Update 12/15/23: Just a reminder that this $250 signup bonus is still around.
Update 10/24/22: Card is now live, application link here.
Update 10/19/22: Thanks to the official press release we now know the following:
Card will have a $95 annual fee, waived first year
Sign up bonus of $250 after $2,000 in spend within the first 120 days
Pilot program offering a card with a LED light that lights up when you make a contactless payment
Original post: U.S. Bank is launching a new credit card called ‘U.S. Bank Shopper Cash Rewards Visa Signature Card‘, it’s not accepting applications yet but you can join the waitlist. At the moment we only know the earning rates on this card and they are as follows:
6% cash back on combined eligible purchases each quarter with two retailers you choose ($1,500 limit)
Ace Hardware
Amazon.com
Anthropologie
Apple
Bed, Bath, & Beyond
Best Buy
Chewy.com
Crate & Barrel
Disney
Home Depot
Ikea
Kohl’s
Lowe’s
Lululemon
Macy’s
Menards
Nordstrom
Pottery Barn
QVC
Restoration Hardware
Target
Walmart
Wayfair.com
Williams Sonoma
5.5% cash back on prepaid hotel and car reservations booked directly in the Rewards Travel Center
3% cash back on eligible purchases each quarter in your choice of one everyday category, like wholesale clubs, gas and EV charging stations, or bills and home utilities ($1,500 limit)
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Credit card shimming is an updated version of skimming that reads credit card chip information, allowing the card to be duplicated or its information to be sold illegally.
Chip-enabled cards were designed to prevent instances of identity theft and fraud by adding an additional layer of security. That is, until criminals began credit card “shimming.”
Shimming is an updated version of skimming that reads credit card chip information, allowing the card to be duplicated or its information to be sold illegally.
Shimming vs. skimming
Before chip-enabled cards, skimming was a method of identity theft that would read a card’s magnetic stripe. Shimming is largely the same concept, but instead of reading the stripe, skimmers read the information in the card’s chip.
Both skimming and shimming require the fraudster to attach or insert a mechanism into a card reader in order to gather the information. These can be tricky to spot for unsuspecting consumers, but understanding how they work will help you be more aware the next time you insert your credit or debit card.
How credit card shimming works
Credit card shimming works by inserting a small device called a “shim” into a card reader. Unlike skimmers—which were typically bulky and easily detectable if you knew what to look for—shims are small and subtle.
Whenever a chip-enabled card is inserted into the reader, the shim collects its data. Then, the scammer collects this data by inserting what looks like a regular card into the reader. This makes it difficult to spot suspicious activity, as it appears the scammer is making a regular transaction.
As the technology currently stands, scammers aren’t able to create an exact duplicate of chip-enabled cards based on the shimming data they collect. They are, however, able to create a version of the card with a magnetic stripe only—which many retailers still accept.
How to spot a credit card shimmer
It can be quite difficult to spot a credit card shimmer or skimmer, but there are key questions to help you determine your risk at any transaction:
Does the card slot look misaligned?
Does it take more effort to insert your card?
Does the credit card reader move around when you touch it?
Does it look like anything is blocking the credit card slot? Has something already been inserted?
Are the buttons on the card reader hard to push?
Does anything about the reader look unusual (colors, font, etc.)?
Is there security tape on the card reader? Is it broken or tampered with?
If you’re doubtful about whether an ATM has been affected, it’s best to try another ATM or go to a bank teller if possible. If you’re unsure about a transaction, consider paying in cash or using a contactless payment method, such as your mobile device’s virtual credit card wallet.
How to keep your card secure
While identity theft is not always avoidable, there are some habits you can incorporate to make sure you’re as protected as possible.
Consider contactless payment. The best way to protect against skimmers that steal your card information is to simply avoid them altogether. Contactless payment—like Apple Pay, Android Pay and Google Pay—make paying simple and streamlined.
Choose your ATM strategically. Only use ATMs that are in high-traffic areas or banks to reduce the chances of them being compromised.
Check for tampering. Wiggle the card reader or slot before inserting your card. A traditional skimmer will come off. If your card doesn’t go into the slot smoothly, this could be a sign of a shim inside. Consider choosing a different ATM.
Be cautious at the pump. If you choose to pay at the pump, choose a pump that is closest to the store and in direct view of an employee. If you’re skeptical, the safest option may be to pay the attendant inside.
3 action items for victims of shimming
Banks have some fraud detection technology in place that may catch suspicious activity before it becomes problematic, but it doesn’t catch everything. Luckily, the Fair Credit Billing Act says you’re not responsible for any unauthorized charges once you report your card as stolen. So, if you suspect you’ve fallen victim to skimming or shimming, you’ll want to act swiftly.
Contact your credit card issuer right away. They’ll cut off card access and send you a new card if needed.
Call the business where you think the shimming happened so that they can check their card readers for signs of tampering.
Alert your local law enforcement and the Federal Trade Commission. They may be able to notice a wider pattern and stop other consumers from becoming victims.
FAQ
How does credit card shimming work?
Shimmers are devices that scan the chip in credit cards to replicate and store financial data. Someone can use this to create a knockoff of your card and sell your financial information.
What’s the difference between skimming and shimming cards?
Credit card skimming and shimming are both activities that lift the financial information from your credit card, but they target different places where the information is stored. Credit card skimmers target the magnetic strip on traditional credit cards, while shimmers target the chip you’ll find in newer credit cards.
Can chip cards be shimmed?
Chip cards can be shimmed because shimmers target chips specifically. As of the writing of this article, contactless payments are the most secure way to use your cards.
What do card skimmers look like?
Card skimmers and shimmers are made to look exactly like the regular ATM or card reader. Look for signs of poor craftsmanship or misalignment in the credit card slot because this means it may have been tampered with.
