LowCards.com Weekly Credit Card Update–November 16, 2018
JPMorgan to Roll Out Tap-and-Go Credit Cards Amid Subway Changes
JPMorgan Chase is looking to speed up checkout lines across the U.S. as it becomes the first major U.S. bank to commit to adding tap-and-go technology to its entire portfolio of credit and debit cards. JPMorgan will introduce the technology as cards come up for renewal or customers open new accounts. All of the company’s newly issued Visa-branded credit cards will have the technology by mid-2019, and every new debit card will offer the feature by the end of next year. JPMorgan’s revamped cards will work with the new contactless turnstiles the Metropolitan Transit Authority is introducing at New York subways next year. Transit has long been a driver of consumers’ payments behavior, and banks have been making sure their cards will work with new contactless systems being introduced around the U.S. Story by Jennifer Surane and Michelle Davis for Bloomberg
Warren Buffett Takes $4 Billion Stake in JPMorgan Chase
Warren Buffett is making an even bigger move into banks. Last quarter, Berkshire Hathaway took a $4 billion stake in JPMorgan Chase. Berkshire also grew its investment in Bank of America, Goldman Sachs, BNY Mellon and US Bancorp, though the company slightly lowered its stake in Wells Fargo. Big banks have raked in strong profits this year, though their stocks have lagged behind the broader market. Analysts have blamed rising bond yields, global trade tensions and growing competition from non-bank lenders, though some say the sector is undervalued. Story by Julia Horowitz for CNN
Capital One’s New Signup Bonus Surpasses Chase’s Sapphire Cards
The community on the Internet known as “churners,” people who look to take advantage of favorable credit card signup bonuses, celebrated this week as Capital One dramatically improved its Venture credit card, putting a value of over $750 on the bonus points alone. Among the most important updates: a waived annual fee for the first year, and a boost of 25,000 points, putting the total bonus at 75,000 points for those who spend $5,000 over the first three months. The card comes with a $100 credit to cover TSA Pre Check or Global Entry memberships, no foreign transaction fees, and other elite credit card benefits like travel insurance. The points are also transferrable to 12 airline partners. Story by Ethan Wolff-Mann for Yahoo Finance
ABA Study Reveals Satisfaction with Online and Mobile Banking in U.S.
ABA today released new data showing that more than nine in 10 Americans (93 percent) rated their bank’s online and mobile app experience as “excellent,” “very good” or “good.” Seventy percent use a mobile device to manage their bank account at least once per month, and 46 percent do so more than three times per month. The survey also found that 29 percent of U.S. adults–and 44 percent of younger adults (aged 18-34)–used a mobile app to make a payment or transfer money within the past year. The most-used mobile payment apps included PayPal (67 percent), their bank’s app (33 percent) and Venmo (29 percent). One in 6 consumers (16 percent) said they would be willing to switch banks for a better digital experience. Story in ABA Banking Journal
That Domain You Forgot to Renew? Yeah, it’s Now Stealing Credit Cards
If you own a domain name that gets decent traffic and you fail to pay its annual renewal fee, chances are this mistake will be costly for you and for others. Lately, neglected domains have been getting scooped up by crooks who use them to set up fake e-commerce sites that steal credit card details from unwary shoppers. According to an in-depth report jointly released today by security firms Flashpoint and RiskIQ, the sites are almost certainly set up simply to siphon payment card data from unwary shoppers looking for specific designer footwear and other clothing at bargain basement prices. If you’re on the fence about whether to renew a domain and it’s one of several you own, it may make sense to hold onto it and simply forward any incoming traffic to a domain you do want people to visit. Story by Brian Krebs for Krebs on Security
Mastercard Spending Pulse Calls for 5% Holiday Sales Gain
The latest Mastercard Spending Pulse report is calling for total retail sales–excluding autos–to swell 5 percent this holiday with e-commerce sales jumping 20 percent over the same period last year. The way consumers buy and make buying decisions has evolved. “In-store shopping, online purchasing and blended experiences, such as ‘buy online/pick up in store’ are all on the menu,” said a Mastercard spokesman. “In particular, commerce via social media platforms and other emerging business models are reshaping the face of marketing and sales. Consumers are looking at what’s in their pockets, and they’re finding their phones as well as their wallets, with about 80 percent of purchase decisions being affected by mobile.” Story by Arthur Zaczkiewicz for WWD
Chip-Based Credit Cards Did Not Stop Payment Card Fraud
Chip-enabled debit and credit cards were supposed to end-or at least, reduce-payment card fraud for in-person transactions. Unfortunately, that doesn’t appear to have happened in the three years since the United States switched to using chip cards. Of the more than 60 million payment cards compromised in the United States over the past 12 months, 93 percent had the new chip technology, research firm Gemini Advisory found in a report. The results come from telemetry data collected from various criminal forums and marketplaces where stolen credit card information are sold. Story by Fahmida Y. Rashid for Decipher
Here’s Why We Will Never Run Out of 16-Digit Credit and Debit Card Numbers
The common 16-digit credit- and debit-card number configuration offers issuers a quadrillion possible combinations to choose from. Card issuers also often recycle old numbers from closed accounts for reuse. Customers are also identified by other numbers associated with credit cards, such as expiration dates and security codes. Story by Beth Braverman for CNBC
Is a Store Credit Card Worth It?
This is not only prime-time sales, it’s the peak season for generating new customers. Getting you to carry their credit card in your wallet is a perfect way to start a relationship and build brand loyalty. But interest rates on most store cards are significantly higher than other credit cards. A recent study by CompareCards looked at credit cards from 50 of the nation’s largest retailers and found the average annual percentage rate for a store credit card is 24.97, more than eight percentage points higher than the average APR Americans pay on other credit card debt. Nearly half (47 percent) of the people surveyed by CompareCards who have opened a store card eventually regretted getting it. Story by Herb Weisbaum for NBC News
Prepaid Cards Attract Diverse Array of Customers
Prepaid cards have a wide appeal among different customer groups from Millennials to the self employed. General purpose reloadable prepaid cards are meeting a variety of different needs and therefore appealing to a wide array of customers today. These days, general-purpose reloadable prepaid cards are better served by the phrase “prepaid account,” which helps underscore their evolution from payment cards to fully-fledged banking products. Industry successes on multiple fronts-image, features, value and access to digital commerce-have helped position general-purpose prepaid accounts to appeal to a broader audience, including digital-forward Millennials; those seeking multiple banking accounts; contract workers; the self-employed; and small businesses. Story by Erin Del Conte for Convenience Store Decisions
Should You Use a Masked Credit Card for Online Shopping?
A masked credit card is actually a digital product and accompanying service, rather than an actual, tangible card. Some people even refer to masked cards as fake credit cards, though they are absolutely legitimate products. A masked card service will provide you with a one-time-use credit card number upon request. You can then use that temporary card number, expiration date, and security code to make purchases online and in-stores. Once you’ve used the card combination, it will no longer be valid. A masked card account will then, in turn, charge the amount to your credit card or bank account of choice. Story by Stephanie Colestock for Dough Roller