Introducing: Receipts on demand

Like many other businesses, American 1 is always looking to cut costs for our members, reduce waste, and leave less of an impact on the environment.

That’s why we’re excited to announce Receipts On Demand, a program that introduces both a new receipt and a new way of doing things.

For one, we’re no longer automatically printing receipts for our members for each transaction. If you come into a branch to manage your account, and you want a paper receipt, you will ask for one. Otherwise, we won’t print a receipt. Ask yourself: do you really need a printed receipt for your transaction? Sometimes you will, sometimes you won’t. We’ll assume, in most cases, that you won’t need a receipt.

Second, we’re launching new thermal receipts and printers at three of our branches – Home Office, Argyle, and Parnall – starting Monday. Those receipts you get when you pay for gas at the pump? They’re kind of like those. They’re smaller, lighter, and only one sheet – instead of the yellow-and-white sheets we used to have.

This new on-demand receipt system does many things, all of them good, including:

• Save money on paper costs and waste
• Reduce our environmental impact with smaller receipts AND less of them
• Make most transactions faster, saving time
• Reducing identity theft, since there’s less of a paper trail

While this on-demand receipt system is kicking off at three of our branches, we plan to install it credit-union-wide over the next few months.

So when you make a transaction at an American 1 branch, and we ask if you want a receipt, make sure you really think about it. For some members, a printed receipt helps them manage their money better.

But if it’s just going to end up in the trash, say “no thanks.”

Tips when using SimpleLoan checks

Let’s say you get pre-approved for an auto loan with American 1. You’ve got your amount all set, we’ve cut you a SimpleLoan check, and you have an idea of what kind of vehicle you want.

Now what?

Since we don’t want to send you out without the proper preperation, here are some tips to keep in mind when shopping for a vehicle with your SimpleLoan check.

First, do some research on what you want to buy. If you have a vehicle in mind, see what it’s available for in the area. Do you want used? New? Hit the auto classified section of your newspaper to see what’s selling for how much. This kind of information is extremely powerful later in the process.

If you have a trade-in vehicle, do some research to see how much you can get for it. Sites like NADA and Kelly Blue Book aren’t always 100% accurate, so ask around. And check out sites like eBay Motors and Auto Trader to see how much you vehicle is going for in your area.

Negotiate for your vehicle without letting the dealership know you have a SimpleLoan check. You should first negotiate the price of your vehicle with all the options. Once you have a price you’re willing to pay, then you can work on payments and whatever else with us at the credit union.

Pretty soon, the conversation will turn to financing. Tell the dealership you have your financing taken care of. Let them know that you are writing a check, and that you don’t need any help finding financing. The secret is that you’ve already been pre-approved with American 1, and you’re armed with your SimpleLoan check.

Don’t let them know your pre-approval amount. If the dealerships knows that amount, they’re more likely to add extras to drive up the price to your limit. This also gives you walk-away power. Remember – with that SimpleLoan check and a pre-approval amount, you’ve got the negotiating power. Don’t be afraid to walk away if you don’t get the deal you want.

When you know the price, and you’re set to finance, then you can start talking about your trade-in vehicle. By now you’ll know what your trade-in vehicle is worth. Don’t be afraid to negotiate on your trade-in vehicle’s worth to get the maximum value.

Since you’ve settled on the vehicle you want, the price you can afford, the financing is set to go, and you’re getting a decent deal on your trade-in vehicle, you can write your SimpleLoan check right then and there.

For more auto buying tips, visit our Auto Loan Experts page, or browse through other articles here on our blog.

Caveat Emptor: beware trade-in fraud

Imagine trading in your vehicle, driving away in your new vehicle, only to find out the dealership hasn’t paid off your trade-in. And you’re stuck with the bill.

That’s what happened with several couples, the Detroit Free Press reports. It happened when Walt Michael’s RV Superstore failed to pay off a couple’s trade-in RV. When the dealership went under, the couple was stuck with the RV payoff amount. Even though the trade-in RV was sold by Michael’s, the Free Press reports.

The Free Press recommends paying off your trade-in vehicle before turning it over to the dealership, or making sure the dealership agreement includes a promise-to-pay provision that says the dealer is 100% responsible for the trade-in amount. Also, ask around to see how the dealership does businesses. Check with the Better Business Bureau to see what others have to say, or to check for problems in the past.

As always, caveat emptor: buyer beware.

Help us fight for Interchange

Your debit or credit card transaction goes something like this: You buy something at a retailer, either online or in your hometown, and you go to pay with your card. Your payment gets split, with a tiny percentage going to Visa or MasterCard, and the rest going to the merchant.

But now Congress is looking to change the whole system in a way that hurts American 1 and other financial institutions.

Merchants pay a fee for the privilege of using Visa/MasterCards payment infrastructure. That’s called interchange. Visa and MasterCard pay card providers, like American 1, a bit of that interchange for being a part of their system.

Everyone wins. The merchant gets an ease-of-use system for payments, Visa gets some income from the merchant, and we, as a credit union, get a fraction of that income for providing the debit or credit cards. Interchange is great because it helps credit unions of all sizes to issue debit and credit cards. We see interchange as a merchant’s fair share of the costs of this convenient system.

But it’s more than just convenience. Merchants, the ones taking the Visa or MasterCard payment, pay a small fraction for this service and reap most of the benefits, all while assuming none of the risk. American 1 has to cover the costs for fraud, card errors, and serving debit and credit card accounts. All the while, merchants benefit from the increased purchasing power such card systems provide. When you have a Visa account, for example, it’s easier to pay for more and bigger stuff. The merchant gets all that income, and only has to pay a small, single-digit percentage back to card issuers to maintain the system.

