Goodbye Wallets!

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With this latest technology, there will be no need to carry wallets anymore.  With Visa PayWave, you can pay for things with your iPhone or cell phone.  How does this work?  First you'll need to go to your bank and obtain a memory card which can be put into the SD slot of your phone or inside a special plastic skin for the iPhone.  Just open up the PayWave app, hold it up to the scanner that accepts mobile payments, and you're on your way!

The biggest concern with this new method is security.  What happens if you lose your phone?  As I read further, Visa claimed that it is more secure than carrying a credit card.  Camera's can't capture your card number and PayWave monitors suspicious spending in real time, unlike banks, which don't monitor transactions 24-7.  As far as losing your phone, you need a password to open the PayWave app, which makes it harder for another person to use.

I really doubted the product when I first started reading the article.  My first thought was, 'What if someone loses their phone?'  They have a very secure network, according to the article, which would make it harder for someone to use it.  If someone takes your credit card, there's not much you can do besides cancel the account.  If the person manages to get your PayWave password, your account can still be frozen to stop them.

As far as getting rid of the wallets, I don't think that's going to happen anytime soon.  People will still want to carry cash, checks, etc.  If we do end up switching to this payment method, everyone will have to have a smart phone.  What happens when you eat at a fancy restaurant and it comes time to pay the bill?  I wouldn't want my waiter taking my phone/credit card and looking through my personal things!

Abercrombie & Fitch Looking Up

The popular clothing company, Abercrombie & Fitch, reported that their profits doubled in the 4th quarter.  Business in the U.S. as well as overseas has been booming.  They reported a net income of $92.6 million, which is a big step from last year's $47.5 million.  More stores have been popping up in Spain, Germany, UK, and many other countries, contributing to the economic status of Abercrombie & Fitch.

I was actually surprised when I saw this article.  I feel that people have moved on from Abercrombie & Fitch.  It seems like it's just one of those things that are "out".  The article stated that people in the U.S. are more reluctant to go back to their old spending habits because of the recession.  I'm guessing that Abercrombie is one of those stores that started out in the U.S. and is now making its way to other countries, making it something hip and new for them and 'out of style' for us.

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Amnesty For Tax Evaders

People with offshore accounts now have the option to come clean.  Wealthy Americans usually try to avoid paying taxes on their riches by keeping their money in offshore accounts.  U.S. authorities are offering reduced penalties if they come clean.  They would now face a 25% penalty instead of the 50% they would have to pay if they got caught.

I think this is a good method to find some of these hidden accounts.  Granted, not all are going to come clean, but they will get a good number of them.  This will make the IRS's job a little easier.  It doesn't make a lot of sense to me why someone would come forward though, offering to lower the fines of having an offshore account when the whole purpose of having the account is to avoid paying money.  They must be cracking down on their investigations recently.
http://news.yahoo.com/s/nm/20110208/bs_nm/us_usa_taxes_amnesty

Keeping it Local

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An Arizona family of four is going to shop at local businesses only for one whole year.  The Levitch family decided to make this change because mom, Julie, is an entrepreneur and dad, Randy, manages small business owners for OPEN American Express.  They want to keep their money within the area and help out the local economy.  Both Julie and Randy grew up in large cities and wondered why there weren't more small businesses.  Now they know why.

I think this is a huge step for a family to make.  They want to help out the local economy, but it is going to be very tough to only buy local.  I can't imagine not going to Sioux City when I need clothes or something that I can't get at Wal-mart.  I don't think I would be able to do it.