Table Of Contents

 
CHAPTER 1 - Credit Cards
1.1. How credit cards work
1.1.1. Advertising, solicitation, application and approval
1.1.2. Interest charges
1.1.3. Benefits to customers
1.1.4. Detriments to customers
1.1.5. Grace period
1.1.6. Benefits to merchants
1.1.7. Costs to merchants
1.1.8. Parties involved
1.1.9. Transaction steps
1.1.10. Secured credit cards
1.1.11. Prepaid "credit" cards
1.2. Features
1.3. Security problems and solutions
1.4. Credit history
1.5. Profits and losses
1.5.1. Costs
    1.5.1.1. Interest expenses
    1.5.1.2. Operating costs
    1.5.1.3. Charge offs
    1.5.1.4. Rewards
    1.5.1.5. Fraud
1.5.2. Revenues
    1.5.2.1. Interchange fee
    1.5.2.2. Interest on outstanding balances
    1.5.2.3. Fees charged to customers
1.6. Over limit charges
1.6.1. UK
1.7. Neutral consumer resources
1.7.1. Canada
1.8. History
1.8.1. Collectible credit cards
1.9. Controversy
1.9.1. Hidden costs
1.9.2. Redlining
1.10. Credit card numbering
1.11. Credit cards in ATMs
1.12. Credit cards as funding for entrepreneurs

CHAPTER 2 - Choosing A Credit Card
2.1. Credit Card Terms
2.2. Balance Computation Methods
2.3. Other Costs and Features

CHAPTER 3 - Credit card associations
3.1. American Express
3.1.1. History
    3.1.1.1. Early history
    3.1.1.1.1. American Express buildings
    3.1.1.1.2. Nationwide expansion
    3.1.1.1.3. Financial services
    3.1.1.1.4. Loss of railroad express business
    3.1.1.1.5. Company role in Cable TV
3.1.2. American Express today
    3.1.2.1. Travel Division
    3.1.2.2. Charge card services history
    3.1.2.3. "Boston Fee Party"
    3.1.2.4. Financial services history
3.1.3. Credit Crisis
3.1.4. Advertising
3.1.5. Workplace
    3.1.5.1. Offices
    3.1.5.2. Job satisfaction
    3.1.5.3. Diversity
    3.1.5.4. Acquisition of American Express Bank Ltd. by Standard Chartered Bank
3.1.6. Management and corporate governance
3.2. Diners Club
3.2.1. Founding
3.2.2. MasterCard alliance
3.2.3. Carte Blanche
3.2.4. enRoute
3.2.5. Acquisition by Discover Card
3.3. Discover Card
3.3.1. History
3.3.2. Business developments
3.3.3. Brand acceptance
3.3.4. Discover acquires Diners Club
3.4. Japan Credit Bureau
3.5. MasterCard
3.5.1. History
3.5.2. Features
3.5.3. Shareholders
3.5.4. IPO
3.5.5. Litigation
3.5.6. Advertising
3.5.7. Sports sponsorships
3.5.8. Management and Board of Directors
3.5.9. MasterMoney
3.5.10. PayPass
3.5.11. Banknet
3.5.12. EPS-Net
3.5.13. Publications
3.6. Visa
3.6.1. Background
3.6.2. Operations
    3.6.2.1. Corporate structure
      3.6.2.1.1. IPO and restructuring
    3.6.2.2. Association rules
    3.6.2.3. New services, security
3.6.3. Trade mark and design
    3.6.3.2. Dove hologram
3.6.4. Sponsorships
    3.6.4.1. Olympics
    3.6.4.2. Others
3.6.5. Legal proceedings

Table Of Contents

1.6. Over limit charges

 
Consumers who keep their account in good order by always staying within their credit limit, and always making at least the minimum monthly payment will see interest as the biggest expense from their card provider. Those who are not so careful and regularly surpass their credit limit or are late in making payments are exposed to multiple charges that were typically as high as £25 - £35 until a ruling from the Office of Fair Trading that they would presume charges over £12 to be unfair which led the majority of card providers to reduce their fees to exactly that level.

UK

The higher level of fees originally charged were claimed to be designed to recoup the costs of the card operator's overall business and to ensure that the credit card business as a whole generated a profit, rather than simply recovering the cost to the provider of the limit breach which has been estimated as typically between £3-£4. Profiting from a customer's mistakes is arguably not permitted under UK common law, if the charges constitute penalties for breach of contract, or under the Unfair Terms In Consumer Regulations 1999.

Subsequent rulings in respect of personal current accounts suggest that the argument that these charges are penalties for breach of contract is weak, and given the OFT's ruling it seems unlikely that any further test case will take place.

Whilst the law remains in the balance, many consumers have made claims against their credit cards providers for the charges that they have incurred, plus interest that they would have earned had the money not been deducted from their account. It is likely that claims for amounts charged in excess of £12 will succeed, but claims for charges at the OFT's £12 threshold level are more contentious.

Source: wikipedia.org

1.6. Over limit charges