Another fraud prevention measure for Card Not Present merchants

Card security verification collects the non-embossed 3- or 4-digit numeric code on the credit card provided at the time of purchase. Statistics prove that individuals who possess the account number, but not the actual credit card, perpetrate much of the non-face-to-face fraud.

Merchants that fully support card security verification can expect fewer fraudulent transactions reduced card-holder disputes, and improved customer satisfaction. Marathon routes the card verification request from the merchant directly to the specific credit card association. The card security value is then compared to the card issuer's value on file. Credit card verification programs are offered by the major card associations and are known as CVV2 (Visa), CVC2 (MasterCard), CID (American Express) and CID (Discover Card).

Best credit cards for big spenders

If you are a big spender, the best credit card for you might be one that offers tiered reward rates based on spending level. That is, they pay larger cash-back percentages once you reach an annual spending threshold.

Seven credit cards offer tiered reward rates. For instance, the Capital One No Hassle Cash Rewards Credit Card for excellent credit gives you 3 percent cash back on gas and grocery purchases after spending $6,000 per year. Until you hit that threshold, you'd earn the standard 1 percent cash-back rate.

Blue Cash from American Express offers the biggest possible return. After $6,500 in spending, the rebate percentage for "everyday purchases" jumps to 5 percent from 1 percent, and the cash-back rate for all other purchases goes from 0.5 percent to 1.25 percent. You'd have to spend almost $1,100 a month to reach the higher cash-back rate mid-year.

Not all reward tiers go higher than the 1 percent baseline. With the Discover Motiva Card, you would start earning 1 percent cash back after $3,000 in total annual purchases, but until then you would make 0.25 percent back.

To determine if these credit cards make sense, figure out how long it would take you to earn the higher return rate using your typical monthly balance. If you can't hit the threshold quickly without an increase in spending, consider other no-fee cards that offer at least 1 percent cash back.

Source: Bankrate.com

Tips for boosting your credit score

If you're thinking about buying a house or a car, your credit score is a very important number. The interest rate you'll pay for the money you borrow will be determined, in large part, by this three-digit number that's generated from the information in your credit report.

Most lenders have carved-in-stone rules about handing out the best terms, and those rules almost always place a major emphasis on your credit score. If their best rates are offered to borrowers with a score of 700 or higher and yours is a 698, those two points could cost you thousands of dollars.

According to www.myfico.com, the consumer Web site of the Fair Isaac Corp. that created the FICO score (the most commonly used credit score), the interest rate difference between those two scores is about one-third of a percentage point.

On a $165,000 30-year fixed rate mortgage, that third of a point could cost you more than $11,172 in interest charges, assuming 629 percent is the lowest rate available (see Bankrate's calculators). Fall below a 660 and the rate goes up another .81 percent.

Keep in mind that these are averages. Most lenders today practice tiered pricing, with interest rates rising as scores go down. Each lender chooses its own "break points" between tiers. Lender A may bump up the interest rate if a score falls below 700, while Lender B doesn't charge higher rates until the score is 690 or below. So if you stick with one lender, and that lender's break point is 700, raising your score from 698 to 701 can be vital.

This underscores the importance of not only doing all you can to improve your score, but shopping thoroughly when looking for a mortgage. From the perspective of a mortgage broker, who can choose among a sea of many lenders, there are no sharp break points. Consumers should do what a good broker does -- look for a lender that offers the best rate for a specific score.

But that's jumping ahead of ourselves. First things first: You can take steps to improve your credit score. The number of variables that play into an individual score make it impossible to say that one particular action will increase a given score by a certain number of points. But there are some good guidelines.

"The mantra for getting a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it," says Craig Watts, consumer affairs manager for Fair Isaac Corp.

"People who do that faithfully have very high scores. It usually means you're being conservative and cautious about credit. It's not a toy and it shouldn't be a hobby."

Speedy Upgrade

That's good advice, to be sure, but these actions take a long time. What if you're house hunting and you just need a few extra points to bump you over the line to the great rates?

Start by pulling your credit report and your credit score to see where you are. To get an estimate of your credit score, check out our Credit Score Estimator. If your score is above a 760, you're golden. Improving your score from 760 to 800 won't get you better terms. READ MORE....

Source: Pat Curry • Bankrate.com