In theory, you can swipe any American Express, Discover, MasterCard or Visa product at any location anywhere in the world that accepts those cards. The reality can be different. The United States is fast becoming the only advanced nation that has not switched–or is not in the process of actively switching–to the so-called “EMV” payment technology, which, instead of having a magnetic stripe, uses a tiny microprocessor chip embedded in the credit card to enable transactions.

No matter what the theory is, in practice American travelers often encounter problems in the 130 countries that have so far adopted EMV with both wary merchants and automatic payment devices–when pumping their own gas, buying rail tickets, paying tolls, using hotel express check-out machines and so on.

Credit cards to go

As increasing numbers of their customers complain of bad experiences, American credit card companies are beginning to respond by issuing products that have both magnetic strips and chips, and that thus can be used anywhere. The latest such product comes from Chase, and is the British Airways Visa® Card. Chase says that this is the first among airline credit cards to be EMV-enabled, although Business Insider reports that Citi’s chipped Executive AAdvantage World MasterCard was launched in July. And U.S. Bank’s range of more general travel rewards cards has one.

Chase already has two products with chips: the J.P.Morgan Select card, and the Palladium card. Other issuers, including Wells Fargo and the United Nations Federal Credit Union, have been trialling or generally issuing EMV cards, and Citi says that it plans to do offer more soon.

Rewards with no foreign transaction fees

Chase’s new product comes with a hefty $95 annual fee, although that may not bother too much the high fliers (in both senses) to whom the credit card is designed to appeal. Indeed, regular travelers may find that the card’s lack of foreign transaction fees could easily save them that–and considerably more–over a year.

Like many travel rewards cards, this one comes with its own currency, in this case called “Avios.” You earn 2.5 Avios for every dollar spent on British Airways purchases, and 1.25 Avios a dollar on everything else. Handily, these can be redeemed for flights and upgrades not only with British Airways but also with the other 11 partners that make up the oneworld® alliance:

• American Airlines
• Cathay Pacific
• Finnair
• Iberia
• Japan Airlines
• Lan Airlines
• Malév
• Mexicana
• Qantas
• Royal Jordanian
• S7 Airlines

In a press release, Andrea Burchett, who’s a spokesperson for The Mileage Company, which operates British Airways’ Avios currency and rewards program, commented:

The new EMV chip-with-signature provides our globally minded flyers with a safe and convenient way to make transactions when overseas. The addition of EMV chip-with-signature technology makes the British Airways Visa card the first airline co-branded credit card issued in the United States that is chip-enabled, which is just one of the many valuable benefits afforded to our loyal customers.

Nobody could blame you for wanting to bury your head in the sand. Why should you be planning your holiday spending now, when you’ve got Thanksgiving to worry about? But, if you can spare a few minutes, here are some ideas that could put cash back in your pocket. So let’s talk turkey.

Credit card companies and sign-up bonuses

As you probably know by now, credit card companies are currently locked in a desperate battle to win market share. This largely explains the recent rush of enhancements to rewards credit cards. And it may also be behind sign-up bonuses, which card issuers pay on some products simply to say thank you for becoming a new customer and for spending a certain amount on your new plastic.

Right now, at least two cash back credit cards are offering a whopping $200 in sign-up bonuses, and that’s in addition to the usual rewards (up to 5 percent cash back) you would normally receive. But, before we explore those cards, here are two caveats:

1. You’re likely to need excellent credit in order to qualify for either, so don’t bother reading further if you’ve had financial problems recently. It’ll probably only make you feel worse.
2. Deals like these are seductive. Don’t apply if you already have significant credit card debt, or if you’re one of those people who can’t resist temptation when it comes to spending.

Cash back credit cards from Chase

The first of today’s cash back credit cards to offer a $200 sign-up bonus is the Chase Freedom® Visa card. To get the bonus, you have to spend at least $500 within the first three months that you have it, which may not be a problem, given the time of year.

Chase pays 5-percent cash back but only for purchases (capped at $1,500 a quarter) made within revolving categories that change every three months. So, for example, during the current (October-December) quarter, that 5 percent is paid on purchases made in restaurants, department stores and movie theaters, as well as on charitable donations. Generally speaking, you get 1 percent on everything else, though you can get up to 10 percent if you shop at certain retailers through Chase’s online portal.

