Top restaurants may have received increased exposure from these shows, along with widely-read reviews in print, on sites like Urbanspoon and the burgeoning foodie blogging community, new research shows restaurants are not the port of call for most Australians.

The Commonwealth Bank of Australia’s Signals research report shows that it is actually fast food and cafés that take more money off our cards, more frequently, than restaurants.

The average spend per month on restaurant dining has, in fact, fallen 9% over the last four years. Fast food spending has, in contrast, increased by 23% in the same time period.

CommBank’s research also showed that cafés were faring better than they had in 2010 or 2011 reaching numbers comparable to a peak in 2009.

CommBank’s Signals economist, Diana Mousina, said the decline in restaurant dining and the increases in fast food and café culture showed a shift in what we want from our meals.

“As a nation, we are opting for fast food and cafes as a cheaper and more convenient alternatives to restaurants and dining at home,” she said.

“The restaurant decline, as indicated by CommBank Signals data, also reflects a more frugal consumer mindset post the global financial crisis. Accentuating the trend is the decline of corporate spend at restaurants over Christmas, as businesses cut costs and look at less traditional ways to celebrate.

While we still continue to spend an average of $70 per week (or $3640 per year) eating out, more and more of it is going on the faster food available at chains, take-away restaurants and cafés.

In turn, that means that while fine dining has come leaps and bounds in the last few years, the range of award-winning restaurants and chefs getting exposure may not be enough to sate the fast pace that leads people to on-the-go options.

How Credit Cards Could Change These Trends

While the restaurant industry is hardly failing, the fact that faster food and dining experiences are gaining more favour has some people worried.

But it is not just the pace of life that could affect how and where you decide to dine. In fact, the features of your credit card could help restaurants gain back your patronage.

A number of cards have developed perks that relate to dining, particularly restaurant dining.

Citibank’s Dining Program is one of the most well-known and promoted options. The bank has partnered with celebrity chef and restaurateur Gary Mehigan to promote the program, which is available to anyone with a Citibank credit card.

Partnering with restaurants around Australian Citi’s Dining Program offers you a complimentary bottle of award-winning wine when you pay the bill with a Citibank card.

The program has its own website, complete with a location-specific search for participating restaurants and details of the wines available as well as new offers.

In celebration of Vivid Sydney, for example, Citibank designed a pop up bar in Darling Harbour that provides a great view of Vivid Aquatique as well as a complimentary glass of wine for Citibank cardholders.

But Citi is not the only credit card issuer offering enhanced dining experiences and benefits.

Big Bank ANZ also has its eDine program, which offers savings at over 1500 restaurants, bistros and cafés in Australia as well as over 1000 hotels and other attractions in Australia and New Zealand.

Rather than adding to the meal with wine, ANZ has opted to save you money by offering 20% off the bill at participating restaurants. All you have to do is pay with your ANZ card and present your eDine membership card.

Unlike the Citibank Dining Program, however, eDine membership costs $35 a year, though the inclusion of cafés could make it worthwhile even if you don’t go to a lot of restaurants.

Beyond these issuer options there are also often seasonal dining promotions from card processors.

MasterCard, for example, has a range of food and dining experience packages available through its Privileges program, including wine and food tasting trips to South Africa.

While none of these programs or promotions is likely to single-handedly change our eating trends, there is scope for them to influence decisions.

If you want to enjoy a night out and save on drinks, for example, then having a Citibank credit card handy could be ideal, while being a member of ANZ’s eDine program could help you cut down your annual costs for eating out.

But regardless of the trends towards fast food and café eating, knowing that these options are available through your credit card means that you can get more out of plastic when the occasion calls for it.

So while dining programs and perks probably can’t save the restaurant industry (if it ever needs saving), they can save you money.

A study by the University of Michigan has found that people are more likely to delay and avoid medical and dental care if they have credit card debt.

The research – based on a survey of close to 1000 people and published in the Journal of Health and Social Behavior – also suggests this link between credit card debt and health neglect affects people regardless of age or socio-economic background.

“Overall debt and ratios of debt to income and debt to assets were positively associated with foregoing medical or dental care in the past 12 months, even after adjusting for the poorer socioeconomic and health characteristics of those foregoing care and for respondents’ household incomes and net worth,” the paper outlines.

“These overall associations were driven largely by credit card and medical debt, while housing debt and automobile and student loans were not associated with foregoing care.”

