Posts Tagged ‘credit cards’

Fee-Driven Banking Products ‘Taken to Task’

Monday, November 14th, 2011

Are we being taken for fools on the essential banking products that we choose?

An interesting parallel has emerged between Australia and the UK in the world of personal finance: an enquiry into value for money on fee-driven banking products.

Australia: Credit Card Fees

About half of all Australian credit card holders are getting no value from their credit card rewards because of fees, it was reported last week. In most cases, annual fees are outweighing the value of rewards such as air-miles, and only very high levels of spending – roughly $60,000 per year – could make such benefits count.

Contrast this with the average annual Australian credit card spend of $17,000, which itself is artificially heightened by very high spenders, and we see the degree to which fees outstrip potential rewards.

A monthly spend of $1,000 could see fees exceed potential benefits by as much as a third in value even before interest is factored in.

(more…)

Near Field Communication strikes Australia. The end of the credit card?

Tuesday, October 25th, 2011

Mobile Payment - the end of the credit card?The future of financial transactions for the next generation may now be upon us.

With the increasing number and popularity of mobile apps, major financial bodies have been looking towards innovative new payment systems for mobile devices.

The prospective launch of these new mobile payment systems could now spell the beginning of the end for the trusty plastic credit card.

Commonwealth Gold: KaChing!

Last month, Google announced their new ‘Wallet’ app, a system using Near Field Communication technology (NFC) which is designed to make payments easier for consumers while offering retailers more ways to offer loyalty programs.

But they may be beaten to the chase by Australia’s Commonwealth Bank, which has launched ‘Kaching‘, an app which allows smart phones / iPhones to connect with cash registers and to make payments by email and Facebook. It will be available before Christmas to iPhone users with operating system iOS4 or above, and makes CommBank the first commercial provider of a mobile payment system.

(more…)