John D

It's called "Interac Monopoly" we should have at least the option to choose,
some people in Canada can't use Internet shopping at all because of the
Interac monopoly, at least prepaid credit cards should be an option..




"Nick B." <[email protected]> wrote in message
news:%[email protected]...
    > Realistically, the number of people who can't get credit cards in Canada
is
    > much lower, because it seems that Canadians take much more care of their
    > credit.
    > The only advantage of "check cards" is the online shopping thing - but
    > that's really it. Unless they are demanded by the masses, they won't be
    > introduced because Interac does (almost) everything they do and is firmly
    > established.
    > I don't know what fees Visa/MC charges merchants for Check Card purchases,
    > but if it is anything like credit card fees, that's another obstacle. Why
    > pay a 4% credit card discount rate when you can pay Interac between 10 and
    > 15 cents a transaction instead? For most purchases, Interac is a better
    > deal to merchants.
    > "John D" <[email protected]> wrote in message
    > news:[email protected]...
    > > Yeah but that would be great for people with bad credit or no credit at
    > all,
    > > Interac is useless because you can't buy online with Interac, with the
U.S
    > > debit cards anyone can buy online.
    > >
    > >
    > >
    > > "Elmar" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > "John D" <[email protected]> wrote in message
    > > > news:[email protected]
    > > > > But we don't have too many options of prepaid cards in Canada, the
    > > banking
    > > > > system in Canada is obsolete, in the US you open a regular checking
    > acc
    > > > > and comes with a Check card( debit card with the Visa or MC logo on
    > it)
    > > >
    > > > What do you mean by pre-paid card? If you mean secured credit card,
then
    > > > most bank will issue secured credit card. You have very wrong idea
about
    > > > banking system in Canada. Banking system in Canada is way more
advanced
    > in
    > > > technology implementation than most banking system in USA. Banking
    > system
    > > in
    > > > USA is very fragmented, localized and does not have nationwide unified
    > > > network like in Canada.
    > > >
    > > > Debit card is not credit card. This is just like any other bank card
    > with
    > > > added advantage of using it with Visa/MC network (like Interac, PLUS,
    > > Cirrus
    > > > etc.). With huge disadvantage of being less secured. If anybody can
get
    > > hold
    > > > of your debit card he can use it anywhere with a forged signature. The
    > > money
    > > > is deducted from your bank account right away and unlike credit card,
    > the
    > > > issuing company will not stand behind you to recover back the money.
    > > > Moreover using a debit card will not help you build credit history.
    > > >
    > > > --
    > > >
    > > >
    > >
    > >

John D

""""That is exactly the problem with them - *anyone* can buy online and the
$$
are deducted straight from your checking account."""

Not quite true, because almost all online retailers won't ship to an address
other than your billing address.



"WebCrawler" <[email protected]> wrote in message
news:[email protected]...
    > "John D" <[email protected]> wrote in message
    > news:[email protected]...
    > > Yeah but that would be great for people with bad credit or no credit at
    > all,
    > > Interac is useless because you can't buy online with Interac, with the
U.S
    > > debit cards anyone can buy online.
    > That is exactly the problem with them - *anyone* can buy online and the $$
    > are deducted straight from your checking account.
    > A thief's heaven - a perfect prescription for theft as far as thieves are
    > concerned.
    > And it does nothing for your credit by using them - nothing at all.
    > And it will do a lot of harm to your credit if someone takes off with that
    > number and has a ball before you realise what is happening - your checking
    > A/C is long gone.

John D

I do that, I use US Capital One and I also keep my Wachovia US bank acc.

"Web_Guru2003" <[email protected]> wrote in message
news:[email protected]...
    > Does anyone has experience of using US issued cards in Canada? What if
    > one carries his/her current US cards, stop the paper billing and keep
    > on making payments online. I am in pirticular talking about Discover,
    > BankONE Visa and Providian MasterCard.

Elmar

"Web_Guru2003" <[email protected]> wrote in message
news:[email protected]
    > Does anyone has experience of using US issued cards in Canada? What if
    > one carries his/her current US cards, stop the paper billing and keep
    > on making payments online. I am in pirticular talking about Discover,
    > BankONE Visa and Providian MasterCard.

That will work for Visa or MC. But I have never seen any merchant accepting
Discover card in Canada. Using US credit card will not build your credit
history in Canada. Also you'll lose upto 3-4% in currency conversion for any
Canadian purchase made using US credit card.

