Government Organizations

Financial Consumer Agency of Canada - Canadian federal government agency working to protect and educate consumers of financial services.

US Federal Trade Commission - The Federal Trade Commission of US deals with issues that touch the economic life of every American.

Australian Competition & Consumer Comission - Promotes competition and fair trade in the market place to benefit consumers, businesses and the community.

UK Trading Standards Institute - promotes and protects the success of a modern vibrant economy

Useful sites

CreditCards.com - The US most popular site of credit card comparison.

Directories

Financial directories

Financial Link Directory - a power house website offering a wide spectrum of financial related information, real time news, linking opportunities, and financial article posting opportunities to all financial related website owners and Seos the world over.

Gift Card Overview

Size

A gift card may resemble a credit card or display a specific theme on a plastic card the size of a normal bank card.

Identification

The card is identified by a specific number or code, not usually with an individual name, and thus could be used by anybody.

Authorization

They are backed by an on-line electronic system for authorization. Some gift cards can be reloaded by payment and can be used thus multiple times.

Cards may have a barcode or magnetic strip, which is read by an electronic credit card machine.

Value

Many cards have no value until they are sold, at which time the cashier enters the amount which the customer wishes to put on the card. This amount is rarely stored on the card but is instead noted in the store's database, which is crosslinked to the card ID.

Gift cards thus are generally not stored-value cards as used in many public transport systems or library photocopiers, where a simplified system (with no network) stores the value only on the card itself.

Security

To thwart counterfeiting, the data are encrypted. The magnetic strip is also often placed differently than on credit cards, so they cannot be read or written with standard equipment. Other gift cards may have a set value and need to be activated by calling a specific number.

Types of Gift Cards

Gift cards are divided into "open loop" and "closed loop" cards.

Open loop cards

Open loop cards are issued by banks or credit card companies and can be redeemed by different establishments.

Closed loop cards

Closed loop cards are issued by a specific store or restaurant and can be only redeemed by the issuing provider. However, they tend to have lesser problems with card value decay and fees.

In either case the giver would buy the gift card (and may have to pay an additional purchase fee), and the recipient of the card would use the value of the card at a later transaction.

Hybrid closed loop card

A third form is the "hybrid closed loop" card where the issuer has bundled a number of closed loop cards; an example is a gift card for a specific mall.

Other notes

Gift cards differ from gift certificates. Gift certificates are usually sold as a paper document with an authorized signature by a restaurant, store, or other individual establishment as a voucher for a future service; there is no electronic authorization.

Gift card does not include fuel cards. Bank-issued gift cards may be used in lieu of checks as a way to disburse rebate funds.

Redemption rate

Not all gift cards are redeemed, for many reasons. Common reasons include:

• loss of the card,
• time decay,
• personal disinterest in the store that the card is accepted,
• complex rules of redemption, and
• the attempt of the recipient to save money for the giver.

It has been estimated that perhaps 10% of cards are not redeemed, amounting to a gain for retailers of about $8 billion in the US in 2006

Regulations

Canada

Canada has regulations for gift card. In the Province of Manitoba, Ontario and British Columbia, legislation has been passed to ban expiry dates and fees collected on gift cards.

United States

In the United States uniform standards about gift cards do not exist.

Open loop cards are governed by rules of the Comptroller of the Currency, however oversight has been criticized.

Closed loop gift cards are subject to rules set by different state regulations, and issuing authorities vary widely in the rules they set for the consumer.

The problem is that rules can be changed by the issuer without notifying the consumer

Resources

Check out those resources for Gift Card.

1. Avoid gift card pitfalls
2. Congress Considers New Gift Card Rules
3. Cash, not gift cards, the best present: consumers' association
4. Gift Cards an $8 Billion Gift to Retailers
5. The Gift-Card Economy
6. Bad Gift Better Than Gift Card, Says Philosopher
7. Gift Cards with a Personal Touch
8. Gift Card Warning: Check Retailer's Health

Overview

Prepaid cards are sometimes called “stored-value” cards because you pay upfront to “load them up” before you use them. Prepaid cards can be used in stores, on-line, at automated banking machines (ABMs) and at any location where the same brand of credit card is accepted. prepaid cards are not credit cards, but they can often be used in the same way.

Issuers

Prepaid cards are offered at a variety of places such as

• banks,
• cheque-cashing outlets,
• stores, and
• financial institutions.

Types

There are several kinds of prepaid
cards:

• multi-purpose cards,
• non-reloadable cards,
• travel cards, and
• payroll cards.

Fees

There are fees for all of these prepaid cards, which means it will cost you money to spend money.

