Credit Card Debt Management

Did you ever wonder what your credit card number means? It’s not random selection, unlike the way your interest rate may often appear to be. The numbers do have meaning, according to Best of Me blog:

The first digit or two will show what network your card belongs to. Three is for travel and entertainment cards. Four is for Visa. Five indicates MasterCard and six indicates Discover. A 37 at the front of your credit card number indicates American Express, while Carte Blanche and Diners Club use 38.

American Express: The rest of the credit card number includes one digit indicating the type of card and one digit indicating the currency, followed by a seven-digit account number and a three-digit number indicating the card number within that account. The 15th and final digit is a “check digit,” which validates the authenticity of the credit card’s number.

Visa: After the number showing what network the card belongs to, there is a five-digit bank number. This is followed by an account number of six digits or, in some cases, nine digits. Of course, the card is completed with a check digit at the end.

MasterCard: After the network number, this card features a bank number of anywhere between two and five digits. The rest of the digits, except the last one, make up the account number. The last digit is the check digit.

And there you have it! Everything you (never) really wanted to know about the convoluted formula that is your credit card number. Consider yourself informed.

So maybe you’re about to head overseas. Maybe you’re one of the many soon-to-be honeymooners planning for the upcoming wedding season. Or perhaps you’ve just decided it’s finally time to fulfill that lifelong dream of visiting another country. When it comes to money, there are a few things you should know. Credit or debit cards may seem the easiest route, particularly when you reference those Visa commercials showing globetrotters plunking down their Visa card at exotic locales around the world. But what they don’t show you is all the related fees.

The L.A. Times outlines the fees attached to debit or credit cards:

-2% foreign transaction fee from the credit card issuer

-1% additional foreign transaction fee from Mastercard or Visa

-2% additional foreign transaction fee from American Express

-ATM withdrawal fees of up to $5 or up to 3% of the withdrawal amount, or possibly even both.

So even though there may be fees associated with cash conversion or money orders, the related fees can make credit cards more expensive in the long run. Nevertheless, many international travelers prefer to stick with credit cards for their rewards, convenience and safety. Most travelers would much rather be carting around a credit card or two than a large wad of cash.

Some international shoppers (and this applies to international e-commerce as well) received a surprise related to their foreign transaction fees. A mailing circulated two months ago concerning a class action lawsuit settlement by Visa, Mastercard, their member banks and Diners Club. It seems tons of consumer were entitled to a small refund if they made significant international purchases during February 1996 to November 2006. Allegedly, those companies issued credit cards without clearly stating their foreign transaction fees.

To find cards that fit great with international spending, check out My Money Blog’s list of Best ATM or Credit Cards. Topping the list: HSBC ATM cards, which have nominal fees, and Capital One credit cards, which charge no foreign transaction fees. Apply for one of these cards and never worry about refunds again!