10 Answers To Credit Card Questions We Get Asked All The Time

Credit cards come with a lot of fine print. But the scene isn't just complicated for cardholders; it's complicated for the retailers that accept them, too. What needs signing, and what doesn't? When can a store ask for ID? Are they allowed to charge different prices for cash and credit?

Six years ago, Consumerist answered your questions about these rules and others.

But since then, the law has changed, and so have the agreements the credit card companies have with the merchants who accept plastic. Here's what you need to know now.

1. Can a merchant set a minimum purchase amount for credit card transactions?

Yes. According to both the Visa (PDF) and MasterCard (PDF) merchant agreements, a merchant may set a minimum transaction threshold for credit card purchases.

There are some conditions, though. For both MasterCard and for Visa, the minimum purchase amount…

- must not exceed $10
- must apply equally to card types from all issuers - so a Signature card or a Gold card from Capital One or from Chase all face the same minimum.
- The MasterCard agreement that also specifies a merchant may not establish a different minimum for "MasterCard and another acceptance brand," which basically translates to "if you want to take MasterCard, your minimum transaction threshold needs to be the same for every credit card user."

2. Can a merchant charge more (or add a fee) for using a credit card?

Yes, they can - and that's a relatively new thing. Since a legal settlement in 2013, merchants have been able to charge their customers additional surcharges for paying with a credit card.

3. Can a merchant ask to see my ID? / I wrote 'See ID' on my card, so I am protected from fraud… right?

This one is a little complicated. Sometimes merchants are supposed to ask to see your ID, and sometimes they're not. Writing the words "See ID" on the back of your card doesn't actually help you.

4. Sometimes I have to sign for purchases and sometimes I don't. What's the deal?

Over the past few years, credit card companies have rolled out programs allowing for faster, no-signature-required transactions at many businesses.

5. Will I still have to sign for purchases after the big upgrade next year? What is the change next year?

American credit cards are getting an upgrade in 2015 to become more secure, less susceptible to fraud, and more like their European siblings.

6. Can a merchant put a "hold" on my card for more than I spent, or for what they think I will spend?

A "hold is when a merchant effectively tells your bank or credit card company to set aside a certain amount of money for an impending purchase. It's most frequently seen at restaurants and hotels, where customers' tips or add-on charges can't be predicted in advance.

7. Can a merchant make me agree to not issue a chargeback if something's wrong?

Nope. Under the Fair Credit Billing Act, you have a right to dispute transactions.

MasterCard's merchant agreement simply says, "A Merchant must not impose, as a condition of MasterCard or Maestro Card acceptance, a requirement that the Cardholder waive a right to dispute a Transaction.

8. Everyone says I should never use my debit card, because credit cards have fraud protection and debit cards don't. Is that true?

They both have some fraud protection. However, if someone takes your debit card on an Xbox-buying spree, that's a few hundred dollars missing from your bank account until the situation is fixed. If someone does it with your credit card, the problem can be sorted out before you have to pay the bill.

9. Doesn't my credit card give me extended warranties and other benefits?

Probably! Card-issuing banks offer a wide variety of quiet benefits, not really advertised, to their cardholders.

10. How do I report a merchant that's not playing by the rules?

If a merchant does try to pull anything they're not allowed to around credit cards, you can report them. Visa and MasterCard both have easy-to-use online forms for doing just that. American Express card holders can do it by calling the 800 number on the back of their cards.
 

In the sometimes challenging economic environment, accounting for every cost is vital for many South African business owners. According to John Kerby, Corporate Accounts Director of Risk Benefit Solutions (RBS), an independent insurance and risk specialist, insurance policies are often one of the costs that businesses look to cut due to the incorrect view that insurance may not be a vital cost necessary for the business to operate.

He says that not only is this view incorrect, but very risky, as should something happen to the business, it is not likely that business will have excess funds available to cover these unexpected costs, and that this has in the past led to financial ruin for many businesses.