Types of Prepaid Cards

Multi-purpose prepaid cards

The multi-purpose prepaid card is reloadable, meaning you can add more money to this type of card and keep on using it. These cards are currently offered under the MasterCard and Visa brand and can be used anywhere that MasterCard and Visa credit cards are accepted.

Non-reloadable prepaid cards

Non-reloadable prepaid cards are currently offered under the Visa brand as “gift cards” and can be used anywhere that Visa credit cards are accepted.

These cards have fewer fees than multi-purpose prepaid cards, but they don’t offer as much flexibility, since they have a lower maximum value, and cannot be used to withdraw money at an ABM.

Although the cost to sign up for a gift card can be less than for other prepaid cards, gift cards aren’t reloadable, which means you can only use them until you have used up all of the money that is on them.

Prepaid travel cards

All Visa and MasterCard prepaid cards can be used outside of the nation , even if they are not specifically marketed as “travel cards”. Certain prepaid cards are marketed as “travel cards” and will allow you to store large amounts of money—as much as $9,000— on them.

You can use these cards instead of traveler cheques, if you wish. “Travel cards” are currently offered under the Visa brand and can be used anywhere that Visa credit cards are accepted.

Payroll cards

Payroll cards are a new product that some employers and organizations are using to replace paper cheques for paying salaries, benefits or expenses. The payroll cards that are currently being offered under the MasterCard brand are reloadable and can be used at ABMs and anywhere that MasterCard credit cards are accepted.

The issuer and the employer or organization set the terms and conditions of these cards.

Payroll cards are only available to employers and organizations and cannot be purchased by individual consumers. Employers, organizations or cardholders may have to pay fees to use these cards.

Advantages of Prepaid Cards

No credit required

If you need a credit card but are not able—or do not want—to get one, a prepaid card can be useful. Even if you have had credit problems, you can get a prepaid card without having to supply credit information.

No bank account required

You also don’t need to have a bank account to obtain a prepaid card. All you need is proper identification and enough cash to cover the dollar amount you want on the card.

Pay now, spend later

With a prepaid card, you pay now—to buy or “load up” the card—and spend later—when you make your purchase. The amount of money you can spend with the card depends on how much money you have to put on it, and how much money the card issuer will allow you to load onto the card.

Other benefits

• If you don’t have a credit card and want to rent a car, buy a plane ticket or purchase something on-line or by phone, a prepaid card can be useful.
• You can also give a prepaid card as a gift, or as an allowance for a child. In some cases, the child must be 16 years of age or older to use the card.
• A prepaid card can also be handy if you don’t have a bank account or don’t want to carry cash because of concerns about personal safety.
• MasterCard and Visa branded prepaid cards have zero liability protection, which means that you may not have to pay for fraudulent purchases made with your card.
• prepaid cards combine the convenience of a credit card with control over how much money you spend.

Swipe and sign

Paying with a prepaid card works like paying with a credit card. The clerk will ask you to sign a receipt.

Using a PIN

With some prepaid cards, it's safer because you can use a PIN (personal identification number). You would enter the PIN to withdraw cash at an ABM.

Prepaid Card Security

PIN

• Memorize your PIN; don’t write it down.
• When selecting your PIN, avoid choosing obvious numbers—such as your birthdate, your address or part of your phone number.
• To minimize the risk of theft, it is important to protect your PIN. Do not share it with anyone, and make sure you cover the PIN pad when you are entering your number.

ABM security

• Always do your banking when and where you feel most secure.
• If you are uncomfortable about using a banking machine for any reason, go to another location.

What happens if your card is lost or stolen?

One of the advantages of using a prepaid card is that, if your card is lost or stolen, you may not have to pay for the fraudulent purchases that were made with your card.

All MasterCard and Visa prepaid cards and credit cards have zero-liability protection. With zero-liability protection, you are not held responsible for any fraudulent point-of-sale purchases made with your MasterCard or Visa prepaid card.

However, if the illegal use of your card involved using your personal identification number, or PIN, at an ABM, you may not get your money back.

Our Advices

Prepaid card can be very costly to maintained. Choose it wisely.

The first thing to read about a prepaid card offer is not the greatest features it has, but the list of fees. Often I get excited seeing a prepaid card being offer with ease, but when I look at the costs, I was not surprised seeing I could be paying few hundreds of dollars per month if I use it.

Choose the biggest brand like VISA and MasterCard only. Don't make mistake getting a cheap prepaid then later on find out it's nearly impossible to get your money.

Lastly but not least, read more specific advices about the card you like before you commit in purchasing any prepaid card.

