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Credit Card Rates Are Now at Their Highest Level in History and May Weigh on the Economy

Americans now pay their banks an average 17% interest on credit cards, the highest level recorded by the Fed. The rising monthly cost for U.S. consumers may be one reason they're spending less, as April's weak retail sales laid out. The combination doesn't bode well for GDP growth. The Fed's short-term lending rate is now targeted between 2.25% and 2.5%. However, it has gone up nine times since December 2015 and has triggered increases across the board in consumer debt instruments, due in part because it costs banks more to borrow. [CNBC]

Consumers are missing easy opportunities to protect themselves against credit card fraud

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What 98% Of Consumers Miss About Protecting Their Cards From Fraud

Mobile controls also offer consumers a powerful tool for dealing with arguably higher stakes: the risk of credit card fraud. Location controls can be used to prevent merchants from charging consumers' credit cards if their smartphones aren't close by, and restrict purchases to a particular geographic area or country. Location controls, however, can reflect account holders' personal travel and spending habits, providing more sophisticated safeguards than anti-fraud algorithms alone. Despite this potential for improved mobile security, location-based services are scarcely used by consumers to protect their accounts. [PYMNTS]

Warning: Signs of Credit Crisis Grow

A recent survey of bank officers shows U.S. institutions are tightening their lending standards and raising rates on commercial loans and credit cards. Bankers say they have increasing concern about future economic growth, despite continued U.S. labor market strength and solid economic fundamentals. The data banks are seeing runs contrary to the overall narrative of a strong U.S. economy. Credit card delinquency rates in the first quarter hit the highest level since 2012, driven in part by a spike in overdue payments by people ages 18-29. [Axios]

Petal Introduces New Cash Back Rewards for On-Time Bill Payments

Petal unveiled a new rewards program for its no-fee credit card. Starting this month, cardholders will be able to earn 1% cash back for all purchases. The Petal Card was designed to help people with limited or no credit history. The approval process is based on a person's bank accounts and bill payments, not credit scores. To further this credit-building goal, Petal is now rewarding cardholders for making on-time payments. After six months of on-time payments, the cash back amount on the card increases from 1% to 1.25%. After another six months, it jumps to 1.5%. Petal also allows customers set a spending limit that is below their credit limit to help cardholders better control their budgets. [LowCards.com]

Mastercard Brings AI-Powered Voice Assistants To Quick Service Restaurants

Mastercard inked a partnership with ZIVELO, a self-service kiosk technology company, to enhance the drive-in ordering experience for quick service restaurants. Mastercard said it marks the first time an artificial intelligence (AI)-powered voice assistant will be used in drive-in- and drive-through ordering. Mastercard and ZIVELO are partnering with Sonic Drive-In, which will be the first to pilot the technology at select Sonic locations around the country. [PYMNTS]

US Airlines Charged Almost $5 Billion in Baggage Fees Last Year. Here's How to Avoid Them

The U.S. Department of Transportation's annual airline baggage fee report found that domestic carriers collected nearly $5 billion in baggage fees last year, up from $4.5 billion in 2017 and $1.1 billion a decade ago. So, how can you check a bag for free on a U.S. airline? With the exception of Southwest, which still allows customers two checked bags for free so long as they follow certain size restrictions, you'll typically need to join a carrier's rewards program, use a particular credit card or buy a premium ticket. [CNBC]

A New Survey Casts Doubt on the Idea That Contactless Cards Will Trigger More Mobile Payments

Conventional wisdom in the payments business has been that the advent and spread of contactless cards would pave the way for wider use of mobile payments. But research released this week indicates that may not be the case. New contactless plastic could tempt mobile-phone users away from using their devices for purchases. The ease of tapping and the familiarity of plastic could keep mobile-phone owners from using a mobile wallet. [Digital Transactions]

Five Ways 5G Might Change How You Bank

While consumers will likely notice that fifth-generation cellular wireless (5G) technology enables lightning fast downloads, connects millions of "Internet of Things" devices to one another, and removes the lag in their video chats, they may not realize that 5G will also be a key factor in enhancing their banking experience. Here are five surprising ways that 5G will be a catalyst for an optimized, personalized digital banking experience in the years to come. [Forbes]

Credit Bureaus Draw the Most Consumer Complaints to the CFPB

Credit reporting, credit-repair services or other personal consumer complaints accounted for 43% of all complaints to the CFPB last year. That's up from 23% in 2016, according to U.S. PIRG Education Fund. Mistakes on credit reports can lead to consumers having to pay more for credit or being turned down for jobs or mortgages. The three major credit bureaus may be less responsive to resolving the issues "because consumers are not their direct customers," PIRG stated. Instead, the credit bureaus' primary clients are lenders. Not surprisingly, Equifax, Experian and TransUnion rank as the top three most-complained-about companies. They drew 34% of the complaints in 2018. [CBS News]

India's Ride-Hailing Firm Ola is Now in the Credit Card Business, Too

A day after India's largest wallet app Paytm entered the credit card business, local ride-hailing giant Ola is following suit. Ola has inked a deal with state-run SBI (State Bank of India) and Visa to issue as many as 10 million credit cards in the next three and a half years. The move will help Visa and SBI acquire more customers in India, where most transactions are still bandied out over cash. For Ola, which rivals Uber in India, the foray into credit cards represents a new avenue to monetize its customers. [Tech Crunch]

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Credit Card Rates Are Now at Their Highest Level in History and May Weigh on the Economy

