Taking online shopping to the next level
Online shopping is fast becoming a favorite pastime amongst more and more consumers. Once upon a time, before the advent of online shopping, only housewives were the core target audience for armchair catalog shopping. They switch on the TV, see something they fancy on the local TV shopping network, make a quick call and ta-da, their items will be delivered to their doorstep in a matter of days.

Fast forward a decade or so into the future and we arrive smack in the middle of the age of online shopping. Auction sites like eBay.com is a firm favorite, as are websites such as Amazon.com. Cashing into this awesome phenomenon is Ukash, a prepaid cash company that recently released Ukash NEO, a prepaid virtual MasterCard that gives its users a convenient method to buy their favorite things online using cash. Ukash Neo can be used anywhere MasterCard is accepted.

What does this mean for online merchants and consumers?
Retailers are encouraged to feature Ukash NEO on their websites as this is expected to add on to their revenue stream. The prolific payment company will then send some attractive commission along the merchants’ way based on every transaction made via Ukash NEO.

As for us consumers, Mark Chirnside says: “Ukash NEO makes shopping online inclusive to all consumers, regardless of financial status, which has never been done before – providing the perfect solution for consumers to shop anywhere online with cash. We are offering retailers the chance to capitalise on the demand in this market and to generate significant revenue simply by offering our payment method to customers.” Translated, this means that consumers now enjoy even more freedom when it comes to online shopping whether or not they can afford credit cards. Now that they requirement to own a credit card is somehow “lifted”, consumers can now buy anything they want with cash.

Ukash NEO users may also want to look into gifting the prepaid card and sending on to their loved ones, much like a gift card. Those who are fortunate enough to receive this as a gift can then opt to spend it online or via telephone and mail orders using just the assigned 16 digit Ukash NEO code/card number as well as their name and address.

And if you wish to get your hands on a virtual card version instead, you can obtain full instructions to do so at http://www.ukashneo.com/MoreQuestions.aspx.

The maximum value for Ukash NEO in the UK is £200 and in Germany is EUR 200.

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Illustration by Eddie Guy

MasterCard and Visa are highly reputable brands in the financial world – but what happens when card issuers misuse their power and ride on the giants’ reputation for their own gain? Apparently money cannot buy love, but money will buy them the license to issue cards bearing MasterCard and Visa’s emblem, ultimately sending huge profits along their way.

Hallmark Bank & Trust – Cause for Concern
Take the case of Hallmark Bank & Trust for example. With headquarters in the Turks and Caicos Islands, is affiliated with MasterCard and is well known industry player. They have a healthy relationship with MasterCard: Hallmark pays MasterCard in exchange for the right to use its name on cards issued by Hallmark (no relations with the greeting card company whatsoever!) and in return, MasterCard stand to gain a percentage of sales generated by Hallmark through these cards.

However, all is not fine and dandy with Hallmark’s financial and legal background. They have been slapped with a civil lawsuit in the year 2007 whereby the US Inland Revenue Service claimed that Hallmark-issued MasterCards have been used in elaborate money laundering schemes. Two US accounting firms have been charged with advising their clients to evade taxes by shipping money out of the country. Brian F.J. Trowbridge who is Hallmark’s president, used to be a director with Lake Shore Alternative Financial Asset. An affiliate with this company, namely Philip J. Baker, was accused of cheating US currency investors out of a whopping total of US$300 million. Trowbridge got away scot-free and wasn’t accused of criminal conduct. Recently, Greg Hurd, a Hallmark executive who was in charge of securing banking services for Lake Shore Asset Management, was involved in a civil fraud suit.

With all that was said and done, one wonders what would it take for MasterCard to really sit up and take notice of all these fishy happenings. When will they severe ties with this dubious company and its president before MasterCard’s reputation is tarnished even further?

Questionable Intent
MasterCard and Visa are two of the strongest names in the industry. They maintain that they employ stringent regulations and often check individual cards for misuse and have always taken care to avoid doing business with dubious banks. Most, if not all banks that are associated with both Visa and MasterCard are renowned with a loyal following of consumers who like and trust their quality of service. However, the downside is that they also strike bargains with shady financial execs and financial institutions with murky backgrounds.

One good example is the Global Bank of Commerce in Antigua. Perhaps unknown to Visa, Global advertises an “unembossed” Visa card via its website. This means that almost anyone can obtain a Visa card without putting his or her name on it. Is the public aware about this? Even more important, is Visa or the authorities going to do anything about this? When contacted, Global’s president Brian Stuart-Young said that they “hold detailed financial information for anyone who might get an unembossed card.” He also maintains that the cards’ limits are typically lower than most. Former IRS investigator A. Jack. Fishman begs to differ. He said such cards can still be used in money laundering or tax evasion. “Why else on earth would you need an anonymous credit or debit card, unless you were trying to move illicit funds?” he added.

