Dollar Stretcher Guest Bloggers

by Chris Neighbors

I’m a late starter when it comes to using personal finance software. I’ve always viewed it as a boring spreadsheet that I could make myself in Excel if I really wanted to. Boy was I wrong! I was lucky enough to receive Quicken as a gift yesterday. I had heard great things about it from family members so I was eager to get it installed. After starting the registration process, I realized that it was able to link directly to my bank account. I was very happy with this because I really didn’t want to enter everything manually. Once everything was in sync (not the boy band), I received a ton of information. It was definitely an eye opener! I don’t understand why there are so many blogs written about how to keep track of your personal finances when software like Quicken exists. Those blogs should all be titled "Buy Personal Finance Budgeting Software if You Want to Make Your Life Easier." I suppose there is a lot to be said for someone that can do it by hand, but who has time for that nowadays?

Good:

• It syncs to your bank account which saves time: I was blown away by this. It gives you an automatic starting point. If you did this by hand you would either have to wait a month to get the new information, or you would have to dig through all your old bank records.
  
  
• It automatically sorts your expenses: My expenses showed up in a nice, color coded pie chart.
  
  
• If you set spending goals for yourself they are easy to follow: They just show up on the front page. Apparently I’m already 3/4 the way to my monthly goal on food.
  
  
• It seems to be user friendly: So far I haven’t had any issues with it. It only took me 15 minutes to set up.

Bad:

• Some of the expense sorting is inaccurate: When I bought food at Wal-Mart, it went into the shopping category instead of the food category. I guess you can’t expect it to know everything right off the bat.
  
  
• You can’t pay bills from it (that I know of): Quicken has you list all your expenses, but it didn’t offer me an option to pay them. It seems like that would be a huge time saver.
  
  
• I don’t know how to sync other billing information to it: For example, when I entered my Charter monthly billing expense, I had to mark that it changed monthly. I think it would be helpful if Quicken could sync to my Charter account to know what my bill will be. This might be possible, but it wasn’t apparent to me.

What software like Quicken shows is that budgeting doesn’t have to be difficult. The information it has given me is so valuable. I’m pretty sure my copy was purchased from eBay for $30, which is a great deal. I’m sure there are other useful things Quicken 2011 can do. If you know of any, please share!

Chris Neighbors is a MBA student at the University of Nevada, Reno and an employee of the Bureau of Land Management. When he isn't at school or work, you can find him hiking, reading, and blogging. His blog has a relaxed atmosphere where people can learn about personal finance. Chris believes that we all have an abundance of financial knowledge, and if we just share it with one another our lives will be better (and we can save a lot of money). Check out his blog at Chrisneighbors.com and quench your thirst for knowledge, or share one of your financial adventures!

by Bill Hardekopf

Global Payments is the latest company to fall victim to a large-scale hacking incident. On April 2nd, the company said hackers stole debit and credit card account information for nearly 1.5 million consumers.

Unfortunately, this has become a fairly common news story. Last year, hackers stole personal information from a reported 24 million accounts from Sony Online Entertainment. In 2010, 130 million accounts were stolen from a payment processing company, Heartland Payment Systems. In 2007, 46 million accounts were stolen from TJ Maxx and Marshall's. Even MasterCard had 40 million accounts compromised in 2005.

According to a recent study by Javelin Strategy & Research, consumers who receive a data breach notification are six times more likely to be the victim of identity theft or fraud.

What can you do if you receive a data breach notification? The most important precaution is to check your credit and debit card accounts regularly for any unauthorized charges. Don't just look for large purchases. Hackers sometimes make small transactions since they are more likely to fly under the radar. Be persistent with watching your accounts. It may be months or even a year before thieves actually use your card.

While the large-scale hacking incidents get the publicity, there are several precautions consumers can take to protect their accounts from getting compromised by individual hackers:

1. Change your passwords from time to time. Don't publicly post anything you may use as a password: your birthdate, pet's name, mother's maiden name, or your school. Identity thieves can use the information you post to guess your password.
   