There’s no annual fee on this card, but interest rates, which are variable, are currently 15.99 percent to 22.99 percent annual percentage rate (APR), depending on your creditworthiness. That isn’t uncompetitive, but it’s hardly generous either. It might be best to charge to this one only purchases that you know you can pay down quickly, and to use low interest credit cards for everything else.

Cash back credit cards from Citi

The second card (only alphabetically) is the Citi® Dividend World MasterCard®. The sign-up bonus deal is precisely the same as Chase’s: $200 back if you spend $500 during the first three months after your account is opened.

And its rewards are very similar too. Its bonus categories also pay 5 percent (1 percent on everything else), and change each quarter. Citi’s choice of categories for the current quarter seems even more seasonally appropriate than Chase’s:

1. Department stores
2. Clothing stores
3. Electronics stores
4. Toy stores

Citi caps the rewards you can earn in any one calendar year at $300, but makes an exception for purchases made through the Citi Bonus Cash Center, where they’re unlimited. Like the Chase card, Citi’s card has no annual fee, and, interestingly enough, both Chase and Citi charge precisely the same credit card rates on these two near-identical products. So the same suggestion applies about not using it for purchases that you can’t pay down quickly.

The fact these two credit cards are so similar may relieve you of one holiday headache: choosing which to apply for. Just toss a coin. Heads you win, tails you win.

This content is not provided or commissioned by any company mentioned in this post. Opinions expressed here are author’s alone and have not been reviewed, approved or otherwise endorsed by any such company. This site is compensated by companies referenced in the blog posts through advertising, affiliate programs or otherwise.

Capital One last week announced plans for a special Black Friday promotion for holders of its rewards credit cards. From Nov. 25 to Nov. 28, you can gain enhanced points and cash back by using the company’s Perk Central online shopping portal to make purchases from more than 40 retailers.

Extra rewards for Black Friday

Normal rewards (both points and cash) will be boosted by up to 100 percent on goods or services bought from these online outlets. They include:

• Gamestop.com: +40 percent
• Landsend.com: +100 percent
• Lego.com: +100 percent
• Lenovo.com: +100 percent
• Macys.com: +40 percent
• TigerDirect.com: +67 percent

There are no caps on the extent of the rewards you can earn with Capital One, and they never expire as long as your account is open.

Leverage existing rewards points on certain items

As Capital One says, points on its rewards credit cards can be redeemed at any time. But it’s also running a special pre-holiday redemption promotion from Nov. 18 to Nov. 21 that could help you augment the value of the points you’ve already accumulated on your Capital One card. Items being promoted include:

1. Magellan Roadmate 1324 satellite navigation devices
2. Sharp Aquos 60″ LCD HDTV televisions
3. TaylorMade Bumer SuperFast 2.0 Driver golf clubs

If you know a golfer, adventurer or home entertainment enthusiast, then this promotion could turn out to be a thrifty way to kick off your holiday gift shopping.

Rewards credit cards offer more

Of course, as regular readers already know, Capital One’s promotions are just the latest in a long line of marketing initiatives designed to increase card use. Right now, credit card companies are fighting hard for market share, with rewards being their principal battleground.

And their customers appear to like that. Last month, Capital One published the latest results of its continuing survey of consumers’ attitudes to rewards across all card issuers’ products. All those polled held rewards credit cards. The findings included:

• The proportion of customers who were “completely satisfied” with their rewards credit cards increased between the first and third quarters: up to 23.9 percent from 21.7 percent.
• As many as 47 percent of respondents had redeemed at least some of their rewards during the third quarter.
• Some 27.8 percent of cardholders were saving up rewards for holiday shopping.

As regular readers may know, card issuers are currently falling over each other in their rush to improve their credit card offers. In fact, it’s getting tough to keep up with all the enhancements. So here’s the first in an occasional series of news blogs that is going to try to make sure that you don’t miss anything that could be of value to you.

Cash back credit cards: a bonus from American Express

First up is American Express, who is offering a one-off $25 statement credit if you spend $25 or more at a participating small business on this year’s Small Business Saturday, which is Nov. 26. But first you must register your U.S. American Express® Consumer Card or Business Card by clicking on the link at www.facebook.com/shopsmall and following the directions.