Taking extra safety precautions may seem like a burden at first, but protecting your finances is worth the effort. Remember to pause before you make any transaction to ensure the conditions are safe, even if you’re in a hurry.
Identity theft and fraud can temporarily wreak havoc on your credit, but the effects don’t have to be permanently devastating. Work with a credit repair firm to help challenge any inaccurate items caused by a scammer to help you work to get your credit back to where it should be.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Sarah Raja
Associate Attorney
Sarah Raja was born and raised in Phoenix, Arizona.
In 2010 she earned a bachelor’s degree in Psychology from Arizona State University. Sarah then clerked at personal injury firm while she studied for the Law School Admissions Test. In 2016, Sarah graduated from Arizona Summit Law School with a Juris Doctor degree. While in law school Sarah had a passion for mediation and participated in the school’s mediation clinic and mediated cases for the Phoenix Justice Courts. Prior to joining Lexington Law Firm, Sarah practiced in the areas of real property law, HOA law, family law, and disability law in the State of Arizona. In 2020, Sarah opened her own mediation firm with her business partner, where they specialize in assisting couples through divorce in a communicative and civilized manner. In her spare time, Sarah enjoys spending time with family and friends, practicing yoga, and traveling.
According to reports from the second quarter of 2022, the total of all household debt in the United States is a whopping $16.15 trillion. Mortgages make up the bulk of that debt, with student loan, auto loan and credit card debt trailing behind.
On average, adults in the United States carry debt loads ranging between $20,800 and $146,200. If you’re in debt and looking for a way to pay it off, making a plan is a critical step. Find out more about how to get out of debt below.
1. Collect All Your Paperwork in One Place
Before you can get out of debt, you need to know how much debt you actually have. You should also know who you owe and what the terms are, as this can help you prioritize debt payments to pay them off faster.
Start by collecting all your debt paperwork in one place and creating a master list of everything you owe. You can do this in a spreadsheet or with a pen and paper. Information to gather includes:
Statements for all your debts. One way to do this is to spend a month saving all your financial mail and email so you have a comprehensive picture of your debt.
Regular bills that aren’t debts. Your cell phone and utility bills, as well as your rent, should all be included when you gather this financial information. Information about income. Look at paycheck stubs or your bank accounts so you know what, on average, you can expect in income each month.
Your credit reports. Get your free credit reports at AnnualCreditReport.com to ensure you know about all the debt you owe.
Tip: Sign up for ExtraCredit to see your credit reports and 28 FICO® scores in one place.
2. Create a Budget and Determine What You Can Pay Every Month
Using the information you gathered in the above step, create a monthly budget. Make sure you cover all your bills and minimum debt payments. When possible, include an amount that can go toward building your savings. Allocate funds for essentials, such as groceries and gas.
Once you cover all the needs for the month, figure out how much money you have left. How much of that can you put toward extra debt payments so you can start getting ahead on debt?
3. Manage Your Debts in Collections
If you see that you have any debts in collections when you pull your credit reports, make sure you have a plan for taking care of them. Collection accounts have a serious negative impact on your credit score. Creditors may also sue you and try to collect on these accounts via wage garnishments or bank levies if you don’t take action to manage collections. That can throw a huge wrench into your plan for getting out of debt.
Tip: If you don’t enjoy manual calculations, check out Tally. You can use Tally to total up your expenses, pay down credit card bills, and generally figure out where you stand.
4. Consider Your Options
There are two main approaches to paying off debt as quickly as possible: the snowball method and the avalanche method.
The snowball method involves paying off accounts with the lowest balances first. You take any extra money you have—even if it’s just $50—and add it to your regular minimum monthly payment on that small balance. When that balance is paid off, you take the extra $50 plus the minimum payment and add it to the next biggest balance. You keep doing this as you work your way up to larger balances, paying your debt off faster and faster.
With the avalanche method, you tackle accounts according to interest rates. You start by paying off accounts with the highest interest rates first. The thought behind this method is that you save money in the long run by tackling high-interest debt first.
5. Try to Reduce Your Interest Rates
Interest refers to how much your debt costs. If you have a lower interest rate, your debt costs less and you can pay it off faster. Here are some ways you can try to reduce interest rates on your debts:
Ask for a lower interest rate. If you’re a credit card account holder in good standing and your credit history and score has improved since you got the card, you may be able to get a better rate. Call customer service for your card and let them know you are looking for a better deal. They may agree to lower the rate to keep you as a cardholder.
Look into debt consolidation or refinancing. A debt consolidation loan provides funds you can use to pay off higher-interest debts. Refinancing occurs when you get a new loan for a home or car. If you had lackluster credit when you got your auto loan, for example, you may be able to refinance it for a lower rate if your credit has improved.
Get a balance transfer credit card. You may be able to transfer balances from a credit card with a high interest rate to one that has an introductory low APR offer. This may allow you to pay off the debt over the course of 12 to 22 months without incurring any more interest expense.
Upgrade Triple Cash Rewards Visa®
$200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions*
Unlimited cash back on payments: 3% on Home, Auto, and Health categories and 1% on everything else after you make payments on your purchases
No annual fee
Combine the flexibility of a credit card with the predictability of a personal loan
No touch payments with contactless technology built in
See if you qualify in minutes without hurting your credit score
Great for large purchases with predictable payments you can budget for
Mobile app to access your account anytime, anywhere
Enjoy peace of mind with $0 Fraud liability
*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions.
Do Your Best to Pay More Than the Minimum
Only paying the minimum on high-interest debt, such as credit card debt, doesn’t get you out of debt fast. It can take years—dozens of them—to pay off credit card balances if you’re only making minimum payments.