Although the credit card industry and health services systems are very different in the United States compared to here in Australia, it does draw attention to the fact that finances and health can be connected.

It also suggests that personal priorities can be influenced and skewed by credit card debt, which may be less specific to the USA and more applicable to anyone with a credit card and credit card debt.

Both the private and public health systems in Australia offer rebates or even bulk billing for a range of medical expenses, but neither cover everything. So even here the act of going to a doctor’s, dentist or even optometrist is associated with spending money.

While no comparable studies have been released in Australia, this latest research does make you wonder just how much of a hold your credit card debt could have on the rest of your life.

Other Ways Credit Cards Can Affect Your Health

This is not the first time credit cards and health have been studied, with previous research illuminating just how connected our finances and health can become.

The authors of this latest research, Lucie Kalousova and Sarah A. Burgard, cite a number of previous studies that have found credit card debt and wellbeing are related.

Researchers at the University of Alabama-Birmingham, for example, demonstrated links between credit card debt and risky health behaviours, including smoking and excessive alcohol consumption.

Similarly, other studies have shown that being in debt can cause people to feel more anger, anxiety and even lead to depression.

Most of these studies have also shown that the negative affects of debt are more specific to short-term and more variable types of debt like credit card debt than longer-term investments like mortgages and car loans.

Both of the latter are often seen as necessary or “good” debts, while credit card debt is generally considered more of a “bad” debt or one of convenience.

Interestingly enough, the connection to health does not end with cause-and-effect either.

Just as health authorities recommend going to a professional when something is negatively affecting your wellbeing, financial experts suggest dealing with debt directly, rather than avoiding it.

As the MoneySmart website outlines, “Taking action straight away can stop a small problem from becoming a big one.”

“Money problems are stressful but you do have options. Take action now by talking to your credit or service provider and working out a plan to get yourself back on track. You can apply for a hardship variation if you need to, or get help from a financial counsellor.”

The same guidelines apply to your health: help is better than trying to ignore the problem or self-diagnose.

While the connection between your personal finances and wellbeing is rarely highlighted, these two elements of life often go hand-in-hand with each other.

Being aware of the influence credit card debt can have on other areas of your life, particularly your health, should help you develop a better outlook for your finances and your entire life.

But as technology has evolved, so too have the number of ways for fraud to occur and, in turn, the number of scammers targeting cardholders has also risen.

The most recent developments have seen internet banking become more convenient and sophisticated than ever before.

You can now check your credit card balance and make payments online, via your smartphone and from tablets, as well as more traditional branch or phone banking options.

Some internet banking apps are even dabbling in social media, like CommBank’s Kaching, which lets you arrange payments via Facebook.

Online Privacy Protection Issues

How we use money is changing and so too are the details requested for certain transactions.

When you make a purchase online, for example, you not only have to enter your credit card details (including the account name) but also your shipping address, email address and even a contact phone number.

While in most cases these details are required for practical purposes – including postage, payment verification and security – it still means more instances where your privacy could be compromised. It doesn’t even have to be by hackers.

In the US the debate around what details are needed for online purchases has been fuelled by a number of lawsuits and state-based legislation changes.

The Californian Supreme Court, for example, sided with Apple when one customer filed complaints about the requirement to provide an address and postcode for electronic downloads.

But the decision was not unanimous, with one judge involved in the case stating that the majority decision was “a major win for these sellers, but a major loss for consumers, who in their online activities already face an ever-increasing encroachment upon their privacy.”

An example of privacy issues arising from providing these details has also recently come from another US state.

In Massachusetts a law has recently been passed to ban retailers from requesting and storing ZIP (post) codes after one merchant used the information to find other details and send marketing to an unsuspecting customer.

The same risks are here in Australia, along with those more insidious global scam and identity theft issues.

But when Privacy Protection Week came around at the end of April this year, the Australian Bankers Association was quick to acknowledge issues and solutions.

Steven Münchenberg, Chief Executive of the ABA, said the banking industry had a responsibility and commitment to protecting financial information in a changing environment where “banks and their customers are seeking convenient and secure banking services to simplify their busy lives.”

“Banking on your mobile, via your tablet, at home in your lounge room or on your laptop, are all ways that people make payments, check their balances and organise their finances,” he said.

“Banks are working very hard to ensure their policies and practices are in sync with customers’ expectation of privacy, whatever channel they use to complete banking transactions.”

