Sunday, 28 August 2011
Monday, 3 January 2011
Credit Cards Target Teens
Posted by isi dompet on 10:03. - No comments
Credit Cards Target Teens
Most of us realize that in the past, credit card companies have been targeting teens and college students. Perhaps we do not realize how successful they have been until we hear that 87% of college students with credit cards report that they only pay the minimum payment each month and their average balance is between 2-3 thousand dollars.
President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 into law in May of 2009. In this bill, the teen market is addressed; young people under the age of 21 will now need a parent to co-sign for credit unless the teen is able to show a sufficient means of income. What constitutes sufficient is not clear nor is there an industry standard. Changes in the new law may affect how teens get credit but it is certainly not a guarantee that a student can't get a credit card without parent's approval or signature.
Teenagers have spendable cash. They also freely spend it and are not as willing to wait for the things they want. The credit cards companies know this. Between part time jobs, allowances and cash from parents, teenagers shelled out $295 Billion in 2006, compared with $94 Billion in 1999, according to a Harrison Group survey. Check out your local mall and you will see the truth in those reports. Teens have proven to be a rich market for credit companies with a constant new supply of future lifelong customers.
This isn't just the major credit cards either. Store chains that have their own store brand credit cards push just as hard to get the teen employees to open accounts even requiring the use of these cards to take advantage of employee discounts. Parents of some of these teens report that they were neither notified nor did they sign for their teens to get these cards. Under the new law, tougher restrictions may put a halt to these overt tactics but with the prize of the teen market being so lucrative, credit card companies are not about to ignore this teen market.
The changing tactics used by the credit companies may be simple and unobtrusive but the message is still getting out. Vending machines that accept plastic, online books for school and events sponsored by the credit card companies are all still in play. Even the points systems are altered to fit the interests of teens on specialty cards promising 0% rates to start with details hidden in the small print. How cool is it to have a credit card that highlights your favorite football team or one all decked out with Hello Kitty? (What age group are they targeting with Hello Kitty?)
Credit card companies are getting creative and have found ways around the new regulations. With financial incentives that offer to sponsor events or even school sports programs, many cash strapped school districts find it difficult to resist. These companies offer students money to get their friends and dorm roommates signed up, with give-a-ways as incentives. Might still be against the rules, but it isn't the credit companies doing the actual selling.
Schools have not addressed debt and credit in their curriculum and many parents feel that this subject should be taught as a mandatory class while others firmly believe that this is something that parents need to pass on to their own kids. With far too many parents getting caught in the trap of credit card debt, and with the warning labels of credit written in legal details, teaching discipline with credit can be daunting. Our children learn from watching us. If we, as parents, are sloppy with our credit, we are teaching our kids to be sloppy with theirs. However they learn, teens need to learn the benefits of credit while learning how to avoid the pitfalls of bad credit.
Most of us realize that in the past, credit card companies have been targeting teens and college students. Perhaps we do not realize how successful they have been until we hear that 87% of college students with credit cards report that they only pay the minimum payment each month and their average balance is between 2-3 thousand dollars.
President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 into law in May of 2009. In this bill, the teen market is addressed; young people under the age of 21 will now need a parent to co-sign for credit unless the teen is able to show a sufficient means of income. What constitutes sufficient is not clear nor is there an industry standard. Changes in the new law may affect how teens get credit but it is certainly not a guarantee that a student can't get a credit card without parent's approval or signature.
Teenagers have spendable cash. They also freely spend it and are not as willing to wait for the things they want. The credit cards companies know this. Between part time jobs, allowances and cash from parents, teenagers shelled out $295 Billion in 2006, compared with $94 Billion in 1999, according to a Harrison Group survey. Check out your local mall and you will see the truth in those reports. Teens have proven to be a rich market for credit companies with a constant new supply of future lifelong customers.
This isn't just the major credit cards either. Store chains that have their own store brand credit cards push just as hard to get the teen employees to open accounts even requiring the use of these cards to take advantage of employee discounts. Parents of some of these teens report that they were neither notified nor did they sign for their teens to get these cards. Under the new law, tougher restrictions may put a halt to these overt tactics but with the prize of the teen market being so lucrative, credit card companies are not about to ignore this teen market.
The changing tactics used by the credit companies may be simple and unobtrusive but the message is still getting out. Vending machines that accept plastic, online books for school and events sponsored by the credit card companies are all still in play. Even the points systems are altered to fit the interests of teens on specialty cards promising 0% rates to start with details hidden in the small print. How cool is it to have a credit card that highlights your favorite football team or one all decked out with Hello Kitty? (What age group are they targeting with Hello Kitty?)