Elmar

"John D" <[email protected]> wrote in message
news:[email protected]
    > """ It is popular in USA because they don't have anything
    > better like Interac there.""
    > Yes they have, it's just not called interac, let's say you go to any
    > store , you use your check card entering your pin number as you would do
    > with Interac, you can use it either "debit" or " credit"

You are still not getting it. USA does not have nationwide single network
that is supported by all banks, ATM machines and merchants. Interac is
almost standard nationwide single network in Canada that is supported by all
banks, ATM machines and merchants. Interac is also very cheap for
transaction. I can take any bank card and travel to any city in Canada and
guaranteed to be able to use it there with low transaction fee because of
single network. While in USA you have to make sure that in your destination
city the merchant have option to use your bank card's supported network
(logos behind the card). Most of those network charge substantially higher
transaction fee than Interac. For instance, if you use Visa debit card for
cash withdrawal, you'll pay about .50-.75% more than using any other ATM
network that your bank support natively.



    > "Elmar" <[email protected]> wrote in message
    > news:[email protected]...
    >> "John D" <[email protected]> wrote in message
    >> news:[email protected]
    >>> If check cards are introduced in Canada Interac will go bankrupt, nobody
    >>> would want to use Interac again,
    >> You have no idea about the banking system and POS network. Interac is
    >> very well spread, time tested, secured, extensive network with lower
    >> transaction fee. Visa/MC network will never be able to compete against
    >> Interac. That is the reason you don't see them in Canada. Because of the
    >> higher transaction fee and terminal installation charge most small
    >> business will avoid using Visa/MC debit card. It is popular in USA
    >> because they don't have anything better like Interac there.
    >>> it's just useless when you can use your
    >>> debit card as a credit card also,
    >> Again, debit card can not be used as credit card. It is just that you can
    >> use it on their respective network. But it is insecured, because you can
    >> use it online without any protection from the issuer.
    >>> if you say "debit" you will enter your
    >>> PIN number, if you say "credit" you will sign the receipt and go!
    >> You are confused. Most US debit card is a combo of their ATM and debit
    >> card. Again there are two types of debit card POS terminal, online and
    >> offline. For online terminal you use you PIN and transaction is done
    >> instantly. For offline terminal you sign the receipt and go. Money is
    >> withhold from your account until cleared. It is not accepted as credit
    >> card. It is just a natter of through which network the transaction is
    >> done - ATM or online debit or offline debit card network. The business
    >> pay different transaction fee based on the network used.
    >> A lot of people including those sales person don't know the difference.
    >> As soon as they see Visa or MC logo they think that it is credit card
    >> and they call it so.

Webcrawler

John --

When you apply for a secured card, usually banks will ask for 100% deposit.
So to get a $5,000 CC you will need to provide them $5,000 as deposit.
Usually the deposit is in the form of a Savings account, which means that
your money earns interest while being a security deposit.
To me, that's a win-win situation.

The secured CC you get in this way will help you build solid credit - if
used wisely.
Once the deposit period is over (either 6 months or 1 year), the bank will
release the deposit and you are free to do whatever you want with that
money - keep it in the same bank or move it elsewhere.

The "fake" check cards don't help you build any credit - it is simply a way
for the banks to get a cut off percentage in every transaction you make.

The best part about "real" credit cards (secured or not) is that you have
100% protection from fraud and theft guaranteed by Visa/MC.
You don't get that with a check card.

You mention buying online - that is just about the worst transaction you can
do with a check card.

In the past several years, many online merchants (or clearing houses)
systems have been hacked into and their customers' CC numbers stolen by
hackers based abroad.
US/Canada law can rarely touch these foreign hackers, but they will have a
gala time with the card numbers that they have stolen.

Those people whose credit card numbers got stolen are protected, but the
ones using check cards are not protected.
They will see their entire checking accounts disappear overnight - sometimes
many thousands of $$.

A lot of people link their checking and savings accounts too using the same
check card.

When theft occurs, the thief will clear out all accounts linked to the card.

I don't see any benefit whatsoever in these check cards - they are a bad-bad
deal for the customer and a good-good deal for the bank.

They are best cut-up or left under lock and key - never to be used.

Best wishes.

