I was going to comment on the loan structure of credit cards earlier, got too long winded, and even political, so I edited it away.

Some people get confused and think credit card providers are a banking service meant to make life easier instead of the loansharking operations which they really are.

If you are paying your cards off on time you are tying up their money and not only not paying interest but depriving them of the interest they would have earned on that money if they invested it somewhere else like a business loan or treasury bond.
So if you are using interest free credit you are actually costing them money out of their pockets.

Of course they would prefer that you didn't do that.
From an accounting viewpoint they would prefer you not to use their card at all if you pay no interest, but because they are hoping to get you hooked into their loan-shark interest rate structure they use free credit card use as sucker bait.

That is the big difference between credit and debit cards. Debit cards only allow access to your own money and are not loans.

Phishing, the impersonation of your bank or financial institution by hackers seeking your personal information, isn't just web or e-mail thing. The hackers are shifting into blind calling phones, including sell phones, and IM.

The phone call typically uses an computer generated voice to tel you there is a problem with your account, that they are putting a 'hold' on your CC, or they are canceling the CC. The voice then suggests you need to address this issue and to get the inquiry started they will need you CC number, your account number ...

The IM sends a text message claiming a similar problem and telling you to call a number. If you call the number you get a computer voice that says it is the security office, credit department or some such and that to get the issue corrected they need you 16 digit CC number and ...

I have no idea what happens in the call after you give them your information. I never go that far.

When this sort of thing happens I call my credit union and explain the situation. I also call the CC company. If the call came in by IM I also call the cell service provider. Interestingly while the general impression I get from the financial side is: 'Yes it happens. We are aware of this. We will make a note of it and report it.'; the general impression is that they are annoyed I called, they really can't do much about it, and they are primarily humoring me because it isn't their problem.

The cell phone company was more attentive and asked if I remembered the identity of the IM caller and the number they wanted me to call. The IM caller was within their system and while they never claimed there would be prosecution I got the impression they would be looking into it and, at the very least, removing that client.

I figured I was reporting a crime. I could imagine someone with limited capacity handing over their information and losing everything. The calls to all the offices were toll-free and didn't take long. I figure that if nobody raises a stink nothing will get done. If it annoys the companies it is part of running a business and perhaps they might be motivated to do something.

The security systems around our financial sector, and the simple fact you can set up a CC account with just their name, SSN, DOB, and mother's maiden name are a disgrace. Using a person's SSN as a password is brain-dead stupid. But it is how the system is set up.

Not quite "loan sharking" (well, I didn't read anything about kneecapping for non payment in the T&C's I got) but, yes, it's a LOAN - an unsecured loan at that - so enter into the relationship with caution.

I am looking CLOSELY at www.revolutioncard.com - 100% PIN based, no card number on the card itself - really low merchant fees. Very neat.

If the Mafia could take you to court and foreclose on your property they would not need their own methods of collection either.
The only reason CCs don't kneecap their victims is they have the police and courts as enforcement and collection agencies.
It is very nice that we have legalized loansharking.

Usury, my friends, usury.

Actually, I hadn't thought of it before--if I get a credit card from my local one-branch-only credit union, which state's law apply to a credit card from them? My state's laws? Or the pathetic credit laws from Delaware or North Dakota that allows modern day usury? I would hope that it's my home state's laws if the credit union isn't headquartered in these other states.

Thanks martinfocazio. I will have to look into revolution card.