Instead, put more than the minimum on your debt whenever possible. You may also want to put any additional funds you receive—such as a tax refund—on your debt to help with this process.
Consider More Options for Getting Out of Debt
Creating a budget, managing your money wisely, and making extra payments toward your debt all help you get out of debt. Here are some other ways you can deal with debt:
Increase your income while cutting unnecessary spending. Join the gig economy with a side job to earn extra money, or sell things you don’t need via online marketplaces.
Undergo credit education and counseling. These services can help you make the most of your monthly budget.
Engage in debt settlement. You may be able to negotiate with creditors, especially for accounts in collections, to settle debts for less than you owe. Just make sure you understand any effects on your credit.
Enter a debt management plan. During such a plan, you make a single payment to a trustee. They use those funds to pay your debts, hopefully in a way that gets you out of debt faster. Declare bankruptcy. If you find you’re unable to pay your debts, much less make extra payments, you may need another option. Chapter 7 and Chapter 13 bankruptcy are potential considerations.
How to Avoid Getting into Debt
Paying off debt doesn’t have to be impossible, but it can be challenging. For many people, it requires altering years’ worth of financial habits. If you’re not already in debt, it may be easier to stay out of it. Create a budget and stick to it, spend wisely and avoid using credit cards for things you don’t need or can’t afford to buy with cash.
Visa and Mastercard are both card networks. Both organizations manage the payment networks through which their cards work. Visa and Mastercard are different companies, but they operate in a very similar way.
Four credit card networks tend to compete for space in consumer wallets. They are Mastercard, Visa, Discover and American Express.
According to Statista, Mastercard and Visa have had the largest market share for a while. As of 2021, they accounted for more than 87% of the market. Compare that to Amex’s 10.5% and Discover’s 2.2% and you can see that most credit cards are Mastercard or Visa.
But is one better than the other? Are there really any differences between these two major credit card networks? Find out in our guide to the difference between Mastercard and Visa below.
In This Piece
What’s the Difference Between Mastercard and Visa?
While they’re both credit card processing networks, these are unique and separate companies. They were founded at different times.
Originally known as the BankAmericard credit card program, Visa launched in 1958. Mastercard began as Master Charge: The Interbank Card when it emerged as a BankAmericard competitor in 1966.
Visa cards don’t work on the Mastercard network, and vice versa. You can’t, for example, use a Visa to pay for something in a store that only accepts Mastercard.
How Are Visa and Mastercard Similar?
There are more similarities between Visa and Mastercard than differences. As mentioned earlier, these are both card networks. They both play the middleman between payment processors and issuing banks.
Both companies operate globally, so if you alert your issuer in advance, you should be able to use your Visa or Mastercard in another country when you go on vacation. Whether you pay fees for this service depends on your card issuer and account details—not on Visa or Mastercard.
Both Visa and Mastercard have tens of millions of merchants in their networks, and both companies’ merchant fees are comparable. Both organizations are publicly traded.
What’s the Difference Between a Network and an Issuer?
The credit card network is the middleman between the payment processor and the issuer of the card. When you pay with a credit card, the information is processed through the network to the bank that issued your credit card. On the other side of the transaction, the data that supports the funds transaction is also processed through the network.
Visa and Mastercard are credit card networks. They’re responsible for the infrastructure for these transactions and for protecting the information as it passes between the payment processor and the issuer. For this service, the credit card networks charge a fee—usually paid in part via a small percentage of every transaction.
An issuer is the bank that issues the card. Examples include Chase, Citibank and Capital One. The issuer is the entity that decides whether you’re approved for a credit card and sets interest rates and fees. It’s also the lender that pays for the goods you purchase with your credit card and the entity you pay back with your payments.
How Does Payment Processing Work?
Visa and Mastercard credit card and debit card payments all go through the same payment process—albeit on different networks. The process looks like this:
Consumers swipe cards—or tap contactless cards—in physical stores or enter card details online.
Merchants send payment authorization requests to their payment processors.
Payment processors send payment requests to the appropriate card network.
Card networks “ask” issuing banks for payment authorization.
Issuing banks approve or deny the transaction.
At this point, transactions are—hopefully—authorized, but they’re not settled yet. The process must continue:
Merchants send approved payment requests to payment processors in batches.
Once again, payment processors send transaction details to Visa, Mastercard or other applicable card networks.
Card networks “ask” issuing banks for previously authorized funds.
Issuing banks release the funds, which travel to merchant banks.
Credit card processing network fees get taken out along the way.
Merchant banks transfer funds into individual merchant accounts.
At this point, the store or other merchant has been paid for the goods or services you bought with your credit card. Your next statement should also reflect the purchase.
Other Mastercard vs Visa Similarities
Visa and Mastercard issuers have a range of products to choose from. Debit cards let you spend money already in your bank account—plus your overdraft if you have one set up. Meanwhile, you must fund prepaid cards in advance.
Visa or Mastercard credit cards have the following things in common.
1. Credit Scores Matter
Card issuers make decisions based on consumers’ credit scores. If you want a card with an extra-low APR and a really high credit limit, you’ll need a top-notch credit score. Lower credit scores generally mean lower credit limits and higher interest rates.
If you’re new to credit or you need to repair your credit, look for a credit builder or credit repair card. You won’t have a very high limit to begin with, and your APR might not be very competitive, but if you make regular payments, you’ll soon qualify for a better product.
Surge Mastercard® Credit Card
All credit types welcome to apply!
Monthly reporting to the three major credit bureaus
Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
Fast and easy application process; results in seconds
Use your card at locations everywhere that Mastercard® is accepted
Free online account access 24/7
Checking Account Required
See if you’re Pre-Qualified without impacting your credit score
2. Rewards Cards Provide Value
Mastercard and Visa both partner with issuers that offer rewards cards. Rewards include air miles, points, store-specific rewards, food and beverage rewards and cash back. If you use your rewards card in a savvy way, you can save a lot of money.
