Business promotion, particularly for small business is a very arduous process given the lack of branding and local nature of the market. But with a definite strategic perspective and effort this can be one of the most exhilarating and fulfilling in business growth and in reaching out to wider markets. Here is a list of most inexpensive but effective small business promotion tools.
1. Make most out of official communication: whether it is communicating through papers work, emails or anything do not forget to promote your brand through effective slogans, service listing and product information.
2. Resource contribution: write meaningful content about your market, analyze related products and find proper place to submit these expert resources such as online submissions.
3. Press releases: write effective press release to promote your service and do not forget to release it online in various free press release sites.
4. Online business promotion: online advertisement is cheap and local listing sre still cheaper. So get listed in local directories, run an online campaign to let people know more about your brand.
5. Social networking: it is best time to be on the social media and social networking can make a big difference to your brand and business growth whether in terms of contacts, brand awareness or getting more sales. Linked in, Face book and Twitter are some of them.
6. Customer support: I would rate it as the most important business promotion tools. Be proactive in your customer interaction, make them feel important and wanted and they are ever willing to pay you more as well as promote your brand through appreciation.
7. Business or marketing specialists: interact with your respective market specialist, offer them some freebies as well as keep in touch. They are the expert’s people listen to while choosing services and some of them may trickle down to your brand as well.
8. Organize and participate in events: Be it seminars related to your market or trade shows, promotions you have to be present there to get your brand accepted both within experts as well as general public. And more important pay some experts to speak in favor of your business.
9. Use transportation method to your advantage: whether it is company provided car, Buses or even employees own conveyance some promotional material can always find a place and even little business promotion through it is valuable.
10. Website: website in some instances are the first interaction with your potential clients and having a good website which is attractive, user friendly and explaining the service offerings in a nice way are a good way to leave a lasting impact on the visitors. And do not forget to interact with visitors who are willing to give their emails and phone numbers.
Saturday, February 13, 2010
Friday, February 12, 2010
Taxation of Forgiven Debt - This could be scary....
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.
The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:
What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.
Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:
Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.
Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.
Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.
Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.
The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:
What is Cancellation of Debt?
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.
Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:
Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.
Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.
Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.
Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.
Tuesday, February 9, 2010
LBCC receives $30,000 Grant from Verizon to support Young Entrepreneur Project
Long Beach City College (LBCC) has been awarded a $30,000 grant from Verizon to support its Young Entrepreneur Project. The Young Entrepreneur Project (YEP) is an accelerated 7-week training program designed to teach participants the fundamentals of starting and running a small business, and to assist potential entrepreneurs in identifying if entrepreneurship is an option for their current or future aspirations.
“Helping to create jobs for our students and to grow the local economy is a vital function of community colleges,” said LBCC President Eloy Oakley. “LBCC is grateful to Verizon for supporting this program because it is helping to create opportunities that otherwise would not exist for our students.”
“Verizon is delighted to support Long Beach City College’s Young Entrepreneur Project. It’s an important program for strengthening our communities by growing and developing our future entrepreneurs,” said Mike Murray, Verizon’s Director-Government & External Affairs.
Participants in the YEP start with an orientation session, followed by the intense 7-week training program that provides tangible skills that will give them the basic knowledge required to start and run a small business enterprise. “At the end of this program, our students know the basics of how to start their own company and have contacts with other local business experts,” said Bret O’Connor, the YEP Coordinator. “We have helped hundreds of young people explore entrepreneurship as a career path and helped launch new businesses. For example, some of our graduates are now selling custom suits that they manufacture in China and another group started a promotions company.”
The Young Entrepreneur Project is a program of the Small Business Development Center at Long Beach City College. The SBDC provides one-on-one business advising and training seminars in marketing, financing, business start-up, international trade, and procurement programs to small businesses. The SBDC can be reached at 562-938-5020.
“Helping to create jobs for our students and to grow the local economy is a vital function of community colleges,” said LBCC President Eloy Oakley. “LBCC is grateful to Verizon for supporting this program because it is helping to create opportunities that otherwise would not exist for our students.”
“Verizon is delighted to support Long Beach City College’s Young Entrepreneur Project. It’s an important program for strengthening our communities by growing and developing our future entrepreneurs,” said Mike Murray, Verizon’s Director-Government & External Affairs.