This has to be good on so many levels. For you, it could mean (if you shop really carefully) 100 percent cash back on a purchase. But also, it’s a great way of giving the struggling small business sector a much-needed shot in the arm.

Chase boosts rewards and perks for military

In other welcome news, Chase announced last week that it was improving the deals it offers to “our men and women in uniform around the globe.” According to the press release, the move affects those holding:

• Chase Military Star Rewards MasterCard
• Air Force Club MasterCard
• Army Morale, Welfare, Recreation (MWR) MasterCard
• Navy MWR MasterCard
• Marine Corps Community Service MasterCard

From now on, those with these cash back credit cards, none of which have annual fees, should receive unlimited rewards on all their purchases, and foreign transaction fees are going to be scrapped, something that should prove especially valuable to those serving overseas. Cardholders get 2 percent cash back on purchases at Army MWR, Air Force Services and MCCS Merchant outlets, and 1 percent on everything else. ,” said Emelie Smith Calbick, a general manager of Chase Card Services, commented in a press release:

Chase is proud to support our men and women in uniform around the globe. Service members and their families deserve financial resources that fit their unique needs – whether they are on-base, have been deployed or are anywhere in between.

As reported in CardRatings.com, according to Steve O’Halloran, spokesman for Chase Card Services, the Chase Military MasterCard is also included in the promotion, although the press release did not mention it. Chase’s USNA Alumni Association MasterCard is not part of the promotion, but it no longer includes a foreign transaction fee.

Visa small business credit cards

Meanwhile, also last week, Visa unveiled improvements to its “Visa SavingsEdge” program for those with small business credit cards that carry its brand. According to Visa, there are currently 24 million such cards in the US, but you have to register yours (it’s free at www.visasavingsedge.com/offers) before you can enjoy benefits.

After enrollment, you can get discounts at a large number of participating merchants that offer products and services that are likely to appeal to small businesses, including:

• Advance Auto Parts
• Barnes & Noble
• Health Advocate
• HyperOffice
• iContact
• La Quinta Inns & Suites
• Red Robin
• Sears PartsDirect
• Support.com

Earlier this week, The Washington Post published a blog post by Natalie McNeal. You may have heard of her. She’s made something of a career out of first accumulating and then repaying $20,000 in credit card debt. She’s written a book, and has her own website. Excuse your blogger while he tamps down his envy, and composes himself.

Rewards credit cards bad?

That’s better. Anyway, the overall thrust of McNeal’s blog was that she was (on balance and with caveats) against rewards credit cards in general and travel rewards cards in particular. And she gave three reasons why:

1. Having had so much credit card debt before, she was determined to avoid it again. And using plastic for most purchases, rather than just exceptional ones as she does now, would mean that she’d have to micro-manage her cards so as to be sure she retained control.
2. Most travel rewards cards come with fees, and McNeal objects to those “on principle.”
3. Credit card interest rates on rewards plastic tend to be higher than those on non-rewards cards.

All of those are good points. If you’re going to use your rewards credit cards for most of your purchases, you really need to keep on top of managing your payments and expenditure. Everyone hates annual fees. And, on average, credit card interest rates are higher for rewards cards than others.

Rewards credit cards good?

However, only some people need to be concerned about McNeal’s points. Many have no difficulty in successfully managing their spending and payments. Quite a few are happy to pay a fee because they find the rewards they earn significantly outweigh it. And, as this blog regularly advises, rewards cards should ideally be used only for those transactions that are going to be cleared at the end of the then-current billing cycle; anything else should be charged to low interest credit cards.

You have to admire McNeal, and her counsel is spot-on for those, like her, who have a tendency to get carried away with their plastic. But, luckily, most of us aren’t in that position. For us, following such advice is about as sensible as asking a recovering alcoholic to recommend a good wine.

Finding the best travel credit card

Earlier this month, Rachel Koning Beals wrote a good piece on travel rewards cards for Business Insider. Beals is clearly an informed and insightful writer, not least because she referenced IndexCreditCards.com in her article. But enough mutual backscratching. The important thing is that she mentioned a key (perhaps the key) rule abut selecting travel rewards cards:

But long before consumers pack their flip-flops and board the dog, they should review the terms, fees, and interest rates attached to travel credit cards (and all cards with rewards programs), which can vary greatly.

