Credit Cards and the Consumer: Don't Throw Baby Out With the Water

I review dozens of credit card offers each week to find the best deals. Check out more on our credit card page.

This Sunday marks the first day that consumers could start paying an extra fee just for using their credit card to make purchases. But don't panic: It's unlikely to kick in right away, especially at the biggest retailers.

Punctual Payers Face Higher Rates From Card Companies

Credit card comparison websites can help consumers pick the best card for their needs, but the services come with a big possible conflict of interest. Most of these sites have a business model that relies on affiliate marketing: You click and apply for a card, and the site earns a commission. Why is this a problem? It can leave users wondering (or completely unaware) whether or not the cards that have been selected based on the criteria they plug in are the best choices for them, or simply the biggest moneymakers for the site.

California Attorney General Kamala Harris is on a roll. There’s been a fair bit of media coverage about abusive debt collection practices, particularly in credit cards, but at least until Harris filed a suit on Thursday against bank miscreant JP Morgan (hat tip Deontos), surprisingly little action.

The federal funds rate, to which the prime rate is closely tied, is expected to remain close to zero percent for the foreseeable future.

OTTAWA — The federal Opposition on Monday called on the Harper government to stop credit card companies from charging businesses higher fees for using premium cards. The call came as a federal competition tribunal prepared to rule on whether Visa and MasterCard are engaging in anti-competitive behaviour. Small business groups hope the tribunal will recommend that Ottawa forbid the major credit card companies from forcing retailers to accept cards that carry higher payment processing fees.