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In yet another effort to cut the cost of card issuance and increase consumer activation and usage, Visa announced last week “it will begin supporting the issuance of unembossed credit cards in the U.S. for Visa consumer debit, business debit, and consumer credit cards.” I’m not sure what the world will be like without textured credit cards, but I suspect things will not change too much. Our country’s leaders will still be trying to fathom just how much “$700 Billion” really is, and Oprah will still have more influence on the American public than the President of the United States.

So, is this announcement good news, bad news, or not really news at all? Visa has permitted unembossed prepaid cards in the U.S. since 2005, so this isn’t a brand new marketing ploy. The difference is that now they are jumping into a much larger market, which includes consumer debit and credit cards as well as business debit cards. I believe this is great news for financial institutions, since they will no longer have to deal with the added cost and complexity of producing cards offsite and mailing them to new cardholders. Of course, most will need a lot more than this to dig them out of the financial crisis we are currently experiencing.

Consumers will also be pleased to immediately receive their personalized plastic, instead of having to wait several days before the card arrives and they can activate it. But what will become of the old “zip-zap” machine? Some “mom-and-pop” stores across the country still love the zip zap. In fact, the one and only reason we still have embossed credit cards is because these machines need to take an imprint of the card instead of simply reading the information contained in the magnetic strip.

Although there aren’t many U.S. merchants left that require a manual imprint for each transaction, the zip-zap machine is actually thriving in retail locations across the globe. I just returned from a business trip that took me to Hong Kong, China, and Korea, and it seemed like I ran into the zip-zap everywhere I went. By the end of the trip, the silver paint on my credit card’s numbers was completely gone from all the vigorous rubbing and swiping.

So if the notion of unembossed credit cards gets you excited, I would make sure you keep both types of cards in your wallet at this point in time. You may be able to get away with only carrying unembossed in the U.S., but don’t plan on putting dinner on the card at the local Chinese hot-spot. If you try, chances are they will only accept cash anyway.

Having worked at the World Trade Center, Merrill Lynch, Washington Mutual, and one of the country’s largest insurance firms, I feel very connected to many of the institutions and events that are in the news every day. I never could have imagined the changes the financial industry has experienced over the last seven years, and, with this most recent economic crisis, I know that many are wondering, “What in the world is going on” and “How does it affect me?”
Let me first say that despite what the media would have you believe, we have seen this before and we will get through it. Yes, you read that right: we will be just fine. In fact, I am more excited today about investing than I have been in my entire career. Think about this: the financial market is down over 20% the last year. Even if it takes two years to get back to where we were prior to this drop, that means you will earn 10% per year on your money. Where else can you invest and get 10% on your money?

Future of the financial market

There is no doubt that the past 12 months have been difficult for many investors. I would like to assure everyone reading this that the market will go up.
I can guarantee that.
I know the market will go up based on one simple fact – it always does.

There are a lot of people trying to explain what is going on in the market right now. Really what it comes down to is that companies took on more debt (in the form of mortgages) than they could handle. It is no different than running up credit card debt during good economic times, and then losing your job and not having enough income to pay off the interest.

Lessons from the economic crisis

The lesson we should all take away from the current economic crisis is threefold.

1. Have an emergency fund. Everyone should have a minimum of 3 months income saved and should be working toward 12 months.
2. Just because you qualify for a high credit limit doesn’t mean you should use it.
3. Most importantly, stay focused on the long term. As long as you are diversified properly, the best thing to do right now is, at a minimum, nothing. If possible, add more money to your investments.

Online investment & savings accounts are intimidating and seemingly fragile, especially with the media focusing on horror stories and worst-case scenarios. Invest wisely, though, and you’ll be just fine.

There is still a lot of confusion among consumers about whether writing ‘See ID” on the back of a credit card is a smart move. I can certainly understand why, since there are a lot of conflicting opinions and information available on the web.

It’s tough to prove that this practice will actually prevent identity theft, but I find it hard to believe it hurts. However, as far as Visa and Mastercard are concerned, a credit card is technically not valid unless it is signed. Merchants are even instructed to not accept credit cards without signatures. I’ve personally never had this happen, but I’ve heard of certain businesses that are strict about not accepting cards with ‘See ID’ written on the signature line. The U.S. Postal Service is likely the most common culprit.

Most people have been following this practice for years because it basically makes them feel better. That’s why I do it. Why not? It does sound logical in theory. If your credit card were to fall into the hands of a thief who wanted to use it to make a purchase, the merchant should look at the back of the card and then require proof of identification before processing the transaction. Of course, that’s how it should work in theory. In reality, I can count on my toes the amount of times a merchant has even looked at my credit card over the past several months. The implementation of technology that allows consumers to swipe their own cards has become quite common at most retail locations as well. Walk into a Home Depot, Safeway, or visit the local gas station, and you don’t even have to interact with a human being to make your purchase. Just swipe your card and you are on your way.

