Some consumers forced to have contactless cards
January 17, 2011
Over the past eighteen months or so more and more providers have been launching contactless payment cards. These cards are designed to cover the payment for small, low value purchases, such as buying lunch, getting a paper and coffee, even paying for a cab. Anything that costs under £10-£15 depending on the provider can be paid for with these contactless cards.
These cards do not require any signature for payment and no PIN is required. The card is simply tapped against a special reader, and payment is then automatically deducted from the cardholder’s account. Many believe that the cards offer increased convenience and ease, making things faster and easier for both the customer and for retailers, who can deal with small transactions quickly and cut down queues.
However, there are concerns that these contactless payment cards are now being pushed onto consumers, with some of the biggest providers in the country now forcing them onto their customers. It is thought that other providers will follow suit. Amongst the providers whose cards are now all contactless versions are Barclay’s, MBNA, and Virgin Money.
Some customers are concerned about security, because there is no need to proof of identity, signature, or PIN for transactions that are under £15. According to reports there is a safety procedure built into the card, which will only allow a number of transactions to be made within a certain period to a maximum of £50 before a PIN is requested. However, many consumers are far from convinced by this feature.
One customer who was not happy about her Barclaycard being changed to a contactless model said: ‘These cards make theft so much easier and card theft more attractive. I have objected strongly to Barclaycard, who say there is no alternative card but that I could pay a fee to protect my card.’
Tags: Economics, coffee, barclaycard, Money, paymentMillions pay mortgage and rent with credit card
January 8, 2011
It has been revealed in a recent report that millions of people had to turn to their credit cards last year in order to keep on top of repayments on their mortgages or to make rental payments on their rented properties. Around 2.6 million struggling households are thought to have used money from a credit card in order to keep a roof over their heads and pay the rent or mortgage on their properties.
The data comes from Shelter, the housing charity, and the group said that the situation was unsustainable and that households were facing a daily struggle in order to make ends meet and make payments on their properties, whether it was rent or mortgage repayments. The data from Shelter showed that there had been a 2 percent increase in the number of people that had used a credit card to make payments on mortgages and rent last year compared to the previous two years, with 4 percent doing this in 2088 and 2009 but 6 percent doing it in 2010.
However, officials are concerned that not only does this indicate that people are still struggling enormously when it comes to paying for their home, but also that they will end up paying a fortune for borrowing on a credit card in order to pay off another debt.
Tags: homelessness, cash, Mortgage, eviction, Economics, credit cardOne finance industry official said: ‘Taking out cash on a credit card should be seen as a last resort. It is an expensive way to borrow. If you need cash, you could look at alternative forms of borrowing such as personal loans, which currently have cheaper rates than the majority of cash rates on credit cards.’
Shelter added: ‘This is a totally unsustainable situation. It is one we fear could see thousands more pushed into the spiral of debt, eviction or repossession and ultimately homelessness. Using credit cards to pay the rent or mortgage is simply robbing Peter to pay Paul. It is the worst possible course of action.’