According to a recent survey carried out by leading voucher site MyVoucherCodes.co.uk, one in five of us can’t explain the difference between a credit, debit or prepaid card, giving us a very revealing look at the financial illiteracy of the nation.
The survey, which asked more than 1,600 UK adults, looked at a number of common financial terms to see what exactly we knew about the financial services we use.
62% of the 1,600 UK adults who responded to the survey didn’t know what ‘APR’
The European Commission have announced a new payment services direction, otherwise known as PSD2, and a new set of regulations designed to tackle and limit interchange fees for credit, debit and prepaid card based transactions throughout the Eurozone.
Payments in the EU account for as much as 1% of GDP, a sum that is estimated at some 130 billion Euros each year, and is something that many MEPs have suggested that the union can ill afford in the current economic climate.
Credit card companies are turning down more applicants with good credit scores than ever before as a result of algorithms designed to maximise profits, ruling individuals who are credit worthy as being bad for business, damaging their credit profiles in the process.
The process of vetting such individuals is designed to filter out customers that will prove to be unprofitable, like those who clear their balances every month and generally keep their accounts in good order.
As hidden fees for transactions look set to be scrapped, a report warns consumers that the cost will be passed on to them in the form of annual fees for the privilege of having a card. These fees are suspected to be as much as £11 for debit and prepaid cards and £25 for credit cards, designed to make up for expected losses of up to 2.4 Billion for banks and issuers.
These charges would effectively end free banking throughout the Eurozone,
We love our smartphones. Whether we’re tweeting, liking, watching or gaming, they’re never too far away. And there’s nothing we enjoy more than getting the latest apps to enhance the experience our phones give us, but are we aware of the risks of doing so?
Mobile apps are a multi-billion dollar industry, with over half of us regularly buying the latest and greatest applications without so much as a second thought to the potential risks.
Consumers in France have just completed the first trial of next generation POS payment security – finger print verification.
The pilot scheme, which took place over six months, allowed card holders to forgo providing a PIN code when paying for purchases with their credit, debit or prepaid cards, and instead provide a finger print to prove their identity.
It took place primarily in supermarkets and has proved to be a success,