   
2. Do not email your credit card number to anyone. No financial institution or legitimate company will contact you by phone or email to ask for your social security number, credit card number or other personal information. Be cautious about opening any attachment or downloading any files from email you receive, regardless of what company sent them.
   
   
3. Check your credit reports. You can get one free credit report every year from each of the three credit bureaus. Go to AnnualCreditReport.com or call (877) 322-8228 to order. Stagger these reviews throughout the year in order to catch anything that isn't correct in your account.
   
   
4. If you use a wireless router, password protect it and enable the encryption to scramble the data you send online.
   
   
5. Use your credit card instead of debit card. Credit cards offer stronger fraud and identity theft protections.
   
   
6. If you feel your information has been compromised, place a fraud alert at the three major credit bureaus. Call Experian at 888-397-3742, Equifax at 800-525-6285, and TransUnion at 800-680-7289. You can put a security freeze on your files.
   
   
7. Ask your bank if it has free software to protect your bank account. For example, Bank of America offers Trusteer Rapport for its online banking customers.
   
   
8. If your information has been stolen, file a complaint with the Federal Trade Commission at FTC.gov/complaint. The data is used to create a picture of wrongdoing. Unfortunately, the FTC won't get your money back.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories, such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.

by Bill Hardekopf

Using a mobile device to access your bank account is not only convenient, but also it appears to be helping consumers better manage their finances.

A new Federal Reserve study, Consumers and Mobile Financial Services, shows that mobile phones and Internet access are in widespread use and changing the way that consumers access their financial services.

According to the study, 21 percent of mobile phone owners have used mobile banking in the past twelve months, and an additional 11 percent think they will probably use it within the next year.

Two-thirds of mobile banking users say they used their mobile phone to check an account balance or available credit before making a large purchase in the past twelve months. Of this group, 59 percent say they did not make a purchase due to the amount of money or available credit in their bank account.

One-third of mobile banking users say they receive text message alerts from their bank, and a majority of this group receives alerts for a low balance. Nearly all of mobile bankers report taking an action after they received a low-balance text alert from their bank. They either transferred or deposited money into the account, or reduced their spending.

Instant access to account information can help households stay on their budget. Paying for items with a credit or debit card has removed the pain of handing over cash, which makes it easy to give in to impulse purchases and overspend. Checking your account balance before you make a purchase not only protects you from an overdraft situation, but it also gives you time to consider if the purchase is worth making.

While mobile phones are a tool to help consumers access their bank information, consumers seem to be hesitant to use their phones for mobile payments. Only 12 percent of mobile phone users reported making a mobile payment in the past twelve months.

According to the study, 87 percent of the U.S. population has a mobile phone and 44 percent of mobile phones are smartphones.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

April 16 is less than one month away, and paying your income taxes with a credit card may seem like an easy payment solution or a quick way to earn reward points.

But what you may not realize is the significant processing fee added to your tax bill when you pay by credit card. Unless your credit card reward program pays cash or miles that have a higher value than this processing fee, it doesn't make sense to pay by credit card. In addition, paying by credit card has other financial risks.

Credit card payments to the IRS are processed by third-party providers. These companies charge a processing fee, which averages 2.35% (as low as 1.89% through PayUSATax.com and as high as 3.93% charged by FileYourTaxes.com). The fee is a deductible business and individual expense.

If your tax bill is $8,000, a processing fee of 2.35% will cost $188, which is rolled into your credit card's balance. If you don't pay off your card's balance in its entirety at the end of the month, you will begin to incur interest rate charges on the $6,188 balance, which, depending on the account's APR, can be an extremely costly way to pay your taxes.

If you are sure to pay off the balance by the end of the month, the card must pay cash back rewards or miles that are greater than this processing fee in order for this payment method to make sense.

Before charging your taxes on a credit card, check into installment options from the IRS, especially if your credit card has a high APR. The IRS will charge interest, but it may be less than what you would pay with your credit card.