The bottom line is there is no fool-proof method to guarantee your credit card will never be used by thieves. If it makes you feel all warm and fuzzy inside, why not sign the back of the card and write ‘See ID’ as well? It may prevent a thief from using your card to make an in-store purchase, which will save you the time and effort it takes to dispute the fraudulent charges and protect your credit score. In addition, be sure to check your credit card account online often and utilize an identity theft prevention service, such as LifeLock, for added protection. You may not be able to guarantee that a thief will never use your credit card, but the sooner you know about it, the better.

It amazes me that more people haven’t heard of the Citi PremierPass Elite Card. Perhaps Citi hasn’t done a very good job marketing the card? Or maybe it just isn’t pretty enough? I don’t know what the deal is, but if you love to fly and you haven’t heard of this card, you’re missing out. I happen to think it’s one of the best airline rewards cards out there for someone with good credit who travels often and is willing to pay a reasonable annual fee. It makes me smile every time I use it. Here’s why.

I purchased two airline tickets a few weeks ago for a total of $500. My wife and I were flying from coast to coast, so the round trip mileage was about 5,000 miles each. Since we purchased the tickets with our Citi PremierPass Elite Card, we earned 10,500 points in our Citi ThankYou Network rewards program (10,000 miles flown + $500 spent). We also received 10,000 miles in our individual frequent flier accounts. How awesome is that? In addition, during the trip we received 2 points for every dollar we spent at gas stations, supermarkets, and drugstores, plus we earned 1 point for every dollar we spent on all other purchases. Believe me, the points rack up fast with this card. And unlike other airline rewards cards that make it next to impossible to redeem your points, PremierPass points can be redeemed on any airline with no blackout dates.

This airline rewards card also offers a complimentary companion ticket when you buy a qualifying ticket though Spirit Incentives, a travel agency used by Citi. You call them up, tell them what flight you need, and then they search the internet for the best price. If the base fare is more than $299, you qualify for a free companion ticket. That’s right, the beloved ‘twofer’. I have used this service several times, and it really is a superb deal. I don’t know of any other credit issuer that offers a comparable reward.

If my infatuation with accruing miles and points bored you above, here’s a brief summary of the cards benefits:

1. Earn 1 point for every mile you or someone else flies on any airline
2. Earn 2 points for every dollar you spend at gas stations, supermarkets, and drugstores. Earn 1 point for every other dollar you spend.
3. Get a free companion ticket when you buy a qualifying ticket.
4. Points never expire, and you can use them on any airline with no blackout dates. The ThankYou Network has other goodies you can redeem points for as well.

Do you have personal experience using airline rewards cards ? If so, we would love to hear your opinion too!

Filling up at the gas pump hurts me. I mean, I literally feel like throwing up as I stand there watching the dollars roll on by as gas trickles into my tank. I remember when I was 16 and I could fill up my tank for less than $15. No wonder so many 16-year-olds nowadays would rather have their parents chauffeur them around than get their licenses and be responsible for their own gas!

How to beat high gas prices

The green in me tells me to bike. I’ve tried that, and I love it! But, I love it during Seattle summers when average temperatures are in the low 80′s with virtually no humidity. Summer has pretty much ended here in the Northwet (er… “west”), which means the rain, gray, and gloom will be here soon. And the green in me is not bright enough to overtake the gray, so that means I’m back to driving my car.

Gas rewards credit cards

Even driving just the minimal amount necessary still requires me to use gas. So what I’ve done to ease the pain is get myself a rewards card that gives me something in return for the gas I buy. Right now, I’m loving the TrueEarnings Business Card from American Express and Costco. Lots of cards out there are offering cash back for gas purchases, such as 5% cash back for the first 2 months, or even 6% back for your first 12 months. But no other card out there offers a set percentage for as long as you have the card.

The TrueEarnings Business Card from American Express and Costco gives you a set 5% rebate on gas purchased at Costco or any other stand-alone gas station, excluding gas purchased at warehouse clubs other than Costco, superstores or supermarkets. This means gas purchased at places like Chevron, Shell, Exxon, or BP will earn you a 5% rebate. Gas purchased at places like Sam’s Club (competitor… gasp!) or Safeway will earn you zip in rebates on this card. This 5% rebate also has no expiration date; you’ll receive 5% rebate on day 1 as well as years from now.

You’ll receive your rebates annually in the form of a Costco in-store coupon. This coupon can be used to purchase goods at Costco, or you can even go and redeem it for cold-hard cash so you can physically hold in your hand how much the TrueEarnings card has saved you at the pump.

If you’re not a business owner but are still diggin’ this card, there is also a non-business version of this card that earns you a 3% rebate on gas. Be sure to check out the wide range of consumer rewards cards if you want to find the best deal for you.

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