A surprisingly little known line item to improve tax compliance was included in a housing reform bill (HERA) passed way back in 2008 and took effect in January in time for the filing of 2011 tax returns. Although consumers are not required to provide information to comply with the new credit reporting reforms, certain credit card and third party network payments, such as eBay, are asked to ‘voluntarily’ submit a 1099-K from to help “improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.” Read More →

Mobile payments are the wave of the future, but concerns persist…

With the advent of digital wallet technology, the ability to make mobile payments is now in the hands of anyone who has a cell phone. Considered to be one of the largest and fastest growing markets, mobile payments, as with any new financial product, are at a high risk for fraud and theft. Security is being put at the forefront — but many challenges still face mobile payments.

PayPal President Scott Thompson predicts “that by 2015 digital currency will be accepted everywhere in the U.S. – from your local corner store to Wal-Mart. We will no longer need to carry a wallet.” Research firm Informa Telecoms & Media predicts that remote payments for physical goods and services will grow to more than $5.5 billion in 2014, suggesting that today’s fears won’t be there tomorrow. Read More →

Consumers continue to refrain from using credit cards…

How Americans are managing their debt is vitally important to the overall economy. Increasing personal debt levels, although negative in many aspects, often indicates increased spending and an improved economic outlook. Thirty-three percent of consumer debt is revolving debt (like credit cards); the other 66 percent comes from car loans, mortgages, student loans and the like. The average American holds four open credit card accounts and one in ten American consumers has more than ten credit cards. Read More →

Lower merchant fees could have mixed results for consumers…

The impact of the Durbin Amendment, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, will begin to be seen soon by banks and consumers alike when it goes into effect on October 1. By reducing the fees that merchants pay for every debit transaction, the act was designed to lower costs for consumers. But the reform will cut into bank revenues and, as a result, could raise the cost of consumer borrowing. Read More →

Here’s who really ends up paying for credit card fraud…

Like a house of cards, credit card fraud can wreack havoc on America’s economic house and eventually impact how easy consumers are able to secure the credit they need. With the number of victims increasing over the last decade, it’s even more important for consumers and merchants to understand the
negative effects and put into action protections to stop the crooks. As a consumer, you may think you’re not affected by credit card fraud, as long as your card is secure. But think again… Read More →

New technology could change the way you make payments…

For many small businesses, the task of managing credit card payments can be daunting. On top of the cost of leasing a card reader and payment software, a phone line is often required. And with a long list of additional fees, it’s an expensive proposition, especially for start-up businesses. But thanks to new technology another option is threatening traditional credit card payments — accepting payments with cell phones. “Square” is a new service being used across the globe to help simplify the process. Read More →

Credit card rates continue to drop for small business owners…

The biggest concern for lenders is the level of risk they incur when approving credit. As a result, banks raise rates in markets that pose the most risk and lower rates in markets that pose the least risk. Taking this fact into account, the business sector appears to be posing the lowest risk to banks and creditors at the moment — and interest rates have dropped accordingly. While credit card rates for individuals have remained steady over the last few months, business credit card rates have dropped across the board. Read More →