments »

The short answer is that no, merchants cannot require a minimum purchase before accepting your credit card as payment. In fact, all major card issuers explicitly forbid this practice, as follows.
From Visa’s merchant contract:
Dollar Minimums and Maximums - Always honor valid Visa cards, in your acceptance category, regardless of the dollar amount of the purchase. [...]

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Have you ever wondered what sort of information in encoded in your credit card number? Well, wonder no more, I have the answer…
The first digit is the system number, and it’s always a 3, 4, 5, or 6. Here’s how it works:
3 = Travel or entertainment cards such as Amex or Diner’s Club
4 = Visa
5 [...]

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Have you ever noticed how hard car rental agencies push their damage waiver while you’re standing at the rental counter? The reason for this is that these policies typically come complete with incredible profit margins. What a lot of people don’t know is that many car insurance companies provide rental coverage, especially if the rental [...]

Posted in Credit Card Facts, Credit Card Tips No Comments »

Ever wonder how your credit score is determined? While Fair Isaac (the company responsible for FICO scores) holds the details of their calculation very close to the vest, there are some generalities out there that are good to know. Here’s a quick rundown, as well as an indicaiton of the relative importance of each component:
Payment [...]

Posted in Credit Card Facts, Credit Scores 2 Comments »