Credit card companies are getting creative and have found ways around the new regulations. With financial incentives that offer to sponsor events or even school sports programs, many cash strapped school districts find it difficult to resist. These companies offer students money to get their friends and dorm roommates signed up, with give-a-ways as incentives. Might still be against the rules, but it isn't the credit companies doing the actual selling.
Schools have not addressed debt and credit in their curriculum and many parents feel that this subject should be taught as a mandatory class while others firmly believe that this is something that parents need to pass on to their own kids. With far too many parents getting caught in the trap of credit card debt, and with the warning labels of credit written in legal details, teaching discipline with credit can be daunting. Our children learn from watching us. If we, as parents, are sloppy with our credit, we are teaching our kids to be sloppy with theirs. However they learn, teens need to learn the benefits of credit while learning how to avoid the pitfalls of bad credit.
Credit Card Issue
Posted by isi dompet on 10:01. - No comments
Credit Card Issue
The highest rate of cases against a person or entity in the United States of America is fraud. It is classified into many areas and the level of action. Fraud is also classified as identity theft while when a person is encountering issues with their credit card is called wireless identity theft.
There are a lot of ways why fraudster are able to get access of the information of a credit card. The common area that investigators see is through the security features that are provided in the physical features of the card. In short, in order to avoid such compromise, vital information should not be provided or at least not too visible in the card.
How is it possible for fraudster or what we call identity theft to get access of your card? It is so simple. The basic is merchants accept credit card verifying information that is found in the card and worst, at times, they do not do verification. From that level itself, security has been breached. In that situation, it is the owner's responsibility to make sure that this information should be kept confidentially. Worst case scenario for the part of the merchant is that they accept a credit card number without the physical card available. This is very common in online store and purchasing where the wireless identity theft is done.
What are the other responsibilities that a credit card owner should do? With the rising rate of issues with merchants and fraudster, it is imperative for the owner to call their bank or their provider with the issue. A little suspicion should be acted upon to make sure that your finances are safe. Upon calling, the bank will have a close monitor with your transactions and if their system detects fraudulent operation it will alert merchant machine with a "-code 10-". Once the merchant sees this, they will automatically stop the transaction and verify the information with you and the bank. In some cases, the merchant is asked to retain the credit card in their responsibility to avoid suspicion or possible fraud.
The advent of the modern day age comes with great technology and services that make our lives easy. However, it is for us not to compromise our security physically and in the World Wide Web. As preliminary steps to avoid becoming a victim some measures are followed. Aside from keeping vital information confidential and calling the bank for suspicions, it is also advised to keep an eye with people not just strangers but even family members by getting access of your personal things, which includes your credit card. Money and purchasing are tempting addiction that can lead to a criminal activity. Always think ahead in any dealing you have even your credit card.
The highest rate of cases against a person or entity in the United States of America is fraud. It is classified into many areas and the level of action. Fraud is also classified as identity theft while when a person is encountering issues with their credit card is called wireless identity theft.
There are a lot of ways why fraudster are able to get access of the information of a credit card. The common area that investigators see is through the security features that are provided in the physical features of the card. In short, in order to avoid such compromise, vital information should not be provided or at least not too visible in the card.
How is it possible for fraudster or what we call identity theft to get access of your card? It is so simple. The basic is merchants accept credit card verifying information that is found in the card and worst, at times, they do not do verification. From that level itself, security has been breached. In that situation, it is the owner's responsibility to make sure that this information should be kept confidentially. Worst case scenario for the part of the merchant is that they accept a credit card number without the physical card available. This is very common in online store and purchasing where the wireless identity theft is done.
What are the other responsibilities that a credit card owner should do? With the rising rate of issues with merchants and fraudster, it is imperative for the owner to call their bank or their provider with the issue. A little suspicion should be acted upon to make sure that your finances are safe. Upon calling, the bank will have a close monitor with your transactions and if their system detects fraudulent operation it will alert merchant machine with a "-code 10-". Once the merchant sees this, they will automatically stop the transaction and verify the information with you and the bank. In some cases, the merchant is asked to retain the credit card in their responsibility to avoid suspicion or possible fraud.
The advent of the modern day age comes with great technology and services that make our lives easy. However, it is for us not to compromise our security physically and in the World Wide Web. As preliminary steps to avoid becoming a victim some measures are followed. Aside from keeping vital information confidential and calling the bank for suspicions, it is also advised to keep an eye with people not just strangers but even family members by getting access of your personal things, which includes your credit card. Money and purchasing are tempting addiction that can lead to a criminal activity. Always think ahead in any dealing you have even your credit card.
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