3. Fees Vary
Visa and Mastercard don’t set fees—issuing banks do. As a result, fees for Visa and Mastercard products vary widely. Make sure you’re familiar with the over-limit, balance transfer, late payment, and foreign transaction fees on each of your credit card accounts—and stay away from credit cards with unreasonable fee structures.
4. Smart Wallets Protect Information
Both Visa and Mastercard cards are compatible with smart wallets like Apple Pay and Google Pay. Smart wallets hide your card information, so they’re more secure than swiping a card or entering card details online. Every year, more and more brick-and-mortar and online retailers accept smart wallet payments.
5. Discount Programs Save You Money
Some credit cards—especially business credit cards—incorporate high-value discount programs. The Visa SavingsEdge program, for example, can save you more than 15% when you shop with qualifying merchants. Mastercard has a similar program, called Easy Savings. In both cases, you need to enroll your card to get money back.
Which Is Better: Visa or Mastercard?
What’s the difference between Mastercard and Visa? Not that much, actually. The major difference is the company that runs the network. Merchants that accept one usually tend to accept the other, and more merchants accept Visa and Mastercard than any other type of card.
Instead of considering whether you should get a Visa or a Mastercard, think about what type of card you want and which bank you want to work with. Apply for a card that offers the rewards you want and has fees that match your budget. Whichever one you choose, you’ll be able to use it around the globe and get a very similar experience from the card network.
Many people have a PayPal account. According to data from PayPal itself, more than 420 million Americans have accounts, making it the most preferred choice of digital payment apps. PayPal offers a number of credit options, including buy now, pay-later options and business loans products for small businesses. But did you know it also offers credit cards?
This article reviews the PayPal Cashback Mastercard. Cash back helps reduce the overall cost of things and may help you keep up with inflation. We’ll look at details like APR, credit requirements, and rewards and perks so you can decide if this is a card that belongs in your wallet.
In This Piece:
How Does the PayPal Cashback Mastercard Work?
The PayPal Cashback Mastercard is a normal credit card, and you can use it wherever you check out with PayPal, as well as anywhere Mastercard is accepted. It doesn’t have an annual fee[1] and has a variable APR of 19.74% to 31.74% (as of 4/1/23), depending on your creditworthiness and other factors.
You’ll need somewhat decent credit to get approved for this card, as is the case with most rewards cards. When you use this card, you earn 3% cash back on PayPal purchases and 2% cash back on other purchases. You can earn unlimited cash back[2] without having to worry about which rotating category of goods and services earns the big points each month or quarter.
What Benefits Does the PayPal Cashback Mastercard Offer?
3% Cash Back When Checking Out With PayPal
When you check out with PayPal and use this card as the payment method, you earn 3% cash back on purchases. So, if you buy something for $200, you earn $6 cash back, for example. You’ll earn 2% cash back when you swipe the card at registers or use it to make purchases outside of PayPal.
In stores where checking out via PayPal at the register is possible, you can also earn 3%. Look for QR codes that let you check out with the PayPal app. Always ensure the funding source for your payments is the PayPal Cashback Mastercard to earn the rewards.
ID Theft Protection
Cardholders automatically get Mastercard ID Theft Protection. Through this program, you receive alerts when your credentials, such as passwords and logins, or other personal information may have been compromised on the web. This service includes dark web monitoring and high-risk transaction monitoring.
Earn Rewards Daily
You don’t have to wait until the end of your statement cycle to earn cash back on purchases. Cash back is earned on a daily basis for completed purchases, and you can redeem it immediately to your PayPal balance account.[3]
If you have a PayPal account, you can redeem your cash back to your account. It’s added to your PayPal balance, and you can then use it to pay for goods with your balance or transfer it to your bank account. If you don’t have a PayPal Balance account, you can redeem cash back to your bank account or to a debit card you’ve attached to your PayPal account.
Who Should Get the PayPal Cashback Mastercard?
While you don’t need excellent credit to get approved for this card, you may find yourself with a higher APR if you have lackluster credit. The lower APR range is typically reserved for those who have great or excellent credit.
If you want a simple way to earn cash back without tracking categories or paying annual fees, this may be an ideal card for you. That’s especially true if you’re a loyal PayPal account holder and enjoy checking out with PayPal online and in select stores.
How to Apply for the PayPal Cashback Mastercard?
Check your credit score before you apply for any credit card. This helps you understand whether you have a good chance of being approved or if you should look for a card that better matches your credit situation. Next, read all the terms and conditions so you understand potential fees, interest, and any other charges.
Once you have a good idea of whether the card will work for you, apply for it online. If the PayPal Cashback Mastercard doesn’t sound like the right choice for you or you want to compare options before you apply, browse other credit cards in our marketplace.
[1] See Terms and Rates for New Accounts.
[2]Purchases are subject to credit approval, and the PayPal Cashback Mastercard must be used for payment. See Rewards Program Terms for details and restrictions.
[3]Important information on redeeming Cash Rewards: You need to have a PayPal Balance account to use your redeemed rewards in your balance. If you do not have that account, you can only transfer your Cash Rewards to your bank account or debit card linked to your account with PayPal.
The benefits and services as further described in the Mastercard Guide to Benefits are provided solely by Mastercard International Incorporated. PayPal and Synchrony Bank do not endorse, recommend, warrant or take responsibility for these offered benefits.
The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.
The PayPal Cashback Mastercard is issued by Synchrony Bank pursuant to a license by Mastercard International Incorporated. Mastercard, Tap & Go and the circles design are registered trademarks of Mastercard International Incorporated.