Recently, this news blog reported that, despite growing customer satisfaction with card rewards in general, travel rewards continued to cause resentment. In particular many consumers reported problems with blackout dates and difficulties making last-minute bookings.

So take care when choosing your rewards cards. Find one that suits your lifestyle by comparing the best credit card deals, and then read the small print. It’s worth the effort in the long run.

We’d love to report on some juicy behind-the-scenes goings-on at one of the major credit card issuers, but that’s going to have to wait for another day. Because today’s top story involves two recent improvements to rewards credit cards – one from Chase and the other from Discover – that deserve attention.

Chase turns rewards credit cards into travel rewards cards

Let’s start with Chase, which has managed a form of plastic alchemy by turning three of its ordinary rewards credit cards into travel rewards cards. Well, sort of. To be more accurate, it’s added the ability to transfer points from its Ultimate Rewards program to United Airlines MileagePlus accounts. The products affected are:

1. Chase Sapphire Preferred
2. Chase Ink Plus
3. Chase Ink Bold with Ultimate Rewards

You get one MileagePlus point for each Ultimate Rewards point, and the former can be redeemed on flights on United Airlines or any other members of the Star Alliance network. Chase says there are no limits to the number of points you can transfer, and claims that this is currently unique among credit card rewards programs. The card issuer’s Sean O’Reilly commented in a press release:

We are thrilled to offer our customers the exclusive opportunity to transfer Ultimate Rewards points for equal award miles with MileagePlus, the world’s leading frequent flyer program. The addition of MileagePlus to Ultimate Rewards enables our cardmembers to simply transfer points and have more travel options than ever before.

Discover Amazon’s treasures

No, Discover isn’t rewarding cardholders with trips to the Amazon river. It’s making it easier to pay for books and other goods on the Amazon website.

As of now, holders of Discover cash back credit cards, such as the Discover More Card, can use their rewards to partly or fully pay for purchases they make on Amazon with their Discover rewards, providing they first link their plastic with their Amazon.com account. If you part pay, you have to charge the balance to your Discover card.

There’s one more piece of good news for the holiday season. If you pay on Amazon using Discover cash back credit cards between now and the end of this year, you should earn double rewards.

Both Discover and Amazon commented in a press release… But no. Theirs were even more banal than Chase’s, so, as a public service, you’ll be spared them. Suffice it to say, Discover is very pleased with their new arrangement with Amazon and hopes you will be too.

Capital One recently released its July-September quarterly credit card Rewards Barometer. It’s based on a poll of more than 1,000 Americans who have rewards credit cards, and represents all rewards card holders, not just those of Capital One.

Rewards credit cards satisfaction improves

The number of respondents who ranked their rewards programs “excellent” rose across three criteria between the first and third quarters of this year:

1. Thirty-two percent said the rewards-related customer service they received from their credit card companies was excellent, up from 25 percent six months ago.
2. An even greater rise in excellence ratings (8.7 percentage points) was seen in the “flexibility of redemption options” category.
3. More consumers (up 6.3 percentage points) rated their “ability to earn rewards quickly” as excellent.

Why the change?

Capital One suggests that low consumer confidence in the economy might be behind these shifts. It quoted data from the Conference Board that showed this “recently plunging to 44.5 from 59.2 in July.”

Even more telling may be a study published last week by Sentier Research. The study found that real median annual household income has plummeted in the U.S. over the last few years. It stood at $49,909 in June 2011, down from $55,309 in December 2007.

With all that plunging and plummeting going on, it’s no real surprise that consumers are counting every cent, and valuing even more the benefits they can derive from their rewards credit cards.

Travel rewards cards could be more flexible

In general, respondents reported being happier with their rewards programs, with 23.9 percent telling Capital One’s research company in late August that they were “completely satisfied” with theirs. That was up from 21.7 percent in the first quarter.

However, those with travel rewards cards still have some major gripes. They cited two factors that prevented them from redeeming travel rewards:

1. Blackout dates (25.8 percent)
2. Can’t make last-minute bookings (22.5 percent)

These restrictions are spelled out in each card’s terms and conditions, which can vary considerably from card to card.

Rewards credit cards and redemptions

Many consumers already have plans for the rewards they’re earning. More than a quarter of those with cash back credit cards are saving at least some of theirs for shopping this holiday season, significantly more than the number who are saving for more strategic events such as retirement (13 percent) and college (5.6 percent).