"John D" <[email protected]> wrote in message
news:[email protected]...
    > But how much money do you need to have in order to have a "secured cc"??
    > Sometimes I just feel like buying something from the net without having to
    > pay interest rates, the money is just debited from my bank acc..
    > "WebCrawler" <[email protected]> wrote in message
    > news:[email protected]...
    > > Those "check cards" don't do anything for credit history of new
    > immigrants.
    > > A new immigrant looking to build credit history and not able to get a CC
    > is
    > > much better off getting a secured CC.
    > > It offers all the protection of Visa/MC as well as builds solid credit,
if
    > > used wisely.
    > >
    > > Why would anyone want to endanger their financial situation and not
build
    > > any credit in return by using those "fake" check cards, is really beyond
    > me.
    > >
    > > "John D" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > I think they're great, what about for new Immigrants to Canada that
    > > doesn't
    > > > have credit? their only way to get a " credit card" would be a " check
    > > card"
    > > > , new immigrants don't have access to online buying or anything like
    > that.
    > > >
    > > > This also would work very good for people with bad credit, they will
be
    > > able
    > > > to buy online because those cards use the VISA or MC logo.
    > > >
    > > >
    > > >
    > > >
    > > > "WebCrawler" <[email protected]> wrote in message
    > > > news:[email protected]...
    > > > > "John D" <[email protected]> wrote in message
    > > > > news:[email protected]...
    > > > > >
    > > > > > But we don't have too many options of prepaid cards in Canada, the
    > > > banking
    > > > > > system in Canada is obsolete, in the US you open a regular
checking
    > > acc
    > > > > and
    > > > > > comes with a Check card( debit card with the Visa or MC logo on
it)
    > > > >
    > > > > That is one thing I hope never catches on in Canada (or in any other
    > > > > country).
    > > > > I have warned about the potential dangers of such "fake" MC/Visa
cards
    > > in
    > > > > the past, and will do so again.
    > > > > They are best cut-up, or left home for most of the time.
    > > > >
    > > > > It is simply a way for the banks to make some additional money by
    > taking
    > > a
    > > > > cut off every CC transaction - it does nothing for the customer and
    > puts
    > > > > them in great financial danger.
    > > > >
    > > > >
    > > >
    > > >
    > >
    > >

Webcrawler

"John D" <[email protected]> wrote in message
news:[email protected]...
    > """"That is exactly the problem with them - *anyone* can buy online and
the
    > $$
    > are deducted straight from your checking account."""
    > Not quite true, because almost all online retailers won't ship to an
address
    > other than your billing address.

Depends on the merchant.
Most online merchants I have dealt with maintain separate billing and
shipping address - like EBay and PayPal.
Even Amazon does I believe.

In cases of identity theft (a more serious situation than simple online
fraud), the thief "highjacks" the victim's address and redirects all
statements and bill to a different address.

Consumer talk shows and news programs are full of such cases.

Real credit cards provide security against all these situations.

Webcrawler

"DaveExpat" <member17006@british_expats.com> wrote in message
news:[email protected]...
    > > Hope this helps some.
    > Thanks for the comments
    > Webcrawler.
    > I believe you can pay money to the card upfront, as far as
    > the card issuer is concerned you have a positive balance and their
    > system only rejects you when you pass a negative balance of your credit
    > limit with them.
    > Cheers
    > Dave

OK. Learning something new every day !!
Take care.

John D

Thanks a lot Webcrawler for your explanation, everything makes sense to me,
I will try to contact a Canadian bank to see how much is the minimun deposit
for a secured CC, thanks a lot again!