XBOX is launching a new no annual fee credit card in partnership with Barclays. With the Xbox Mastercard credit card, players can earn card 5x points on Microsoft purchases and 1x on everyday purchases to redeem at xbox.com. The Xbox Mastercard will be available to Xbox Insiders in the US beginning on September 21, with availability to all Xbox players coming in 2024.
Press Release | Terms
Contents
Signup Bonus
Bonus of 5,000 card points (a $50 value) after your first purchase within the first 180 days.
You’ll also get three months of Xbox Game Pass Ultimate for new Game Pass members. If you are already a Game Pass member, you can gift it to a friend. (After first three months the subscription will automatically continue at the regular monthly rate, currently $16.99/month.)
Card Earning
Xbox & Microsoft – Earn 5x card points on eligible products at the Microsoft Store.
Streaming Services – Earn 3x card points on eligible streaming services like Netflix and Disney+.
Dining Delivery Services – Earn 3x card points on eligible dining delivery services like Grubhub and DoorDash.
Everyday purchases – Earn 1x card points on all other everyday purchases.
Card Points can be redeemed for Xbox Mastercard Gift Cards starting at 1,500 Card Points for $15. You can redeem Xbox Mastercard Gift Cards to your Microsoft account on an Xbox console or connected device; Xbox Mastercard Gift Cards have no expiration date and can be used for eligible purchases (exclusions apply) at select Microsoft digital stores.
Additional Details
$0 annual fee
3% foreign transaction fee
Choice of one of five iconic designs for their card, with the option of personalizing it with their gamertag.
Free online access to cardmembers’ FICO Credit Score
Flexibility of use with contactless payments and digital wallets.
Our Verdict
Nothing too exciting here, and a small signup bonus. I guess it could make sense for someone who spends a ton at XBOX/Microsoft for the 5x rewards there.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
If you find yourself owing taxes after your tax filing is done, you may be wondering how you’re going to pay them. While there are several options—from savings to getting a loan—many people wonder if it’s possible to put their tax bill on a credit card. Maybe even someone else’s credit card. Learn how paying for your taxes with a credit card works and how to choose the best method for your situation.
In This Piece
Can You Pay Your Taxes with a Credit Card?
Yes, it’s possible to pay your taxes with a credit card. Several IRS-approved payment processors, including Pay1040.com, PayUSAtax.com, and OfficialPayments.com, allow credit card payments for tax bills. Tax preparers sometimes link to these processors so you can use them to pay your tax bill once the tax professional is done filing your taxes.
Can You Pay Your Taxes with Someone Else’s Credit Card?
As long as you’re authorized to use someone else’s credit card to pay your taxes, you can do so. The tax processors don’t require that the credit card name match the filer, so if you have a family member or friend who’s willing to let you use their credit card to pay your taxes, you can do so.
Can You Pay Someone Else’s Taxes with Your Credit Card?
You can also use your credit card to pay someone else’s tax bill, but that person’s Social Security number must be used when the payment is made to the account.
Can You Pay Your Taxes with Someone Else’s Bank Account?
It’s possible to pay your taxes with a payment directly from your bank account. You can do this through the Electronic Federal Tax Payment System. You’ll need your information to verify your identity as well as the routing number and account number for the account you’re paying from. As long as the account owner allows it, you can use someone else’s bank account to pay your taxes, and vice versa.
How Tax Payments Appear on Your Card Statement
When you pay your tax bill with a credit card, the transaction is listed as United States Treasury Tax Payment or something similar on your credit card statement. And the processing fee you pay the payment processor is usually listed as a Tax Payment Convenience Fee or something similar.
How Long Does It Take for the IRS to Post Your Payment?
Your payment is processed immediately—at least by the next business day—and the payment date is the date the payment is authorized. While the payment is processed almost immediately, it can still take five to seven days for the IRS to post the payment to your tax account.
Can You Use More Than One Card for a Tax Payment?
You can use two different credit cards to make your payment. You do need to complete two separate transactions, though—one for each card. You’ll also receive a different confirmation number for each transaction. If you need to make a partial payment on your credit card rather than a full amount, you can do this as well.
How to Pay Taxes with a Credit Card
Here are the basic steps for paying your taxes with a credit card:
File your taxes, either through a tax service or on your own, by the deadline. Keep an eye on the IRS website as the COVID-19 pandemic has changed some deadlines in the past.
Go to the Electronic Federal Tax Payment System website.
Select the Pay by Debit or Credit Card option.
Select your preferred processor, making sure to note the fees.
Follow the prompts to verify your identity and make the payment.
If you use a tax preparation service you may be directed to pay your taxes through the software, but the process should be generally the same. You’ll be made aware of any fees or processing charges, and you’ll then enter in your info and the credit card numbers to make the payment. These services are also a good idea if you’re not sure what deductions and exemptions you qualify for or if you want to make sure you’re getting the biggest refund possible.
Pros and Cons of Paying Your Taxes with a Credit Card
Before you pay your taxes—or someone else’s—with a credit card, it’s important to be aware of both the benefits and drawbacks.
Pros
One of the biggest pros of paying by credit card is that it’s convenient and easy. If you happen to have a credit card that offers frequent flyer miles or pays cash back, you might also benefit from charging a transaction like an income tax bill, potentially earning yourself points toward a free vacation or your next cashback bonus.
Depending on how much you owe in taxes and how long it takes you to pay the IRS, you may save money—in the form of avoiding IRS late penalties and interest fees—by paying the bill immediately with a credit card. That’s assuming those fees and penalties don’t outpace the APR on your credit card, of course.