If you feel you must pay be credit card, here are a few additional tips:

• Find out your credit limit before you charge your taxes. Debt utilization is a major factor in credit scores. If you use too much of your available credit, you can lower your credit score.
  
  
• Payments must be made through tax preparation software, a tax professional, a card payment service provider, by phone or online.
  
  
• Do not write your credit card number on your tax return.
  
  
• Make sure your payment is treated as a purchase, not a cash advance. The cash advance APR can be as high as 25% with some cards, and the cash advance fee varies from 3%-5%, depending on the issuer.
  
  
• Payments can not be cancelled.
  
  
• You can also pay with a debit card and the fee is much cheaper. For example, you will be charged a flat fee of $3.89 when you use your Visa Debit card (Pay1040.com).

If you are still paying off last year's taxes that were charged to your credit card, then it may be time to seek help from a credit counselor like the National Foundation for Credit Counseling.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

The first trend is issuers introducing no frills credit cards which have no rewards, only lower interest rates. These cards are directed at "revolvers," customers that carry a balance. Revolvers need to have a card with the lowest possible APR so they minimize their interest payments.

Barclaycard Ring is being tested with some customers and will be available to the market later this spring. The card has an 8% APR that applies to purchases, balance transfers and cash advances. There is no annual fee, the late fee is a maximum of $25, and the foreign transaction fee is 1% (most issuers charge between 2% and 3%). The cash advance fee is only $1 per transaction (most cards charge a 3% fee for cash advances and an interest rate of 20% to 25%). The card has no rewards or special introductory rates on balance transfers, attractive features commonly found with other cards.

Some major issuers have introduced cards in the past year directed at this no frills audience. Citi introduced Simplicity, a card with no annual fee, penalty rate or late fee. The card has no rewards and an APR as low as 12.99%. Slate from Chase has a 0% introductory rate on purchases and balance transfers for 15 months. There is no balance transfer fee if you transfer a balance within the first 30 days of your account opening.

The second credit card trend seems to be a movement toward incorporating social media with their customers, and the new Barclays card wants to take this to another level. Cardmembers will have an opportunity to see the card's financial profit and loss statements. Using social media, cardmembers will have a voice in how the card is managed and serviced. Consumers will be asked for their input several times per year. The company claims customers will share in the profits of this card. but the details of this feature are unclear. The fine print says profit sharing is not based on the actual profits of the company. Instead, the profit sharing will be based on a calculation that will be used to determine what will be shared. It is offered at the sole discretion of Barclaycard and can be discontinued at any time.

The low APR and fees and profit sharing are good features for consumers. Some people may wonder why all cards can't offer these types of rates and fees. Barclays has reduced the expenses on this card by eliminating all rewards. In addition, they are hoping to create awareness through social media, and therefore, limiting the money spent on advertising and promotions.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

Yesterday, the Consumer Financial Protection Bureau formally announced that it will investigate the overdraft fees that banks charge on checking accounts.

Overdraft fees are charged by banks when customers try to spend more money than they have in their checking account. Banks will allow the transaction, but this service is a loan from the bank and it isn't free. Banks charge a non-sufficient funds fee (NSF) that is typically between $30 and $35. A fee is charged for each transaction paid in this manner.

In July 2010, the Federal Reserve required banks to receive permission from each checking account customer before the bank provided overdraft protection for ATM and debit card transactions. Before these new rules, most banks automatically added courtesy overdraft protection to checking accounts with details and fees in the fine print. Some customers didn't realize the high price of the fee until they incurred the charge.

After the rules went into effect, banks continued to aggressively encourage their customers to "opt-in" for overdraft protection and still marketed the benefits of overdraft protection.

Overdraft fees remain a significant source of revenue for banks. In 2011, banks collected $29.5 billion from overdraft fees, according to research firm Moebs Services. That was down from $33.1 billion in 2010.

The CFBP is investigating a number of areas when it comes to overdraft fees.

Some banks are still generating overdraft fees by posting transactions from highest to lowest dollar amount, rather than in the order they occurred. This increases the risk of consumers paying overdraft fees on smaller purchases.