The ABA also said that one of the most valuable services that a bank can provide is to protect its customers’ privacy and being aware of the risks and resources available to you could help prevent and resolve problems.

“Customers may opt out of having their information shared with affiliated companies or non-affiliated third parties for marketing purposes. This means that the customer can choose and can control how information is used. Customers can opt out at any time and there is no deadline,” Münchenberg said.

In many ways banks may actually be more diligent with privacy than other service providers and merchants. The ABA stated that banks train employees, have strict privacy policies, rigorous security standards and use encryption and fraud detection technology to protect customers.

Privacy with online merchants, on the other hand, is a lot more flexible – especially when you could be shopping overseas.

While all privacy policies for legitimate companies should be available online, very few customers read this fine print before entering details for a purchase. If they did, lawsuits and amendments like the two mentioned above would be far less prevalent.

In the case of scammers, however, it is not just about privacy but also about security, which can be ensured by all parties.

But at least when it comes to internet banking, the ABA said that risks are well known to banks and security is updated accordingly.

“Unfortunately wherever money is handled, criminals will see opportunities – whether that is in cyberspace or on the street. The criminals’ aim is to get customers’ personal information by deception,” Münchenberg said.

“Of course, in the unlikely event that your account is compromised by criminals, banks give you a security guarantee. Bank customers are protected from loss in genuine fraud cases. There is usually an investigation by the bank to determine how the fraud has occurred, but if you are an innocent victim, then the bank will cover your losses.”

As the details above illustrate, however, privacy protection online is not just the domain of banks. It relates to social media sites, online stores and other service providers as well as customers.

But being aware of your privacy and making decisions about when and where you give out details will help you stay in control of your personal information. That way you can reduce the risks and make the most of the convenience that internet banking and shopping provides.

But if it happened to you, would you actually speak up? The latest data suggests most of us wouldn’t.

While one in four cardholders in Australia has experienced fraud, the Australian Institute of Criminology (AIC) has reported that more than half of all incidents go unreported.

The AIC has also concluded that credit card fraud is one of the most under-reported crimes in the country, particularly in light of the most recent Online Consumer Fraud Surveys, which shows fraud is increasing across the board.

There is no doubt people are becoming more aware of fraud risks, particularly online, but the fact that it is going under-reported is cause for concern.

Not talking about credit card scams means that less people will be aware of how often it happens, and could also lead to further alienation if you end up a victim of card scams.

Based on the statistics above, if you know four people with credit cards, then you probably know someone who has come in contact with fraud.

With over 15 million credit cards in use in Australia, the chances are good that more than one person you know has had to deal with scammers. But have they talked about it? Have you talked about it?

While credit card issuers all have a fraud section online and in card information booklets, a lack of discussion could also mean a lack of awareness about what to do when fraud occurs and how long it will take to resolve.

That, in turn, could lead to more panic if you ever find out that you have been a victim of credit card scammers.

The AIC and partners like the Australian Competition and Consumer Commission (ACCC) and Australasian Consumer Fraud Task Force (ACFT) are united in their philosophy around reporting scams: even if you do not lose money, letting the authorities know about scams plays a big role in reducing them.

“The key to fighting scams is by providing consumers with information about how to recognise and avoid scams,” Dr Michael Schaper, Deputy Chair of the ACCC and Chair of the ACFT said.

Credit Card Scams: How Aware Are You?

Annual losses arising from scams are well into the millions of dollars, with numbers on a rising trajectory.

The ACCC said 2011 losses from scam activity totalled almost $85.7 million, a 35% increase on the amount reported in 2010 ($63.5m) and, as the AIC commented, “this is only reported losses. The total could be much higher.”

But reading up on scams and following trends outlined by research like the AIC’s annual scam survey will help you become more aware of the risks and hopefully more comfortable reporting any scam issues.

The results of both the 2011 and 2012 AIC surveys, for example, highlighted a number of trends that could affect any one of us, including:

• A steep increase in the incidence of phone scams, both via landline and mobile, since the introduction of VOIP international calling last decade,
• More sophisticated scams using fake websites to lure older investors to part with their money; and
• Dating scams, while the least likely scam invitation to be received, were the single scam most likely to result in a financial loss or the disclosure of personal details.

AIC Principal Criminologist, Dr Russell Smith said: “The AIC is continuing to track and analyse the patterns of types of scam invitations people received, whether people responded to the invitations, if they sent money or gave personal details, how people view scam invitations and whether people report scams and who they report them to.