Cons
All payment processors charge a processing fee to let you pay your taxes with a credit card. For the 2021 tax season, processing fees range from 1.87% to 1.98% of your tax bill or a minimum fee of $2.50 to $2.69, whichever is higher. ACI Payments, Inc., charges 1.98% or a $2.50 flat fee. PayUSAtax.com charges 1.96% or a minimum $2.69 fee. And Pay1040 charges 1.87% or a minimum $2.50 fee. Tax preparation software usually charges similar fees.
If you pay with your credit card and don’t pay off your credit card bill the month after you pay, you’ll pay interest. This means you can end up paying interest twice what you paid for the processing fee in added interest charges on your credit card bill. The numbers can be even higher if you pay only the minimum balance due each month.
Choose the Best Credit Card to Pay Your Taxes
If it takes you a few months or more to pay off the credit card balance after you use it to charge your tax bill, make sure you choose the best credit card available to you. Choose your credit card with the lowest interest rate. Using a card with a 0% introductory interest rate and paying your full tax bill before the introductory period ends is ideal, because this allows you to avoid paying interest on your tax bill.
Upgrade Triple Cash Rewards Visa®
$200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions*
Unlimited cash back on payments: 3% on Home, Auto, and Health categories and 1% on everything else after you make payments on your purchases
No annual fee
Combine the flexibility of a credit card with the predictability of a personal loan
No touch payments with contactless technology built in
See if you qualify in minutes without hurting your credit score
Great for large purchases with predictable payments you can budget for
Mobile app to access your account anytime, anywhere
Enjoy peace of mind with $0 Fraud liability
*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions.
You may be tempted to reach for a rewards credit card to pay your tax bill, because the rewards, such as a cashback offer, will help to offset the processing fee you pay. Before you pull out a rewards card to pay your tax bill, though, take a close look at the card’s interest rate and calculate how long it’ll take to pay the bill in full. Carrying a big balance on a rewards card with a high interest rate may not be worth the rewards you earn.
Will Paying My Taxes with a Credit Card Affect My Credit Score?
Paying your tax bill with a credit card can affect your credit score depending on your tax bill compared to your total available credit limit. Using a credit card to pay your taxes can result in a higher credit utilization rate, which can negatively impact your credit score. The ideal limit for your credit utilization ratio is under 30% of your available credit. If you go above these limits, it could negatively affect your score.
Whether you choose to use a credit card to pay your taxes or not, it’s a good idea to keep an eye on your credit report. Services like ExtraCredit® can do all the legwork for you so you always know what your credit score is and how your financial decisions are impacting it.
Other Options for Paying Your Taxes
If your tax bill is so large that you can’t pay it off quickly or you don’t have a credit card with a low or 0% APR, there are better alternatives. Choosing another option to pay your tax bill is a good idea if it helps you avoid paying interest on a credit card balance on top of an already sizable tax bill.
The IRS has payment plans for taxpayers who meet certain criteria. An installment can reduce, or eliminate altogether, penalties and interest. It’s worth your time to consider this option, especially if you’re already financially strapped. Learn more on the IRS payment plan and installment agreement page.
In our latest real estate tech entrepreneur interview, we’re speaking with James Segil from Openpath.
Who are you and what do you do?
I’m James Segil, and I am the president and co-founder of Openpath, an LA-based startup which creates smart, secure physical access systems for the modern office. I’m an entrepreneur with proven experience having built and sold three successful technology companies.
I run day-to-day operations and business development at Openpath, where we are helping companies reduce common touch points and make a contactless user experience as part of a new, healthy post-pandemic environment.
What problem does your product/service solve? My fellow co-founders Alex Kazerani, Samy Kamkar, Rob Peters and I had the idea for Openpath when we grew tired of forgetting our office keys at home and were frustrated with having to carry multiple badges to get into buildings. We were also worried about security at work given the state of the world today. We started Openpath in 2016 because saw an opportunity to really improve the office access and the keyless-entry experience by making it more frictionless and secure. We saw that we could use our phone to open the doors instead of having to carry a keycard.
Our solution combines hardware and enterprise, cloud-based software to improve the experience for people accessing buildings with hands-free access and mobile credentials, all through a beautifully designed product. Openpath’s access control platform helps companies across a range of sectors including commercial real estate, manufacturing/industrial, offices, retail, schools, gyms and places of worship, and supported over 5 million unlocks a month.
What are you most excited about right now?
Getting America back to work safely with Germ-Free access to your building and office. We are currently laser-focused on helping building owners, managers and tenants to provide employees and visitors secured access without touching any physical surfaces.
We just announced our “Wave to Unlock” feature, through which users can wave their hand in-front of a reader from a safe distance in order to unlock an entry, removing all surface contact. The patented Triple-Unlock technology works over WiFi, LTE, and Bluetooth, and guarantees a fast and reliable connection, which is critical for efficient and safe access. This is part of our offerings to help companies facing demands to update workspaces for returning employees to work.
We’re hearing from building owners, tenants, city planners, architects, and security consultants that this touchless solution is calming some employee concerns about returning to the workplace as a touchless, hands-free, germ-free experience.
What’s next for you?
Beyond the COVID-19 response, we are looking for new ways to improve the day-to-day work experience of every worker in the world through frictionless access. Our obsession on user experience drives us as we want people to experience the built world in a more personalized and secure way.
What’s a cause you’re passionate about and why?
I’m passionate about reducing homelessness, which is how I became very involved with The Giving Spirit, a grassroots charity that assembles survival kits for the homeless here in Los Angeles. We have helped over 40,000 homeless since we started and continue to focus on helping those who are the most in need during this difficult time.
Thanks to James for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Florida resident Jaclyn Lambert (who happens to be our PR consultant) never thought she’d ever sell a home during a global pandemic.