For more general information about prepaid card, click here.

A debit card, a type of bank card or check card, is the third common money card used worldwide. This page gives you definition, overview, advantages and disadvantages, fees, and advices when choosing a debit card as well as various tips and discussions, and more.

Definition

Debit card is a plastic bank card which provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account or from the remaining balance on the card.

Overview

The use of debit cards has become widespread in many countries and has overtaken the cheque, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases, and unlike credit cards the bearer of the debit card doesn't have to pay back.

Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase.

In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.

Types of Debit Card

There are currently three ways that debit card transactions are processed: online debit (also known as PIN debit), offline debit (also known as signature debit) and Electronic Purse Card.

Online Debit Card

Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards.

One difficulty in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate PIN pad to enter the PIN, although this is becoming commonplace for all card transactions in many countries.

Overall, the online debit card is generally viewed as superior to the offline debit card because of its more secure authentication system and live status, which alleviates problems with processing lag on transactions that may have been forgotten or not authorized by the owner of the card.

Offline Debit Card

Offline debit cards are used at the point of sale like a credit card. This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the current/checking account balance from which it draws funds.

Transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances.

Prepaid Debit Card

Prepaid debit cards, also called reloadable debit cards or reloadable prepaid cards, are often used for recurring payments.

The payer loads funds to the cardholder's card account. Particularly for US-based companies with a large number of payment recipients abroad, prepaid debit cards allow the delivery of international payments without the delays and fees associated with international checks and bank transfers.

Web-based services such as stock photography websites (istockphoto), outsourced services (oDesk), and affiliate networks (MediaWhiz) have all started offering prepaid debit cards for their contributors/freelancers/vendors abroad.

Electronic Purse Card

This type of debit card is smart-card-based in which value is stored on the card chip, not in an externally recorded account, so that machines accepting the card need no network connectivity.

Advantages and Disadvantages

Debit and check cards, as they have become widespread, have revealed numerous advantages and disadvantages to the consumer and retailer alike.

Advantages

Advantages over credit card and chegue are as follows:

• Doesn't need credit,
• Less fees compare to credit card,
• Immediate payment therefore hassle free.
• Transactions quicker and less intrusive then checks.
• Obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee.

Disadvantages

The Debit card has many disadvantages as opposed to cash or credit:

• Some banks are now charging over-limit fees,
• Penalty fees for overdrafts, over-the-limit.
• May have rejections or overdrafts, and rejected transactions by some banks.
• In some countries debit cards offer lower levels of security protection than credit cards.
• In many places, laws protect the consumer from fraud a lot less than with a credit card.
• No protection against undelivered products.
• When a debit purchase is made, the consumer has spent his/her own money, and the bank has little if any motivation to collect the funds in case of dispute.

Our Advices

If you can get a debit card, get one instead of a credit card. Debit card provides a wide ranges of services that normal bank card doesn't have. It has many features that a credit card has. It's a little limited compare to credit card, but it's much cheaper.

A credit card is the second most popular bank card that is available as a mean for spending money based on credit. This page gives definition, some overview, advantages, disadvantages, and some basics about credit card, as well as advices about it.

Definition

A credit card is a bank card that entitles its holder to pay for goods and services based on the holder's promise to pay for these goods and services. It's part of a system of payments named after the small plastic card issued to users of the system.

Overview

Credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1.

The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

Advantages

Credit card offer the following features/benefits:

• convenient,
• accessible credit,
• easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes;
• accepted worldwide, and
• available with a large variety of credit limits, repayment arrangement, and
• other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cashback).

Limitations

Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumer's credit card being lost or stolen.

Fees

Credit card is one of the most expensive card to maintain. The major fees are for:

• Late payments or overdue payments
• Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake), called overlimit fees
• Returned cheque fees or payment processing fees (eg phone payment fee)
• Cash advances and convenience cheques (often 3% of the amount)by_ID. Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
• Membership fees (annual or monthly), sometimes a percentage of the credit limit.
• Exchange rate loading fees (these may sometimes not be reported on the customer's statement, even when they are applied)

Our Advices

The only real benefit of credit card is that you spend the money that you haven't got.

Credit is indeed a very expensive card. We strongly recommend you to read more about the fees for each type of credit card before applying.

Don't fall for the traps of "no hidden fees". When they say "no hidden fees" they are hiding somethings. All those offer often buff their "FREE" offers and hide the real fees inside a fine print.

When you take a credit card, you are taking debt. Consider carefully and if you can't afford the fees, go for a debit card instead.

For more information please browse our archives, or go for this in depth Wikipedia article about Credit Card.

