Premium credit cards - MoneySense

Premium credit cards

You may have to pay extra or put away your fancy reward points credit card and more.

  • The federal Competition Tribunal is expected to rule Tuesday on whether merchants should be allowed to either reject or charge shoppers more for premium credit cards. Under current rules, merchants who accept Visa and/or MasterCard have to accept all cards by the issuer regardless what it costs them. Consumers love their points and cash-back cards but few realize that premium cards cost merchants up to 2.65% of the transaction cost, compared to 1.54% for regular credit cards.
  • Generation Y is investing at an earlier age than their parents did, starting at age 20 in fact, according to a new poll for TD. Most have their parents to thank. The top reason cited for investing early was family encouragement. So just how much are Millennials investing? About one-fifth, or 18%, of their income, the bank said. “Young investors have the benefit of a longer time horizon and that means they can use their age to their advantage,” said TD’s Cynthia Caskey. “With time on their side, saving even small amounts regularly can add up, while allowing them to take advantage of compounding return. For example, by investing $100 each week, in 10 years an investor could put $65,551 towards a down payment on a home, assuming a 6% return rate.” But as it turns out, the young professionals polled were more focused on retirement than buying a home, travel or financial independence. Click on the infographic below for full survey results: