Refund To A Cancelled Card

By: Jason Steele

06/11/2010

A Reader Asks:

I went to Harbor Freight today to get a refund or store credit for a welder I purchased in 2007 using a MC. The store manager had no problem issuing the credit, but said that she could only credit back to the original MC, which I no longer have, nor do I even know what one is was. The manager said it is the credit card law, and that I would need to contact the MC carrier, get the account number, the store would refund to the account, and then the MC carrier would send me a refund. WHAT????

We are not talking about a lot of money here, just $215. I even asked just for a store credit, and she said she could not do that. Please help me.

Thank You
Kathy

My Answer

First, I am stunned that a company would issue a refund on a purchase made over two years ago! That is excellent customer service. On the other hand, they are asking you to provide the original credit card account number so that you can contact them for a refund.

Technically, it is true that when a refund is issued to an account that has been canceled, the bank will issue you a check. There are several problems with this. First, as you can imagine, banks are not very eager to write checks to customers, and it may be incumbent on you contact the bank and ask for the check. Also, the process of receiving the check could take two to three months. The fact that you understandably do not know the account number complicates this severely. Even if you knew which bank to contact, you would have trouble convincing them to speak to you without an account number anyways.

The oddest thing about this case is that the retailer is insisting that the new credit card law requires them to do so. I covered this legislation extensively, and I have never heard of such a thing. Even if it were true, you made the purchase before the law went into effect, and you could argue that this purchase is not subject to any such mysterious clause in the law.

If the retailer is willing to give you your money back after two year, perhaps you can convince them to issue your credit in another form of payment. That is what most retailers will offer when a credit card refund fails for any reason. With a two year old purchase, I would be more than happy to get my money back in the form of a store credit, which would be a reasonable compromise that does not result in the store incurring a loss of their credit card transaction fees. Let the store know that you value their exemplary customer service and will gladly return with a store credit, and I would be surprised if one is not issued.

Personalised Freedom Cash Card

By: Mr Credit Card

Summary: The Personalised Freedom Cash Card is a guaranteed acceptance prepaid card very similar to the Freedom Eagle Cash Card but carries a few slight differences.

Features and Benefits: The Personalised Freedom Cash Card is personalized and embossed. The maximum card balance is £3,000 as opposed to the £650 limit on the Freedom Eagle Cash Card. This card is valid for 3 years and can be used anywhere MasterCard is accepted at over 28 million locations worldwide.

Basic form of ID is required but there are no credit checks and no bank account required.
Purchase the card for £9.99 and it is delivered in 7 days.
Wages and benefits can be paid directly to the card.
No booking fees with Wizz Air and Ryan Air when booking flights with the Freedom Card.
24/7 Mobile Banking via SMS text and real time statements available online.

Free Insurance protection on all purchases made in the UK with the Freedom card for the first 3 months. Afterwards, auto renewal occurs at £1.99 per month. This includes 12 month mechanical breakdown coverage extended warranty, 30 day purchase protection on theft and accidental damage, 30 day Price Protection if you find the same item cheaper you will receive the difference.

Cash Back Program

Use the Freedom card at over 1000 UK online shops and receive cash back for your purchases. Retailers include Dell, Avon, Tesco, BT and Vodafone.

Conclusion: The Personalised Freedom Cash Card is valid for longer and has a higher upload limit than the Eagle Cash Card. Consumers that are interested in a prepaid card but require the higher limit would want to look into this version of the prepaid card. It does also offer the extra benefits and features that the Eagle Cash card offers as well, including the various forms of insurance on purchases free and the ability to save on booking fees when flying with Wizz Air or Ryan Air.

Can I Get An American Express Credit Card After Bankruptcy?

By: Christina

06/10/2010

This is a recent email I got from Stu.

how difficult is it to get a new amex card after filing bankrupcy, I paid them in full before filing

Answer – Stu – to get to the bottom of this, I actually called American Express. The first person I spoke to was from customer service and she was not able to answer that. Then she transferred me to “new accounts” and this was the answer I got from them.