How long these card issuers can survive before they get into hot soup remains to be seen. Till then, be aware that not all card issuers can keep you out of trouble just because they are associated with Visa or MasterCard.

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According to Investopedia, a subprime credit card is defined as:

A type of credit card issued to people with substandard credit scores or limited credit histories. These cards will typically carry much higher interest rates than credit cards granted to prime borrowers; they also come with extra fees and lower credit limits.

In other words, these credit cards are made especially for those with bad credit scores and are seeking credit through any means available. Some may be desperate enough to fall prey to predatory lending practices but I bet even they would not be silly enough to fall for THIS credit card!

Deemed the worst credit card in financial history, the Continental Finance MasterCard is, in my opinion, the one financial product you should stay away from, no matter how desperate you are to repair your credit. With a super duper low credit limit of $53, it is astounding what cardholders can enjoy from this turkey. And that’s not all, users will also benefit from (do you detect a hint of sarcasm dripping from the word “benefit”?):

• Account setup fee of $99 (What? Just for setting up my account?)
• Program participation fee of $89 (Pray tell what advantages am I to partake in this “program”?)
• Annual fee of $49 (Bank of America can pull off its annual fee stint but can this insecure card do the same?)
• Authorized user fee of $30 (Apparently the credit limit of $53 is too much for me to spend!)
• Credit limit increase fee of $25 (This is for every time you request for an increase in credit – even so only $100 is allowed at any one time!)
• And the cream of the crop: $4 Internet payment fee for each transaction done online! Can you say highway robbery?

I honestly think the card issuers are preying on desperate consumers who eagerly want to repair their credit score and rebuild good credit history eventually but beware, you may well be digging a bigger grave for yourself if you get this card. The $53 credit limit is a play on your psychological naivety. I can hear you say “Oh well I’ll just use the card sparingly and not go over the credit limit” but heed my advice: the card comes with so many other fees that you may very well forget what these are and unknowingly pay more for what you use!

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Prepaid gifts cards – Some love ‘em, and some hate ‘em. They make versatile gifts during the holiday season especially when one does not know what to present to a loved one. Others are not so fond of prepaid gift cards because they seem too impersonal. Whether you love or loathe prepaid gift cards, such as the ever popular Visa prepaid gift cards, you must agree knowing how to utilize them optimally will be advantageous to you in the long run. With the rising popularity of prepaid cards, you may want to reap the benefits of owning prepaid cards and weaning yourself off your heavy credit card usage eventually.

Tip #1: Learn How It Works
Just gotten your first prepaid gift card this holiday season? Before you go on a wild spending spree, do consider reading the fine print closely first. Some require you to pay minimal fees or activation charges upfront before you can start using the cards. They also come with expiry dates so do try to utilize the cards as soon as you receive them!

Tip #2: Utilize the Full Value, Down to the Last Cent
Did you know that consumers are losing billions of dollars each year because they waste the value available in their prepaid gift cards? They usually adopt the habit of buying something which has a lower value compared to that in their gift cards. Why not buy something, or several items, that costs more than the gift card value and pay the remaining amount in cash? That way you won’t feel guilty leaving even a few dollars in your gift card!

Tip #3: Be Wary of Online Retailers
If you think you are getting a juicy prepaid gift card deal online, think again. They may not be as cheap as advertised because you will be required to pay “shipping and handling” fees which will cost more than the gift card in the long tun.

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The scam Recently, it has been reported that merchants are facing a new threat in the form of unethical credit card processing salespeople. These salespeople resort to unethical methods in order to garner more sales. It is believed that this is a rampant occurrence in Springfield where a company hires people to “force” merchants into switching their credit processing companies. Banks and credit card issuers who found out about this claim that these acts are not illegal but merchants are crying foul over the lack of ethics displayed by the salespeople in question.

Getting a foot in the door Why unethical, you ask? Consider this: Samantha Rushing, who owns a tanning salon, nearly got scammed recently when she picked up a call from a woman who claims that she was representing Visa and MasterCard. She claims that the person at the other end of the line purportedly said that the salon owner’s terminal was overcharging customers. Not believing her in the least, Samantha tried to end the conversation but the sales representative was adamant in visiting her establishment to check out her terminal. When she arrived, they couldn’t find a single problem with her credit card terminal but the salesperson tried vehemently to persuade her in changing her credit card processing company.

Be warned Along with Samantha, many other merchants have been inundated by calls and not-so-friendly visits from credit card processing companies. Authorities warned merchants not to fall for this trick and instead, asked them to be on high alert for such shady individuals. They should also be doubly careful about those who tamper with their terminals or try to use scare tactics in order for merchants to sign up with their credit card processing company. Merchants should also be wary about being forced into signing a contract they have not read or rushing headlong into something they are unsure of.

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