Whether they have cash back credit cards or earn points, an astonishing 54.9 percent of those intending to redeem rewards for holiday gift purchases are planning to buy gift cards. At this rate, those mounds of beautifully wrapped boxes we’re used to seeing under Christmas trees could soon be replaced by neat piles of envelopes.

Is it too soon to wish you a Happy Holiday? Thought so.

It’s been a recurring theme in this blog lately: credit card companies are upping their game as they compete for market share, and consumers have benefited through more generous rewards and improved perks. But it’s not just consumers who are getting better value from their plastic. Businesses too have often found they can get more from their cards. So it was no surprise on Wednesday when American Express and MasterCard each announced significant enhancements to some of their business credit cards.

American Express: email in the air for free

First up, the American Express® Corporate Platinum Card, which is now offering two perks that could have real value for international travelers, and frequent fliers in general.

One of the worst aspects of flying overseas is coming home. No, not being reunited with the family, but having to join those all-too-often very long queues at passport control. U.S. Customs and Border Protection has now recognized just how irritating these long lines can be, and has introduced Global Entry, a program that allows low-risk, pre-approved Americans to avoid most of these delays via a streamlined process. The bad news: there’s a $100 application fee before you can register. The good news: American Express is offering to pick up the tab for those with its Corporate Platinum Card.

Another new perk for holders of that card is free Gogo in-air wi-fi on up to 10 flights a year within the continental U.S.A. You have to buy a Gogo flight pass using your card, but will receive a statement credit for the full cost. The operators of the currently 1,200 airplanes equipped with this service include:

• Air Canada
• AirTran Airways
• Alaska Airlines
• American Airlines
• Delta Air Lines
• Frontier Airlines
• United Airlines
• US Airways
• Virgin America Airlines

American Express senior vice president Jaromir Divilek explained in a press release the thinking behind these innovations:

Business travelers have no time to waste. They’re on the go 24/7, and are constantly looking for ways to save time and be more efficient. These new benefits will ease their time on the road, and, at the same time, benefit the corporation by encouraging card usage and aiding expense management across the organization.

MasterCard: more affordable hotel accommodation

Meanwhile, those who register their eligible small business credit cards with the MasterCard Easy Savings Hotel Network can automatically save 4 percent on “all hotel folio charges” when they pay with that card at over 7,500 mid-scale and economy hotels across the country. Participating chains include:

• Days Inn
• EconoLodge
• Hampton Inn
• Hilton Garden Inn
• Holiday Inn
• Holiday Inn Express
• Howard Johnson
• Hyatt Place
• Ramada
• Super 8

These hotel discounts are an extension of the MasterCard Easy Savings Program, which already offers enrolled small businesses various discounts. Two new ones of these are 10 percent off both cloud-based phone systems from Vocalocity, and tax and financial advice from BIDaWIZ. MasterCard Worldwide vice president Eugene DeSilva commented in a press release:

The expansion of our popular Easy Savings program helps MasterCard deliver on our commitment to help small businesses find easy, stress-free ways to maximize the success of their business and get the most out of every dollar. And, the financial institutions and merchants that issue and accept our cards benefit from creating stronger, more rewarding relationships with their customers.

As small business credit card offers go, that sounds a good one.

If you’ve been following the credit card news blog here on IndexCreditCards.com, you’ll know all about “interchange” fees, which are also known as “swipe” fees. They’re the cut of the transaction value that retailers and other merchants have to pay every time your plastic gets swiped through a reader.

Since October 1, that cut has been capped for debit card use, a move that’s likely to cost banks upward of $6 billion a year. Merchants say they are going to pass on that savings to consumers in the form of lower prices and/or better service, although it’s too soon (if it ever proves possible) to measure how many are doing that, and how many are simply adding the cash straight to their bottom lines.

Credit card swipe fees to fall?

Fresh from their victory in persuading Congress to cap debit card swipe fees, some retailer trade bodies now have credit card interchange fees in their sights. The Retail Industry Leaders Association is already active, and, last month, the National Retail Federation (NRF) unveiled a $10 million lobbying campaign that is largely devoted to capping credit card swipe fees, according The Hill earlier this week.