The most popular website to choose credit card is CreditCards.com

ATM card

Definition

ATM card is a money card card issued by a bank, credit union or building society used mainly for paying offline purchases and keeping cash safely in bank. It's a card used in an automated teller machine (ATM) which may access a credit or a debit account to complete banking inquiries and fund transfers.

Overview

ATM cards are the most common card used world wide. The main purpose of ATM card is for people to access to their money inside their bank account. The term key card is commonly used to refer to ATM card also because of that, open to door to your bank.

Although bank card a common term for ATM card too, however it's more generic and include debit card and credit card, which have totally different set of features.

Usage

It can be used:

• at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks;
• at a bank branch, for the same as above, but with more options;

Some bank cards can also be used:

• at a branch, as identification for in-person transactions
• at merchants, for EFTPOS (point of sale) purchases

Depends on the bank and user account setup, ATM card can also be used for  other types of transactions through telephone or online banking without in-person authentication. This includes account balance inquiries, electronic bill payments or in some cases, online purchases (see Interac Online). However this require user passwords as mean of authentication.

Limitations

Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN.

In other words, ATM cards cannot be used at merchants that only accept credit cards.

International Variations

In some countries, the two functions of ATM card and debit card are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATM's and also make point-of-sale transactions, both functions using a PIN. Canada's Interac and Europe's Maestro are examples of networks that link bank accounts with point-of-sale equipment.

Security

Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process.

This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.

Fees

ATM card is cheaper than any other type of money cards. They don't have hidden fees. The common fees include:

• Monthly fee, which could be waived based on certain conditions;
• Overdraft fee, when you withdraw/pay more money than you have;
• International ATM fee, when you withdraw money from outside the country;
• Transaction fee, when you take money out too many times a month, more than the allowance.
• Reissue fee, when you lose your card and need a new one.

All those fees stated above are in no way close to what the bank charges for prepaid cards and credit cards.

Earnings

ATM card attach to bank account, which actually give you interest. Some saver accounts give very high interests that could cover all the costs and even give you profits.

Our Advices

First advice: You need an ATM card, definitely. You should not carry $10,000 which could be so easily rob, instead carry a card that's hidden inside your small wallet.

If you are looking for an ATM card, then you also should consider visiting dozen of banks looking at dozen of account options of each bank to find out the account with highest interest rate with the lowest fees. You won't be the winner, but you will be the earner.

Attributes

• It's virtual, meaning there is no physical card.
• This type of card is not hold in the wallet, but hold in memory.
• The card consists of everything a typical money card has: card number, account number, pin, 3 digit check (for debit/credit card), organization name, card issuer logo, etc.
• It work almost the same as a physical card, however with more limitations
• It cannot be taken with, but its data can be stolen.

Usage

Virtual card is also known as electronic money  (e-money) card, can be used over phone and internet, for:

• Online shopping - you can buy a lot of things online using virtual debit/credit card;
• Online bill payment - you can use virtual ATM card to pay the bills;
• Receive money from other money cards;
• Send money other money cards;
• Phone banking - it can be used over the phone;
• Internet banking - it can be used online to check balance and transfer money.

Advantages

The virtual card has many advantages over the physical ones:

• Many cards are internationally issued, meaning country independent, you can make a card of US even you live in China, as long as you pay the fees.
• There is no credit check, because all of them are prepaid cards, as long as you have money to deposit, you can spend.
• Save space: one virtual card = one slot available for another card... or less heavy to the wallet.

Limitations

Virtual card is intangible, so there are many limitations associated with it:

• Higher fees;
• Cannot be used offline because there is no plastic card and that mean cannot withdraw money from ATM and cannot buy things from local stores;
• Remembering the card number is hard, and you can't use it if you don't have the number.
• Many online merchants dislike virtual card, and they force to fax/email a photo of the card... but there isn't one.
• High risk, because the card issuer can run away and you can't do anything about it if you are cross-border.
• No over draft possible, meaning you spend as much money as you have in the card, not as much as you have in your safe.

Where to get

You can take a virtual card from many online issuers. Most of issuers are financial/investment company that provide prepaid card account. Those act as an agencies of the banks. Some banks also offer virtual card.

Fees

Virtual card is much more expensive in term of fees. There are all sort of fees:

• one time setup fee, this normally is higher than physical card;
• reload fee,  which is not with physical card;
• transaction fee, physical card has free transactions before they got charged;
• monthly fee, if the transaction fee is low, then monthly fee is high, and vice-versa.
• service fee, some of issuers even charge for phone support.