A bankruptcy stays on your credit report for potentially up to 10 years. As long as you have a bankruptcy record on your credit report, American Express will not approve the card. I then asked them if someone could put you as an authorized user on an Amex Card. The answer was it should not be a problem though he cannot be 100% certain about that.

So there you go, the short answer is no.

Freedom Eagle Cash Card

By: Mr Credit Card

Summary: The Freedom Eagle Cash Card is a guaranteed prepaid card similar to others but with a few different benefits, including free insurance protection.

Features and Benefits: The Freedom Cash card is guaranteed with 100% acceptance with no credit check. There is also no ID required and the card can be used anywhere that MasterCard is accepted.

Maximum load limit of £650 but upgradable if you would like a higher limit.
Use at over 28 million locations worldwide
Purchase the card immediately with same day dispatch for only £9.99
Wages and benefits can be paid directly to the card.
No booking fees with Wizz Air and Ryan Air when booking flights with the Freedom Card.
24/7 Mobile Banking via SMS text and real time statements available online.

Cash Back Program

Use the Freedom card at over 1000 UK online shops and receive cash back for your purchases. Retailers include Dell, Avon, Tesco, BT and Vodafone.

Conclusion: This is a great prepaid card that will also assist those with problem credit to establish or reestablish their credit histories. The Freedom Eagle Cash Card is also one of the only prepaid cards that includes various forms of insurance on purchases free, although for a limited time. Additionally, cardholders that fly Wizz Air or Ryan Air may save money on booking fees by using this card to book their flights.

White Eagle Europe Prepaid Maestro Card

By: Mr Credit Card

06/09/2010

Summary: The White Eagle Prepaid Card is a guaranteed card that can be used similar to a debit card internationally wherever Maestro is accepted.

Features and Benefits: There are no credit checks for this card and a bank account is not required. There is a fee for the card of £4.95 and a monthly fee of £3.95. The card is valid for 2 years but you will be sent a new card before expiration.

Other features and benefits include:

Receive the card personalized and embossed.
Top up directly with wages, a bank account or any of the 18,000 shops and garages that have the PayPoint logo.
No fees for purchases of goods and services in shops, online or over the phone.
The money share/transfer option allows funds to be shared between cards for free to friends or family. Money can also be sent to a friend or family member abroad without transfer fees and the benefits of competitive exchange rates.

Conclusion: Although this is a guaranteed card, there are other prepaid cards that have similar benefits and features but don’t have the fees that are included with this one. There are no transaction fees and the money share option may be beneficial to cardholders with family members that can use the prepaid card as well. You may also be interested in the White Eagle Prepaid card if you are looking for one of the few prepaid cards with the Maestro logo.

RationalFX Euro Prepaid Travel Money MasterCard

By: Mr Credit Card

06/08/2010

Summary: The RationalFX Euro Prepaid Travel Money MasterCard is a guaranteed card that is prepaid and works like a debit card anywhere that MasterCard is accepted.

Features and Benefits: The RationalFX Euro Prepaid Travel Money MasterCard is designed for travelers and overseas spending.

The card can be loaded online at the website, over the phone or by SMS text message.
Free to use in shops, restaurants and other retail outlets.
24-hr online account management
Guaranteed Exchange Rates: Cardholders will receive the difference if cheaper travel money is found. Exchange rates can be up to 10% better than bureau de changes and debit or credit cards used abroad.
No bank account is required. There are also no credit checks or interest payments.
Wages can be deposited to the card.
Guaranteed 0% Commission Guarantee: There is no commission on loading or spending currency on the card.
Chip and PIN protected for extra protection.
Free to use, no monthly fees or commissions and the lowest overseas ATM withdrawal charges in the country compared with other travel money cards.

Conclusion: The benefits and features of the card are similar to other prepaid cards but because there are no monthly fees or commissions paid when the card is used, the RationalFX Prepaid Euro is one of the cheapest prepaid cards available.