John

"WebCrawler" <[email protected]> wrote in message
news:[email protected]...
    > John --
    > When you apply for a secured card, usually banks will ask for 100%
deposit.
    > So to get a $5,000 CC you will need to provide them $5,000 as deposit.
    > Usually the deposit is in the form of a Savings account, which means that
    > your money earns interest while being a security deposit.
    > To me, that's a win-win situation.
    > The secured CC you get in this way will help you build solid credit - if
    > used wisely.
    > Once the deposit period is over (either 6 months or 1 year), the bank will
    > release the deposit and you are free to do whatever you want with that
    > money - keep it in the same bank or move it elsewhere.
    > The "fake" check cards don't help you build any credit - it is simply a
way
    > for the banks to get a cut off percentage in every transaction you make.
    > The best part about "real" credit cards (secured or not) is that you have
    > 100% protection from fraud and theft guaranteed by Visa/MC.
    > You don't get that with a check card.
    > You mention buying online - that is just about the worst transaction you
can
    > do with a check card.
    > In the past several years, many online merchants (or clearing houses)
    > systems have been hacked into and their customers' CC numbers stolen by
    > hackers based abroad.
    > US/Canada law can rarely touch these foreign hackers, but they will have a
    > gala time with the card numbers that they have stolen.
    > Those people whose credit card numbers got stolen are protected, but the
    > ones using check cards are not protected.
    > They will see their entire checking accounts disappear overnight -
sometimes
    > many thousands of $$.
    > A lot of people link their checking and savings accounts too using the
same
    > check card.
    > When theft occurs, the thief will clear out all accounts linked to the
card.
    > I don't see any benefit whatsoever in these check cards - they are a
bad-bad
    > deal for the customer and a good-good deal for the bank.
    > They are best cut-up or left under lock and key - never to be used.
    > Best wishes.
    > "John D" <[email protected]> wrote in message
    > news:[email protected]...
    > > But how much money do you need to have in order to have a "secured cc"??
    > >
    > > Sometimes I just feel like buying something from the net without having
to
    > > pay interest rates, the money is just debited from my bank acc..
    > >
    > > "WebCrawler" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > Those "check cards" don't do anything for credit history of new
    > > immigrants.
    > > > A new immigrant looking to build credit history and not able to get a
CC
    > > is
    > > > much better off getting a secured CC.
    > > > It offers all the protection of Visa/MC as well as builds solid
credit,
    > if
    > > > used wisely.
    > > >
    > > > Why would anyone want to endanger their financial situation and not
    > build
    > > > any credit in return by using those "fake" check cards, is really
beyond
    > > me.
    > > >
    > > > "John D" <[email protected]> wrote in message
    > > > news:[email protected]...
    > > > > I think they're great, what about for new Immigrants to Canada that
    > > > doesn't
    > > > > have credit? their only way to get a " credit card" would be a "
check
    > > > card"
    > > > > , new immigrants don't have access to online buying or anything like
    > > that.
    > > > >
    > > > > This also would work very good for people with bad credit, they will
    > be
    > > > able
    > > > > to buy online because those cards use the VISA or MC logo.
    > > > >
    > > > >
    > > > >
    > > > >
    > > > > "WebCrawler" <[email protected]> wrote in message
    > > > > news:[email protected]...
    > > > > > "John D" <[email protected]> wrote in message
    > > > > > news:[email protected]...
    > > > > > >
    > > > > > > But we don't have too many options of prepaid cards in Canada,
the
    > > > > banking
    > > > > > > system in Canada is obsolete, in the US you open a regular
    > checking
    > > > acc
    > > > > > and
    > > > > > > comes with a Check card( debit card with the Visa or MC logo on
    > it)
    > > > > >
    > > > > > That is one thing I hope never catches on in Canada (or in any
other
    > > > > > country).
    > > > > > I have warned about the potential dangers of such "fake" MC/Visa
    > cards
    > > > in
    > > > > > the past, and will do so again.
    > > > > > They are best cut-up, or left home for most of the time.
    > > > > >
    > > > > > It is simply a way for the banks to make some additional money by
    > > taking
    > > > a
    > > > > > cut off every CC transaction - it does nothing for the customer
and
    > > puts
    > > > > > them in great financial danger.
    > > > > >
    > > > > >
    > > > >
    > > > >
    > > >
    > > >
    > >
    > >

John D

Thanks a lot Dave for your contribution, I guess it depends of the Canadian
bank, it would be great if more people share their experiences with both US
and Canadian credit systems//




"dham" <member18604@british_expats.com> wrote in message
news:[email protected]...
    > Originally posted by John D
    > > I was wondering why the
    > Canadian credit system is very slow compared to the
    > > US credit system?
    > in the US a new immigrant can open a bank acc and receive
    > > a credit
    > card with $250 or even $500 on it.
    > > "
    > My experiences are the
    > opposite, i.e. that the Canadian credit system is much faster, or at
    > least much more flexible than in the US.
    > I moved to California in 1998,
    > and it took over a year before I could get a personal credit card, with
    > a low limit, even though I owned a house and a car, had a full-time
    > job, and had cash in the bank.
    > On moving to Canada, I opened an account
    > at TD-Canada Trust, and they issued me a Visa card on the spot. The max
    > credit limit was only $500, but they increased that to $1000 in only 3
    > months.
    > Dave.
    > --
    > Dave
    > Posted via http://britishexpats.com

Nick B.

