LowCards.com Weekly Credit Card Update–May 29, 2015
As Chip Cards Become Norm, Other Fraud Targets Rise
Studies show a climb in the number of “digital shoppers” in the U.S. every year from 2010 with growth expected to continue. But as more buy online, security experts say “Card Not Present” fraud, a specific kind that does not require a physical credit card, has also increased. Some experts predict CNP fraud could rise further in October, when merchants face a deadline to equip registers and checkout counters with readers for a more-secure chip-based credit card–prompting fraudsters to increase attacks on more vulnerable CNP transactions. Story by Marco Santana for Orlando Sentinel.
US Coming Back to Credit Cards
Looks like Americans are slowly coming back to credit cards. According to The Nilson Report, a payments industry newsletter, credit cards increased their market share in purchase volume over debit and prepaid cards to 53.59 percent in 2014, up from 52.95 percent in 2013. Debit cards and prepaid cards held 42 percent and 4 percent market share last year, respectively. Story by Jeanine Skowronski for Bankrate.
Arbitration Clauses for Credit Cards Cost Customers
If you’re trying to decide what credit card to apply for, you might compare annual fees, interest rates, and rewards. You probably wouldn’t give much consideration to whether that new piece of plastic comes with an arbitration clause attached. That’s because few people understand such clauses, which are typically buried in the fine print of a credit card contract or other consumer contract. Story by Jeff Sovern for the Boston Globe.
MasterCard Send, A New Digital Payment Service
MasterCard is aiming to change the way people transfer money between debit cards, thanks to its new program called MasterCard Send. This “first-of-its-kind, global personal payments platform” allows consumers to send and receive funds within seconds, rather than waiting for the standard 1-3 business day transfer time. Story by Natalie Rutledge for LowCards.com.
Casinos Fight Push to Ban Credit Cards
The gaming industry’s chief lobbyist warned Thursday against restricting the use of government credit cards in casinos, calling the idea an overreaction to an audit that found thousands of questionable transactions. Geoff Freeman pushed back against what he said was the latest misperception of the casino industry. He said a blanket ban on the use of agency-issued credit cards would be the wrong response to an investigation that found more than $952,000 was improperly charged in the course of a year by Defense Department personnel on travel. Story by Steve Tetreault for the Review-Journal.
TD Bank Pays $2.2 Billion for Nordstrom Credit Cards
A year after reports surfaced that Nordstrom might be looking for a buyer for its private-label credit card portfolio, TD Bank said it will acquire the department store’s existing U.S. Visa and private-label credit card portfolio in a deal worth $2.2 billion in receivables, the companies said Tuesday. As part of a separate long-term agreement, TD Bank, a unit of Canada’s Toronto-Dominion Bank, will become the merchandiser’s exclusive U.S. issuer of Nordstrom-brand Visa and private-label credit cards. Story by Elaine Low for Investor’s Business Daily.
A Faster Way to Order and Pay for Your Food
OpenTable, a mobile payments platform that allows diners to pay for their meals before the check arrives, has partnered with NCR Corporation to expand its platform to even more restaurants. The “Pay with OpenTable” app will now be incorporated with the NCR Aloha POS system for restaurants and bars. NCR’s Aloha POS is an innovative order and payment processing system that works off the cloud. Servers and cashiers are given handheld devices to process orders in real-time. There is no writing down information and typing it into a stationed terminal. The terminal is mobile, making the ordering process faster than ever before. Story by Bill Hardekopf for LowCards.com.
CFPB Debt Collection Regulation Delayed
The banking, lending, and debt collection industries will have to wait a bit longer than expected for the Consumer Financial Protection Bureau’s progress on the debt collection rulemaking. This is the second delay since the U.S. government independent agency launched its advanced notice of proposed rule making in November 2013. The pre-rule activities related to debt collection, which were initially set for April 2015, are now postponed to December 2015–and this is no guarantee that formal action will actually take place. Story on Pymnts.com.
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 14.55 percent, slightly higher than last week’s average of 14.50 percent. Six months ago, the average was 14.49 percent. One year ago, the average was 14.45 percent.