Physical Attributes

Physical card is certainly visible, and it poses physical characteristics.

• Normally it's made by very durable plastic material that can last for years without breakage.
• The color is very variable, depending on the issuers. There are some collector editions of those card too, like the Olympics debit card from China Bank.
• It's thicker than a name-card, preventing it from bending.
• It's well designed, because most issuers are wealthy and high-tech.
• It's standard sized, every money card in the world has exactly the same dimensions.

Usage

This type of cards can be used as follow:

• At an ATM, inserted to the machine and withraw, or deposit money.
• At a local store, swiped at the cashier machine to pay for purchases.
• For online shopping (only credit card and debit card).
• For automatic bill paying.
• Direct deposit at a bank

Limitations

Due to being a physical card:

• You must hold it.
• You must sign on it,
• You must keep it safely as it can be stolen,
• You must be a citizen/permanent resident of the country where the bank is located.
• It wears off, the card may not be broken, but it can be dirty and loose colors.

Where to get

Physical money card is very straight forward to get. Depends on which type of card, it can be acquired from a bank, from a company, from a local store.

Subtypes

It can be anything, really:

• ATM card, also known as Bank card, Saving card,
• Key card, while not actually considered a key, is a plastic card which stores a digital signature that is used with electronic access control
• Credit card, a plastic card for purchasing items on credit
• Debit card, a plastic card for purchasing items using money in a bank account
• Gift card, usually plastic payment tool that is mailed or given to a relative, friend, or associate as a method of purchasing within stores
• Smart card, a plastic card containing a computer chip
• Investment card, from a bank when having a term deposit;
• Prepaid card, deposit before you spend, just another variation of credit card;
• Pension card, maybe not else where classified as money card, but it contains monetary value, as to save money for elderly people.
• Discount card, saves money for you when shopping.
• etc.

There is no official definition of money card, or is there anywhere else mentioning this term. It's a generic term referring to the type of card that contains monetary value. Read what MoneyCard.org come up with.

Definition of Money Card

Money card can be defined as a card that contains monetary value. It's simply just a card you can use to spend money instead of using cash.

Overview

Money card can be classified based on usage, such as saving card, credit card, debit card, etc. They also can be classified by physical state, as a physical card, or a virtual card.

Types of Money Card

Because of its nature being generic term, money card has a lot of specific types. Those types can be classified based on they way you spend, the physicality, and the type of account.

Spending types

Base on they way you spend, the card can be:

• Credit card, pay for purchase before you pay the bank
• Debit card, pay for purchase after you deposit money
• Prepaid card, pay the bank first, then pay for purchase
• ATM card, pay at cashier machine
• Gift card, you pay the bank, someone else spend your money.
• Discount card, pay less for your purchases
• Phone card, pay for calling
• Travel card, pay while travelling.

Physical types

Base on the physical attributes, a money card can be classified as:

• Physical money card, or
• Virtual money card.

Account types

Base on account it can be:

• saving account card,
• cheque card,
• transaction account card,
• term deposit account,
• credit account,
• guarantee account,
• etc.

You are welcomed to contribute, sign up now and start writing your personal/professional advices about money card.

Organization Vision

People are not using "money card" as a calling for those type of card, instead they prefer calling them by specific terms. That's why MoneyCard.org is born, to keep people acknowledged about the true meaning of money card.

MoneCard.org also want to give our valued visitors more information they should know when dealing with money cards.

Government Resources

There are consumers protection organizations out there, and we advice you to read their website before singing up for any type of card. We try to provide as much information as we can, but if it's not here you can try to find it at:

• Financial Consumer Agency of Canada, protects and educates consumers of financial services;
• Federal Trade Commission of US, deals with issues that touch the economic life of every American;
• Australian Competition and Consumer Commission, promotes competition and fair trade in the market place to benefit consumers, businesses and the community;
• UK Trading Stands Institute, promotes and protects the success of a modern vibrant economy.

Common Advices

We will go into more details about each type of card, and even to the individual branded card. But since you are here, we want to give you some common sense when dealing with money cards:

• Read the list of fees before you sign up for any money card. They often claim a lot of FREE, yet their fees are sky high.
• Avoid fishy cards. If they don't show the cost, they are not nice to you.
• Check their list of after-sale services. You don't want to be stuck at a queue for 1 hours  calling their support center.
• Ask yourself: Do I need it?
• Make yourself a cost/benefit analysis against the card you are choosing.

The ultimate tip: Do it with care.

For the rest of our advices, please navigate the menus and pages to find the information you need. You could also use our search form. Although it doesn't work like Google, it does help.