Participants in the YEP start with an orientation session, followed by the intense 7-week training program that provides tangible skills that will give them the basic knowledge required to start and run a small business enterprise. “At the end of this program, our students know the basics of how to start their own company and have contacts with other local business experts,” said Bret O’Connor, the YEP Coordinator. “We have helped hundreds of young people explore entrepreneurship as a career path and helped launch new businesses. For example, some of our graduates are now selling custom suits that they manufacture in China and another group started a promotions company.”
The Young Entrepreneur Project is a program of the Small Business Development Center at Long Beach City College. The SBDC provides one-on-one business advising and training seminars in marketing, financing, business start-up, international trade, and procurement programs to small businesses. The SBDC can be reached at 562-938-5020.
Monday, February 8, 2010
SBDC gets library to help entrepreneurs to grow their business
Paul and Sarah Edwards, award-winning authors of 17 books with over two million books in print presented over 800 small business books to establish a new library at the Small Business Development Center library for Los Angeles County located in Long Beach. Sarah and Paul are recognized as pioneers in the working from home field.
With the emergence of eBooks, the Edwards have shifted their focus from print to digital books and media.
As a result of the Edwards donation, the library now boasts well-stocked shelves with resources for those to be helped by the Small Business Development Center.
The business books donated by the Edwards cover such topics as business planning, marketing, finance, and how to start specific businesses. Included among the books are those authored by the Edwards, whose work includes Working From Home, the first commercially published book about how to work from home, The Best Home Businesses for People 50+, Finding Your Perfect Work, Getting Business to Come To You, Home-Based Business for Dummies, Secrets of Self-Employment, and their most recent, Middle Class Lifeboat.
The Edwards have updated most of their books for eBooks and they are available in their own Elm Street Library. In addition, their eBooks are distributed as Kindle Books, and through Barnes & Noble, Lightning Source, Overdrive, and Mobi.
“The SBDC is most grateful for the Edwards’ donation of such a valuable and wonderful library to our Business Resource Center,” said Bret O’Connor, Director of the SBDC in Long Beach. “The donation will enable us to provide the resources our clients need.”
The SBDC provides business training and advising to entrepreneurs and small businesses to help them start, grow and succeed.
For more information about the SBDC or to access the Library please contact, Mike Daniel, Client Supervisor, Long Beach Small Business Development Center at (562) 938-5100 or mdaniel@lbcc.edu.
The SBDC hosted by LBCC provides one-on-one counseling, business training seminars in marketing, financing, business start-up, international trade, and procurement programs to small businesses. The Long Beach Small Business Development Center is located at 3447 Atlantic Ave., Suite 205, Long Beach, CA 90808.
With the emergence of eBooks, the Edwards have shifted their focus from print to digital books and media.
As a result of the Edwards donation, the library now boasts well-stocked shelves with resources for those to be helped by the Small Business Development Center.
The business books donated by the Edwards cover such topics as business planning, marketing, finance, and how to start specific businesses. Included among the books are those authored by the Edwards, whose work includes Working From Home, the first commercially published book about how to work from home, The Best Home Businesses for People 50+, Finding Your Perfect Work, Getting Business to Come To You, Home-Based Business for Dummies, Secrets of Self-Employment, and their most recent, Middle Class Lifeboat.
The Edwards have updated most of their books for eBooks and they are available in their own Elm Street Library. In addition, their eBooks are distributed as Kindle Books, and through Barnes & Noble, Lightning Source, Overdrive, and Mobi.
“The SBDC is most grateful for the Edwards’ donation of such a valuable and wonderful library to our Business Resource Center,” said Bret O’Connor, Director of the SBDC in Long Beach. “The donation will enable us to provide the resources our clients need.”
The SBDC provides business training and advising to entrepreneurs and small businesses to help them start, grow and succeed.
For more information about the SBDC or to access the Library please contact, Mike Daniel, Client Supervisor, Long Beach Small Business Development Center at (562) 938-5100 or mdaniel@lbcc.edu.
The SBDC hosted by LBCC provides one-on-one counseling, business training seminars in marketing, financing, business start-up, international trade, and procurement programs to small businesses. The Long Beach Small Business Development Center is located at 3447 Atlantic Ave., Suite 205, Long Beach, CA 90808.
