Cardholders likely to see changes in 2010
Financial Articles January 7th. 2010, 1:52am Credit cards can be an invaluable resource for people who are on vacation, whether in the United States or elsewhere. However, some travel industry experts are warning cardholders to be on the lookout for possible changes in 2010.
Writing in a column that appeared in the Baltimore Sun, Ed Perkins discussed some of these changes, which could include more fees for people who pay for airline tickets and other such costs with their credit cards as opposed to cash.
Perkins also suggests that travelers can avoid extra fees by conducting transactions in the currency of the country they are visiting as opposed to having them changed to U.S. dollars at that moment. This is said to be because travelers can get a less-favorable exchange rate while still paying fees for overseas charges.
The columnist adds that another trend to watch for may be that some American card companies may finally start issuing the chip-enabled cards that are compatible with those that have become increasingly common throughout Europe in recent years.
Even if people do not plan on traveling overseas this year, they are likely to find some differences in the way their credit card transactions are handled. This is because federal regulations will make it harder for lenders to raise revenues on late fees and punitive interest rates, a tactic they had become increasingly dependent on in recent years.
For example, some financial experts have warned that cardholders may find themselves subject to inactivity fees, which essentially charge people for not holding their accounts. Such fees could force some people to decide whether they want to keep their account or risk damage to their credit score by closing down older ones.
Consumers are also likely to find themselves paying more for cards that offer perks like airline miles. Still, surveys have also suggested that cardholders will be just as inclined to get rid of cards that impose onerous new terms or charges, which means that lenders will have to find a proper balance.
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Some changes are in store for many credit card customers this year.
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