Yesterday, David French, who’s a senior vice president at the NRF, wrote a blog on the federation’s website in which he argued:

…reforming debit card swipe fees was only the first step. It is estimated that credit card interchange fees generate about $30 billion per year for banks and card providers – for comparison’s sake, debit card swipe fees will now generate “only” about $14 billion per year. And the vast majority of these exorbitant fees go directly to the biggest handful of banks and the Visa and MasterCard duopoly.

Now that the banks’ unfair practices regarding debit card swipe fees have been highlighted and addressed, it is clear that banks are hoping to use higher fees on debit cards to push their customers toward credit cards in order to maintain their bloated revenue lines. As this transition occurs, it is crucial that Congress once again shine a spotlight on bank-interchange practices. Swipe-fee reform is a two-part job, and we are only halfway done.

Rewards credit cards at risk

That argument may sound powerful, especially as French reminds us that a quarter of U.S. jobs and one-fifth of the nation’s GDP rely on the retail trade. However, if you enjoy the benefits of cash back credit cards, travel rewards cards or gas cards, you may want to think again.

That’s because all these rewards programs are largely funded by interchange fees. And credit card companies are likely to have to scale back or even abolish them if a significant cap is imposed. Indeed, they could even have to impose higher annual fees, just as some banks have done on checking accounts as a result of the debit card cap.

There’s also an excellent argument why credit card swipe fees should be higher than those for debit cards. Retailers receive the full value of a transaction often pretty much instantly. But credit card companies effectively have to lend that money for nothing until the next statement due date. That’s a genuine additional cost that compensates credit card issuers for putting money at risk, justifying, at least in part, today’s interchange fees.

More credit card regulation unlikely

It’s hard to imagine the current Congress buying into additional regulation for the banking sector. Although with Congress, apparently nothing is impossible. It’s one thing to resist lobbying from consumer groups, and quite another to turn down a rich and powerful lobby such as the retail industry. Its ability to sway public opinion and make tactical campaign contributions rivals even that of credit card companies.

However, whatever happens legislatively, it’s likely to take years for any new regulation to take effect. So, in the meantime, enjoy all the benefits that your rewards credit cards can bring.

Groupon thinks that it has come up with a smart new idea that could allow you to earn additional rewards when you use your credit cards to pay for goods and services at participating stores, restaurants and other outlets that you use regularly. In effect, it turns your credit cards into loyalty cards.

Rewards credit cards on steroids

So your non-rewards credit cards could earn you rewards, while your cash back credit cards and other rewards credit cards could earn you even more freebies. All you have to do is register your plastic on Groupon’s website, and everything else happens automatically. So there’s no need to use a smartphone or remember to produce a separate loyalty card at the checkout.

Just as with other loyalty programs, it’s likely to be up to each individual merchant to decide on the mechanics and generosity of its particular offer. Many may choose a threshold of spending that entitles you to a major discount on your next purchases. TechCrunch, which broke the story, gave the example of a retailer that offers you $20 worth of goods for $4 after you’ve already spent $100 in that store. However, such an offer would give you a 13.3 percent discount ($16 off a total of $120’s value), and many merchants are likely to pitch their offers at lower levels.

Groupon’s Jeff Holden explained how the new program fits into his company’s wider offerings:

We think there are three components merchants need to run their business in the new world of local commerce. The first is the daily deal, which Groupon perfected as a customer acquisition product and reached massive scale. The second is Groupon Now, its mobile app that lets local merchants do yield management by offering deals when business is slow. The third now is Groupon Rewards, which is built around customer loyalty and retention.

Credit cards as loyalty cards

That makes sense. In the current economic climate, merchants are desperate to acquire and retain loyal customers, but most existing loyalty programs are cumbersome, and require consumers to jump through hoops in order to get and redeem rewards. The advantage of the Groupon service is that it is so easy to use: once a card is registered the consumer has to do nothing.

However, not everyone is convinced. Some of the reader comments that appeared after TechCrunch’s story raised serious issues. Readers pointed to retailers whose fingers had allegedly been burned in previous Groupon programs, and questioned the likely return on investment for merchants who participate in this new one. (Of course, reader comments don’t necessarily represent unbiased journalism and should often be taken with a grain of salt.)

Some consumers may also be resistant to the idea of sharing their card details and spending patterns with third parties. However, if you’re not one of them, you may see little reason not to participate. After all, what have you got to lose?