In recent years, most of the major banks have removed any such approval
authority from branches. I work for TD Canada Trust, and we have absolutely
no ability to authorize credit of any sort in the branch. As I understand
it, we were the last bank to give discretionary lending authority to branch
staff, as well.

"Stephen Gallagher" <[email protected]> wrote in message
news:[email protected]...
    > > > What sort of information are you looking for? I can probably answer a
lot
    > > > of your questions.
    > >
    > > I'm curious...as I understand it, Canadian creditors cannot/will not
query
    > > American credit reporting bureaus. Would it be reasonable/helpful, or
    > > pointless, to bring a credit report and/or score from such (Equifax,
    > > Experian, TransUnion) along with me when applying for credit in Canada?
    > When I moved to Canada in 1996, I applied for my first credit
    > card through Royal Bank. I spoke to the branch manager to
    > specify that my credit history was all in the US. This seemed
    > to be enough to qualify me for a Canadian credit card, since
    > I received one with a fairly high line of credit within a few
    > weeks.
    > You have to be a bit persistent when trying to get your
    > first credit card in another country. Don't take no for
    > an answer from a front line service person, when it comes
    > to accepting your foreign credit history. You need to
    > talk to someone who has approval authority.
    > Stephen Gallagher

Nick B.

Most banks it's $1,000.

"John D" <[email protected]> wrote in message
news:[email protected]...
    > Thanks a lot Webcrawler for your explanation, everything makes sense to
me,
    > I will try to contact a Canadian bank to see how much is the minimun
deposit
    > for a secured CC, thanks a lot again!
    > John
    > "WebCrawler" <[email protected]> wrote in message
    > news:[email protected]...
    > > John --
    > >
    > > When you apply for a secured card, usually banks will ask for 100%
    > deposit.
    > > So to get a $5,000 CC you will need to provide them $5,000 as deposit.
    > > Usually the deposit is in the form of a Savings account, which means
that
    > > your money earns interest while being a security deposit.
    > > To me, that's a win-win situation.
    > >
    > > The secured CC you get in this way will help you build solid credit - if
    > > used wisely.
    > > Once the deposit period is over (either 6 months or 1 year), the bank
will
    > > release the deposit and you are free to do whatever you want with that
    > > money - keep it in the same bank or move it elsewhere.
    > >
    > > The "fake" check cards don't help you build any credit - it is simply a
    > way
    > > for the banks to get a cut off percentage in every transaction you make.
    > >
    > > The best part about "real" credit cards (secured or not) is that you
have
    > > 100% protection from fraud and theft guaranteed by Visa/MC.
    > > You don't get that with a check card.
    > >
    > > You mention buying online - that is just about the worst transaction you
    > can
    > > do with a check card.
    > >
    > > In the past several years, many online merchants (or clearing houses)
    > > systems have been hacked into and their customers' CC numbers stolen by
    > > hackers based abroad.
    > > US/Canada law can rarely touch these foreign hackers, but they will have
a
    > > gala time with the card numbers that they have stolen.
    > >
    > > Those people whose credit card numbers got stolen are protected, but the
    > > ones using check cards are not protected.