Ethics And Credit Cards

By: Jason Steele

06/07/2010

Last year, I took some time to think about the ethics of reward card deals. I encapsulated my thoughts in somewhat of a manifesto on the subject, The Ethics Of Reward Card Deals. Since then, I have referred back to this piece on numerous occasions in order to decide where a particular deal falls on the ethical spectrum.

Ethics And Individuals

I take ethics and morality seriously as I strive to be a good person and do the right thing in my daily life and I would like to believe that all people have an obligation to do so. Unfortunately, the world can be a very tough place, and such moral beliefs are a luxury that some can not afford. When given the choice between survival and morality, many choose survival, such as in the classic case of a thief who steals food to feed one’s family.

Currently, many people are deciding to walk away from their mortgages in a practice called strategic default. I do not see any moral problem with strategic default, as default it is essentially a right you are exercising, and the bank accepted that risk when it offered you the loan. You placed your home as collateral to secure the bank against default.

When it comes to credit card debt, banks grant individuals unsecured loans. If the borrower defaults, the bank cannot reposes your purchases, they have to go to court to secure a judgment. Nevertheless, there have been reports of banks trying to make moral arguments for survivors paying the debts of the deceased. I can’t fault a bank for using guilt trips for collections, but I certainly would never pay a debt that I did not incur.

Ethics And Business

On the other hand, what about a corporation? Public corporations, by definition, have an obligation to their shareholders to make a profit. They are not in business for the good of society. Over at the University of Redlands School Of Business Banta Center For for Business, Ethics and Society, they seem to be devoting a lot of thought to these issues. I recently came across this paper When Businesses Do Bad Things. It was originally written about the Enron bankruptcy, but it seems to apply equally to the bank collapses of 2008 and the current Gulf Oil Spill. This quote from Professor Jeffrey Smith of the California business school stands out:

“So what is our assessment of recent events? Don’t they show that such ethical norms are not only absent from business life but intentionally neglected by managers? From time to time it certainly appears so. This is surely the motive behind the development of securities laws, accounting regulations and other attempts to reign in the incentives toward irresponsibility.”

The fact is that a business is not a person, and they will not do the right thing if it is not in their interest. We saw this during the debate over the CARD Act. There is no doubt that credit cards were, and to some extent, still are employing tricks and traps that are clearly unethical. These practices damaged individuals and society as a whole, yet they were going to continue as long as the law permitted them.

There was no ethical consideration by the banks as to whether or not it made sense to have a payment due on a weekend or a holiday when it could not be processed. Someone figured out that profits increased due to late payments and interest, and the corporation had an obligation to maximize profit. The same is true when a bank reorders checks to maximize insufficient funds fees.

Setting The Proper Expectations

Once you realize that banks only have an obligation to their shareholders, you should no longer expect your credit card company to act in any way ethical or moral as you would define those terms for an individual. In the same way, you should be honest and ethical, but otherwise play by the same rules when you deal with your bank. Treat individuals bank representatives with courtesy and respect, but otherwise feel free to aggressively pursue the best terms and best rewards out of each of your credit cards. When you do not get the service you require, do not hesitate for a moment to switch banks for a more competitive credit card.

A bank’s obligation is to maximize profit for it’s shareholders, while your obligation is to safeguard the wealth of yourself and your family. They will never loose sight of their responsibilities, and it is up to you not to loose sight of yours.

Which Business Credit Card To Earn Airline Miles?

By: Mr Credit Card

Here’s a little interaction with a reader recently:

Steve Broom wrote:
Oh Mr. Credit Card, do you recommend a particular Business Credit Card that earns air miles? I don’t want a card that limits the airmiles to 100k or so, as we will be earning them rather quickly and do not want to “use them or lose them”. USBank Business Card? AlasaAir Business Card? Oh, the decisions! Oh, the stress!

I asked Steve a few more questions:

what airlines do you fly?
How often?
which class?
and how much do you intend to charge to the card?

