Archive for December, 2008
After a long time a piece of news gives the smile over Americans because the relief is on the way for millions of U.S citizens who are very angry with their credit card companies. Recently, U.S. regulators which are led by the Federal Reserve, the U.S. Central Bank approved some new rules to ban what they call ‘unfair or deceptive’ practices by banks as well as credit card companies this week. The new rules are scheduled to take effect in July 2010. For several years, customers have complained banks have imposed unreasonable and high amount of fees or very often they have hiked their interest rates without any reason.
Most of the consumer groups say that as such practices were legal; so, they have helped push many card-holders deeper into debt. Hopefully that the new rules would protect and guard consumers from arbitrary rate hikes, alongside require. Additionally, they will be offered a fair amount of time in order to pay down debts. But some critics complain these changes will simply make it further difficult for numerous consumers to get new credit. A study shows the rule changes can cost the U.S. banking industry over $10 billion per year. On the other hand, many American lawmakers say they decide to look at passing legislation upcoming year to aggressively target credit card lending abuses. Now U.S. people wait to get the practical experience of the rules.
One of the world largest credit card users Citi Bank is launching first biometric credit card system and the bank has chosen to launch it in Singapore. Around 190000 people age between 25 to 34 are going to be introduced to this system in Singapore. The bank said that there will be no extra cost for both merchants and credit card holders.
Jonathan Larsen, CEO and Country Manager, Citibank Singapore, said, “We’re launching this biometric payment solution as part of our launch of the Platinum Clear Card. And for the next couple of months, we will focus on making the biometric solution available to our Clear customers. However, very shortly thereafter, we will be broadening this to all Citibank cardholders…”
A global biometric authentication and payment solution provider Pay By Touch is providing the technology. John Rogers, founder, Chairman and CEO of pay By Touch commented on a statement to the press that “The biometric credit card service from Citibank and Pay by Touch sets a new standard for speed, convenience and security,”
Citibank says both merchants and its cardholders will not sustain extra cost in using this payment service. The plan is to develop this service to millions of customers in Singapore. What’s more, credit payments, users will also be able to make debit payments from their savings accounts. Citybank plans that; step by step this payment system service will be introduced to the other parts of Asia Paccific.
The biometric credit card features unique and high level security. It will also make the card longevity and this card will be able to use in all existing system. Critics are assuming that this technology will reduce credit card frauds and it will be much safer for the card holder to use there valuable card.