He encouraged people to participate in the current survey to help increase awareness of fraud risks so that more effective prevention methods can be developed.

The government’s Stay Smart Online campaign and website also has a wide range of resources to help you avoid potential scams and credit card fraud issues.

Your credit card issuer should have similar resources and links available, as well as information about the type of protection you get through them. Common credit card anti-fraud features include:

• MasterCard SecureCode and Verified by Visa online authorisation services,
• 27/4 fraud monitoring,
• Anti-fraud hotlines; and
• Zero liability policies to make sure you never lose any money.

While it is one thing to know that fraud exists, it is another thing entirely to experience it. But being aware of the risks, reporting any suspicious activity and staying on top of fraud protection options should help you keep your credit card balance exactly where it should be.

But the rates we are charged for various loans and credit cards do not always make much sense when you look at them side by side.

In theory it all starts with the official cash rate – currently sitting at 3%. Banks and other lenders use this figure to determine where they should set their interest rates to offset the cost and risks of lending people money.

So 3% combined with competition and other factors has led to an average home loan interest rate of around 7%, personal loans somewhere around the 10-12% range and car loans sitting at 13%.

But credit card interest rates are higher than them all. The average credit card interest rate is around 17%, or just over five times as much as the cash rate.

While the official cash rate is at its lowest point since 2009 – and home loans reflect this change to some extent – average credit card rates have barely moved.

And with credit card debt creeping up, now more and more people are left wondering why credit card interest rates are so high.

The Relationship Between The Cash Rate and Credit Card Interest Rates

Unlike home loans or personal loans, which are often secured against the assets bought with funds, credit cards are a very freeform lending product.

The unique structure of cards is, in fact, one reason that there is so much confusion about how the cash rate may or may not relate to credit card interest rates.

On the one hand, consumer groups have conducted research to show that credit card users have been charged millions of dollars more than necessary because of static interest rates.

While the cash rate has stayed below 5% since the end of 2008, the average card interest rate has barely moved a percentage point.

But on the other hand you have lenders and banks like CommBank telling media outlets that credit cards are not connected to the cash rate.

“Credit card interest rates are not linked to the official cash rate and, as an unsecured form of credit, are priced based on risk,” a CBA spokesperson told News.com.au last year.

This argument is supported to some extent by the Reserve Bank of Australia (RBA), which sets the official cash rate.

In an information sheet about various credit card changes, the RBA explains that credit cards are different from all other types of lending, including other variable rate loans, for the following reasons:

• High acquisition costs,
• Operational costs associated with supporting and processing multiple transactions per account,
• High levels of customer service including lost/stolen reporting, account maintenance, dispute processing and investigation and replacement cards for various reasons; and
• Consumer Credit Code requirements for statement processing frequency.

The RBA also outlines that credit cards are often presented as ideal for small value transactions (average $100), “which manifests itself in a low average balance per account.”

“This relatively small balance (as opposed to personal loans for example), the resultant small repayments and the inability of the consumer to connect a credit card debt to a tangible asset (such as a car with a Personal Loan), means that the consumer does not perceive a significant risk where a payment has not been made,” the RBA said.

“Accordingly, a relatively high level of accounts are in arrears and ultimately, written off. It is easy for a cardholder to default and the small balances do not make it financially viable to expend vast sums on protracted recovery actions. This leads to relatively high levels of write off.

But although the nature of cards might dictate some interest rates, there is a silver lining: not all issuers use these facts to increase the cost of using credit.

The number of low interest credit cards is on the rise, with over 50 cards under 14% p.a. and some smaller lenders with cards under 11%.

Community First Credit Union, for example, last year lowered the interest rate on its Low Interest Credit Card to just 9.5%. The same rate of interest currently applies to both this card and the McGrath Pink Visa charity credit card.

The Bankwest Breeze, a champion of low rate cards issued by banks, also offers a lower rate than most, with interest on purchases currently charged at 11.99%.

What these types of cards show is that the average is not necessarily what you have to deal with. As the RBA has consistently pointed out over the years, cards with more features tend to have higher interest rates, particularly where rewards are concerned.

Some cards have rates over the 20% line, which has also had an impact on what is considered the “average credit card interest rate”.

But there are other cards, like the ones mentioned above, which offer much lower rates than the average.

That also means that, rather than accepting the interest charges deemed “average”, you can compare options and search for the lowest interest rates so that credit is more affordable.