LowCards.com Weekly Credit Card Update–December 10, 2020

LowCards.com Weekly Credit Card Update–December 10, 2020

December 10, 2020         Written By Bill Hardekopf

Capital One Stops ‘Risky’ Buy-Now-Pay-Later Credit Card Transactions
Capital One has barred customers using its credit cards to clear buy-now-pay-later  debt as the transactions bear unacceptable risk, it told Reuters, making it the first to distance itself from the finance alternative. The third-largest U.S. card firm with 62 million accounts, plus more in Canada and Britain, said it would no longer allow “transactions identified as point of sale loans charged on its credit cards, regardless of the point of sale lender.” Story by Byron Kaye for Reuters

US Consumers Applied for More Auto, Student Loans, Cut Back on Credit Card Spending
U.S. consumers took out more auto and student loans in October, but cut back on credit card borrowing, a sign that they remain cautious about spending amid a spike in virus cases. The Federal Reserve said Monday that consumer borrowing rose 2.1% in October to $4.16 trillion, pushed higher by a 4.8% jump in a category mostly made up of student and auto loans. Credit card borrowing fell 6.7%. The figures suggest that consumers haven’t fully recovered from the pandemic recession. Outstanding balances on credit cards are still down nearly 11% compared with their level in February, before the pandemic intensified. Story by Christopher Rugaber for the Associated Press

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As Holiday Shopping Soars, So Does Ecommerce Fraud
Despite the COVID-19 pandemic, the holiday shopping season thrived over Thanksgiving, Black Friday and Cyber Monday. However, research shows that the strong sales were backed with equally strong ecommerce fraud. The more online purchases are made, the more fraudsters look to take advantage of unsuspecting shoppers. Story by Heaven Speirs for LowCards.com

Exploring Links Between Credit Card Debt and Mental Health as Covid Recession Wears On
There are some mixed findings on how much of a stressor credit card debt is compared with other debt, like student loans. Overall, though, people with high credit card debt tend to experience higher stress levels. The big upshot across the findings is that unsecured debt, such as debt from credit cards or medical bills, generally is much more likely to be associated with anxiety than secured debt, like mortgages, which are often not thought of as debts at all, but rather investments. Story by Clark Merrefield for Journalist’s Resource

Millions of Payment Terminals Are Vulnerable to Credit Card Theft Hacks
Point-of-sale payment devices made by two of the industry’s biggest manufacturers contained vulnerabilities that made stealing credit card data much simpler. Millions of devices may be affected. The weaknesses lay in devices made by Verifone and Ingenico. Story by Thomas Brewster for Forbes

The 5 Most Popular Credit Card Companies
With dozens of credit card companies on the market, you may wonder which one is the most popular. This ranking is based on the outstanding balances for each credit card issuer as of 2019. For example, if a card issuer had 10% of all outstanding balances, that means its cardholders accounted for 10% of outstanding credit card balances in the country. Here are the top five credit card companies, their share of outstanding credit card balances, and what makes them so popular with consumers. Story by Lyle Daly for The Motley Fool

GoHenry, a Prepaid Card and Finance App for 6-18 Year Olds, Raises $40 Million
Young people have long been a prime, if especially careful, target for financial services companies: find the right and responsible way to connect with them, and you could have a good customer for many years. Today, one of the startups building services specifically for those under 18 is announcing a round of growth funding, money that it plans to use to continue building out its business in the US and UK. GoHenry, which provides a pre-paid debit card and corresponding app to minors as young as 6 and no older than 18 that in turn can be controlled and topped up by parents, has raised $40 million. Story by Ingrid Lunden for Tech Crunch

Use It or Lose It: Redeem Your Credit Card Offers Before 2020 Ends
Premium credit cards often come with a suite of benefits that include money-saving statement credits on travel and dining purchases that can be worth up to $300 annually. But there’s a catch: these credits often expire at the end of each calendar year. Here’s a comprehensive list of credit card statement credit offers that are expiring soon, plus how you can use them before you lose them. Story by Alexandria White for CNBC

How PayPal Is Helping Usher in a Cashless Society
While the U.S. still has a long way to go to match China as a cashless society, PayPal is helping the U.S. bridge the gap. PayPal has struck deals with several major retailers to use its QR code solution at checkout. If its technology becomes more widely adopted, PayPal will cement its position in the rapidly expanding digital payments market. Story by John Ballard for The Motley Fool

Verizon, Fiserv Partner to Offer Touchless Payment Capability
Verizon Business and Fiserv payments provider have announced a partnership that will allow Verizon Business customers access to Fiserv’s Clover Flex. This mobile point-of-sale device uses a Clover platform and has an embedded Verizon SIM Card to enable touchless payments. In addition to touchless payments, Verizon Business customers can use any of the Fiserv merchant services which include debit and credit card processing and online, mobile and in-person payment acceptance options. Story in Mobile Payments Today

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What You Need to Know About American Express’ Once Per Lifetime Rule
As more travelers learn the value of credit card welcome bonuses, banks have adopted different strategies to prevent credit card churning. Chase applies it’s infamous 5/24 Rule. Citi limits how many cards you can get in an 8-day and 65-day period and restricts welcome bonuses by card family for a multi-year period. Capital One will only approve you for one new card per 6 months. Compared to other banks, the American Express rule is straight-forward, yet strict. For each American Express card, you only have one opportunity to earn a welcome bonus. Or, as it’s better known, Amex applies a “once per lifetime” rule. Let’s dive into what you need to know about Amex’s “once per lifetime” rule. Story by JT Genter and Caroline Lupini for Forbes

Where the Rubber Meets the Road: Digital Payments and the Trucking Industry
When passing long-haul truckers on the road, mobile payments don’t immediately come to mind, but this industry was actually once ahead of technology in trying to streamline the process for truckers to purchase fuel, parts and make repairs while out on the road. What happened to cause this industry to lag behind when other industries were moving forward with digital payments and technology? Story by Pat Shea for Mobile Payments Today

The information contained within this article was accurate as of December 10, 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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bill-hardekopf

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.