He adds however that often business owners may unknowingly be paying more for their insurance policies than necessary, and while it isn't possible to do away with insurance costs altogether, given the protection and risk cover they provide for the unknown, there are smarter ways of getting value for money.

In light of savings month, Kerby offers businesses a number of suggestions that will assist a business in ensuring that the insurance premium they are paying provides the business with value for money, thereby ensuring that it is not paying more than you should be for the necessary cover.


Organisation is Key

Ensuring that the business has a dedicated insurance file which includes all the policy information is the first step in reducing insurance premiums. Reducing a business's insurance premiums is a continual process and reviewing the policies regularly can yield savings. This review can be conducted annually, or whenever there is a significant change within the business that may warrant a review.


Assess The Business's Assets And Named Employees On Policies

Analysis of the business's listed assets, equipment and motor vehicles is crucial to ensure that the business still owns the assets listed, and if not these assets should be removed from the policy. Businesses should also update and reduce the retail values of the vehicles as often as possible, which will ensure the premiums remain both accurate and competitive. The same can apply for the valuations of business' premises.

Businesses should also review all named drivers and/or key employees identified on policies to confirm that these people are still employed by the business. Many employers simply fail to adjust their listed insured employees when individuals leave the company, which can result in significant savings given that the risk will be lowered.


Look For Irrelevant Or Repetitive Coverage

As a business evolves some types of cover may no longer be necessary. For example, if a portion of a business closes, an operational change takes place, or a division is outsourced, a business may carry coverage that actually could be eliminated.


Discuss Your Premiums

Often businesses don't take the step of advising their insurer that they would like to apply for a better rate. Frequently, insurers will discuss the premium in detail and will suggest ways to have it reduced. During this discussion, an insurer or broker is also likely to learn something new about the business that may result in lower premiums given that they understand the risk profile more accurately.

A business may also be eligible for discounts on their insurance if the property has fire alarms, Automatic Sprinkler Inspection Bureau (ASIB) approved sprinkler systems installed or burglar alarm systems. For commercial motor insurance, anti-theft devices and employees with good driving records may also reduce premiums. The business's broker will be able to determine whether the business is eligible for these discounts.


Connect With Trade Associations

Many trade associations have affiliate members that are insurance companies, and often offer substantial business insurance discounts. Memberships to such organisations are often very reasonable, and can lead to increased business through networking too.


Risk Management

Make sure the business has a sound risk management policy in place, as this will ensure that the premiums remain sustainably low in the long term. The business's claims history has a direct correlation to the premium, so it is important that the claims remain low. Spending more on security, such as cameras, security gates, alarm systems, could also assist with this. In addition, if the premises are prone to flooding, businesses may choose to relocate or take proactive measures to resolve.

Many businesses are either under or over-insured, and it is therefore important for business owners to ensure that they have sufficient insurance cover in place, but at a cost-effective premium in relation to the risk. Talking to an insurance broker can help clarify what type of cover is needed for the business in question, and also highlight issues which may otherwise have been overlooked.


Manage Risk Effectively

A business should request various options to increase the excess on the company's vehicles, and business policy. By doing so, a business can weigh up the perceived increased risk verses the reduction in premium. For example, an increased excess per vehicle could be requested depending on how frequently the vehicle is being driven and who the driver of the vehicle is - this is one such smart way of managing the business's risk effectively.

More than £1.3bn of bogus insurance claims were detected in 2013 according to figures published today by the Association of British Insurers, with claims car insurance making up a majority of this amount.

Fraud detected across the industry is now at the highest level ever following the 18% rise compared to the previous year, the trade body said.

Insurers detected a total of 118,500 fake or exaggerated insurance claims, equivalent to 2,279 a week across the year. The average fraud detected across all types of insurance products was £10,813.

Fraudulent motor insurance claims were the most expensive and common, with the number of dishonest claims at 59,900 claims up 34% on 2012 and their value up 32% to £811m.

