The UK cards association announced late last week that 2010 card fraud dropped 17% on 2009, a huge decrease, much more than a blip. It’s a ten year low, representing the least fraud since 2000. At the same time the Office of Fair Trading are continuing their wide ranging investigations into the card sector, adding card surcharges to their list of areas to take a close look at.

Shelter, the homeless charity, reports that in 2009 more than 2.6 million of us paid our mortgage or rent by credit card at least once. Which is a massive 50% rise on 2008′s figures, indicating a crisis brewing. The Bank of England has put off raising base interest rates yet again despite recent scary hikes in the inflation rate.

Innovation wise, MBNA have come up trumps with their market leading 0% balance transfer credit card, which offers 0% on balance transfers for 16 months from opening an account, with a nice, low handling fee of under 3%. Consumers also get 0% on card purchases for the first three months. The standard rate of interest for purchases and balance transfers is typically 16.7%. Why? In an effort to break away from the competition, in a market that’s more competitive than ever.

MBNA have been busy keeping customers happy in other ways, fixing their minimum monthly payments at a minimum of 1% of their principle balance plus interest, fees and charges, from April 2011. As MBNA senior executive Ian O’Dohertysaid, “This change is another example of our ongoing commitment to customers. There is a widespread view, expressed by consumer groups, consumers and commentators that minimum payments are currently set too low. Our research and our experience confirm this; British credit card customers are in favour of what we are doing, and our experiences in the UK and other markets reassures us that this is the right thing to do.” Good for consumer, good for business. That’s what we want from our card providers! 

The future’s looking bright from a technological perspective too. So-called smart cards have been on the horizon for years and they’re finally just about ready to start delivering the goods. 40 years on from the launch of the magnetic strip, the latest high tech cards will be able to tell you your balance, double as a handy reward credit card and more. Due for launch in the USA later this year, the new cards will include miniature micro processors, powered by mini-batteries that’ll last up to three years. Watch this space and one day you might even see a special chip in your phone taking your credit card’s place altogether!

0% on all Balance Transfers, fixed for the first 6 months from account opening,
conditions and 2.5% Balance Transfer fee apply (£5 minimum).

0% on all your purchases for the first six months from account opening.

Typical 16.9% APR (variable).

0845 300 3833