LowCards.com Weekly Credit Card Update–July 25, 2014
Will Debit Card Rewards Become a Perk of the Past?
Banks are still struggling to regain their footing from the financial collapse and resulting Great Recession. As profits shrink and expenses expand, the biggest banks in America are shedding thousands of jobs, cutting lobby services, shutting down branches and trimming–or eliminating–debit card rewards. Is it just short-term penny pinching or long-term cost cutting? Story by Hal Bundrick for U.S. News and World Report.
Card Breach at Goodwill Industries
Heads up, bargain shoppers: Financial institutions across the country report that they are tracking what appears to be a series of credit card breaches involving Goodwill locations nationwide. For its part, Goodwill Industries International Inc. says it is working with the U.S. Secret Service on an investigation into these reports. Headquartered in Rockville, Md., Goodwill Industries International, Inc. is a network of 165 independent agencies in the United States and Canada with a presence in 14 other countries. According to sources in the financial industry, multiple locations of Goodwill Industries stores have been identified as a likely point of compromise for an unknown number of credit and debit cards. Story by Brian Krebs for Krebs On Security.
Six Indicted in Alleged Hack of StubHub Customers’ Credit Cards
An international cyber-crime ring was able to take over StubHub user accounts to steal identifying information and use victims’ credit cards to purchase tickets to concerts and sporting events, authorities announced Wednesday. Six people were indicted in connection with the alleged scheme to defraud users on the popular online ticket marketplace. StubHub, an EBay subsidiary, allows customers to buy and sell tickets to concerts, sporting events and other live entertainment. The company, according to authorities, discovered that more than a thousand accounts had been compromised by hackers who were fraudulently hijacking users’ credit cards. Story by Robert Faturechi for the Los Angeles Times.
Medical Credit Cards: Why They Can Cost You Big
The high cost of dentistry is apparently fueling a burgeoning market in medical credit cards, with more than 4.4 million Americans financing their root canals, orthodontia and other medical and veterinary procedures this way. These cards, which charge interest rates ranging from 10 percent to nearly 30 percent, help consumers pay for medical services that are not covered by health insurance, according to a recent study by the Government Accountability Office. And they’re are great deal for the dentists, doctors, veterinarians and other medical professionals that offer them because the credit issuer provides payment to the doctor for the cost of the service, usually within 72 hours of processing the credit application, without forcing the medical provider to even wait until the service was provided. Story by Kathy Kristof for MarketWatch.
3 Security Strategies Worth Considering Along With EMV, BYOD
A spate of high-profile data breaches and the ongoing threats posed by antiquated magnetic stripe technology has created the need for transformation across the retail and financial sectors – including the upcoming adoption of Europay-MasterCard-Visa (EMV) global standard chip cards throughout the U.S. But while the shift to EMV technology will mitigate risk for counterfeit card fraud, it will amplify the threat of online attacks. Story by Andreas Baumhof for Business Solutions.
PayPal Is Keeping eBay Afloat
PayPal, the online payment processor owned by eBay, may be the big thing keeping the parent company afloat. eBay has seen a steady decline in its revenue, especially after a data breach discovered in May of this year. According to their second quarter figures, PayPal grew by four million accounts, bringing their total number of accounts to 150 million. The company saw a growth of 29% in total payment volume and 21% in total number of payments compared to the same time last year. PayPal’s transaction related revenues increased by 18%, which is more than twice the growth rate for the industry. Story by Lynn Oldshue for LowCards.com.
Consumers Soon Will be Able to Turn Their Credit and Debit Cards Off and On to Prevent Fraud
In what might be a huge breakthrough to curb credit and debit card fraud, new technology is set to take off that will offer customers the ability to turn their cards off and on at a moment’s notice using their smart phone. If the card is off, it can’t be used for anything. If it’s turned on, it can be used within seconds for a specific transaction, and then turned off again. Or customers can choose to ban purchases that occur in other states, or online, or at certain types of merchants. Story by Teresa Murray for the Cleveland Plain Dealer.
The LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.49 percent, identical to last week. Six months ago, the average was 14.46 percent. One year ago, the average was 14.32 percent.