HOW TO: Use Social Media to Connect with Other Entrepreneurs
Starting a company is often a lonely and nerve wracking process. One day, you’re working at a big company with tens of thousands of people and health benefits, and then the next day it’s just you, maybe a co-founder, and a lack of steady income.
Yet you’re really not alone. There are thousands of others making similar journeys around the world, and even more who have not only gone down the entrepreneurial path, but succeeded. These people are more than happy to share their advice, insight, and stories — if you know how to find them.
That’s where social media tools come into play. Forging new connections has never been easier due to the increasing accessibility of people, ideas, and information. Web communities based around business, entrepreneurship, and programming are thriving all over the place. Twitter(), Facebook(), and other social networks have become an amazing way to learn new lessons and keep in touch with other entrepreneurs.
If you’re looking to enrich your entrepreneurial journey by sharing with others, I have a few social media suggestions that will help:
Follow Entrepreneur Twitter Lists
A few months ago, Twitter launched a feature called “Lists,” which gave users the power to create lists of their favorite users. Many have used this to create Twitter lists of top entrepreneurs and startup founders.
Following these people and interacting with them is a good step towards building connections. Check out Listorious’ collection of entrepreneurship Twitter lists to start.
Connect With Amazing Entrepreneurship Communities
Entrepreneurs are already gathered in a lot of great places on the web. Finding these hidden gems of community and startup enthusiasm could be just what you’re looking for.
To start out, check out Hacker News, (a community sharing some of the best articles on startups, development, and human nature), TheFunded (focused around raising money for your startup), and PartnerUp (helps you find business partners and co-founders). For more, check out a list of Mashable’s favorite entrepreneur communities.
Use Social Media to Find Local Events
While connecting online is great, there is no substitute for shaking hands and meeting in person. Luckily, social media can help you in this regard by helping keep you in the loop about events you’ll want to attend. Tools like Meetup and searches for Facebook Events are good ways to get started.
Just Reach Out
In the end, social media only helps make it easier to connect – you still have to do the hard work of building a relationship with fellow entrepreneurs. Use social media to find them and reach out, but be sure to take it the next step and start a long-lasting conversation.
Yet you’re really not alone. There are thousands of others making similar journeys around the world, and even more who have not only gone down the entrepreneurial path, but succeeded. These people are more than happy to share their advice, insight, and stories — if you know how to find them.
That’s where social media tools come into play. Forging new connections has never been easier due to the increasing accessibility of people, ideas, and information. Web communities based around business, entrepreneurship, and programming are thriving all over the place. Twitter(), Facebook(), and other social networks have become an amazing way to learn new lessons and keep in touch with other entrepreneurs.
If you’re looking to enrich your entrepreneurial journey by sharing with others, I have a few social media suggestions that will help:
Follow Entrepreneur Twitter Lists
A few months ago, Twitter launched a feature called “Lists,” which gave users the power to create lists of their favorite users. Many have used this to create Twitter lists of top entrepreneurs and startup founders.
Following these people and interacting with them is a good step towards building connections. Check out Listorious’ collection of entrepreneurship Twitter lists to start.
Connect With Amazing Entrepreneurship Communities
Entrepreneurs are already gathered in a lot of great places on the web. Finding these hidden gems of community and startup enthusiasm could be just what you’re looking for.
To start out, check out Hacker News, (a community sharing some of the best articles on startups, development, and human nature), TheFunded (focused around raising money for your startup), and PartnerUp (helps you find business partners and co-founders). For more, check out a list of Mashable’s favorite entrepreneur communities.
Use Social Media to Find Local Events
While connecting online is great, there is no substitute for shaking hands and meeting in person. Luckily, social media can help you in this regard by helping keep you in the loop about events you’ll want to attend. Tools like Meetup and searches for Facebook Events are good ways to get started.
Just Reach Out
In the end, social media only helps make it easier to connect – you still have to do the hard work of building a relationship with fellow entrepreneurs. Use social media to find them and reach out, but be sure to take it the next step and start a long-lasting conversation.
Saturday, February 6, 2010
Five New Year's Resolution for Small Business Owners
1. Reflect on Industry Trends
Whatever your industry or niche, now is the time to take stock of the major trends that helped shape and define 2009 for small businesses in your sector.
