LowCards.com Weekly Credit Card Update–October 12, 2018

LowCards.com Weekly Credit Card Update–October 12, 2018

October 12, 2018         Written By Bill Hardekopf

Wells Fargo Customers Are Fed Up. They Could Yank Billions of Dollars in Deposits
An industry-high 30% of Wells Fargo’s customers are at risk of dumping the scandal-ridden bank. The report, based on an online survey of 4,000 Americans, projected that Wells Fargo could lose $93 billion in deposits over the next year. That would represent about 7% of the bank’s total deposits. The report found that a growing number of Wells Fargo customers are fed up with the nation’s third-largest lender. Their top complaint is that their bank was engaged in “dishonest, unethical or illegal practices.” Others bemoaned that Wells Fargo is trying to sell them products they don’t want or need. Story by Matt Egan for CNN

Shoppers Love Rewards Credit Cards. Retailers Hate Them.
Consumers have become addicted to credit cards with generous rewards programs. Retailers are trying to cut them off. Large merchants including Amazon, Target and Home Depot are pushing for the right to reject some rewards credit cards, which typically carry higher fees for merchants. The retailers are trying to end the card networks’ “honor all cards” rule, which requires merchants that accept Visa- or Mastercard-branded credit cards to take all of them. If merchants could pick and choose among Visa or Mastercard credit cards, those with the highest merchant fees–and most generous rewards–likely would be on the chopping block. Ultimately, though, the retailers are looking for bargaining power that could help them lower fees across the board. Story by AnnaMaria Andriotis for The Wall Street Journal

You Could Be Overlooking This Reason to Pay with Credit Cards
When it comes to small purchases, more Americans prefer paying with cash. For purchases under $10, about 45 percent choose cash compared with 30 percent who opt for debit cards and 23 percent who go with credit cards. It is not until purchases get larger–at about $25–that a so-called tipping point is reached where consumers are more willing to pay with plastic. Most cited the inconvenience of using credit cards as the reason they did not use them more for smaller purchases. Other payment methods were perceived as easier and quicker to use. But not using credit cards for those purchases could mean you’re leaving rewards or points on the table. Story by Lorie Konish for CNBC

Credit Cards Are Hiking Rates, But Cutting Fees
Although credit card interest rates are rising, not all the news about plastic is bad. That’s because some credit card fees are disappearing, particularly foreign transaction fees. In 2015, 77 out of 100 cards charged these fees, 3 percent to 5 percent nicks that hit your account each time you use a card to buy something outside of the U.S. But just 52 cards still charge these fees today. However, credit card interest rates have risen sharply over the past year, jumping to 17.01 percent on average from 16.15 percent a year ago and from 15.2 percent in 2016. Story by Kathy Kristof for CBS News

Nearly Half of All Cyberattacks Are Aimed at Small Businesses
A new study analyzing cybersecurity threats in America discovered that 43% of online attacks are targeted at small businesses, and that number is projected to rise in the coming years. The study found the most prominent threats for small businesses were macro malware, online banking malware, and ransomware. Macro malware is sent through an email attachment. A macro virus is embedded into the file, and it attacks a person’s computer once the attachment is opened. The virus then attacks all other documents on the computer. Online banking malware is designed to collect bank account login credentials. This may happen through a fake website or through a link included in a phishing email. Users think they are logging into the bank, but in reality, the hacker is collecting all the information for malicious use. Story by Bill Hardekopf for LowCards.com

77% of Mobile Payments Among Debit Users are on Apple Pay
Apple Pay has captured the lion’s share of payments among debit card users with mobile wallets. A new study found that 77% of mobile wallet transactions used Apple Pay. Samsung Pay made up 17% of mobile wallet transactions among debit card users, and Google Pay made up just 6%. The study also found that Samsung Pay users were the most engaged, making 7.3 transactions per month on average, compared to 5.5 transactions per month for Apple Pay and Google Pay users. Part of the reason may be that Samsung Pay works with NFC card readers, as well as with the traditional magstripe card readers that many merchants still use. Apple Pay and Google Pay only work with NFC card readers. Story by Tina Orem for Credit Union Times

How the Venmo Debit Card May Save PayPal
Venmo is the mobile application that turned personal financing into a social platform. Acquired by e-commerce company Braintree for $26.2 million in 2012 and then by PayPal for $800 million just one year later, Venmo has become one of the most popular mobile applications for “person-to-person” payments among millennials in the United States. Of the 65% of 20-to-30 year olds who use payment apps, more than two-thirds (68%) of them use Venmo, compared to the 22% using their own bank’s mobile app. Despite Venmo’s popularity among mobile users, the company announced in June that it would be introducing its own debit card in partnership with Mastercard. While the debit card is almost certainly PayPal’s most recent attempt to generate revenue from Venmo, the news comes as a big win for users, who can now use their Venmo balance to make in-person purchases anywhere Mastercard is accepted in the United States. Story by Lucas Fortney for Investopedia

Children’s Allowances in a New Form: Debit Cards Linked to Parents’ Phones
No need to worry about coming up with cash for a child’s allowance. Parents can now choose from a rapidly expanding menu of prepaid debit cards, aimed at giving them digital oversight of their children’s spending and saving habits. Unlike traditional debit cards, which are directly attached to checking accounts, all must be loaded with money by parents. The digital tools aim to fix an increasingly common problem: Parents don’t always have cash on hand. So they can be caught short when a child needs money for an outing with friends, to put gas in the car or to complete a chore. With an app, parents can put money on a child’s debit card with a few taps on their phone. Story by Ann Carrns for The New York Times

Mastercard Adds New Hotel Benefits for Elite Cardholders
New perks are coming down the line for Mastercard holders with mid-range and premium credit cards. Starting this week, members who hold World and World Elite cards are able to take advantage of a new Hotel Stay and Lowest Hotel Rate guarantee offered through the service, giving elite travelers an extra layer of protection for any booked travel. The new Hotel Stay Guarantee effectively takes advantage of a network of concierges that Mastercard is launching to troubleshoot any issues that a member might have while staying at a hotel. If a World or World Elite Mastercard holder finds a lower priced room after the initial reservation is made, the difference between prices will be refunded to the customer. Story by Grant Martin for Skift

When Does My Credit Card Report to the Credit Bureaus?
If you plan to apply for a loan, interview for a job or rent an apartment anytime soon, you want your credit to be in the best possible shape. There are many ways to give it a boost, from paying down debts to paying bills on time, but that good behavior may not be reflected in your credit score until the three major credit reporting agencies–Equifax, Experian and TransUnion–update your credit file. Here’s a look at when your credit data gets reported and why that might be important. Story by Chris Kissell for US News & World Report

Protecting Against Data Breach: 6 Tips for Small Business
Large companies aren’t the only businesses that have an obligation to protect their client’s security and privacy. Smaller businesses are increasingly encountering the effects of a data breach. The results range from compromise of client or customer data to third-party control over the entire business operation. Protecting your data not only shields you from financial liability, but also from substantial reputational harm. Here are six steps your small business can take to avoid liability under state data security statutes and to protect your business and its customers. Story by Eric W. Richardson for the Cincinnati Business Courier


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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