LowCards.com Weekly Credit Card Update–August 28, 2020

LowCards.com Weekly Credit Card Update–August 28, 2020

August 28, 2020         Written By Bill Hardekopf

A Peek At Facebook’s Plans For Mobile Payments
Facebook, the world’s largest social media platform, is planning to introduce mobile payment options which will include Facebook Pay. The move will give the 2.5 billion Facebook users an easier and more user-friendly interface to pay. Facebook Messenger developer David Marcus will lead the development. The upcoming app has yet to be named but it will be available first in the U.S. and after that, worldwide. Story in Retail Customer Experience

Credit Card Delinquencies Take A Nosedive During Pandemic
A recent report from Experian showed that, from January 2020 to June 2020, the average instances of consumer credit card delinquency decreased by 3.9%. This is all at a time of record unemployment and massive pay cuts in many industries, which could leave you wondering where the improvement stems from. Experian points out that some of the positive movement is likely due to lender accommodations provided through the CARES Act. “With more consumers in forbearance, or with payments deferred through some accommodation, the decline in new delinquencies is understandable, as repayment for many loans has been paused.” Story by Holly D. Johnson for Bankrate

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Coronavirus Has Hurt The Credit Card Fraud Business
The coronavirus pandemic has changed just about every aspect of daily life, and credit card fraud has not been spared. In a new report from cybersecurity firm Sixgill, the first six months of 2020 saw 45 million compromised credit card accounts posted for sale on the dark web. That might sound like a lot, but compared to the last six months of 2019, it’s down 40% from 76 million. The obvious key reason has been the pandemic, which has kept people out of physical retail stores. Increased activity by law enforcement has also played a role. Story by Ethan Wolff-Mann for Yahoo Finance

Get $20 Off At Amazon When Using Your Eligible Capital One Credit Card
Capital One credit card holders targeted for this new offer can save $20 on a purchase of $80 or more when using their miles or cash back at Amazon from now through September 30. And even though this isn’t the best return on your Capital One miles, you’re only required to use 1 mile for the discount to apply, and can then pay for the rest of your purchase with your Capital One credit card. Story by Jennifer Yellin for CNN

Visa Unveils More Powerful AI Tool That Approves Or Denies Card Transactions
Visa said it has developed a more advanced artificial intelligence system that can approve or decline credit and debit transactions on behalf of banks whose own networks are down. The new service reflects the growing use of AI in banking. Banks are expected to spend $7.1 billion on AI in 2020, growing to $14.5 billion by 2024, on initiatives such as fraud analysis and investigation, according to market research firm International Data Corp. The service, Smarter Stand-In Processing, uses a branch of AI called deep learning that roughly mimics neurons in the human brain and is an underlying technology powering self-driving cars, voice-enabled digital assistants and facial recognition. Story by Sara Castellanos for The Wall Street Journal

Fight Against Fraud Slows Payments To Unemployed
As workers grow desperate for unemployment benefits, criminals filing fraudulent claims are clogging state unemployment systems, making legitimate claimants wait even longer for help. States with no income tax, such as Washington and Nevada, had no income records to help substantiate claims, making it easier for fraudsters to get money they didn’t deserve. For that reason, those states were hit harder and had more trouble weeding out fraud. And new benefits for “gig” workers put states into uncharted waters, without the extra verification of a traditional employer with records of layoffs and wages. Story by Nati Harnik for the Associated Press

Mastercard and Ally Financial Teaming Up On POS Installment Lending Program
Ally Financial is entering the point-of-sale installment lending segment through a new tie-up with Mastercard. Ally announced that its Ally Lending subsidiary has established a partnership with Mastercard’s POS installment loan platform Vyze, under which Ally Lending will serve as the financier of the loans. By doing so, Ally said, it is hopping on a trend among U.S. consumers and retailers. The bank cited research from FinTech World Report 2019 indicating that retailers utilizing POS installment financing enjoy an average 32% boost in sales, along with a 75% gain in order value. Story by Eric Volkman for The Motley Fool

Japan Facing Credit Card Number Shortage
Japan had around 283 million credit cards in March 2019, but the number has been on the rise since the government introduced a point reward system for cashless transactions last October. Meanwhile, card payments have become more popular during the pandemic lockdown. The first six digits of a card number relate to country, brand and other information, with the final 10 decided by the issuer. Issuers are concerned that there could soon be a shortage of digit combinations from the seventh onwards. The problem could be addressed by adding a digit but this would cost tens of billions of yen and cause disruption. Story in FinExtra

How Putting Your Credit Card Into Forbearance Can Affect Your Credit Score
When a lender grants a borrower forbearance on either a loan or credit card balance, it initiates an agreed-upon period of time in which monthly bill payments may get either reduced or put on momentary pause. Interest normally still accumulates during forbearance, and borrowers will still have to pay back the balance eventually. Forbearance itself doesn’t have a direct impact on your credit score, as long as you keep up with your payments as agreed (i.e., making reduced minimum payments or resuming regular payments once forbearance is over). However, borrowers who don’t fully understand their credit card forbearance programs can fall into a few common traps that can hurt their credit indirectly. Story by Elizabeth Gravler for CNBC

The Death Of The Wallet
Thanks to the pandemic, we are heading towards a cash-free society at a much faster pace, with consumers switching to touch-free payments to protect their health. Research from PayPal has shown that a fifth of consumers no longer carry cash, and around seven percent of people have decided to scrap their wallets and purses entirely. Story by Vince Graziani for Tech Radar

How To Get Help From Your Credit Card Issuer If Times Are Tough
A historic number of Americans are unemployed and feeling anxious about their financial future. Credit cards are an important financial tool for many Americans. But, if you cannot make on-time payments, credit card use can cause long-term problems, and drive you deeper into debt. If you’re worried about how you’re going to pay your bills, you’re not alone. Most of the major credit card companies are offering financial assistance to help cardholders who are facing financial challenges. Here’s what you should know to be smart about using credit cards when times are tough. Story by Katie Collins for Next Advisor

How Have Card Issuers Measured Up During The Pandemic
One surprising thing to note is that this decline in customer satisfaction with their credit card issuer wasn’t mirrored across other financial services sectors. For example, consumer satisfaction actually grew with retail banks and mortgage providers throughout the pandemic. The defining factor? Communication with customers. J.D. Power’s 2020 Credit Card Satisfaction Study found that just 36% of credit card customers were proactively contacted by card issuers over the past year, compared to 60% of mortgage customers and 48% of retail banking customers throughout a similar timeline. Story by Madison Blancaflor for The Points Guy

The information contained within this article was accurate as of August 28, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.