Your research methodology should be multifaceted and involve your entire social network. So turn to trusted editorial and data resources for year-in-review pieces and predictions on upcoming trends. Involve staff members and ask for their take on what’s happening now and what they expect in the year ahead. Use your website, Facebook Page, Twitter() account, or other social media distribution channels to gauge what your customers and clients think.
Use the feedback and resources, pool the collected information, and look for commonalities. Group similar ideas into categories, and make notes about whether or not your business, products, services, and processes are relevant to the trends you identify.
2. Set New Social Media Goals
Once you’ve had time to reflect on and absorb the trends that pertain to your business, you need to switch gears and start setting new goals. Given that 2009 was a breakout year for brands using Twitter and Facebook(), now is the time to think about a 2010 social media action plan.
Take stock of your social metrics. Instead of looking at how many followers, fans, retweets, and replies you have, calculate your growth rate per month per data point for 2009. If your growth rate is accelerating month to month, set a projection for the coming months and identify ways to keep your content fresh, your community engaged, and interest in your social presence strong.
If your growth rate is slumping, use the first few months of 2010 to fix the problem. Test() different scenarios in January and February and measure whether or not your efforts are making a positive impact.
The same holds true for Twitter and social media content analysis. Hopefully you’ve been using various tools to document types of feedback – think positive reviews, friend recommendations, constructive feedback, and negative mentions – that flow in through social media channels. If so, set realistic expectations for improvements in each area.
3. Go Local
Location-based services and social networks finally found their footing in 2009 with mobile applications like Foursquare() and Gowalla() driving home the value of location-sharing. Twitter certainly helped the movement when they implemented location-aware tweets.
Ultimately the coming year will highlight how important location data can be. Applications will bring context to status updates in and around city neighborhoods, and smart businesses will find ways to leverage the location data to offer special deals, promotions, and local-only fare.
4. Master Twitter Lists
If used correctly, Twitter Lists can be both an educational tool and a means to demonstrate your leadership in your niche. While the premise is simple – group Twitter users together by subject, topic, or theme – the practice can be quite rewarding.
Master Twitter Lists by investing time and energy into finding great lists to follow (try Listorious) and building great lists of your own. In fact, if you act fast you can create a list that your peers may look to as the default list of experts on a given topic or subject. Build a great list and you’ll become a thought leader and a credible resource.
You might find success with Twitter Lists that highlight a very niche category, lists to pool together the media folks that cover your beat, or lists that include the best businesses in your space. You could even build lists to recognize employees, customers, fans, or clients. You might also apply the local logic from resolution number three to build a list of locals.
5. Experiment with the Experimental
Use the New Year as an excuse to try something new. Every year the web offers up hundreds of new experimental services and ideas, and while you don’t have time to try them all, if you’re able to pinpoint the applications with the most traction, your early adopter status will come with long-term rewards.
As an example, Google Wave(), which is still in preview mode, was an instant hit upon release, until people started using it and getting confused by its purpose. Wave isn’t washing out to sea anytime soon. So, as Google() perfects the new communication channel, you have an opportunity to dive in and get creative with ways to use Wave for business or pleasure.
Whatever your industry or niche, now is the time to take stock of the major trends that helped shape and define 2009 for small businesses in your sector.
Your research methodology should be multifaceted and involve your entire social network. So turn to trusted editorial and data resources for year-in-review pieces and predictions on upcoming trends. Involve staff members and ask for their take on what’s happening now and what they expect in the year ahead. Use your website, Facebook Page, Twitter() account, or other social media distribution channels to gauge what your customers and clients think.
Use the feedback and resources, pool the collected information, and look for commonalities. Group similar ideas into categories, and make notes about whether or not your business, products, services, and processes are relevant to the trends you identify.
2. Set New Social Media Goals
Once you’ve had time to reflect on and absorb the trends that pertain to your business, you need to switch gears and start setting new goals. Given that 2009 was a breakout year for brands using Twitter and Facebook(), now is the time to think about a 2010 social media action plan.
Take stock of your social metrics. Instead of looking at how many followers, fans, retweets, and replies you have, calculate your growth rate per month per data point for 2009. If your growth rate is accelerating month to month, set a projection for the coming months and identify ways to keep your content fresh, your community engaged, and interest in your social presence strong.
