LowCards.com Weekly Credit Card Update–October 26, 2018

LowCards.com Weekly Credit Card Update–October 26, 2018

October 26, 2018         Written By Bill Hardekopf

Your Child Could Be Running Up Your Credit Card Bill
A new survey from CompareCards found that 29% of parents have had their children under age 18 use their credit or debit cards without their permission. Parents grapple with how to best guide their children with money. The survey found that 52% of Americans have let their children ages 18 and younger borrow their credit card or debit card to buy something online. And 48% of respondents said they regretted that decision. Story by Lorie Konish for CNBC

Moody’s Sees Improving Charge-off Climate
Moody’s said in its latest reading of the “pulse of the consumer” that in viewing the charge-off rate, growth had slowed. Looking at credit cards, that segment continued to grow most quickly against all credit classes measured, but year-over-year loan growth here, too, was relatively muted, to 4.15 percent versus the previous period’s 5.3 percent. Moody’s analysts said they expect the average charge-off rate to rise at a modest pace over the next year, by 10 basis points to 20 basis points. Story in PYMNTS

Citi Revamps Prestige Card By Boosting Credit Card Travel Rewards
A year after bowing out of the competitive credit card rewards game, Citi has come roaring back. Starting in January 2019, its Prestige card will provide five rewards points for every dollar spent on dining or air travel, up from three points for those purchases. Hotel spending still receives three points for every $1 spent. The move comes almost three weeks after American Express introduced its revamped Gold card that offers four points for every dollar spent at restaurants and supermarkets. Chase last month also debuted a premium checking account with perks and rewards aimed at its well-heeled Sapphire Reserve cardholders. Story by Janna Herron for USA Today

American Express and Amazon Partner on Small Business Credit Card
American Express and Amazon are offering a new credit card for small businesses designed to alleviate some of the cash flow problems business owners can encounter. The Amazon Business American Express Card launches Tuesday and offers special rewards for purchases made on Amazon.com, Amazon Business, Amazon Web Services and at Whole Foods. The cash back percentage and length of the deferred interest period depends on whether the small business owner is an Amazon Prime Member. Amazon Prime members can choose between 5% back or a 90-day interest free period. Non-Prime customers can choose between 3% back or a 60-day interest free period. Story by Jacob Passy for MarketWatch

Mastercard to Let Cardholders Pay with Loyalty Points at Any Mastercard Merchant
Mastercard’s Pay with Rewards service is to relaunch at the end of this year with a new app that will allow cardholders to pay with the points or miles they have collected from any card, airline, hotel or retail rewards program that has signed up to use the service at any Mastercard merchant worldwide. No upgrade to merchants’ hardware or software is required, as transactions are processed at the point-of-sale as standard payments. Merchants will also pay their standard transaction fee for the amount of the purchase made by a cardholder, regardless of whether the customer is paying in ‘cash’ or points. Story by Sarah Clark for NFC World

Sony Rolls Out Cryptocurrency Hardware Contactless Wallet
Sony, which has applied for several blockchain-related patents, announced a more concrete step into the crypto world this week. The corporation’s science division Sony Computer Science Laboratories said it had created a contactless digital asset hardware wallet. The storing product uses the firm’s integrated circuit card-based radio frequency identification system. The Japanese conglomerate claimed that its wallet is more secure than online (hot) storage as the product includes mutual authentication and encrypted communication. Story by Marin Marinov for Cryptovest

The $10 Billion Tussle Over Walmart’s Credit Cards
For nearly two decades, Synchrony Financial was the exclusive issuer of Walmart credit cards. The Connecticut-based bank stationed dozens of employees in Walmart’s headquarters city of Bentonville, Ark., some of its executives lived in the same gated community as their Walmart counterparts, and employees would hit the same golf course and hunt quail together. That came crashing down in July, when Walmart told Synchrony it was switching to Capital One. Walmart executives had grown irritated because, among other issues, they wanted Synchrony to share more of the cards’ revenue and approve more applicants, according to people familiar with the situation. The breakup was the latest reminder of how the once-pervasive business of store credit cards is changing and forcing issuers like Synchrony and Citigroup to rewrite their playbooks. Story by AnnaMaria Andriotis for The Wall Street Journal

Report Points to Surge in Mobile, Phishing Fraud
An IDology report reveals a surge in mobile and phishing fraud schemes, a focus on artificial intelligence and the rise of machine learning as developing categories in identity verification. Mobile fraud increased 117 percent over the previous year, with businesses reporting a 63 percent increase in mobile fraud. All types – including porting, spoofing, hacking and fraudulent change events – are on the rise. Caller ID spoofing, porting and SMS interception increased 74 percent, 69 percent and 50 percent, respectively, year over year. The prevalence of phishing, which can be linked to 93 percent of last year’s security breaches, increased in prevalence by 66 percent. Story in Mobile Payments Today

UltraFICO, A New Credit Scoring System, To Launch In 2019
Experian, FICO and Finicity unveiled a new development called the UltraFICO score. This credit score model combines information from an existing FICO credit score with a consumer’s financial data, such as savings and checking accounts. This creates a more holistic view of how a person handles money. The creators believe this new scoring model will allow more consumers to obtain the credit approvals they need, especially if they fall just below a lender’s cutoff score. This could also be beneficial to young adults and those without established credit scores, giving them a jumpstart into the credit industry. Story by John Oldshue for LowCards.com

Mastercard Unveils New Card Security Push
Mastercard announced Digital Commerce Solutions, a new suite of strategies and services, including a plan for all of its cards to support security token authentication methods by 2020, and support for other technology standards designed to improve online checkout experiences. To advance tokenization, the company is working with Adyen, BlueSnap, Digital River, Stripe, Square, Worldpay and its own Mastercard Payment Gateway Services, to help its retailer clients support single-use tokens as a replacement for personal card identifiers. Mastercard also is working with card issuers like Citi and Fifth Third Bank to convert cards on file into tokens. Story by Dan O’Shea for Retail Dive

British Airways Data Breach Bigger Than Estimated
IAG said 185,000 more British Airways passenger records were potentially stolen in an attack that took place between August 21 and Sept. 5. The figure is on top of the 380,000 credit card records British Airways previously said may have been exposed when its website and app were breached. Cathay Pacific, one of Asia’s largest airlines and a partner to British Airways in the Oneworld airline alliance, said up to 9.4 million records were compromised in a separate attack. The hackers mainly gained access to passenger names and contact information. Passport numbers, frequent flier member numbers and historical travel information may also have been gleaned in the data breach. Story by Robert Wall for MarketWatch

Grab, Mastercard Bring Prepaid Cards To Southeast Asia
Grab, the ride-hailing company out of Southeast Asia, and Mastercard announced a partnership to issue prepaid cards tailored to the Southeast Asian market. The companies said that the Southeast Asian region, which is home to more than 640 million people, has stayed largely cash-based. To overcome that, Grab, along with Mastercard, will issue virtual and physical prepaid cards directly from the Grab app. Customers can add cash to the card to spend at any merchant, online and offline, where Mastercard is accepted around the world. The companies noted that by issuing Mastercard prepaid cards, Grab’s mobile payments platform, GrabPay, will become the first eWallet from Southeast Asia that is accepted around the world. Story in PYMNTS


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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