The credit card Act of 2009 is about to takes effect this Monday, credit card issuers are coming out with new ways to increase their earning according to this WSJ’s article. The new law expects to cost the credit card industry $12 billion a year.
New Tactics to Recuperate their loss Earning:
- Citi and Bank of America now charge 3% foreign-transaction fees on all foreign transactions including those charged in U.S dollars such as in the Bahamas. Discover is charging a new 2% for foreign purchases since last year.
- American Express Cardholders will lose their rewards points if they pay late. In order to get the points back, they must pay a $29 fee.
- Expect higher annual fees, higher balance-transfer charges, and growing charges for overseas transactions. E.G. Citi’s recent $60 fee annual fee.
- More fees for extra services from requesting a year-end itemization of all your purchases to paper statements or getting extended warranties on purchases.
The article claims that they are going beyond charging fees to increase their profit. They are cutting back their rewards program significantly such as shortening the expiration periods, raising redemption fees or implementing earnings caps on rewards.
ING Direct Checking $50 Bonus
I’m starting to think ING is the new Chase. Currently, ING Direct is giving out a $50 bonus for their new Electric Orange checking account customers. Click through the link, then apply now button, hit the continue button, and make sure to put in the offer code EM428 in the reference box.
In order to qualify, you must make 3 signature based debit transactions in 45 days after account opening. If you already have their ING Savings, then you are automatically approved. Simply sign through this link with the offer code EM428. With both accounts, you can easily transfer money back and forth. It doesn’t have the best interest rate since it’s only a checking account. However, it very convenient to have both checking and savings.
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