LowCards.com Weekly Credit Card Update–May 31, 2019

LowCards.com Weekly Credit Card Update–May 31, 2019

May 31, 2019         Written By Bill Hardekopf

A Goldman Sachs Rival Pulled Out of the Apple Card Deal on Fears It Will Be a Money Loser
The sniping began shortly after Apple unveiled its new credit card with Goldman Sachs. Within the industry, the deal is widely perceived as one that’s risky for a bank to take on. Citigroup was in advanced negotiations with Apple for the card but pulled out amid doubts that it could earn an acceptable profit on the partnership, according to people with knowledge of the talks. Other banks, including J.P. Morgan Chase, Barclays and Synchrony, also bid on the business. Story by Hugh Son for CNBC

Over 6 in 10 American Cardholders Have Canceled a Credit Card and Many Don’t Know the Impact
Canceling a credit card account may seem like a quick fix to limit your overspending or cutting costly fees, but it may come with unintended consequences. A new Bankrate survey of 2,582 adults, including 2,301 credit cardholders, finds that 61 percent of American cardholders have canceled at least one credit card. Thirty-seven percent of those cardholders have canceled more than one card. Older generations are more likely than younger cohorts to have closed accounts: 72 percent of baby boomer cardholders have canceled at least one card, compared to 61 percent of Gen X cardholders and 50 percent of millennial cardholders. Story by Kendall Little for Bankrate

Why Small Towns Matter for U.S. Contactless Adoption
Large U.S. financial institutions converting their credit and debit portfolios to contactless technology this summer are betting that transit agencies like New York shifting to open-loop NFC will help drive mass adoption. But for thousands of card issuers serving consumers in small towns and rural areas, mass transit isn’t a factor. In these regions, contactless adoption will depend on having a concentration of local merchants supporting tap-to-pay. In smaller population centers, quick-service restaurants will likely play a big role in driving contactless adoption. Story by Kate Fitzgerald for Payments Source

AT&T To Accept Cryptocurrency Mobile Payments For Online Bill Payments
Easily one of the biggest problems cryptocurrency faced as it made a push for the mainstream was a marked lack of use cases. Aside from buying it and hoarding it in a bid to find the “next bitcoin” that would turn a pittance into a full retirement package, there wasn’t exactly a lot to do unless you were on Overstock.com. That’s been slowly changing over the last couple of years, though, and recently, AT&T announced that it was set to accept cryptocurrency payments via BitPay. This makes AT&T the first major mobile provider that accepts cryptocurrency for bill payments. Story by Steven Anderson for Payment Week

Smart Payment Association Shows Chip Card, Contactless Gains in 2018
Approximately 2.6 billion smart payment cards were shipped globally in 2018, according to data from the Smart Payment Association. The data shows that 68% of U.S. storefronts now accept chip cards, though demand for the technology remains relatively limited in the more mature European market, according to a press release from SPA. The report also shows that Europe led all regions in the growth of contactless cards in 2018, with 83% of shipments including contactless functionality. Story in Mobile Payments Today

Banks Report Growth in Sour Loans, Led by Credit Card Debt
Banks reported an annual increase in sour loans led by credit card debt in the first quarter and a surge in past-due commercial and industrial loans, a federal regulator said Wednesday. The FDIC in a quarterly report on bank earnings reported a 22.8% bump in commercial and industrial-loan balances that are 90 days or more past due. Banks also wrote off $12.7 billion in uncollectible loans, a 5.5% increase from the same time last year. Story by Lalita Clozel for The Wall Street Journal

Visa: EMV Rollout Continues; Counterfeit Fraud Down 76%
Visa said this week that as acceptance of EMV cards has gained traction in the U.S., counterfeit fraud, measured in dollars for these card present transactions, has dropped precipitously. The latest stats show that the continued upgrade to chip card acceptance – which began in 2015 – has led to a decrease in counterfeit fraud dollars on the order of 76%, as measured in December of 2018 vs. September of 2015. Total counterfeit fraud dollars decreased by 49%, the payments giant said. Story in PYMNTS

AmEx Will Cut One of the Airport Lounge Benefits on its Premium Cards
American Express has announced that the Priority Pass membership that comes with some of its cards can no longer be used for credits at Priority Pass-affiliated airport restaurants and bars. Now, the Priority Pass membership can only be used for lounge access, subject to capacity controls. The Chase Sapphire Reserve, which also offers a complimentary Priority Pass membership, does not have similar restrictions. Story by David Slotnick for Business Insider

This 34-Year-Old Just Hit over 10 Million Credit Card Points. Here’s How He Does It
A 34-year-old San Francisco-based entrepreneur has a surprisingly high balance: 10,308,398. That’s not his checking account balance or the amount of debt he owes; it’s the total number of credit card reward points he currently has across over a dozen cards. Chris Hutchins, a former Google employee and owner of Grove, a financial planning company, started playing the credit card points game in college, and more than a decade later, he’s finally reached his dream of having more than 10 million points. Story by Megan Leonhardt for CNBC

Checkers & Rallys Locations in 20 States Had a Data Breach
Fast food chain Checkers Drive-In announced a data breach Wednesday that affected an unknown number of customers’ payment card information. According to the company, malware on some payment card readers at just over 100 Checkers and Rally’s locations siphoned information including cardholder names, payment card numbers, card expiration dates and card verification codes. Story by Malena Carollo for the Tampa Bay Times

Tally Launches App That Rewards Saving, Not Spending
Tally has launched an automated savings app that lets users earn rewards points for saving, as opposed to incentivizing spending like most rewards systems do. The standalone app, called Tally Save, is separate from its initial product, a debt management app that automates credit card payments. Tally Save is designed to motivate users to save by letting them earn points they can redeem for gift cards to 50 of the largest U.S. retailers including Amazon, Whole Foods, Target, and Starbucks as well as services like Uber or Airbnb. Users also have the option to donate their rewards through a partnership with charity: water. Story in Cheddar

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.
View all posts by Bill Hardekopf
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