LowCards.com Weekly Credit Card Update–September 20, 2019

LowCards.com Weekly Credit Card Update–September 20, 2019

September 20, 2019         Written By Bill Hardekopf

Nearly Half of Americans Have Been Victims of a Data Breach
According to research from PCI Pal, 44% of Americans have been the victim of a data breach. By comparison, 37% of Canadians and 38% of Brits have been affected. Data breaches have become increasingly prevalent over the last few years, and impact how consumers interact with businesses. However, that impact may only be temporary. The study showed 83% of Americans will stop spending money with a business for several months following a breach. Only 21% of respondents said they will stop doing business altogether. Story by John Oldshue for LowCards.com

Walmart and Capital One Announce New Walmart Rewards Cards with up to 5% Cash Back
Walmart and Capital One are teaming up to make shopping at the retail giant more “rewarding.” The companies announced the Sept. 24 launch of the Capital One Walmart Rewards Credit Card Program with two new cards offering up to 5% back on Walmart purchases. The program’s Mastercard will be accepted everywhere and the private-label Walmart Rewards Card is only for store purchases. The 5% cashback in-store offer, which is an introductory offer for the first 12 months, only applies to store purchases using Walmart Pay, the retailer’s exclusive mobile payment. After the introductory offer, the cards will offer 2% back on Walmart store purchases. Walmart.com purchases, including Walmart Grocery Pickup and Delivery, give 5% back. Story by Kelly Tyko for USA Today

Why Another Fed Rate Cut Is Good News For Your Wallet–Mostly
The Federal Reserve lowered its benchmark interest rate by a quarter percentage point Wednesday for the second time in the past two months. And economists are forecasting a third cut by the end of the year. The central bank’s first rate reductions in a decade are expected to shave borrowing costs on credit cards, home equity lines, adjustable-rate mortgages and auto loans. And while falling rates aid borrowers, they’re also nudging down bank savings rates that had just started providing decent yields after years of minuscule returns, frustrating seniors and others on fixed incomes. Story by Paul Davidson for USA Today

CFPB Investigating Bank of America Over Phony Accounts
As part of a probe that grew out of the Wells Fargo phony-accounts scandal, the Consumer Financial Protection Bureau is investigating whether Bank of America also violated federal law by opening credit card accounts without customer authorization. The civil investigation of BofA came to light Tuesday when the bureau posted documents online that detail its legal wrangling with the company. Bank of America has argued that a March 2019 demand for emails and other records is unduly burdensome, while also calling on the agency to close its investigation. CFPB Director Kathleen Kraninger denied the bank’s petition in July. Story by Kevin Wack for American Banker

Yahoo Data Breach Settlement Means Affected Users May Get $100
On Wednesday, Yahoo emailed out to their users saying they were nearing a $117.5 million settlement that would end a massive class-action lawsuit related to a devastating series of data breaches and intrusions from 2012 to 2016. In 2017, Yahoo admitted that all 3 billion of their user accounts were broken into in August 2013. In their email on Wednesday, Yahoo also says the company was hacked to varying degrees in 2012, 2014, 2015 and 2016. Yahoo is now offering two free years of credit-monitoring services to those with accounts that were affected by any of the breaches. If you already have a credit-monitoring service, you can ask Yahoo to give you $100. Unfortunately, the $117.5 million settlement is a set amount so how much money you get depends on how many people opt for the money instead of the credit-monitoring service. Story by Jonathan Greig for Tech Republic

A Quarter of Millennials Say Most of Their Debt is Credit Cards, Not Student Loans
Millennials who carry debt report owing an average of $27,900 in personal debt. Forty percent of millennials say their biggest source of debt is either credit cards or their mortgage, not their student loans, according to a new Northwestern Mutual survey. Despite credit cards being the biggest source of debt for one in four millennials, about 22% don’t know the interest rate they’re being charged. Story by Tanza Loudenback for Insider

Mastercard Launches A New B2B Effort To Displace Checks
Mastercard has set out to simplify B2B payments by combining access to multiple payment types, rich data with the payments and a permissioned repository of more than 210 million registered firms worldwide. Despite years of efforts to move businesses away from paper-based payments, checks are still the most popular way businesses pay each other. Mercator says they accounted for 47% of B2B payments last year.  But that’s better than a few years ago when a Bank of Montreal executive said they were close to 80%. Branded as Mastercard Track Business Payment Service it supports ACH/account-to-account and card-based payments. Using the directory, firms can discover suppliers and see what payment types they prefer. Story by Tom Groenfeldt for Forbes

Wells Fargo Tests Cryptocurrency for Internal Transactions
Wells Fargo said it will pilot its own digital currency powered by blockchain to help move cash across borders and between branches in real time. The currency, called Wells Fargo Digital Cash, will be linked to the U.S. dollar and transferred using the bank’s distributed ledger technology to keep track of payments within its internal network. The system will allow the bank to bypass third parties in the asset transfer process saving costs and time. Story by Imani Moise for Reuters

5 Important Mobile Wallet Trends You Need To Know
Mobile wallets were once a niche service for tech-savvy customers, but not anymore: digital wallets are the future of payments. According to a report, global mobile wallet spending increased by more than 30 percent in 2017 to $1.35 trillion. In 2018, the value of mobile wallet transactions was $4.3 trillion. By 2022, this number is expected to balloon to nearly $14 trillion. It’s estimated that by 2020 almost 1 in every 2 dollars spent online will come from purchases made using mobile devices. There is still lots of room for innovation and improvement, especially as more advanced mobile wallet technologies emerge. So what mobile wallet trends can we look forward to in the future? Story by Jesse Champagne for Finextra

This Debit Card Teaches Kids How to Manage Money
Greenlight just raised $54 million in funding for its debit card designed specifically for kids. The product gives children a means of spending money and hopes to help them learn financial responsibility under the guidance and control of their parents. The Greenlight card works by integrating several different accounts that allow children to spend, save and donate their money under the supervision of their parents. Parents load money onto their kids’ cards via the “Parent’s Wallet” and can, according to the company’s website, “set flexible controls and receive real-time alerts while kids monitor balances, set goals and learn how to manage money.” Story by Frank J. Connor for Fox Business

Payroll Card Users Might Not Be Who You Thought They Were
Payroll card users in the United States tend to be male 64% v. 36% female; 48% have an income of $100,000+; 39% of payroll card users have a post-graduate degree; 84% of payroll card users have a checking account while 67% have a savings account. Story in Payments Journal

Spend Introduces Visa Crypto Cards in Canada
Fintech firm Spend has introduced Visa Cards for cryptocurrency users in Canada. The newly introduced Spend Visa Card suite will enable the cardholders to use it as conventional debit cards across the globe at Visa Checkout Stores. These crypto cards are linked with Spend Wallet, which stores the cryptocurrencies. The user can activate the desired asset in the wallet and swipe the Spend Visa Card at the store. The crypto asset immediately liquidates into local fiat to complete the transaction. Story in Verdict

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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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