The agency will look into why low income and young consumers are disproportionately burdened by overdraft fees. According to a 2008 study by the Federal Deposit Insurance Corporation, 9 percent of checking accounts incur 84 percent of overdraft fees.

In addition, the CFPB is asking consumers for their input on a "penalty fee box" for bank statements. This will be a disclosure where consumers can see how much overdraft fees will be from their bank.

The judicial system is also tackling the overdraft fee. In February, Chase settled for $110 million a consumer case charging that it routinely reordered checking account transactions. In November 2011, Bank of America reached a $410 million settlement in a class-action lawsuit to compensate debit card customers who were charged excessive overdraft fees between January 2001 and May 2011.

Overdraft protection is not necessary and opting out is an easy way for consumers to avoid an expensive fee. If you don't have enough money in your account and you don't have overdraft protection, then the debit transaction will simply be declined.

If you feel more comfortable with overdraft protection, most banks offer cheaper alternatives with a link to your savings account, a credit card, or a line of credit that will cover overdrawn transactions. There is still a fee each time you overdraw your account since your bank performs a transfer, but it is typically $5-$15, much less than the standard overdraft fee. You must contact your bank to set up this alternative service, since it is not part of the opt in selection.

This is a good time to assess how you monitor your checking account. Set up a low balance alert that will notify you when your account is low. Online banking you can help avoid overdraft situations and help keep up with your account in real time.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

Over the past four years, Congress and the Federal Reserve have passed and enacted many rules that changed the credit card industry. While the CARD Act and other reforms have received the headlines, the judicial branch has quietly left its mark on the credit card business. These legal rulings have cost banks and credit card issuers hundreds of millions of dollars, and may have indirectly led to higher rates and fees for consumers.

Whenever banks incur additional costs or have their revenue stream cut in one area, they typically make up that money by raising the rates or fees in another area. And we, the consumers, will usually be the ones paying the price for those additional rates or higher fees.

Here is a look at some of the recent legal actions that have had a dramatic effect on the credit card industry:

• Interchange fees remain a battleground between banks and retailers. Last year, regulations lowered the interchange fee that retailers had to pay banks for debit card transactions. But the rules did not address the interchange fee for credit cards. Retailers have turned to the courts to litigate their way to lower interchange payments for credit cards. Retailers want to add a fee when a customer pays with a credit card, but Visa and MasterCard currently prohibit this. A possible settlement may allow merchants to add a surcharge on credit card transactions. This would help retailers cover the cost of accepting credit cards by passing the fee to consumers and raising the cost of the purchase. Merchants have filed over 50 lawsuits since 2005 to argue that Visa, MasterCard and several banks, including Bank of America, J.P. Morgan Chase, Wells Fargo, Capital One and Citigroup, have collaborated to fix the fees that merchants pay to accept cards, a violation of antitrust laws.
  
  The trial date is set for September, but an earlier settlement is possible. In the meantime, banks are setting aside cash to pay for the regulations. According to the Wall Street Journal, financial analysts have speculated the pre-tax bill would run about $1.2 billion to $1.8 billion if MasterCard and rival Visa Inc. settle the suit. MasterCard set aside $495 million in its fourth quarter. The Wall Street Journal reported in January that Visa set aside $1.6 billion to cover potential costs from pending merchant lawsuits.
  
  
• Discover is facing regulatory action by the Federal Deposit Insurance Corporation and the Consumer Financial Protection over its marketing of fee-based products like payment protection and other add-on services. Discover estimates that possible losses could exceed $100 million. According to the Wall Street Journal, the company has been accused in lawsuits of misleading marketing tactics to get consumers to sign up for services.
  
  
• In January, the Supreme Court ruled that consumers who sign a credit card agreement which features an arbitration clause do not have the option to dispute any charges or fees in the courtroom. This applies to almost every person who has a credit card, since nearly all credit cards have an arbitration tucked into the fine print. The arbitration clause may restrict consumers from joining class action lawsuits against a company.
  
