Saving Money, Making Money, and Protecting Financial Security

June 10, 2015

Worldwide-EMV-Deployment-and-adoption

Some Rhode Island business owners may wonder why I wrote a second edition of a book on credit card processing, Retailers Guide to Merchant Services when I am trying to make a living selling life insurance. My response is that I look for opportunities to serve my customers and anyone seeking information on increasing their profits and saving money on expenses. When they can save money on expenses, it frees up money that they may need to protect their financial security.

I have noticed there is still some confusion over some of the issues involving credit card processing even after the new legislation which was enacted in 2009. The industry is always changing. At times, the new changes have caused confusion and controversy. However, our society has increased their use of credit cards and there does not seem to be an end in sight.

Over the years, credit cards have been in and out of the news as new thieves stole credit card information from naïve consumers, causing them to lose billions of dollars. Since credit cards have been processed on the Internet, the identities of billions of customers has been uncovered and shared with nefarious thieves whose only desire is to control massive amounts of wealth.

Even though the United States is responsible for only one quarter of the credit card transactions in the world, about one half of credit card fraud occurs in the U.S. Therefore, the banking industry is attempting to alleviate this problem with fraud by attempting to adapt new technology which would make credit card users less vulnerable to fraud. As a result, business owners must comply with the new EMV technology by October 15, 2015. The EMV technology will better protect the consumer and the business from credit card fraud and identity theft.

As of 2012, there were 26.2 billion transactions involving credit cards in the U.S. This resulted in a $2.48 trillion dollars in money spent. In 2003, there were only 19 billion transactions. Two thirds of all business and consumer purchases were made with credit cards in 2012.

As credit card use has increased substantially since 2009, it has resulted in an increase in credit card fraud at many of the major retailers. The EMV technology involves the replacement of many credit cards with the new chip technology which holds all of the data for the owner of the credit card to identify him/her. A chip will be installed onto credit cards and this will involve the use of a new credit card machine which will be able to read the chip on the card.

Many countries such as Europe, Canada, Latin America, and the Asia/Pacific region, are already using the EMV card and have experienced a significant reduction in the amount of credit card fraud. The U.S. is one the last countries to take the plunge. Therefore, we have much to gain in learning all about this new technology.

The substantial increase in credit cards is also an indication that the job market has improved and gasoline prices were lower at the end of 2014. Part of the reason for the increase in credit card use is the increase in on-line shopping which requires a credit card. Tuition costs and loans have also increased over the past year by $5.8 billion.

Insurance Expert Insurance Services


Relief From Exorbitant Credit Card Rates and Fees

April 14, 2011

<Relief from Exorbitant Credit Card Rates and Fees

 

 

 

 

President Obama has signed a proclamation making this month of April 2011 Financial Literacy Month.  One of the problems that the Obama administration changes was the fees charged on credit card balances.  (Click onto the above link to the title of this article read more….)d


Should retailers set their own rates?

October 16, 2009

794358_atm_3Once again this debate has surfaced, but now the President and a new Merchants Payment Coalition are taking this issue very seriously. The retailers and business owners want the privilege of negotiating interchange fees with the banks.

In view of the recent new credit card Legislation, this issue will probably not go away. The Merchants Payment Coalition was formed to represent 2.7 million businesses and over 50 million employees in having a voice in the assessment of interchange rates. They claim to be helping to protect the interest of the consumer. The interchange rates are the rates that retailers and other business owners pay to accept credit cards at their establishment.

In addition to the Merchants Payment Coalition, President Obama and Representative Peter Welch of Vermont are conducting studies into the rates. This issue has been a long-standing one with the retailers, who believe their rates are too high. The current economic crisis has hurt many businesses and the retailers feel lowering or at least being able to negotiate rates with the banks could help their sales.

analysts have argued that if the banks are ordered to lower their fees, the consumers could face rate higher rates and fees on their credit cards. Australia has gone through this process and consumers did not save any money as a result.



Exploring Business Solutions

November 14, 2008

Since my backgound is in financial services, I will be speaking from a financial perspective.  I am very concerned as are most people are, about the state of the economy.  As a nation we are suffering from the consquences of having too much debt.  Did anyone ever think that this attitude would catch up to us at some point in time?

I am hoping that someone has the answer to this problem.  We have to manage the debt that we have in this country.  Not only has it affected this country, but it has affected other countries as well.  Debt has become a way of life for us.  The only way to reduce or eliminate it is to stop desiring the things that would lead to living a lavish lifestyle.  This is going to take some discipline.  We’ll be suffering from withdrawal symptoms, but the longer we subject ourselves to this process, the easier it will be to say “no” to more spending.

Children should be educated on handling debt and using credit cards responsibly.  Ideally, they should not be approached by the banks unless they understand the responsibilities that go along with using them.  However, there are reports that the banks are targeting teens as well as college students about their services.

Press Release: Gail Cavanaugh’s Business Solutions Informs Teens about Credit Cards

© Gail Cavanaugh and Cavanagh Business Solutions, 2008. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Gail Cavanaugh and Cavanaugh Busines Solutions Blog with appropriate and specific direction to the original content.

Kids waiting by Anne Bradshaw, courtesy of Morguefile

Kids waiting by Anne Bradshaw, courtesy of Morguefile

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