Using AI, Mastercard Expects to Find Compromised Cards Quicker, Before They Get Used by Criminals
In its latest software update rolling out this week, Mastercard is integrating artificial intelligence into its fraud-prediction technology that it expects will be able to see patterns in stolen cards faster and allow banks to replace them before they are used by criminals. Mastercard says with this new update it can use other patterns or contextual information, such as geography, time and addresses, and combine it with incomplete but compromised credit card numbers that appear in databases to get to the cardholders sooner to replace the bad card. The patterns can now also be used in reverse, potentially using batches of bad cards to see potentially compromised merchants or payment processors. The pattern recognition goes beyond what humans could do through database inquiries or other standard methods. [Associated Press]
CFPB Classifies Buy Now, Pay Later Apps as Credit Cards
The CFPB will classify “buy now, pay later” apps the same way it treats credit cards, a move meant to afford consumers more protections. Buy now, pay later, or BNPL, apps allow users to make purchases in interest-free installments. But consumers often don’t know whether lenders will help them when they need to return an item or cancel a booking, the CFPB said. As a remedy, the regulator will soon require lenders to investigate disputes and cover refunds. The new rules, which take effect in 60 days, ensure BNPL borrowers are “entitled to some of the same rights and protections of the Truth in Lending Act that apply to traditional credit cards. [The Washington Post]
Google Pay Will Start Showing Credit Card Benefits at Checkout
Google is adding the ability to see what shopping rewards and savings options you have on your saved credit cards as you check out using Google Pay. The feature is out today on select cards from American Express and Capital One, and it’s coming to more cards in the future. Google is making it easier to fill in your card details (including security code) on any online store at checkout, so you have one less reason to reach for your physical card. Autofill of your full credit card details works on Android using the device’s biometrics or a PIN. Lastly, Google Pay’s buy now, pay later (BNPL) support is expanding to more websites. The feature lets you choose a third-party financial provider, either Affirm or Zip, to pay over multiple installments. [The Verge]
Survey Shows Lower-Income Households Have Highest Credit Card Debt Ratios
More than half of U.S. households held credit card debt in 2022, according to the most recent review of consumer finances by the Federal Reserve of St. Louis. Lower-income households are disproportionately burdened by credit card debt, a recent analysis of the consumer finance study found. Those at the bottom of the income distribution tend to have higher credit card debt ratios, possibly because they may have less cash and savings and fewer desirable loan choices. For many Americans, credit cards have become the new emergency fund. [Investopedia]
Visa Changes Coming This Year Will Mean Fewer Cards for Americans
Major changes announced by Visa mean Americans will soon not need to carry around as many credit and debit cards. The company unveiled its new Visa Flexible Credential, which will allow customers to use a single card to access payment options from multiple credit and bank accounts, and even “Buy Now Pay Later” plans when making a purchase. Visa’s flexible payment option is already available in Asia, and the company will begin rolling it out in the U.S. later this year. The card giant also said it will be expanding the ways consumers can “tap” to pay using mobile devices this year. Soon, any device can be used as a point-of-sale device for payment. Customers will also be able to “tap” to confirm their identities, to add a card to a wallet or app, and to make a person-to-person payment. [Fox Business]
American Express CEO Explains How the Company Is Attracting Younger Consumers
American Express CEO Steve Squeri told how the company attracted more millennial and Generation Z customers, saying the cohort made up 60% of new card acquisitions during the last quarter. Squeri said that in realizing the importance of having younger clientele, American Express strived to offer cards with a high value proposition for the group. Younger cardholders create a greater “lifetime value” than older ones, as they will continue to use their American Express cards as they age. The younger customer base is also growing because more merchants accept American Express cards than in previous years, Squeri told Cramer. He also said that cardholders under 35 did 70% more transactions at restaurants than other cohorts. [CNBC]
Donald Trump’s Campaign Says It Will Begin Accepting Contributions through Cryptocurrency
Donald Trump ‘s presidential campaign said it would begin accepting donations in cryptocurrency as part of an effort to build what it calls a “crypto army” leading up to Election Day. The Trump campaign launched a fundraising page that allows “any federally permissible donor the ability to give” to its political committees using any crypto asset accepted through the Coinbase cryptocurrency exchange. The announcement promotes Trump’s message that he is a crypto-friendly candidate, and also appeals to a core group of young male voters who are increasingly likely to dabble in digital assets. [Associated Press]
California to Give Gift Cards to Those Who Can Stay Clean from Stimulants
In the coming fiscal year, California is expected to allocate $61 million to a program focusing on helping those with addictions to drugs like meth and cocaine. One of the programs the state is putting into place gives people who are addicted to stimulants gift cards if they can stay sober. To be in the program, patients must show up to their designated clinic twice a week to provide a urine sample. If they test negative, they receive a small stipend on a gift card from a store of their choice, with the funds increasing as the person continues with the program. Businesses that they can choose from include Walmart, Bath and Body Works and Hotels.com. There are no consequences if they test positive; instead, they are just encouraged to try again and come back to the clinic at a later date. [News Nation]
Maxed Out on Your Credit Card? Here’s How to Dig Out
There are two popular strategies for paying off debt. One method, called a “debt avalanche,” involves organizing such bills from the highest interest rate to the lowest. You then concentrate on paying the most expensive debt first while making minimum payments on the other cards. Then you work your way down the list. The second strategy has various names, but I’ve dubbed it the “debt-dash.” With this format, you list all your debts, starting with the one with the lowest balance. Take any extra money you can find in your budget and apply it to that first one while making the minimum payments on the rest of your cards or all other debts. Once you’ve knocked off the top debt, take all that money and now go after the next one on your list, and so on. If two debts are about the same amount, the one with the higher interest rate gets priority. [The Washington Post]
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