  
• In November of 2011, a federal judge in Miami gave final approval for a $410 million settlement in a class action lawsuit over Bank of America's overdraft fee. The settlement was divided among the more than 13 million Bank of America customers who had an overdraft during the past decade. These customers claimed the bank processed debit card transactions in the order of highest to lowest dollar amount, so Bank of America could maximize the overdraft fees customers were charged.
  
  
• In November 2011, the court gave final approval of a Currency Conversion Fee Antitrust settlement over how the credit card companies charged fees when purchases were made outside the United States. Nearly $276 million was distributed to 10 million consumers to compensate them for the setting and disclosure of foreign currency conversion fees (lawyers received more than $51 million). Some of the defendants in the case were Bank of America, Chase, Citibank, MBNA, Visa, and MasterCard.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

The latest report from the Federal Reserve shows that consumers used their credit cards quite extensively to fund their holiday shopping.

Revolving credit, which is made up primarily of credit card debt, increased at an annual rate of 4.1 percent in December. It rose nearly $3 billion to $801.0 billion. This follows a jump of $5.5 billion in November which was an annual rate increase of 8.4 percent. December was the fourth straight month of increases in revolving credit.

This could be a positive sign that consumers are more confident in the economy. But on the other hand, it could mean that people are struggling and have to rely on using their credit card to make ends meet. Consumers are going into 2012 with higher credit card debt, but the same wages. If consumers have a hard time paying this down, then we might see delinquencies and defaults start to increase by spring.

Find the latest G19 report here.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

In the past few weeks, consumers have received their credit card bills, revealing the financial damage from the Christmas season. Financial relief may be hard to find since Valentine's Day is just around the corner.

The National Retail Foundation predicts that U.S. shoppers will spend an average of $126 on gifts and treats for loved ones on Valentine's Day, an 8.5 percent increase from the $17.6 billion spent in 2011. While this spending may be good for retailers and romance, it can add add more debt to a budget that is already under stress.

Money management and spending are landmines that can destroy a relationship. Making financial decisions together can be extremely difficult since many couples can't even agree on what movie they want to see. However, couples that create a workable and efficient financial plan significantly lower their anxiety levels and have more time and money for long-term romance.

Talking about money may be initially awkward, but don't avoid it. Building a solid financial foundation is much easier than bitterly trying to re-build after a financial collapse.

Here are 10 tips for couples to help reduce financial stress:

1. Full Disclosure of All Debt and Financial Obligations

Get everything out in the open. Make a list of all student loans, car loans, credit card debt, even loans to friends and parents. Get copies of individual credit reports to share the financial past and any accounts that you may have forgotten.

2. Raise Your Credit Score

Make it a goal for both partners to have a credit score over 720. This will this help you qualify for the best terms and interest rates on loans and save thousands of dollars over your lifetime. In addition, insurers, landlords and employers use credit reports to make decisions about your application. Raise your credit score by paying your bills on time, paying down your debt and limiting your credit applications.

3. Plan for Spending

Both spouses spend money on things they think are necessary, but this is often subjective. Conflict occurs when spending leads to judgment or anger from the other spouse. Together, work out a plan for daily spending and how to save for some of the bigger purchases and even an occasional splurge. This can help remove the temptation to hide purchases and keep secrets from your spouse about spending.

4. Keep a Credit Card in Your Own Name

Keeping a credit card in your name helps build your individual credit history. If you are worried about your partner's spending habits, then he or she should not carry a credit card. Add your partner as an authorized user to your account and monitor the monthly statements for any unrecognizable charges.

5. Pay Off Debt

Decreasing debt reduces financial stress. The faster you pay off your loan balance, the sooner you can start saving and building a strong financial foundation. When you receive gift money, a bonus, a second job or a tax refund, use this to pay off debt. Making micropayments can help pay down your debt faster. Eat a meal at home or use coupons, and immediately apply the money you saved to your credit card balance. If you have multiple credit cards with a balance, pay off the balance with the highest interest rate and then move to the next-highest rate.

