So this?
The ability to create virtual card numbers is nothing new. With my Bank of America credit card I can create one-time numbers or numbers intended to be reused. I can specify how long the numbers are valid and I can set a dollar limit with them. Once used with a particular business, the numbers cannot be used with any other business.
If the new Card has a magnetic stripe intended for use with old fashioned card readers, then it is no more secure than old fashioned credit cards.
Sorry. I strongly feel I play the “game” [noun], but I do NOT “game” [verb] the system. I rarely cancel cards unless it is being replaced by a card I was offered. I follow the rules. Those who “game” [verb] the system tend to get their cards cancelled. And at times their entire business with a bank shut down.
It does help that I can run $2000 to $4000 per month through credit cards and I know I"m a bit unique due to needing residences in 2 cities. But most people can do more than they think. Cable bills? Insurance? Groceries? Gas for the car? Etc…
Based on my reading and overseas travel a few times a year and my daughter’s more extensive travels (around the world twice just because she could) the best way to avoid excess conversion fees is get cash out of ATMs i the local currency with no fee debit cards (Germany is real big on cash compared to most of the “first” world) and find a no foreign transaction fee card for credit purchases.
And if it is contactless so much the better. In Germany a few months back the grocery stores would give me a total and then somewhat frown when I pulled out plastic then roll their eyes followed by a big sigh when they realized it wasn’t contactless and they had to actually get me to sign something.
Total myth. As long as you use the card some reasonable amount they are more than happy to collect 1.5% to 4% of each transaction as profit after the expense of dealing with you.
But banks do NOT like people with credit cards that are gathering dust.
No, I mean privacy from store purchase tracking, the same way that Apple Pay stops that if you eschew loyalty cards. But not everyone takes Apple Pay, such as Kroger and their sub chains. With the Apple card, even if the number isn’t tokenized for each purchase (I’m not clear about that) I can frequently change the number outright to block the store from linking all of my purchases together, and the uber-companies linking those to all of my purchases elsewhere. It won’t help for online purchases because they have the shipping address to act as a key. But any lessening of data falling into the mill is a win.
I too would rather have Apple have the data than Goldman (or any other bank), but at least it’s (probably) no worse than my current credit card, and might be somewhat better.
1 Like
And will sometimes auto-cancel them on you (I’ve had it happen, this isn’t just internet legend). While this may not seem bad (you’re not using the card after all), it can affect your credit score. First, it will decrease your total credit limit which will increase your usage percent (if you have a balance on any card). Second, if it’s an old card it may decrease the average life of your cards. Both of those things (usage and life) can affect your score.
Of course if you have a high score and aren’t looking to get a loan any time soon, you may not care about the few percent drop in your credit score, but if you do, think about using every card once or twice a year or so.
Chase just did this to me with a card I’ve had for nearly 20 years. I’ve only used it for balance transfers in recent years - but I HAVE used it. Yet I got a letter saying it was going to automatically cancel when it expired. It has a high credit limit so I didn’t want to lose it. The letter stated that using it after I received the letter would not change its status - I had to call them.
Liberty did the same thing, except I had to use it to keep it. Guess this means I’m going to have to use the cards for little purchases now and then.
Diane
The Citi/Costco Visa card gives 4% on gas, 3% on restaurants and travel, 2% on Costco purchases, and 1% on everything else, which would include purchases from Apple.
I am assuming the Costo card is not a no fee card, as you have to pay for the membership fee. What is it currently?
Yeah this is basically true, get the right card for the right job, is the basic rule. Checking each ones fee structures for your usage. So if you travel a lot, make sure you get cards for that; if you want to pay an expensive item off over time, then get a multi-month 0% interest rate purchases card and make sure you can clear the amount within those months, etc.
Basically, cards are not specific to one use, each one has it’s own raison d’être, and when you’re done with one whose “good” function has ended, it’s often best to then close it, as its after that that companies then look to make money from you being tempted to use it for the wrong things that they can charge you for in some way.
And if it is contactless so much the better. In Germany a few months back the grocery stores would give me a total and then somewhat frown when I pulled out plastic then roll their eyes followed by a big sigh when they realized it wasn’t contactless and they had to actually get me to sign something.
Better than contactless, make sure it’s a chip ‘n’ pin card, as that’s what happens here in Europe. For example in the UK it’s typically (though as ever each store has slightly different policies):
- total is up to £30, you can either: chipNpin/contactless/ApplePay.
- total is over £30, you can either: chipNpin/ApplePay.
The latter is typical, but some stores (for their own reasons?!) stop AP at £30 as well. The same is true in most other European countries, accept some have a different contactless limit, or none at all.
Obviously, each store sets their own rules depending on their liability for covering fraudulent usage. But why policies on usage can’t be made more universal… who knows?!
Happy travelling. ;-)
One question to wonder about…
In reality, how does it affect you in having a company tracking your spending?
Surely, all the store is going to do here is offer you things more relevant to you, like vouchers off, or maybe personal advertising in some way? And that’s presuming they issue those at the till, as unless you use a loyalty points card or something on top, they don’t have your address.
