Debit Card Use on the Decline
The number of consumers who use debit cards for purchases has declined steadily since 2011, the year following enactment of the Durbin Amendment, and now stands at 54%, according to a newly released report from Mercator Advisory Group. Only half of debit card users reported using their card for online purchases. Their main reasons for not using debit cards online: 41% had a perception of greater online security with credit cards; 30% had a fear of checking account compromise; and 30% due to the lack of debit card rewards. [ATM Marketplace]
Capital One is now offering free business credit reports to all consumers, not just their customers. (Getty)Getty
Capital One Offers Free Business Credit Reports for Everyone
Capital One is making it easier to check your business credit report for free. That’s a big deal, especially since some business credit reports can cost upward of $40 a pop. The issuer launched Business CreditWise, an online portal that gives folks free access to their business’ credit report. The issuer quietly made it available to any U.S. business, not just Capital One customers, earlier this week. [NerdWallet]
Key Trends Reshaping Credit Card Marketing in 2019
The latest data on card marketing trends points to a 21% decline in card applications. The Mintel report, based on input from 3,000 consumers, confirms that direct-mail response rates to credit card offers have been declining. One-fifth of all credit card applications originate from a direct mail offer, even if a growing number are completed digitally so direct mail can’t be ignored by financial marketers. And they haven’t. Mailed offers were up an estimated 32% from June through November. The percentage of consumers receiving a credit card offer rose from 54% to 67% over nine months last year. Some of this outreach could be targeting the subprime category. [The Financial Brand]
Kroger Continues to Resist Apple Pay as it Launches New ‘Kroger Pay’ Platform Based on QR Codes
One of the larger Apple Pay holdouts, Kroger, is debuting its new mobile payment option in Columbus and Colorado, with a nationwide rollout by the end of the year. The grocery chain continues to resist Apple Pay, instead going with a QR code-based Kroger Pay system. The QR code can be found within the Kroger Pay app and can be linked with any major credit or debit card.[9 to 5 Mac]
EMV Cuts Card-Present Counterfeit Fraud By 80%: Visa
Merchants saw a drop in card-present fraud due to the increased adoption of EMV chip cards, Visa said. Merchants who have upgraded to chip technology saw a decrease of 80% in counterfeit fraud dollars in September of 2018 when compared to September of 2015. More than 3.1 million merchants now accept chip cards, which is an increase of 692% since the beginning of EMV migration, and almost 70% of storefronts in the United States now accept chip cards. About 98% of overall U.S. payment volume in December was done on EMV cards. [PYMNTS]
Mastercard Launches Its Audio Brand Identity
Mastercard has launched its audio identity, a complex sound architecture that represents the most recent brand evolution. No matter the place where consumers interact with Mastercard–in the physical, digital or vocal environments–the Mastercard song, distinct and easily recognizable, will offer them a familiar feeling. The company recently made the transition to a new Mastercard logo. The audio brand identity is composed of the Mastercard song and the acceptance tone used at the selling points. [Business Review]
Amazon, Western Union Debut PayCode to Sell Goods in Emerging Markets and Let Shoppers Pay in Cash
Amazon has partnered with Western Union to set up a service called PayCode, which lets people shop and pay for Amazon items using local currencies that would not have been accepted on the site before, starting with services in 10 countries: Chile, Columbia, Hong Kong, Indonesia, Kenya, Malaysia, Peru, Philippines, Taiwan and Thailand. Specifically, shoppers in these markets will now be able to go into Western Union outposts and pay for their Amazon purchases in cash, which means payment cards will not be required to buy from Amazon, one of the barriers to expanding the service in more emerging economies. [Tech Crunch]
Good News, Credit Card Rewards Lovers: Financial Institutions Are Upping Their Loyalty Game
Rewards programs are a powerful driver of consumer behavior in the credit card space. A recent J.D. Power study found 47% credit card holders who had switched to a new card issuer in the last year did so for a better rewards program. To raise the bar on their loyalty programs, banks and credit unions are beginning to leverage emerging technologies like predictive data, artificial intelligence, geo-location and real time point of sale. Here’s a closer look at how the savviest financial institutions are using technology to rewrite the rules of the credit card rewards game. [Forbes]
What El Chapo’s Trial Revealed: The Inner Workings of a $14 Billion Drug Empire
The trial and conviction of the notorious “El Chapo” revealed in remarkable detail the inner workings of the criminal empire he built. The cartel used debit cards that could be loaded up with as much as $9,900 per card. Unlike cash, which is made of linen that can absorb drug residue and attract drug-sniffing dogs, debit cards can be easily cleaned. After the cards arrived in South America, the cartel hired workers to withdraw the money from ATMs. [The Wall Street Journal]
Red Flags Emerge as Americans’ Debt Load Hits Another Record
The U.S. household debt and credit report, published by the Federal Reserve Bank of New York, showed the overall debt shouldered by Americans edged up to a record $13.5 trillion in the fourth quarter of 2018. It has risen consistently since 2013, when debt bottomed out after the last recession. While mortgage debt, by far the largest slice, slipped for the first time in two years, other forms of borrowing rose including that of credit cards, which at $870 billion matched its pre-crisis peak in 2008. [Reuters]
Card Issuers Offer Virtual Card Numbers for Added Security But Many Consumers Don’t Know
One of downsides of shopping online or over the phone is not knowing whether you can trust an unfamiliar seller with your credit card information. If you have a credit card from certain major banks, you might have a free security solution you don’t even know about. They’re called virtual credit card numbers. A virtual credit card number is a temporary number that automatically links to your primary card number. When you type in the temporary number at check out, the money is charged to your primary card but only the temporary number appears online. [KOMO News]
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