The Latest Dirty Credit Card Tricks, Part I
The Credit CARD Act of 2009 put an end to a whole crop of dirty credit card tricks… but the industry has grown a new batch
It was naïve to think that the much ballyhooed Credit CARD Act of 2009 would put an end to the dirty credit card tricks that issuers try to gouge us with on a daily basis. Sometimes, I think the only winning move with credit cards is what the computer decided at the end of the movie WarGames: not to play at all.
Is That a Real Option?
Of course, WOPR (the aforementioned computer) was talking about global thermonuclear war (or at least Tic-Tac-Toe), but the lesson seems applicable here, too. Given the difficulties involved, there are days when having no credit cards at all seems the right way to go.
Sadly, that's becoming increasingly difficult in these days of electronic cash. Like it or not, even debit cards can function as credit cards, and many do. And anyway, I'm not here to recommend that you chop up your credit cards: my intention is to help you use the ones you have as effectively as possible.
Operation Moneysuck
A good marketer will tell you that the purpose of any business is to extract as much money from the customer as you legally and morally can, for as long as possible. That sounds a bit ruthless, but that's reality; businesses have to profit or die, so that's fine. Caveat emptor, and all that.
The thing about credit card companies is that their money-sucking tactics tend to be a tad questionable at the best of times. That's why the government shut them down with the Credit CARD Act, which went into effect in February 2010. The companies responded with higher rates... and more questionable tactics.
We Should Have Expected It...
...because credit card companies are adept at wringing extra fees out of their customers. Let's look at foreign transaction fees, for example. Pretty much every company has jumped onto this boat, charging 1-3% premiums on transactions that you make overseas. This is a so-called "currency conversion fee."
If you're asking, "What currency?" you're not alone. It's not necessary at all. It's just another way to stick you for a fee.
If you travel to other countries a lot, this could hurt. Now, admittedly, this has been going on for quite some time with some cards, but nowadays just about everyone's doing it. If you often travel abroad, do a little research and look for a card with a low foreign transaction fee... or none at all. They are out there.
Moving Right Along
The foreign transaction fee is just one of many new tricks the card companies have levied against you. But we're out of space, so to learn more, you'll need to read Part II of our article about dirty credit card tricks.
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