AFAICT, cc companies only track your amounts, not who you spend it with, (I’ve never had any offers concerning what I buy or should buy from my cc companies that I can remember, ever).
At least here in Europe, under regs like GDPR, neither stores nor cc companies are allowed to sell-on your data to third-parties, so that’s a dead end for them.
Data security for theft is important (card skimming, et al.), but outside of that, companies knowing you spend x amount in their stores on y products, AFAICT really shouldn’t affect you outside of not being tempted by any ‘discount offers’ they may try to offer you that fall outside of what you want to spend. And that’s down to personal responsibility to not spend.
The reason I use Apple Pay is:
(1) Card skimming and the tokenisation on each charge.
(2) Ease and ubiquity of usage (I want to be carrying ZERO plastic sometime in future, including beyond payment cards —travel/loyalty/etc. cards— so unless enthusiasts bother to use these things now, it’ll take longer to get there ;-).
The Citi/Costco Visa is a no-fee card. It’s true that you have to be a Costco member to get it, but you pay the same Costco membership fee whether you get the Visa card or not.
The Costco card also serves as your Costco membership card, so it has your picture on the back. That could be useful when you need to show a picture id but don’t want to show a driver’s license or other government id.
The reward redemption process is a bit odd. The total amount available is shown with the February statement. You can only redeem it at the checkout of a Costco store. If you don’t use it for purchases at that Costco, you will be given the reward in cash.
My apologies—all I meant was that all the points and rewards are just that, a game, and not part of a general personal finance strategy. Presumably you find it amusing and sufficiently rewarding to play that game, but I’ve always seen it as a lot of work and risk. Of course, I’m categorically allergic to all forms of gambling too because of the money involved.
1 Like
I agree. I have 3 credit cards and I only intended to have 2. A Chase card to get 5% off of Amazon purchases. My bank’s card which giver me an extra 10% rebate on top of the regular cash rebate (rebate amount varies by type of purchase), and a Target credit card which started as a Target only card and became a MC which gets me a 5% discount at Target and regular rebates elsewhere. All are no fee cards (if they charged me a fee I would drip them).
An important component of a credit rating is the age of your accounts. If you drop a 10 year old credit card account and replace it with a new one your credit rating will go down. So keeping old accounts is a good idea.
I am interested in the Apple Card, though I don’t really want a 4th card. Not for the discount for Apple goods (I buy iTunes cards at 10+% discount on a regular basis from other stores) but for privacy, security, and the 2% discount when I use ApplePay. But I will have to pay attention if another card will give me a bigger discount in any situation. The Apple Card would not replace any of my other cards since they would give me larger discounts most of the time. The Apple Card would get most of its use at Trader Joes, Victory Comics and CVS.
That’s perfectly fair enough. I’m exactly the same on most of these points/cashback/store loyalty schemes.
All cashback/points/loyalty systems are essentially trying to achieve, is to get you to spend money, and in doing so they get transaction fees at the most simple level, and further fees (interest, missed payments, etc.) at a deeper level – so the more throughput they can get, the more money they earn.
Importantly from a personal perspective, they all require work to keep ahead of, and that requires time and effort on some level as a user. Busy people don’t want to spend their free time dealing with all these “deals”, “offers”, and paying this card off before that one, or within a certain timeframe or you lose out on said “deal” in the first place.
Sometimes just earning a living, taking simple affordable finance when required, and spending within your means, equals a happier life. 
Agreed. If you don’t want to put in the time then don’t go for points and miles.
But I’m sitting on about $15,000 in value in my current points and miles acounts. Cost me under $3000 in fees. I just spent 2 nights in Florida using a free night certificate plus some points. I’ll be spending 7 nights in London this June at an upper level hotel, all on points.
My daughter has been around the world twice (there were destinations and it was just easier to do it that way), taken a shower in a private suite over Europe in the nose of an A380, spent 5 nights in Japan with business/first class air fare both ways with travel costs of less than $400 and more. She and her hustband have had 2 for 1 status with Southwest for well over a year.
If you want to travel it can be a way to do it with a lot fewer $. Yes it will cost some time but the $ savings can be huge.
None needed. I just wanted to clarify. There ARE people who “game” [verb] the system and they tend to lose their credit cards. Not Meeee.
Collapsing all the notes about Costco. They sell Apple gear at a discount. Not much but more than the Apple store for most people. They sell iTunes gift cards $100 for $95 every day. Periodically they go down to $100 cards for $85. So a 15% discounts plus an additional 2% at the end of the year.
To be honest if you are a Costco member the Citi Costco Visa is a no brainer in most situations. This card adds 2 years to the warranty of most anything (cars and a few other things excluded) you buy up to a max of 5 years. And you get the discounts mentioned by others. So typically for Apple gear you buy at Costco you’d get 2% plus the Costco discount if you pay with the Citi Costco Visa. And extra warranty. For some that means you can skip Applecare. (Very personal decision that last bit.)
And the Costco Citi Visa warranty extension is also for purchases NOT at Costco.
In general Citi cards with $400+ annual fees offer similar warranty extensions but this one has no fees. And as far as I know all the other cards with warranty extensions only cover you up to 1 additional year.
1 Like