Americans now pay their banks an average 17% interest on credit cards, the highest level recorded by the Fed. The rising monthly cost for U.S. consumers may be one reason they're spending less, as April's weak retail sales laid out. The combination doesn't bode well for GDP growth. The Fed's short-term lending rate is now targeted between 2.25% and 2.5%. However, it has gone up nine times since December 2015 and has triggered increases across the board in consumer debt instruments, due in part because it costs banks more to borrow. [CNBC]

Consumers are missing easy opportunities to protect themselves against credit card fraud

Getty

What 98% Of Consumers Miss About Protecting Their Cards From Fraud

Mobile controls also offer consumers a powerful tool for dealing with arguably higher stakes: the risk of credit card fraud. Location controls can be used to prevent merchants from charging consumers' credit cards if their smartphones aren't close by, and restrict purchases to a particular geographic area or country. Location controls, however, can reflect account holders' personal travel and spending habits, providing more sophisticated safeguards than anti-fraud algorithms alone. Despite this potential for improved mobile security, location-based services are scarcely used by consumers to protect their accounts. [PYMNTS]

Warning: Signs of Credit Crisis Grow

A recent survey of bank officers shows U.S. institutions are tightening their lending standards and raising rates on commercial loans and credit cards. Bankers say they have increasing concern about future economic growth, despite continued U.S. labor market strength and solid economic fundamentals. The data banks are seeing runs contrary to the overall narrative of a strong U.S. economy. Credit card delinquency rates in the first quarter hit the highest level since 2012, driven in part by a spike in overdue payments by people ages 18-29. [Axios]

Petal Introduces New Cash Back Rewards for On-Time Bill Payments

Petal unveiled a new rewards program for its no-fee credit card. Starting this month, cardholders will be able to earn 1% cash back for all purchases. The Petal Card was designed to help people with limited or no credit history. The approval process is based on a person's bank accounts and bill payments, not credit scores. To further this credit-building goal, Petal is now rewarding cardholders for making on-time payments. After six months of on-time payments, the cash back amount on the card increases from 1% to 1.25%. After another six months, it jumps to 1.5%. Petal also allows customers set a spending limit that is below their credit limit to help cardholders better control their budgets. [LowCards.com]

Mastercard Brings AI-Powered Voice Assistants To Quick Service Restaurants

Mastercard inked a partnership with ZIVELO, a self-service kiosk technology company, to enhance the drive-in ordering experience for quick service restaurants. Mastercard said it marks the first time an artificial intelligence (AI)-powered voice assistant will be used in drive-in- and drive-through ordering. Mastercard and ZIVELO are partnering with Sonic Drive-In, which will be the first to pilot the technology at select Sonic locations around the country. [PYMNTS]

US Airlines Charged Almost $5 Billion in Baggage Fees Last Year. Here's How to Avoid Them

The U.S. Department of Transportation's annual airline baggage fee report found that domestic carriers collected nearly $5 billion in baggage fees last year, up from $4.5 billion in 2017 and $1.1 billion a decade ago. So, how can you check a bag for free on a U.S. airline? With the exception of Southwest, which still allows customers two checked bags for free so long as they follow certain size restrictions, you'll typically need to join a carrier's rewards program, use a particular credit card or buy a premium ticket. [CNBC]

A New Survey Casts Doubt on the Idea That Contactless Cards Will Trigger More Mobile Payments

Conventional wisdom in the payments business has been that the advent and spread of contactless cards would pave the way for wider use of mobile payments. But research released this week indicates that may not be the case. New contactless plastic could tempt mobile-phone users away from using their devices for purchases. The ease of tapping and the familiarity of plastic could keep mobile-phone owners from using a mobile wallet. [Digital Transactions]

Five Ways 5G Might Change How You Bank

While consumers will likely notice that fifth-generation cellular wireless (5G) technology enables lightning fast downloads, connects millions of "Internet of Things" devices to one another, and removes the lag in their video chats, they may not realize that 5G will also be a key factor in enhancing their banking experience. Here are five surprising ways that 5G will be a catalyst for an optimized, personalized digital banking experience in the years to come. [Forbes]

Credit Bureaus Draw the Most Consumer Complaints to the CFPB

Credit reporting, credit-repair services or other personal consumer complaints accounted for 43% of all complaints to the CFPB last year. That's up from 23% in 2016, according to U.S. PIRG Education Fund. Mistakes on credit reports can lead to consumers having to pay more for credit or being turned down for jobs or mortgages. The three major credit bureaus may be less responsive to resolving the issues "because consumers are not their direct customers," PIRG stated. Instead, the credit bureaus' primary clients are lenders. Not surprisingly, Equifax, Experian and TransUnion rank as the top three most-complained-about companies. They drew 34% of the complaints in 2018. [CBS News]

India's Ride-Hailing Firm Ola is Now in the Credit Card Business, Too

A day after India's largest wallet app Paytm entered the credit card business, local ride-hailing giant Ola is following suit. Ola has inked a deal with state-run SBI (State Bank of India) and Visa to issue as many as 10 million credit cards in the next three and a half years. The move will help Visa and SBI acquire more customers in India, where most transactions are still bandied out over cash. For Ola, which rivals Uber in India, the foray into credit cards represents a new avenue to monetize its customers. [Tech Crunch]

Provided by LowCards.com

Source : https://www.forbes.com/sites/billhardekopf/2019/05/17/this-week-in-credit-card-news-protect-against-card-fraud-do-high-aprs-on-cards-hurt-the-economy/

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