Online shopping safest with credit cards

By UK CreditCards.com

People interested in shopping online should use credit cards instead of debit cards to make their purchases.

That is according to Patricia Davidson of online retailer The Site Guide, who explained that credit cards are a more secure form of payment.

This is because credit card holders can query suspicious transactions with providers, unlike debit card users who cannot do the same.

Ms Davidson pointed to the many benefits of online shopping, including increased flexibility and convenience.

Industry body IMRG estimates that one-sixth of all consumer spending in Britain is transacted over the internet.

However, cardholders should practice caution when purchasing goods and services from the web.

"Everything, from … Christmas decorations to the Turkey, plus gifts for family, friends and colleagues, are waiting to be ordered on the web," the retailer said. "But how do you know who to trust your credit card details to? In that race to find the cheapest deal … how can you be sure that, if someone you don't know is offering you the best price, they're safe to buy from?"

Credit card charging habits changing

By UK CreditCards.com

Credit card spending habits have changed in the UK since the start of the recession, says debt specialist David Rodgers.

Rodgers, managing director of the Debt Advice Foundation, explained that many Britons are more concerned about borrowing and have curtailed their card use.

The comments come after accountancy firm PricewaterhouseCoopers (PwC) released a report on the credit card industry, in which it suggested that providers will have to innovate to survive in a tightening market.

PwC claimed that there is a "cooling passion" for using credit cards as an instrument for borrowing and in coming years it is likely the products will be used simply as a payment tool.

"The reduction in credit card spending by consumers in the last year has shown that habits are already changing," said Mr Rodgers.

"We expect [credit card firms] will become increasingly open to the debt solutions which are available to their customers but which require their cooperation."

Barclay's posts 3Q credit card profits

By UK CreditCards.com

The credit card business of Barclays registered a strong performance over the first nine months of 2009, the firm's new interim management statement confirmed Nov. 10.

Barclays said that net pre-tax earnings at Barclaycard were "ahead" of 2008's total and that income had grown "very strongly" over the year. This is partly explained by the fact that some customers are running higher card balances in the credit crunch and recession, resulting in increased interest payments to their provider.

Barclays also said that profits across all of the firm's retail and commercial businesses reached £2.2bn, while profits for the group as a whole were at £4.5bn.

In common with its rivals, the firm has suffered financially from the global credit crisis. Charges from bad debts rose by 65% across the group over 2009, eating into earnings. However, Barclays' overall performance was praised by group chief executive John Varley.

"We have maintained strong income momentum in the third quarter," he said. "This performance shows the resilience and diversification of our portfolio of businesses."