So-called 'cash for crash' schemes, where fraudsters stage car smashes on unsuspecting motorists and claim for the damage and injuries, represent approximately £120m of financial exposure to insurers, the report concluded.

However, the number and value of property insurance frauds fell, down 38% by £137m on 2012.

Aidan Kerr, head of fraud at the ABI, said: 'Insurance fraud is not a victimless crime, which is why the industry invests £200m a year in fraud detection, including funding the Insurance Fraud Enforcement Department, and developing the Insurance Fraud Register, a central database of known insurance cheats.

'The more that is done to crackdown on the dishonest, the quicker and more effectively insurers can deal with the claims from the honest majority.'

The Insurance Fraud Bureau, which was created in 2006 to tackle these organised scams, is currently supporting police forces and insurers investigate 110 of these crimes, throughout the UK.

In one case, 60 people were convicted of a 'crash for cash' stage accident which involved more than £514,000 being claimed from 25 vehicle crashes alone.

Last week a bus company was forced to scrap a bus route after it was targeted by 'cash for crash' fraudsters 15 times in two years.

The ABI added that since 2007 the value of dishonest general insurance claims detected has more than doubled, with the number detected rising by 30% over the same period.

Over the past several months, small businesses may have grappled to understand the many changes and regulations to the evolving health care landscape. In developing compliant strategies, employers have made, and continue to make, key benefits decisions that will impact the personal and financial well-being of their workers for years to come.

For those small-business owners who have continued to offer major medical insurance to their workforce, rising health care costs continue to be a growing concern among employees. As costs continue to increase, it's important for small-business owners to keep in mind that even with a major medical plan; out-of-pocket costs can be overwhelming for workers.

To relieve some of these financial pressures, more employees are looking to their employers for added protection. And for those employers that offer more than just major medical insurance coverage, it pays off.

In fact, the 2014 Aflac Workforces Report found that 75 percent of employees believe their overall benefits packages influence job satisfaction and 64 percent say it impacts their work productivity. They also say benefits packages are influential with respect to workplace well-being and employer reputation.

So basically, the more you care - the more your employees care.

For those of you who think you can't offer new products because you can't afford it, there's a benefits solution that's right for you. Voluntary insurance policies, which complement major medical insurance coverage, can be paid by the employee and are designed to help pay for out-of-pocket expenses that may accompany the rising cost of health care.

Voluntary insurance products can give you the opportunity to offer great benefits to a workforce that's looking to you for relief of growing financial burdens. Policies include accident, disability, cancer, hospital, critical illness and many more.

5 Reasons Why Voluntary Insurance Matters

* Voluntary insurance policies help provide employees with a financial safety net. Knowing that they have the security of a voluntary plan that will help cover unexpected medical costs will help keep their minds on their jobs and not on monetary concerns.

* Voluntary insurance can be offered at no direct cost to employers. You can choose to contribute a portion of the premium or simply make the policies available for your employees to purchase.

* Since voluntary insurance pays cash benefits, workers can use it to help pay health care costs that aren't covered by major medical insurance. Whether an employee needs the money for childcare, groceries or co-pays, cash benefits allow the flexibility to put the money where it matters most.

* Voluntary insurance policies pay benefits regardless of any other insurance coverage employees have in place.

* Employees who are offered and enrolled in voluntary insurance plans feel more empowered at work, see their company as a great place to work and believe they're more financially prepared to cope with unexpected medical expenses.

Gain More by Offering Voluntary Insurance

Deciding to make voluntary insurance available to your small-business employees is one way to soften the impact of inevitable cost shifting and rising out-of-pocket expenses.

Offering additional options like supplemental insurance shows you understand their evolving needs and also helps create a productive and loyal work environment.

1. You Need Home Insurance
Homeowners need to purchase home insurance to protect their homes and personal property. Those who rent need insurance to protect their furniture and other personal property. Everyone needs protection against liability for accidents that injure other people or damage their property.

2. Decide How Much Coverage You Need
The better your coverage, the less you will have to pay out of your own pocket if disaster strikes. In some cases, your lender decides how much coverage you need and may require you to buy a policy that covers at least the amount of the mortgage. It is important to note that the amount of coverage you buy for your house, contents and personal property will affect the price you pay.

3. Compare Deductibles
The deductible is the amount you have to pay out of pocket on each claim and applies only to coverage on your house and personal property. Make sure when choosing a policy that you are comfortable paying the deductible if you make a claim. Remember, a policy with a $100 deductible will cost more than one with a $250 deductible. Higher deductibles may be available at a reduced price.

4. Replacement Cost or Actual Cash Value?
You have the option to choose to insure your home and belongings for either replacement cost or actual cash value. Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality, without deducting for depreciation. It is important to insure your home for at least 80 percent of its replacement value. Actual cash value is the amount it would take to repair or replace damage to your home afterdepreciation.

5. Shop Around Before You Buy
You are not required to purchase insurance from the company your lender recommends. There are a number of unbiased sources available to find out what different insurers charge for identical products and services, including your state insurance department, consumer publications and your public library.

6. Ask Your Agent About Discounts
In some states, insurers offer lower prices for such things as insuring your home and car with the same company, installing deadbolt locks or alarm systems or replacing the roof.

7. Basic Coverages Available
Whether you own or rent, there are different packages of home insurance offered to protect your home and belongings. Each package protects against a specified number of events that cause damage to property. Three examples are fire, windstorm and theft. In addition, each package policy usually contains four additional types of coverage: property damage, additional living expenses, personal liability and medical payments.

8. Where to Shop
Check the newspaper and yellow pages of the telephone directory for companies and agents in your area. In addition, ask your neighbors, relatives and friends for recommendations on insurance companies and agents. Remember to shop around to get the best price and service.

9. Read Your Policy Carefully
You should be aware that a home insurance policy is a legal contract. It is written so that your rights and responsibilities as well as those of the insurance company are clearly stated. When you purchase home insurance, you will receive a policy. You should read that policy and make certain you understand its contents. Keep your policy in a safe place and know the name of your insurer.

10. Review Your Home Insurance Needs Every Year
Check with your insurance agent at least once a year to make sure your policy provides adequate coverage. The addition of a room, new insulation or remodeling add value to your home and therefore may increase replacement cost.

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Farmers in the United Kingdom are counting the cost of damage from the recent floods to their crops, machinery, buildings and infrastructure, Farming UK reported.

Insurance claims are expected to amount to hundreds of millions of pounds.

David McGeachy, value added tax specialist at Saffery Champness, said "that even though insurance claim settlements are not subject to VAT, the farm or estate is likely to incur VAT on repair works to put right damage or to replace damaged stock."

Dyman Associates Insurance Group

As the flooding covering huge areas of farmland in the south of England and elsewhere caused by the record rainfall over the winter months recedes, farmers are counting the cost in terms of damage to crops, stock machinery and buildings, infrastructure such as damaged flood defences, riverbanks, fences, gates and so on.

Insurance claims from the flooding are expected to run into hundreds of millions of pounds.

David McGeachy, VAT specialist at Saffery Champness, said: "It is important to remember that even though insurance claim settlements are not subject to VAT, the farm or estate is likely to incur VAT on repair works to put right damage or to replace damaged stock for example and this VAT paid is recoverable from HMRC subject to the normal VAT rules.

"Similarly, VAT on any legal services that may be required where policies provide cover for such costs may also be subject to the same rules."

Where farm or estate businesses are VAT registered they should bring this to the attention of their insurer where they intend to make a claim.

They will need to ascertain whether they may be able to recover all of the VAT incurred in connection either with repairs or reimbursement for damage, stock or other property from HMRC.

Insurance policies may allow non-VAT registered farmers to make claims for VAT that are not recoverable from HMRC, or in situations where a VAT registered farming business is partially VAT exempt.

In these circumstances all of the options should be explored as appropriate to ensure the farming business is not left out of pocket on VAT.

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