If your growth rate is slumping, use the first few months of 2010 to fix the problem. Test() different scenarios in January and February and measure whether or not your efforts are making a positive impact.
The same holds true for Twitter and social media content analysis. Hopefully you’ve been using various tools to document types of feedback – think positive reviews, friend recommendations, constructive feedback, and negative mentions – that flow in through social media channels. If so, set realistic expectations for improvements in each area.
3. Go Local
Location-based services and social networks finally found their footing in 2009 with mobile applications like Foursquare() and Gowalla() driving home the value of location-sharing. Twitter certainly helped the movement when they implemented location-aware tweets.
Ultimately the coming year will highlight how important location data can be. Applications will bring context to status updates in and around city neighborhoods, and smart businesses will find ways to leverage the location data to offer special deals, promotions, and local-only fare.
4. Master Twitter Lists
If used correctly, Twitter Lists can be both an educational tool and a means to demonstrate your leadership in your niche. While the premise is simple – group Twitter users together by subject, topic, or theme – the practice can be quite rewarding.
Master Twitter Lists by investing time and energy into finding great lists to follow (try Listorious) and building great lists of your own. In fact, if you act fast you can create a list that your peers may look to as the default list of experts on a given topic or subject. Build a great list and you’ll become a thought leader and a credible resource.
You might find success with Twitter Lists that highlight a very niche category, lists to pool together the media folks that cover your beat, or lists that include the best businesses in your space. You could even build lists to recognize employees, customers, fans, or clients. You might also apply the local logic from resolution number three to build a list of locals.
5. Experiment with the Experimental
Use the New Year as an excuse to try something new. Every year the web offers up hundreds of new experimental services and ideas, and while you don’t have time to try them all, if you’re able to pinpoint the applications with the most traction, your early adopter status will come with long-term rewards.
As an example, Google Wave(), which is still in preview mode, was an instant hit upon release, until people started using it and getting confused by its purpose. Wave isn’t washing out to sea anytime soon. So, as Google() perfects the new communication channel, you have an opportunity to dive in and get creative with ways to use Wave for business or pleasure.
Friday, February 5, 2010
Proposed bill would ban debit card surcharges in California
In the interest of protecting consumers, Sen. Jenny Oropeza today introduced legislation to stop retailers from imposing surcharges on those who use their debit cards.
“During these difficult economic times, it is more important than ever to protect consumers and ensure they are not nickel and dimed out of their hard earned pay,” Oropeza, D-Long Beach, said after introducing Senate Bill 933. “Regardless of whether you’re buying milk for the kids or gas for the car, having an additional fee piled on just for using your own debit card is unconscionable.”
Oropeza cited figures showing that since 2005, more than half of total transactions nationwide have been paid with a credit or debit card. Beginning in 2006, more purchases were made with debit cards than credit cards, she added.
While charging consumers for using a credit card is currently prohibited, no similar protection exists for consumers using their debit card.
Consumers Union, sponsors of SB 933, agreed with Oropeza’s goals. “Especially at a time when more consumers are moving toward using debit cards to be more financially responsible, they should not be made to pay an extra fee for using a debit or prepaid card,” said Michelle Jun, a staff attorney in Consumers Union’s San Francisco office.
A date for the first policy hearing on Oropeza’s measure has not yet been set.
“During these difficult economic times, it is more important than ever to protect consumers and ensure they are not nickel and dimed out of their hard earned pay,” Oropeza, D-Long Beach, said after introducing Senate Bill 933. “Regardless of whether you’re buying milk for the kids or gas for the car, having an additional fee piled on just for using your own debit card is unconscionable.”
Oropeza cited figures showing that since 2005, more than half of total transactions nationwide have been paid with a credit or debit card. Beginning in 2006, more purchases were made with debit cards than credit cards, she added.
While charging consumers for using a credit card is currently prohibited, no similar protection exists for consumers using their debit card.
Consumers Union, sponsors of SB 933, agreed with Oropeza’s goals. “Especially at a time when more consumers are moving toward using debit cards to be more financially responsible, they should not be made to pay an extra fee for using a debit or prepaid card,” said Michelle Jun, a staff attorney in Consumers Union’s San Francisco office.
A date for the first policy hearing on Oropeza’s measure has not yet been set.
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