LowCards.com Weekly Credit Card Update–August 3, 2018

LowCards.com Weekly Credit Card Update–August 3, 2018

August 3, 2018         Written By Bill Hardekopf

Kroger May Expand Visa Credit Card Ban to More Stores
Supermarket chain Kroger is considering expanding a ban on Visa credit cards, which it will soon stop accepting at Foods Co. stores in California. Foods Co., part of Kroger’s California-based Food 4 Less Stores subsidiary, says 21 supermarkets and five gas stations in central and northern California no longer will accept Visa credit cards starting Aug. 14. The decision was made to save on fees Kroger, the nation’s largest grocer, must pay Visa to process credit-card purchases. But the action could be far-reaching. Cincinnati-based Kroger is considering expanding the ban to more of its stores if it doesn’t reach a deal with Visa on fees at Foods Co. stores. Story by Mike Snider for USA Today

48% of Customers Avoid Services Post-Data Breach
Nearly all organizations hit with a security incident report a long-term negative impact on both revenue and consumer trust. Today’s customers have higher standards for where they store their data – and their trust in businesses is falling. Nearly 80% of consumers report it’s “very important” or “crucial” their personally identifiable information (PII) is protected online, and 86% say a high level of data protection is a priority in choosing online services. About half (48%) of organizations report involvement in a publicly disclosed data breach. Of those, nearly all say they have experienced a long-term negative impact related to client trust and/or revenue. Half of the respondents whose businesses had been breached report strong long-term negative effects on both consumer trust (50%) and business results (47%). Story in Dark Reading

Financial Marketers Must Ditch ‘Bank Speak’ to Boost Usage of Mobile Banking Apps
Most mobile banking apps score well for functionality, but are only “OK” when it comes to communication clarity. The challenge is to build a friendlier pocket-sized banking device, not just a shiny new tech tool. Financial marketers can’t let techies and programmers script the “brand voice” of their mobile banking apps. To craft a better, simpler and more intuitive experience, you’ve got to dump all the jargon.Story by Steve Cocheo for The Financial Brand

Chase Now Offers Phone-Based Withdrawals at Nearly All ATMs
It took a long, long time, but Chase’s phone-based ATM withdrawals are finally widespread. The bank has expanded its card-free access to “nearly all” of its ATMs across the US, giving you one less reason to panic if you leave your wallet at home. As before, you can get in by tapping a device with a Chase debit or Liquid card linked to Apple Pay, Google Pay or Samsung Pay, and then entering your PIN code. It’s functionally equivalent to using your regular card, so you’re not facing the usual limits that come with making tap-to-pay purchases. Chase is offering support at 15,000 machines out of 16,000 total. Story by Jon Fingas for Engadget

Reddit Suffers ‘Serious’ Security Breach
Reddit was victim of a serious hack that has compromised the security of some of its users’ data. Reddit informed its users that it learned on June 19 that an attacker had gained access to the data through the company’s cloud after compromising some employee accounts sometime between June 14-18. Although the breach was described as being “serious,” it was mainly limited to data, including emails and scrambled passwords, prior to 2007. The hacker did not gain write access to its systems, meaning they were unable to alter Reddit information. Story by Monica Rodriguez for Fortune

Visa and Mastercard Earnings: More Than Just Payments at Play
Visa and Mastercard process more than $15 trillion in payments annually, but they both want to do more. The card networks are increasingly planning for a future beyond card payments. Visa has services that help with ad targeting, customer acquisition and loyalty programs. The company’s advertising-solutions business allows merchants to see whether their campaigns have been paying off in terms of customer spend, and its commerce business provides discounts to Visa customers who make certain purchases shortly after completing an Uber ride. Earlier in July, Visa introduced a loyalty solutions business aimed at Latin America and the Caribbean. Mastercard has advertising and other products aimed at retailers, including tools that examine purchase data to help merchants choose a location for their next store. Artificial intelligence has become a recent focus for the company, which last year acquired Brighterion, a fraud-prevention service that makes use of AI. Mastercard’s various services efforts could help it pick up new business from more than just merchants. Story by Emily Bary for MarketWatch

What a New National Standard Means for Mobile Banking
Recently, President Trump signed into law Senate bill 2155, more commonly known as the “Regulatory Relief Act”, which rolled-back many of the federal regulations placed on financial institutions after the 2008 financial crisis. One short section has been largely overlooked, but which will make online banking and account opening dramatically easier and more accessible for millions of consumers. Tucked within the law is a new national standard that allows financial institutions to accept a scanned copy or digital image of a person’s driver’s license or state-issued ID card for customer identity verification purposes. The new standard will have an outsized impact because it fixes what had been a significant problem in some states, and will help drive a tremendous leap forward in digital transformation for many financial institutions. Federal Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations require financial institutions to verify the identities of all new customers in an effort to prevent not only money laundering but also terrorism financing. A handful of states including Colorado, Kansas, Tennessee, Mississippi, Oregon and Illinois had laws on their books prohibiting either the use of scanned images of IDs or the scanning of the encoded information on IDs. Story by Kalle Marsal for Bankless Times

Ukrainian Hackers Arrested for Stealing 15 Million Credit Card Records
Three Ukrainian nationals have been arrested in connection with a lengthy hacking campaign that targeted more than 100 American businesses, including the theft of credit card information from Chili’s, Arby’s, and Chipotle. According to the indictment, the group stole more than 15 million credit card records from more than 6,500 point-of-sale terminals over the course of the campaign.Known to security researchers as the Carbanak group, the group used social engineering and phishing attacks to infiltrate businesses and steal financial data. The initial infection typically came from malware included as an email attachment, sometimes presented as a lost hotel reservation or an SEC complaint. A targeted phishing email allegedly sent by the Carbanak group, masquerading as a food poisoning alert. In one incident, the group masqueraded as the FDA’s Center for Food Safety and Applied Nutrition, informing the business of a food poisoning incident. Story by Russell Brandom for The Verge

Why Do Millennials Distrust Credit Cards?
Retirement-age Americans are most likely to appreciate the convenience and financing capabilities of credit cards, while young millennials tend to seek out rewards and are prone to having a negative opinion of credit cards overall, according to new survey. Why are millennials more likely to dislike credit cards? Well, bad experiences with debt, both first-hand and through family members, is likely a major contributor. There is more to this interesting dynamic, too. What about the fact that 58% of baby boomers say low rates make for the best credit card offers, while 51% of millennials choose rewards? Interestingly enough, things like online gaming and social media could have a lot to do with that. Story in CPA Practice Advisor

Credit Cards Still Charge Interest After You Die
There’s a saying that you can’t take stuff with you when you die. And as far as your debts go, that’s because they keep accumulating here on earth. In the case of credit cards, a deceased cardholder’s debt becomes the responsibility of their estate, and interest doesn’t stop accumulating immediately. If the person who died has a living co-signer, however, the debt becomes theirs, and obviously interest keeps growing. Spouses may also be on the line for the debt in community property states. Story by Alicia Adamcyzk for LifeHacker

5th Circuit Suggests Insurance May Cover Credit Card Breach
On June 25, 2018, in a little-noticed, per curiam unpublished decision applying Texas law, the U.S. Court of Appeals for the Fifth Circuit raised some important questions about the extent to which directors and officers and corporate liability policies may be called upon to respond to cyber breach incidents in which credit card data is stolen by unknown hackers. The case – Spec’s Family Partners Ltd. v. The Hanover Insurance Co. – concerned a broad form of corporate liability coverage. Story by Laura Foggan and Thomas Kinney for Law 360


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.
View all posts by Bill Hardekopf
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