In fact, when the World Health Organization (WHO) announced the seriousness of COVID-19, she temporarily put selling a house on hold. But after a few weeks of self-quarantine, she received a call from her trusted realtor assuring her they could handle the listing and transaction in a safe manner.
Within a week, Lambert witnessed a bidding war on her home. It closed shortly after that. Aside from signing the closing paperwork curbside, it was a contactless procedure, one that she confidently described to me as, “safe and easy.”
“I couldn’t have imagined just how well the process would have gone during this crazy time, but I really do owe it all to my realtor who I’ve turned to a couple of times. In fact, I wouldn’t use anybody else,” said Lambert.
But Lambert’s experience as a repeat customer is actually rare. A recent study by Porch.com (my parent company) found that only 8% of repeat home buyers have used the same realtor more than once.
Why do 92% of recent home buyers search elsewhere? What causes this gap in return customers, and what can realtors know to navigate customer relationships better in 2020– even during a pandemic? Here are a few things to keep in mind when marketing your services under “the new normal”.
Confidence Is Key With Nervous Buyers & Sellers
Recent studies show that both buyers and sellers are heeding caution during this time, with 70% of home sellers willing to take a lower asking price just to sell their home quickly, and 58% of recent potential buyers/renters putting their moving plans on hold until further notice.
As a realtor, it’s your job and responsibility to ease the stresses of the home buying and selling process to your current and future customers. Deep-dive on CDC recommendations. Learn what a safe home buying, selling process looks like. For example, some things to consider might be:
When selling, make it a “no-contact” process for your sellers
Create a process for virtual tours, and use technology to your advantage
When showing to potential buyers, maintain six-foot distance and have proper PPE
Implement these procedures and communicate loudly and clearly that working with you will be a pleasant (and safe) experience.
And remember that this is a particularly sensitive time to conduct business, so the key here is to provide the latest and greatest safety measures and technologies with authority to put your current and future client’s minds at ease.
Update Your Reviews and Testimonials to be COVID-related
Successfully made a customer happy during this time? Great! Now, make sure you request an online review, especially with them addressing the safety precautions your team took to make sure things run as smoothly and safely as possible.
With 66% of prospective buyers polled by Porch finding their realtor from an online review, it is quite possible that hearing this type of pandemic-safety language might be exactly what your prospective customer needs to hear in order to make that call.
Hand Off Customers to People Who Also Practice Non-Contact
And reviews are not the only way technology can be your friend during this time. If you haven’t looked toward online collaboration tools for all things home searching, contract signing, and closing paperwork. Make sure to have your trusted lenders and insurance brokers ready to forward to your clients for an easy contactless closing/home searching process.
And always lead by example; be open to meetings via Zoom to replace the valuable face-to-face time you’d in the past use for coffee shop meetings.
Provide Extra Support Beyond The Norm
The Porch study also found that homebuyers aren’t reading the paperwork, with first-time homebuyers feeling especially unprepared. Coupled with pandemic nerves, this calls for some intervention.
Perhaps it’s a no-brainer that going above and beyond is good customer service, but knowing that paperwork is going unread, now would be an especially good time to prepare a conference or phone call to go over any questions or technical paperwork your client may need help deciphering.
After the sale, provide guidance on the safest way to move, provide a digital thank you gift (think: e-cards and Amazon gift cards), and simply just find any way you can to make an above-and-beyond connection with your customers, despite the lack of in-person attention you are able to give at this time.
Remain a Pandemic-Proof Realtor
Maintaining real estate customer relationships is hard, and while the pandemic certainly adds a new level of complexity to the mix, as a forward-thinking real estate agent, it’s important to look toward the signs of what a “new normal” might look like.
Lean on the proper technology to adopt now and potentially forever, and communicate to your past/future customers just how top of class your services really are. That will get you the rare repeat customer, no matter what outside variables you encounter.
With record low unemployment and a reasonable cost of living, Ohio packs plenty of amenities for residents. But if you live in Ohio, the large number of FDIC-insured banks can make it tough to choose just one. To help, we’ve pulled together a list of local, national, online, and regional banks operating in the state.
10 Best Banks in Ohio
The best checking accounts in Ohio offer the amenities you need, while also reducing fees. Most banks offer features like mobile check deposits and ATM access, but in-person customer service and access to branches can also make a difference. All the banks listed below are worth considering for their low-fee banking services, whether you’re in Cleveland, Columbus, or one of the many other great Ohio cities.
1. KeyBank
If you’re looking for an Ohio bank that provides a personal banking experience, KeyBank might have everything you need. The standard checking account comes without fees or balance requirements.
The best APY comes with its money market savings account option, which pays up to 5.00% APY. The bank operates branches and ATMs throughout Ohio, and you’ll get expanded ATM access at Allpoint ATMs nationwide.
Fees:
No monthly fees
$20 fee for overdrafts
Balance requirements:
$10 opening deposit required
No minimum daily balance
ATMs:
Fee-free at KeyBank ATMs
Fee-free at Allpoint ATMs nationwide
$3 fee for out-of-network ATM transactions
Interest on balance:
Up to 5.00% APY on money market savings accounts
Up to 4.74% APY on CDs
Additional perks:
2. Huntington National Bank
Huntington National Bank has branches throughout the Midwest, but its headquarters is in Columbus. That gives the bank a strong presence throughout the state, with a bank branch in Columbus, Cleveland, and the Akron areas.
Huntington Bank has a fee-free checking account that even waives fees on overdrafts up to $50. But one of the biggest selling points for Huntington Bank is its interest rates. The 0.06% APY on savings accounts and 5.13% APY on CDs is better than average, particularly for traditional banks.
