Tag Archives: credit cards

Why Payments Are Disappearing, And Mobile Will Win

Ok, so if you think we’re done with the whole “when is a mobile payment a payment” argument, think again. The reality is that the biggest evolution in payments is not about Visa, Mastercard, Amex, Square or faster payments, but it is about context and simplicity, and that’s where the mobile and other technologies are leading us.

You are probably familiar with the Gartner “Hype Cycle” which has pretty accurately predicted the adoption and maturity cycle of various technologies. The Hype Cycle is pretty good at describing the hype around things like NFC and Mobile Payments generally, and how now we’re at the working end of enlightenment and productive ideation. There are a few exceptions to the Hype Cycle. Facebook, for example, is notably absent from their analysis because it has never quite emerged into trough of disillusionment phase – it got hyped and then went straight through to the enlightenment stage. Theoretically you could call the IPO failure the disillusionment phase, although that wasn’t with the tech. I digress… Continue reading

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Small business: Best practices for online credit card processing

Introducing a credit card payment option is a great way to enhance customer satisfaction. Most shoppers prefer using credit and debit card when shopping online. In America, people have become more dependent on credit cards.

Thus, for small business owners, integrating credit card processing is a huge advantage over competitors. Using credit cards is convenient and easy for both the business owner and the customer. However, if not correctly implemented, credit card processing could be risky for small businesses.

Needless to say, online credit card processing is highly vulnerable to the illicit acts of cyber criminals. Nevertheless, there are several ways on how entrepreneurs can effectively integrate a credit card payment option with their small businesses. Continue reading

Credit Reports Now Show Your Credit Card Bill-Paying Habits

In a little-noticed change, your credit report has started revealing more about your credit card payment habits.

The big three credit bureaus are adding new payment data to the reports of some 160 million card-carrying adults. The data shows whether you rack up interest charges, giving card issuers another reason to chase you — or avoid you — as a customer.

“That sort of information would be considered pretty valuable from an issuer standpoint,” said Michael Masasi, senior analyst at Mercator Advisory Group.

In the past, your credit file displayed your monthly balance, your credit limit and whether you failed to make at least the minimum payment.

What credit bureaus are adding now is a two-year review of the actual amounts you paid each month. These figures reveal whether you are a revolver who carries a balance and pays interest charges, or a transactor who makes purchases but generally pays them off before interest charges are triggered.

“Historically it has been incredibly difficult on the credit file to identify a transactor versus a revolver,” said Ezra Becker, vice president of research and consulting for TransUnion’s financial services unit. “The way payments look, they were indistinguishable.”

TransUnion added 24 months of payment history to accounts on consumer credit files in January. Experian has expanded the historical payment information on credit reports within the past year, Vice President for Analytics Michele Raneri said. Equifax is adding payment amounts starting sometime in the third quarter of 2013, according to Demitra Wilson, senior director of public relations.

Credit bureaus say that the new information will help card issuers target their offers. “Lenders want to offer products that consumers want to have,” Becker said, “and offer the right product to the right person.” Continue reading

Why Business Credit-Card Holders Should Be Wary

Most small business owners are aware that their personal finances and business finances are inextricably linked. Apply for a small business loan, and the bank will ask for a personal credit score. Miss a payment on a business credit card, and the issuer is likely to report the transgression on the owner’s personal credit profile. Credit-card issuers can also go after personal assets in the case of default.

Since issuers treat business owners as proxies for their companies, it might seem business credit-card accounts would be afforded the same protections as are personal credit-card holders. Not so, says Odysseas Papadimitriou, chief executive of credit-card comparison website CardHub.com. Four years after Congress passed the Credit Card Accountability, Responsibility, & Disclosure (CARD) Act to make credit-card borrowing more transparent, business owners lack protection that individual consumers get. Continue reading

Justin Timberlake Teams Up With MasterCard

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International popstar Justin Timberlake has teamed up with MasterCard in a two-year brand collaboration, which will deliver fan experiences to MasterCard users worldwide.

The global partnership will be launched on 5 May at the MasterCard Priceless Premieres presents Justin Timberlake performance in New York City.

“MasterCard is a respected global brand and I look forward to working with them to bring something truly unique to their cardholders,” said Timberlake.

According to the firm, the move is a means to broaden MasterCard’s global influence in the music and entertainments industry.

“We’ve had a role in this space for some time but are now looking to really put a stake in the ground and we’re doing so by tapping into one of the most prominent global entertainment and business minds, Justin Timberlake,” said Alfredo Gangotena, CMO of MasterCard.

The collaboration between Timberlake and MasterCard will translate to exclusive access to co-created content, events and experiences as well as consumer engagement opportunities.

“When people think about access to music and entertainment, we want them to think of MasterCard,” Gangotena added.

MasterCard’s Priceless Cities programme offers cardholders who sign up for the programme access to concerts, theatre, restaurants, museums, and sporting events in their hometown and around the world. The programme is currently available in 15 cities, including New York, Chicago, Miami, Los Angeles, London, Paris, Toronto and Buenos Aires.

Justin Timberlake Teams Up with Master Card. Retrieved from http://www.cardsinternational.com/news/justin-timberlake-teams-up-with-mastercard/.

US Airways-AMR Merger Spurs Talks on Branded Credit Cards

US Airways Group Inc. and AMR Corp. (AAMRQ)’s American Airlines are negotiating with banks including Barclays Plc (BARC) and Citigroup Inc. (C) to provide a branded credit card once they complete a merger creating the world’s largest carrier.

“As we bring two strong currencies together, we’ll have one, stronger currency,” Andrew Nocella, US Airways senior vice president for marketing and planning, said yesterday at a conference. “We are working with all our banks. Every single one wants to work with us.”

US Airways’ loyalty credit card has been handled by Barclays since 2006, while American’s has been issued by Citigroup for 26 years. The cards, which carry the airlines’ names, are valued by passengers because purchases made with them earn credits that can be used to buy tickets. Continue reading

Smartphones Easily Skim Credit Card Information: CBC Investigation

Mobile Payment

Photo retrieved from Huffington Post.

A technology designed to make it easier to pay with your credit card may be putting Canadians at risk of fraud and identity theft, say security experts.

Many new credit and debit cards come with chips that allow customers to tap the card to make a purchase. The chips are read by payment machines, used in many retail outlets from Tim Hortons to high-end computer shops, and are supposed to be a safe and convenient way to pay for goods.

But the chips can also be read with a device millions of Canadians carry with them every day: a smartphone.

Using a Samsung Galaxy S3 — one of the most popular smartphones available in Canada — and a free app downloaded from the Google Play store, CBC News was able to read information such as a card number, expiry date and cardholder name simply holding the smartphone over a credit or debit card. Continue reading