LowCards.com Weekly Credit Card Update–May 20, 2016
You Won’t Believe Who is Responsible for 50% of Hacks
According to Verizon’s 2015 Data Breach Investigations Report, about 50 percent of all security incidents–any event that compromises the confidentiality, integrity or availability of an information asset—are caused by people inside an organization. And while 30 percent of all cases are due to worker negligence like delivering sensitive information to the wrong recipient or the insecure disposal of personal and medical data, roughly 20 percent are considered insider misuse events, where employees could be stealing and/or profiting from company-owned or protected information. Often, that translates to employees on the front lines stealing patient medical data or client social security numbers, which can then be sold on the black market or used to commit fraud like collecting someone else’s social security benefits, opening new credit card accounts in another’s name, or applying for health insurance by assuming the identity of someone else. Story by Maggie Overfelt for CNBC.
Chase Changes Overdraft Policy: No Credit Cards for Backup Funding
Linking a checking account to a credit card to provide a cushion in case of an overdraft is a time-honored tradition in consumer banking, but Chase is taking a new approach. Starting Aug. 20, a Chase credit card can no longer be used to provide overdraft protection for a personal checking account. Only a Chase savings account can be linked to a personal checking account to provide that backup funding. So what happens if Chase checking account holders overdraw their accounts and don’t have a Chase savings account? It means that Chase checking account holders might have more declined transactions and might incur insufficient funds and returned item fees. Story by Becky Yerak for the Chicago Tribune.
Most Organizations Unprepared for Cyber Attacks
Nearly 80% of organizations remain unprepared and without a formal plan to respond to cyber security incidents, a report has revealed. There has been little improvement in preparedness in the past three years, according to a new report. It shows that on average, only 23% of organizations have the capability to respond effectively to critical security incidents. The lack of improvement was further underlined by the finding that nearly 21% of vulnerabilities detected in client networks were more than three years old, while more than 12% were over 5 years old, and over 5% were more than 10 years old. Story by Warwick Ashford for Computer Weekly.
Fitbit Bets on Mobile Payments with Acquisition of Coin
Fitbit, the fitness company perhaps best known for its bevy of activity-tracking smartbands and phone apps, is making an unlikely acquisition. On Wednesday, it announced the purchase of Coin, the San Francisco-based payments developer of the credit card-emulating Coin card. The match may sound odd, at first glance, but dig into the details and it starts to make sense. Fitbit’s not investing in Coin’s current product offering, Coin 2.0, but instead bringing the company’s near-field communication, mobile, and wireless talent on board for as-yet unspecified future projects. And as a bonus, it’s getting Coin’s software assets and “intellectual property specific to wearable payments.” Story by Kyle Wiggers for Digital Trends.
Sen. Durbin Blasts Credit Card Group for Botched Rollout of More Secure Cards
Illinois Sen. Dick Durbin blasted the card network-dominated group that sets the standards for chip-enabled plastic payment, accusing it of mishandling the rollout of more secure credit and debit cards, lacking transparency and refusing, at the expense of retailers, to promote PIN authentication. Durbin, a longtime crusader against the major credit card companies, wrote a March letter demanding that EMVCo, the group that sets standards for the chip technology, explain its governance and decision making in light of the snags that EMV cards have run into since their introduction in 2015. Story by Adam Belz for the Star Tribune.
Customers Say Walmart-Brand Prepaid Debit Cards Aren’t Working, Cutting Off Access to Funds
For the last three days, users of Walmart-brand prepaid debit cards say they’ve been unable to withdraw cash from ATMs, check their account balances or make purchases, leaving them cut off from their money. Customers say the problems started early Monday and still hadn’t been fixed as of Wednesday afternoon. Though it’s not clear how widespread the problems are, the complaints are reminiscent of an outage at prepaid firm RushCard that last year left thousands of customers in the lurch. Green Dot Corp., the Pasadena company that issues Walmart’s MoneyCard prepaid debit cards, said a technical problem is preventing customers from being able to check their balances online or over the phone, an issue that should be fixed by Wednesday night. Green Dot Chief Executive Steve Streit said card users should be able to make purchases, get cash and pay bills as usual. Story by James Rufus Koren for The Los Angeles Times.
Payment Methods in America Shifting Dramatically
Despite a number of new payment options on the market, Americans still choose cash and credit cards above other alternatives, according to a new study. But digital products like PayPal are quickly emerging, indicating some seismic shifts in the payment industry. 87% of survey respondents reported using cash for purchases, a significant decrease from 93% a year ago. 69% of consumers use credit cards, up from 68% last year. Interestingly, PayPal is barely trailing behind credit cards, with 67% of participants using the digital payment processor within the last 12 months. Story by Bill Hardekopf for LowCards.com.
Samsung And Alibaba Take On Mobile Payments
Mobile payments make for interesting pairings, a fact demonstrated earlier today by Alibaba and Samsung. The Chinese eCommerce giant and the Korean device powerhouse are joining forces to make it easier to pay the Alibaba way via Samsung devices. Going forward, Samsung Electronics plans to allow its smartphone customers to use Alipay, the online payment platform run by a unit of Chinese eCommerce giant Alibaba, media reports said. Neither firm has directly commented on the move. The tie-in comes just a few months after Samsung Pay got its official Chinese launch. Story in PYMNTS.
Most Consumers Financing Vacation Without Use of a Credit Card
Most consumers planning to go on vacation this summer are trying to finance their plans without the use of a credit card. A new report finds that eight in 10 Americans who plan to take a trip will use savings to pay for some of it. About 15 percent plan to pay for their trip with a credit card and 13 percent say they’ll use credit-card rewards points or miles. About two-thirds of those taking a vacation are expecting to pay off their vacation in a month or less with just 11 percent saying it will take four months or more to pay for their trip. The report also showed that just 44 percent of Americans even plan on taking a vacation this summer, reflecting how much some consumers are trying to avoid taking on additional debt. Story by Mark Williams for the Columbus Dispatch.
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 14.72 percent, slightly lower than last week’s average of 14.75 percent. Six months ago, the average was 14.64 percent. One year ago, the average was 14.47 percent.