    > > They will see their entire checking accounts disappear overnight -
    > sometimes
    > > many thousands of $$.
    > >
    > > A lot of people link their checking and savings accounts too using the
    > same
    > > check card.
    > >
    > > When theft occurs, the thief will clear out all accounts linked to the
    > card.
    > >
    > > I don't see any benefit whatsoever in these check cards - they are a
    > bad-bad
    > > deal for the customer and a good-good deal for the bank.
    > >
    > > They are best cut-up or left under lock and key - never to be used.
    > >
    > > Best wishes.
    > >
    > > "John D" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > But how much money do you need to have in order to have a "secured
cc"??
    > > >
    > > > Sometimes I just feel like buying something from the net without
having
    > to
    > > > pay interest rates, the money is just debited from my bank acc..
    > > >
    > > > "WebCrawler" <[email protected]> wrote in message
    > > > news:[email protected]...
    > > > > Those "check cards" don't do anything for credit history of new
    > > > immigrants.
    > > > > A new immigrant looking to build credit history and not able to get
a
    > CC
    > > > is
    > > > > much better off getting a secured CC.
    > > > > It offers all the protection of Visa/MC as well as builds solid
    > credit,
    > > if
    > > > > used wisely.
    > > > >
    > > > > Why would anyone want to endanger their financial situation and not
    > > build
    > > > > any credit in return by using those "fake" check cards, is really
    > beyond
    > > > me.
    > > > >
    > > > > "John D" <[email protected]> wrote in message
    > > > > news:[email protected]...
    > > > > > I think they're great, what about for new Immigrants to Canada
that
    > > > > doesn't
    > > > > > have credit? their only way to get a " credit card" would be a "
    > check
    > > > > card"
    > > > > > , new immigrants don't have access to online buying or anything
like
    > > > that.
    > > > > >
    > > > > > This also would work very good for people with bad credit, they
will
    > > be
    > > > > able
    > > > > > to buy online because those cards use the VISA or MC logo.
    > > > > >
    > > > > >
    > > > > >
    > > > > >
    > > > > > "WebCrawler" <[email protected]> wrote in message
    > > > > > news:[email protected]...
    > > > > > > "John D" <[email protected]> wrote in message
    > > > > > > news:[email protected]...
    > > > > > > >
    > > > > > > > But we don't have too many options of prepaid cards in Canada,
    > the
    > > > > > banking
    > > > > > > > system in Canada is obsolete, in the US you open a regular
    > > checking
    > > > > acc
    > > > > > > and
    > > > > > > > comes with a Check card( debit card with the Visa or MC logo
on
    > > it)
    > > > > > >
    > > > > > > That is one thing I hope never catches on in Canada (or in any
    > other
    > > > > > > country).
    > > > > > > I have warned about the potential dangers of such "fake" MC/Visa
    > > cards
    > > > > in
    > > > > > > the past, and will do so again.
    > > > > > > They are best cut-up, or left home for most of the time.
    > > > > > >
    > > > > > > It is simply a way for the banks to make some additional money
by
    > > > taking
    > > > > a
    > > > > > > cut off every CC transaction - it does nothing for the customer
    > and
    > > > puts
    > > > > > > them in great financial danger.
    > > > > > >
    > > > > > >
    > > > > >
    > > > > >
    > > > >
    > > > >
    > > >
    > > >
    > >
    > >