6. Emergency Fund

All couples should have an emergency fund of six to eight months' worth of living expenses held in a safe place, such as a money-market fund. Simply knowing it's there can reduce stress, since you know you're not walking a fine line between comfort and catastrophe. Make savings consistent and untouchable by setting up an automated deposit from your paycheck into your savings account.

7. Monitor Your Accounts

Even if you divide up bill paying and investing duties, both parties should be able to easily access accounts to know what is going on with your money. Websites like Mint.com can keep track of all accounts, including investment, checking, college funds and loans. This keeps information clear and in the open for both spouses.

8. Get Help

If arguments prevent you from getting started or making a financial plan, it may be good to seek professional counseling from a financial counselor or credit counselor. The National Foundation for Credit Counseling can help you find a certified credit counselor in your area. They can help you create a debt management plan. The set up fee is typically $50 and the monthly fee is about $25.

9. Talk It Out

Regularly make time to talk about your finances. It is important that both partners actively participate in these discussions. Keep it comfortable and conversational; do not make this a business meeting. It is not a time for blame and accusations. Let it be an open forum where either spouse can bring up problems and issues and even ask for suggestions and help. Let your actions show that you are in this together.

10. Add Extra Income

Selling unwanted items at a garage sale or on eBay is a start, but you may have skills that can make extra income. You can make picnic tables and chairs and sell them on Craigslist, or make bows and girls' accessories to sell at children's clothing consignment sales. You can board animals while their owners are on vacation. If you are a former athlete, you can give private lessons to kids learning how to play your sport.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

by Bill Hardekopf

According to CNBC, there is an antitrust suit between five million retailers and Visa, MasterCard and 13 large banks, including Citi, Bank of America, Chase, Capital One, U.S. Bancorp and Wells Fargo. Retailers claim that banks and the payment systems have unfairly worked together to increase the amount of the interchange fee retailers pay on credit card transactions.

The amount that each retailer pays as a swipe fee varies widely but the industry average is approximately 2 percent. This antitrust suit could cut that figure by three-quarters down to 0.5 percent. That would be one more devastating revenue blow to the banks as well as Visa and MasterCard, leading to billions of dollars in lost income.

Last year, the Durbin amendment went into effect on October 1, cutting the interchange fee on debit card transactions from an average of 44 cents to no more than 21 cents (plus 0.05 percent of the transaction, with the possibility of an additional cent if banks comply with fraud prevention procedures). Banks tried to make up for this lost revenue by implementing a monthly debit card fee which led to consumer outrage. Banks eventually rescinded this monthly fee.

If the retailers win this antitrust suit, it could have have a significant impact on consumers:

• Banks will lose billions of dollars at a time when they have already suffered significant cutbacks in revenue. Whenever banks lose revenue in one area, they try to make up for it in another area and that always comes at the expense of the consumer. An increase in existing fees, the introduction of new fees, and an increase in the credit card interest rates are changes that could be pushed by banks.
  
  
• A significant decrease in credit card reward programs. The lucrative cash back and airline mile rewards will likely decline. Most banks eliminated debit card rewards when the Durbin amendment passed. The same could happen with credit card  programs if retailers win this suit.
  
  
• A likely decrease in attractive balance transfer offers. Currently, credit card issuers are offering 0 percent interest rates for extended periods of time in order to lure customers from their competitors. The Citi Platinum Select card offers 0 percent for 21 months; the Discover More card offers 0 percent for 18 months; and the Slate from Chase card offers 0 percent for 12 months with no balance transfer fee. If retailers win this antitrust suit, look for credit card issuers to scale back these balance transfer offers.
  
  
• On the positive side, a possible decrease in prices at store level. Retailers claimed the passage of the Durbin amendment could lead to a decrease in prices since they would no longer have to pay the high swipe fees on debit card transactions. It is difficult to see if this actually took place. However, retailers may face more pressure from consumer groups to cut prices if the interchange fee is also slashed on credit card purchases.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.