If credit unions like American 1 didn’t provide debit and credit cards to our members, imagine what would happen to local businesses. Or online retailers. Now think about all the other credit unions and banks across the nation. We all have to provide debit and credit cards, and providing that system costs money. The only way we can pay for this convenient system is to charge a fair interchange fee.

Now, Congress is looking to change the interchange fee structure, which means American 1 and other card providers could get less income for providing debit and credit cards. If this happens, our debit and credit card system could cost you, the member, more.

If interchange were reduced and could no longer adequately support American 1’s card system, you, as members, may end up paying more to use your debit and credit cards, or we may no longer be able to offer cards at all. Members of Congress should oppose merchants’ proposals to reduce interchange.

So we’re fighting back with a petition. You can stop in to our Home Office or Argyle Branch locations this week to sign the petition telling Michigan’s senators, Carl Levin and Debbie Stabenow, that we don’t want them messing with interchange income. Use those links to e-mail your senator, and your local Congressional representative, and tell them we don’t want any reduction in interchange income.

Big banks get desperate on credit cards

So that big Credit CARD Act that’s due to hit financial institutions next year? Big banks are scrambling to set up more fees and more interest rate hikes to get your money before the act goes into affect.

Bank of America is testing an annual fee on 1% of their cardholders (that’s 800,000 people, all together).

“We’re testing this to see what the feedback is,” said Bank of America spokesperson Betty Reiss. “In terms of any plans going forward, we haven’t made any decisions yet.”

Here’s a clue, Betty: feedback is going to be negative.

Lucky for them, BoA has chosen not to raise their card rates, but an annual fee means if you’re holding a Bank of America card, you could be paying more.

Meanwhile, Wells Fargo is going to raise rates on its card-holding customers, says the South Florida Business Journal, by up to 3%. The new ouch-worthy rate will affect “most” of Wells Fargo’s credit card customers, whatever that means. “Most” usually means “more than half,” so it’s going to hurt a lot of people.

Progress continues at North St.

Construction is continuing at our new North St. Branch, and we have new photos to share.

O’Harrow Construction now has the base of the building set up, and is working on pouring concrete, setting the roof, and defining walls at the branch location.

For up-to-date photos on our North St. progress, visit our Flickr photo gallery.

Payment-free auto loan winners

A hearty congratulations to Carl and Pamela Barkema of Onondaga. American 1 is paying off their $8,800 Ford F250 loan thanks to our big payment-free auto loan promotion in September.

The Barkemas have been members since 1989, and remember getting their first loan with American 1 – a four-wheeler to take up north.

In September, the Barkemas used their truck to finance an outdoor wood stove to heat their home. They were deciding between a signature loan or a secured loan using their vehicle. Carl and Pamela made the right decision, because American 1 is paying off their loan completely.

When we called and talked to Carl, he couldn’t believe what he was hearing. He only remembered vaguely what the promotion involved.

“I thought maybe it was to pay off all the interest,” Carl said. “It surprised me to hear that the whole thing was being paid off.”

“It’s like having an extra $180 a month for the next five years,” Pamela said.

The Barkemas are using their new-found money to purchase a hi-def TV.

We held a little celebration for them at the Home Office Tuesday morning. Check out pictures on our Flickr photo gallery, and congratulate the Barkemas if you see them around.

Poll: What’s the best way to get information?

We’re wondering what method you use to get information about American 1, or what is the best way to get that information to you. Answering either is fine – we just wonder what our members are looking for.

If you have any further thoughts, leave them in the comments below. Thanks!

Fall Women’s Expo jewelry winners

Congratulations to the three lucky women who won Gold Crown Jewelers’ jewelry giveaway at our Fall Women’s Expo.

Amanda Nastally, above, was our first prize winner. She opted for Gold Crown Jewelers’ heart pendant necklace.

The 2009 fall expo was Amanda’s first. She was surprised at the variety of vendors and seeing all that was there.

“I liked it,” she said. “I’ll definitely come back.”

Andrea Wint was our second prize winner. Andrea picked the sterling silver ring with marcasite and amethyst.

She’s been to two women’s expos – March’s spring expo was her first.

“Now I’m hooked,” Andrea said. “It’s awesome.”

Justina Kukulka was our third prize winner. Justine earned the 14K gold two-tone earings.

Like Amanda, this fall’s event was Justina’s first women’s expo, and she enjoyed the hands-on activities.

Congratulations to all the women. For more photos from this fall’s event, head to our Flickr photo gallery. Look for more opportunities to win prizes at our Spring Women’s Expo, coming Saturday, March 13, 2010.

Storage units bad, saving money good

Do you keep things in a storage unit? If so, it could end up costing you thousands of dollars that could be better spent somewhere else.

That’s the lesson behind Wise Bread’s storage unit post.

The conclusion? Storage units are a money, time, and effort sink.

Not only do they cost money to store things you’re probably not using anyway, they also affect the world around you:

Bigger houses are harder to fill up, which may explain why Americans buy twice the number of consumer goods than the citizens of any other first world nation. (Okay, so we’re a geographically huge country, but if we’ve got such big homes, why do we need an additional billion square feet of storage space?) The environmental cost of creating, transporting and finally housing two billion square feet of unused possessions is mindboggling.

If you’re backpacking across Europe for a year, or a member of the armed forces, storage units can make sense.

If, however, you’re using a storage unit to stash away possessions because you don’t have room for them, you might have a problem.

Ask yourself: if your photo albums or boxes of momentos are important to you, why are they out of sight, out of mind?