Archive for April, 2010

By now, most people either use Twitter to communicate online, or at least know what Twitter is. What you might not know is that Twitter founder Jack Dorsey is now out to release technology that could drastically change the credit card industry.

Enter SquareUp.com, a program operated by Dorsey’s new venture, Square, that allows users to make and accept payments with their Apple iPads. It’s billed as a simple, secure way for money to change hands, whether you are paying or getting paid. Simply download the free iPad app and enter your mailing address when prompted. You’ll be delivered a tiny plastic device to attach to your iPad that allows you to swipe a credit card, and the transaction is processed via the company’s Web site. Over time, any mobile device with the ability to access the Web could be used with Square.

So what does this mean for the credit card industry?

Low cost

Traditional credit card processing equipment can be expensive, from the card readers to the software required to operate them. Then there are the costs involved with operating a credit card merchant account. With the Square service, you pay only a few dollars for the software, nothing for the tiny “Square” device, and a small fee for each transaction.

True mobility

The Square service means that business owners are no longer tethered to their stores or offices. With their iPads, they can accomplish just as much on the road as they can from work, including processing credit card payments. Those who sell wares from stalls, at farmers markets or any other mobile area can now accept payments from anybody who has a credit card.

Not just for merchants

Square also enables individuals to pay back small debts and lend each other money quickly and easily.

Another major benefit of Square is that it cuts down on the paper used during a transaction. Receipts are e-mailed or sent to you by text message so that you can choose to print them or not as needed.

With the iPad release, Square closed its iPhone Beta phase so the iPad is currently the only device that runs the app. However even with the iPad, Square could potentially benefit regular cardholders, business owners, traveling sales professionals and anyone else for whom credit cards are part of daily life.

Steve Thompson

Thomas Wolfe once wrote a novel called “You Can’t Go Home Again,” whose title emphasizes how much people and places change, no matter how fondly we remember them or how much we wish they would remain as we once knew them. For Deputy U.S. Marshal Raylan Givens, the antihero of the FX original series “Justified,” going home entails discovering how much he, his hometown and his credit score have changed.

From Florida to Kentucky in One Shot

The son of a notorious con man, Givens left his home in Harlan County, Ken., as a young man, hoping to escape life in the coal mines. As a U.S. marshal, Givens specialized in fugitive retrieval in Miami until he shot a known gun thug in a restaurant.

During the media frenzy that followed, Givens’ angry superiors sent him back home to Harlan County, the very last place that he wanted to go. According to a pay scale published on Indeed.com, Givens was making approximately $51,000 per year in Miami, which is about 5 percent less than the national average.

Since the transfer to Harlan County also is a demotion, Givens probably sees his pay grade reduced to an even lower level. The government pays its marshals based on their geographic location, so Raylan’s annual salary could easily take a $10,000 hit thanks to that one careless shot and his transfer back to Kentucky.

Relocation Costs Can Affect Credit Scores

In a turbulent economy, many people must pack up and move to a different city to take a new job. Relocation is stressful enough, but Givens has to leave Miami in a hurry, which means he may have to leave some essential things behind and have them shipped later. If he takes an apartment or rents a house in Kentucky, that means additional credit checks, and too many of those can lower a credit score to an unacceptable level.

Suits, Stetsons and Sidearms

Even at the top of his game, Givens is a man of simple tastes, with the exception of his clothing. Cultivating a modern cowboy look, Givens is rarely seen without a tailored suit and a well-fitting Stetson hat; his ever-present sidearm and holster complete this ensemble. The Stetson Retro Fedora that Givens favors costs around $50, but a more stylish Stetson Brewer Panama Fedora carries a price tag three times that price.

Raylan also enjoys wearing cowboy boots and, depending on the material used to make them, these can become a pricey accessory. With Givens’ devotion to Cowboy chic, it is a safe bet that he carries at least one credit card from a men’s specialty shop or department store. Department store cards like these tend to carry an annual interest rate that exceeds 20 percent.

Rebuilding a Reputation, Career and Credit Score

In the blink of an eye, Deputy U.S. Marshal Raylan Givens lost nearly everything he had worked for. Given a second chance, Givens has to live on a lower annual income and avoid the credit traps that come with relocation. If he doesn’t scale down his fine taste in clothing, though, he may watch helplessly as his credit score spirals out of sight.

