LowCards.com Weekly Credit Card Update–July 7, 2017

LowCards.com Weekly Credit Card Update–July 7, 2017

July 7, 2017         Written By Lynn Oldshue

Yet Another Thing E-Commerce Is Killing
E-commerce has already changed your local mall. Now it’s changing your wallet. As more consumers do their shopping online, they’ve said goodbye to popular brick-and-mortar stores. Now, experts say they should start saying goodbye to the credit cards that go with them. Online shopping has led to store closures, meaning many consumers are now geographically far away from their favorite retailers. When that happens, the credit cards they opened at those stores are less useful, and consumers stop using them as often, according to a recent report Moody’s Investors Service. It’s possible brick-and-mortar retailers will change their strategies and offer more benefits on their store cards for online shopping to persuade consumers from canceling their cards. Story by Maria LaMagna for MarketWatch

Chase Bank Experiences Nationwide Outages; ATMs, Branches, Credit Cards Affected
JPMorgan Chase on Monday was hit by significant outages at its branches and throughout its network, leaving customers unable to access their accounts or money in some cases. The problems were reported to be the worst in New York, Chicago, Houston, Dallas, Los Angeles, Florida and Seattle. Chase said the outages were resolved Monday evening after at least five hours of frustration for some customers. Chase is the largest bank in the United States. Story by Teresa Dixon Murray for The Plain Dealer

Curve’s Smart Card Switches Between Credit And Debit After Purchases
Have you ever bought something only to regret it later as you run into a spending limit on the card you used? If you live in in the right country, you might have a way to overcome this particular strain of buyer’s remorse. Curve is giving its British and European Mastercard users the ability to switch a purchase between credit or debit up to two weeks after the transaction took place. If you realize you’re going to go into overdraft, or that you should have expensed dinner on your corporate credit card, you can make a change before it’s too late. The payment swap is free and should take less than 10 seconds through Curve’s Android and iOS apps. Story by Jon Fingas for Engadget

Credit Card Banks Report Lower Profits in 2016
Profitability among the nation’s large credit card banks fell slightly in 2016, according to data released by the Federal Reserve. The Fed defines a credit card bank as an institution that devotes more than 50 percent of its total assets to loans to individuals and, of those, 90 percent or more involve credit cards or related plans. The return on assets for the 14 credit card banks with assets of more than $200 million fell 4.36 percent in 2015 to 4.05 percent, mostly due to declines in net non-interest income and an increase in loan loss provisions, the report said. While profits edged down, the Fed noted that delinquency and charge-off rates for credit cards were little changed in 2016, remaining well below historical averages. In addition, the data showed that consumers were using less than one-fourth of the total dollar amount of credit available to them. Story in the ABA Banking Journal

It’s Easier Than Ever to Dispute a Credit Card Charge, and Retailers Hate It
The ability to dispute a charge is one of the big reasons consumers trust electronic payments, so banks take their ability to fulfill the requests seriously. But technology, along with a change in rules by payment networks such as those run by Visa and Mastercard is making that system a bigger headache for merchants, who are often left to eat the cost. Besides automating claims, banks have updated their mobile apps so users can dispute a charge simply by tapping a few buttons. almost 60 percent of banks are pursuing automation to expedite the process, which used to be done almost entirely by hand. One reason card issuers want to speed things up: Aite found that banks spend about 2 cents per second on the phone with customers reporting chargebacks. It typically takes 13 minutes, or more than $15, per call. That will probably add up to $2 billion this year. Story by Jennifer Surane for Bloomberg

UK Banks Consider Changing Security Codes On Debit And Credit Cards Every Hour To Foil Online Fraudsters
Banks are considering adopting debit and credit cards where the security code changes every hour, to keep ahead of online fraudsters. UK financial institutions are looking at the technology which has unveiled in France last year. The new cards replace the printed three-digit security code on the back of the card with a mini screen which displays a random code that changes automatically every hour. The development is encouraged today in a National Audit Office report that warns police forces are not doing enough to tackle the growing threat of online fraud. The NAO said new cards with changing numbers could be “a positive step, as the re-design may help to stop an increase in online card fraud. However, such a plan requires all card providers to participate.” Story in The Telegraph

The App Economy Will Be Worth $6 Trillion In Five Years Thanks To Mobile Commerce
In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and, crucially, more money in apps. While on average people aren’t downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the average app spend—including app-store purchases, advertising spend and, most importantly, commerce—to increase from $379 per person to $1,008 in 2021. The 800-pound, or $6 trillion, gorilla in the room is mobile commerce. Purchases of goods and services through mobile apps represented 90 percent of the total app economy in 2016 and are expected to represent 95 percent in 2021. Story by Rani Molla for Recode

Square Cash Debuts A Prepaid Card That Draws Funds From Your Square Account
Staying relevant means staying competitive, and for Square, that means rolling out physical Square Cash Cards. Just days after reports surfaced that mobile payments platform Venmo is looking into creating physical debit cards so that users can instantly spend their account balances, Jack Dorsey’s payment system said, “Us, too!” Square is beating everyone else to the punch, as starting June 30, you can get one of these prepaid debit cards either through the Square app or its website. Much as Venmo’s rumored card is expected to work, the Square Cash prepaid card draws funds directly from your Square Cash account rather than your bank. And again, similarly, that means that you won’t have to wait to transfer money from Square Cash to Bank of America, Chase, or whatever other big bank you may use—you can just turn around and spend that money at any brick and mortar store on the spot. Story by Lulu Chang for Digital Trends

Financial Publishing Giant Bankrate Selling To Red Ventures For $1.24 Billion
In a move that could shake up the financial services industry, Bankrate announced earlier this week that it agreed to be acquired by Red Ventures, which bills itself as a “digital consumer choice platform,” in a deal that values Bankrate at $1.4 billion. According to the companies, Red Ventures will acquire Bankrate, the publisher, aggregator, and distributor of personal finance content and lead generator for the financial services industry, in an all-cash transaction. Under the terms of the agreement, Bankrate shareholders will receive $14 per share in cash, which represents a premium of approximately 31% over Bankrate’s three-month average closing share price. That places the total purchase price for Bankrate at approximately $1.24 billion. Story by Ben Lane for Housing Wire

Meet the Capital One Alum Behind Next Big Credit Card Company
Marla Blow knows first hand what credit card companies look for in applicants. She did help establish the Consumer Financial Protection Bureau and worked at Capital One for about seven years. But when she was looking at the products available to consumers, she noticed everyone was targeting the same type of consumer: The ones with excellent credit and rich credit histories. Few were trying to help the subprime consumers—people who have struggled financially in the past and need help rebuilding their credit score. That’s where Blow’s latest endeavor comes in. Called FS Card, the new startup is a credit card product aimed at giving people with less-than-great credit a second chance. FS Card is a Fenway Summer company, a venture capital firm that helped provide the much needed seed capital for launch. Hence, the company is called FS Card. Story by Samantha Sabin for DC Inno

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 15.43 percent, identical to last week. Six months ago, the average was 14.95 percent. One year ago, the average was 14.68 percent.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
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