Nick B.

Interac has a monopoly because it is more cost effective than any other
option. They don't impose any barriers to entry to the market, so it's not
as though they're keeping things out.

When the town of Guelph, Ontario tested out the Mondex payment system
(another cashless point of sale system) it was fairly popular, except that
once the fees were put in place to keep it going, merchants simply abandoned
it to stick with Interac, because Interac charges much lower transaction
fees. Since merchants must pass such fees onto clients, they'll stick with
what's cheapest in order to increase their profits.

Since Interac is so popular, and since it was started by the major banks,
why change?



"John D" <[email protected]> wrote in message
news:[email protected]...
    > It's called "Interac Monopoly" we should have at least the option to
choose,
    > some people in Canada can't use Internet shopping at all because of the
    > Interac monopoly, at least prepaid credit cards should be an option..
    > "Nick B." <[email protected]> wrote in message
    > news:%[email protected]...
    > > Realistically, the number of people who can't get credit cards in Canada
    > is
    > > much lower, because it seems that Canadians take much more care of their
    > > credit.
    > >
    > > The only advantage of "check cards" is the online shopping thing - but
    > > that's really it. Unless they are demanded by the masses, they won't be
    > > introduced because Interac does (almost) everything they do and is
firmly
    > > established.
    > >
    > > I don't know what fees Visa/MC charges merchants for Check Card
purchases,
    > > but if it is anything like credit card fees, that's another obstacle.
Why
    > > pay a 4% credit card discount rate when you can pay Interac between 10
and
    > > 15 cents a transaction instead? For most purchases, Interac is a better
    > > deal to merchants.
    > > "John D" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > Yeah but that would be great for people with bad credit or no credit
at
    > > all,
    > > > Interac is useless because you can't buy online with Interac, with the
    > U.S
    > > > debit cards anyone can buy online.
    > > >
    > > >
    > > >
    > > > "Elmar" <[email protected]> wrote in message
    > > > news:[email protected]...
    > > > > "John D" <[email protected]> wrote in message
    > > > > news:[email protected]
    > > > > > But we don't have too many options of prepaid cards in Canada, the
    > > > banking
    > > > > > system in Canada is obsolete, in the US you open a regular
checking
    > > acc
    > > > > > and comes with a Check card( debit card with the Visa or MC logo
on
    > > it)
    > > > >
    > > > > What do you mean by pre-paid card? If you mean secured credit card,
    > then
    > > > > most bank will issue secured credit card. You have very wrong idea
    > about
    > > > > banking system in Canada. Banking system in Canada is way more
    > advanced
    > > in
    > > > > technology implementation than most banking system in USA. Banking
    > > system
    > > > in
    > > > > USA is very fragmented, localized and does not have nationwide
unified
    > > > > network like in Canada.
    > > > >
    > > > > Debit card is not credit card. This is just like any other bank card
    > > with
    > > > > added advantage of using it with Visa/MC network (like Interac,
PLUS,
    > > > Cirrus
    > > > > etc.). With huge disadvantage of being less secured. If anybody can
    > get
    > > > hold
    > > > > of your debit card he can use it anywhere with a forged signature.
The
    > > > money
    > > > > is deducted from your bank account right away and unlike credit
card,
    > > the
    > > > > issuing company will not stand behind you to recover back the money.
    > > > > Moreover using a debit card will not help you build credit history.
    > > > >
    > > > > --
    > > > >
    > > > >
    > > >
    > > >
    > >
    > >

Nick B.

I'll stick the answers into each question.

    > Nick - thanks for the advice. Please can I ask if :
    > 1)
    > If I pay off the credit card balance in full each month will that
    > improve credit history more or less (or the same) as if I leave
    > something outstanding.

It may be noted by the issuer of the credit facility, but is not reflected
on a credit report directly. Part of the credit score equation includes
what kind of balances you have on revolving credit. Keeping balances off
revolving credit shows you live within your means, and thus reflects
positively on your creditworthiness.

    > 2) Assuming I pay off in full each month does
    > the absolute amount being charged/paid off make a difference to my
    > credit rating or is it just doing it for n months thats important?

A credit report shows the highest balance charged to a facility, but what is
much more important is that a long payment track record has been
established.

    > 3)
    > If I have a credit limit of say $1000 and pay say $5000 upfront to the
    > card - so its now got $6000 on it to spend will this have any effect on
    > the credit history.

No effect whatsoever.

    > 4) One last thing - I've been told that having a
    > Canadian mortgage doesn't help with establishing a credit history but a
    > secured line of credit on the house does, Do you know if thats true?

This is true. At present, I know of no Canadian mortgage providers who
report mortgages to the credit bureaux. HELOCs (Home Equity Lines of
Credit), however, are usually reported. So long as they are paid as agreed,
they are a positive influence on credit history. HELOCs are becoming the
more popular way to finance home purchases these days because of their
tremendous flexibility. That said, the fact that they are revolving credit
facilities make them unsuitable for many borrowers who will never make a
dent in the amount owing from constantly drawing the facility down with each
payment.

Nick B.

It would not necessarily work - for most cards it would be fine, though some
do not permit this.

"Peter Wu" <[email protected]> wrote in message
news:[email protected]...
    > On Wed, 28 Jan 2004 09:08:16 -0500, WebCrawler wrote:
    > > "DaveExpat" <member17006@british_expats.com> wrote:
    > >> [...]
    > >> 3)
    > >> If I have a credit limit of say $1000 and pay say $5000 upfront to the
    > >> card - so its now got $6000 on it to spend will this have any effect on
    > >> the credit history.
    > > I am not sure whether this will work.
    > > If your credit card only allows you $1,000, any charges above that
amount
    > > may get rejected.
    > It would work.
    > I called my CIBC VISA the other day to increase my credit limit as I was
    > on a business trip. The rep suggested I prepay the amount in my credit
    > card account and spend it as if it were the new credit limit. In your
    > case, if you prepay $5000 to your credit card account, you will have
    > $6000 available credit to merchants.
    > I tried this approach and did work for the past few months. However, I do
    > not know if this can score positively or negatively on my credit
    > history. Anyway, I had no choice as $1000 limit is too low for someone
    > that travels frequently.
    > --
    > ,,,
    > (o o) Peter Wu
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