Steven Bryan

It comes as no surprise to today’s moms and dads that parenthood is expensive. Some parenting choices, such as a stay-at-home parent or private-school tuition, can add considerably to the costs of raising a child. “Parenthood,” NBC’s new drama based on the Steve Martin film of the same name, offers a fine example of what it costs to juggle family life with a professional career.

Julia Braverman-Graham is one of the four Braverman siblings around whom the series is based. Julia, played by Erika Christensen, is a high-powered corporate lawyer in Berkeley. Her husband Joel stays home full-time and raises their 5-year-old daughter Sydney. The family lives in a beautiful and immaculate home, send their daughter to an expensive private school, and spend money on expensive meals, auction items and lessons for their daughter.

How Much Does a Lawyer Like Julia Make?

Working in the private sector in California, Julia will make substantially more than her public servant counterparts. SchoolAAH notes that 2007 Berkeley Law School graduates working in the private sector have an approximate starting salary of $160,000 a year. With some experience under her belt, Julia will make at least $200,000 a year.

What Debt Would Julia Have?

A pricey house in Berkeley like the one that Julia and her husband own probably costs at least $1 million. In addition, her law school debt could be upwards of $100,000, though it appears likely that she has paid off some or all of that debt at this point in her career. In addition, Julia and her husband send their daughter to private school, which could run $15,000 to $20,000 a year based on estimates from the Online Guide to Bay Area Private Schools.

What are Julia’s Spending Habits?

Though Julia spends much of her time working or trying to grab a few minutes with her daddy’s-girl daughter, you do see them spending money rather extravagantly. In order to show off in front of a threatening woman at her daughter’s school, Julia spends almost $2,000 on a premium parking space. In addition, the family has their daughter enrolled in various lessons and classes, decorates their home beautifully, drives nice cars and dresses well.

Are Their Spending Habits and Financial Outlook Realistic?

Based on what we see on “Parenthood,” Julia and her husband have some pretty expensive tastes, striving to keep up with the rest of the families on the block and to provide their daughter with the best life possible. Thankfully, Julia’s career choice does allow the family to afford some of life’s finer things. However, they should remember to save money and invest well and use their credit cards only when they can pay off items immediately. Otherwise, expect that when college tuition, retirement or future children arise, they won’t be as comfortable as they are now.

Kelly Herdrich

Spring 2010 has sprung and so have the season’s new credit card designs. In keeping with the spring season, these credit cards sport vibrant colors, fresh backgrounds and novel patterns. They are the credit cards that will have you thinking about making a fresh start this spring.

#5: Facecard Prepaid MasterCard

The Facecard Prepaid has a soft, green background that will have you thinking of lime sorbet and freshly cut grass. The green background emphasizes the MasterCard orange and red logo, which is nestled in the lower right corner. The Facecard logo is located at the upper left. Credit card numbers are raised and outlined against the gentle background.

#4: ACE Pink Visa Prepaid Debit Card

This Visa Prepaid Debit Card shows a delicate pink background with a large white ribbon to the right. This design is meant to help support breast cancer awareness and detection. Located at the ribbon’s lower right side is the blue Visa logo. The ACE Pink Visa Prepaid Debit Card offers a great design for a great cause.

#3: First PREMIER® Bank Secured Credit Card

This Secured Credit Card showcases a vibrant green and yellow background. On this background, the MasterCard orange and red logo, located at the card’s bottom right corner, is emphasized. The soft green “P” of PREMIER Bank is set at the card’s center like a fresh spring bud. You feel like you can make a fresh start with this newly designed credit card.

#2: Zync from American Express^SM

The Zync from American Express has no spring colors to speak of. Instead, it features a fresh white background. The American Express wording remains at the top of the card in dark blue letters, while its graphic resides at the card’s center. This card is ideally suited to fresh starts and new beginnings.

#1: UPside Visa Prepaid Card

The UPside Visa Prepaid Card portrays gentle waves of greens and blues. This sea of colors gives way to orange and red waves on the left side of the card. The orange and red waves are indicators of the hotter days ahead. The blue Visa logo remains visible at the bottom right.

Hally Z.