Fees:
No monthly fees
$15 (waived up to $50)
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at more than 1,700 ATMs nationwide
$3.50 out-of-network ATM fee
Interest on balance:
Up to 0.06% APY on savings accounts
Up to 5.13% APY on CDs
Up to 4.18% APY on money market accounts
Additional perks:
Standby Cash serves as an automatic line of credit
Early access to paycheck with direct deposit
3. Chime
Chime is an online banking platform open to consumers throughout the U.S. Ohio residents looking for banking services will get all the basic amenities through Chime’s app. You get mobile check deposit, funds transfers, and a Visa debit card. Like many other online banking options, Chime also gives you cash access through partnerships with ATM providers and retailers nationwide.
Fees:
No fees
No fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 fee for out-of-network ATM transactions
Interest on balance:
2.00% APY on savings accounts
Additional perks:
4. Wright Patt Credit Union
Credit unions have competitive rates and perks, but they also come with membership requirements. Wright Patt Credit Union is open to anyone who lives, works, worships, or attends school in 20 Ohio counties.
You’ll have fee-free ATM access at WPCU ATMs throughout Southwest and Central Ohio, as well as through CO-OP ATMs nationwide. But one of the biggest selling points is WPCU’s interest rates. Currently, they’re paying 7.00% APY on the first $1,000 in your savings account.
Fees:
No monthly service fees
$9 fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at WPCU ATMs
Fee-free at CO-OP ATMs nationwide
No fee for out-of-network ATM transactions
Interest on balance:
Up to 7.00% APY on savings accounts
Up to 4.85% APY on CDs
3.30% APY on money market accounts
Additional perks:
WPCU Sunshine Community Fund supports local nonprofits
Competitive rates on personal loans
5. Chase Bank
Chase is a national bank with locations across Ohio. The Chase Total Checking Account comes with a $12 monthly fee. However, Chase waives it if you have direct deposits of $500 or more each month, keep at least a $1,500 daily balance, or maintain a $5,000 minimum balance across all your Chase accounts.
For younger costumers, take a look at the Chase Student Checking Account, which is designed for students between the ages of 18 and 24.
Fees:
$12 monthly fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at 16,000+ Chase Bank ATMs
$3-$5 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$100 checking account bonus
Credit cards offer bonuses and general rewards
6. Woodforest National Bank
Woodforest National Bank is a community bank with branches in Ohio, Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
The basic checking account comes with a $6.95 fee, but Woodforest waives it with monthly direct deposit or a daily balance of at least $100.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$32 overdraft fee
Balance requirements:
$25 deposit to open
No minimum daily balance
ATMs:
Fee-free at Woodforest National Bank ATMs
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.50% APY on savings account balances
Up to 4.60% APY on CDs
Additional perks:
7. Fifth Third Bank
Headquartered in Cincinnati, Fifth Third Bank is one of the top regional banks in Ohio. You’ll get fee-free ATM access not only at Fifth Third ATMs but also at more than 40,000 partner ATMs nationwide. Fifth Third Momentum Checking comes with no monthly maintenance fees, and you can avoid overdraft fees by depositing enough money to cover the overage by midnight the next business day.
Fees:
No monthly service fees
$37 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at 1,500+ Fifth Third Bank ATMs
Fee-free at 40,000+ partner ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
0.01% APY on savings account balances
Up to 4.75% APY on CDs
Additional perks:
Early access to your paycheck
Extra business day to resolve overdrafts
8. GO2bank
If you haven’t checked into online banks lately, you might have missed how far they’ve come. Not only are their interest rates and fees competitive with most traditional banks, they also offer features that make it easy to skip the bank branch experience. GO2bank offers nationwide access to cash at Allpoint ATMs, as well as cash deposits at more than 90,000 retailers.
Fees:
$5 monthly maintenance fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings account balances
Additional perks:
Up to 7% cash back on gift card purchases
Deposit cash at 90,000+ retailers nationwide
9. Quontic Bank
Another online banking option is Quontic Bank, which began as a community bank in New York City in 2009. Quontic has a wider range of cash withdrawal options than most banks, thanks to partnerships with Allpoint, MoneyPass, and Citibank. But one feature that sets this bank apart is its mortgage loan program.
Quontic has been designated by the U.S. Treasury as a Community Development Financial Institution (CDFI), which allows it to issue loans to borrowers who fall outside the requirements for a conventional home loan.
Fees:
No monthly fee
No fees for overdrafts
Balance requirements:
$100 opening deposit
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
Fee-free at MoneyPass ATMs
Fee-free at SUM Program ATMs
Fee-free at select Citibank ATMs
Interest on balance:
Up to 1.10% APY on checking account balances
4.25% APY on savings accounts
Up to 5.15% APY on CDs
Up to 4.75% APY on money markets
Additional perks:
CDFI lending makes mortgage loans available to a wider range of applicants
Free contactless Quontic ring wearable with new checking account
10. Civista Bank
Local banks have plenty to offer, including a competitive annual percentage yield and personalized customer service. Civista Bank has branches in Northern, Northwestern, Central, and Southwestern Ohio, as well as Southeastern Indiana and Northern Kentucky. If you travel often, though, be aware that fee-free ATM transactions are limited to the service area.
Fees:
No monthly fee
$37 overdraft fee
Balance requirements:
$50 opening deposit
No minimum daily balance
ATMs:
Fee-free at Civista ATMs nationwide
$4.50 fee for out-of-network ATM transactions
Interest on balance:
Rates not publicly disclosed
Additional perks:
Bottom Line
With so many Ohio banks, the options can be overwhelming. It can help to narrow down the features you need. From personalized banking services to help with investment accounts, choosing a bank account is a personal decision. Compare rates and features between financial institutions until you find the right bank to meet your needs.