Here was his reply:

Which class? Usually coach, but I am 6’3″ and really, really need 1st class on the return leg.

How much charged to card? Within a year it should be about $800,000 per year. Really, really.

I spoke with an AlaskaAir rep today and they said they have no limit to the amount of miles and that the miles do not expire.

Is that normal or something special?

Answer – Steve, this is how I look at it. There are several issues and constraints.

You will charge a lot to your card – Implications are that you need a card to no preset spending limit

You spoke to Alaska Airlines – so presumably, you do fly with them at least once in a while

You want your miles not to expire and are not in a hurry to use them

Based on these constraints, I think you probably need to get a couple of cards. For example, I think a business charge cards would suit you, especially the Amex business charge cards. You can earn unlimited points, and there is no pre-set spending limits. The membership rewards program also has partnerships with many airlines and you could transfer points to these airlines (mostly on one for one ratio – see screen shot below). The best of the bunch to get is probably the The Gold Card from American Express OPEN.

However, at the same time, you also are not in a hurry to use your miles. As a safety precaution, I would suggest you get another card where you can earn “actual miles” rather than reward points. The difference is this. If you earn points, where it is Membership Rewards, Citi ThankYou, Capital One’s No Hassle Miles, you could lose your points if you cancel your card without using them (yes, it happens more often than you think) or if your card is canceled by the issuer. But if you get an actual frequent flyer or frequent guest card, your points are automatically transferred to those programs and you will never lose them.

I would suggest that you get either (or both) the Alaska Airlines Credit Card if you would like to earn their airline miles. Another possible card is the Starwood Preferred Guest&#174 Business Credit Card from American Express OPEN because you can transfer points to 30 airline partners (including Alaska Airlines) and if you transfer 20,000 points, you will get an additional 5,000 bonus miles. An additional benefit of this card is that there is no fee for employee cards (see screen shot below).

CaxtonFX Euro Card

By: Mr Credit Card

Summary: The CaxtonFX Euro Card is a prepaid card similar to the Caxton Global Traveller Card, except that it is specifically designed for those traveling to the Eurozone.

Features and Benefits: There are no fees for this card, including no annual fee and no interest. This is a prepaid MasterCard that works similar to a debit card and is accepted anywhere that MasterCard is accepted. It is designed for those that travel with benefits and conveniences for spending overseas.

Load and add funds easily online, over the phone or by SMS text message.
The card is free to use in shops and restaurants and other retail outlets outside the UK.
24-hr online account management
Guaranteed best exchange rates; if you find travel money cheaper you will be refunded the difference.
No fees, commission, or extra charges on your transactions meaning all costs and charges are included in the exchange rate applied.
Chip and PIN protected making use of the card safer than carrying cash.

Currently card members can enter to win a family trip to Italy. Cardholder discounts include:

2 for 1 entry to UK attractions 2 for 1 entry to top UK attractions like Alton Towers Resort, Chessington World of Adventures, London/York/Edinburgh Dungeons, LEGOLAND® Windsor, Madam Tussauds, SEA LIFE centres & Sancturies, Warwick Castle, LEGOLAND® Discover Centre Manchester and THORPE PARK. Cardholders can download 2 for 1 tickets and basically pay half on admissions.

Cardholders also receive 10% off of over 15,000 cottages and villas with Cottages4you, throughout the UK, Ireland, France, Italy, Spain and Portugal.

Discounts on airport parking and hotels including APH 15% off for Caxton FX cardholders. Save 15% off the standard APH rate at participating car parks and 10% off the standard APH rate on all airport hotel and airport lounge bookings.

Receive a 20% discount on Economy Comfort Class with Icelandair

Conclusion:

This is an ideal card for anyone looking for a prepaid offer with no fees, specifically those that are travelling to the Eurozone.This card offers many significant benefits and discounts that are not standard with prepaid cards and would be worth looking into if you need a debit style card for traveling with.