Provided By: forbes.com
A weekly summary of the top credit card stories that appeared in major publications across the country.
Data Security Begins with the Traveler
Criminal hackers gravitate to some hotels because, like retail stores and restaurants, hotels do many credit card transactions at a local level, where centralized and highly sophisticated data security safeguards may be lacking. Most hotels are locally owned, though managed by big hotel chain companies. For hotel owners, it is expensive to come into full compliance with the tough global data security criteria set by the credit card companies. Cybersecurity threats are increasing as quickly as businesses can implement measures against them. The threat is constant. The best protection is vigilance, and that takes work,” he said. That includes using complex passwords, being wary of public Wi-Fi, updating antivirus software and checking credit card statements carefully. [New York Times]
Smaller Banks’ Loans Growing Faster Than Larger Rivals
There has been a sharp surge in loan growth at little banks. The move has opened up a wide gap in loan growth between smaller banks and large ones. Small banks saw annualized loan growth of more than 6% in the second quarter, compared with less than 2% at the 25 largest banks, according to research by Keefe, Bruyette & Woods Inc. As long as regulatory uncertainty remains, big banks will continue to be at a disadvantage, according to bank analysts and executives. [Wall Street Journal]
Credit Card Confusion: How Do I Earn Those Rewards?
It’s a strange contradiction. Credit cards that offer rewards are more popular than ever. And yet, many people who have these cards don’t really know how they work. They aren’t sure how to maximize the points, miles or cash rebates they can get by using them. A recent study found that just 59% of the customers with a rewards credit card feel they “completely understand” how to earn rewards, down from 66% in 2012. Even more surprising, 33% of these cardholders say they are unaware of the benefits associated with their rewards card. [NBC News]
Huntington Bank to Launch Consumer Credit Card
After a long hiatus, Huntington Bank is getting back into the credit card business. It will launch a consumer credit card that allows customers to choose among rewards in 13 categories or low interest rates on their revolving balances. The move reflects the trend of banks setting up one-stop shopping experiences for their customers by offering a wide assortment of financial products. By not having its own card, Huntington essentially has been allowing its customers to form relationships with other card-issuing banks. The new card marks the first time Huntington will issue and service credit card accounts since 1999, when it outsourced those functions for its $585 million portfolio to Chase Manhattan Bank. [Wall Street Journal]
Bank of America to Discontinue Cruise, Merchandise Rewards on Power Rewards Card
Bank of America will soon stop offering cruises and retail merchandise as redemption options for Power Rewards account holders. The bank notified cardholders of the changes in a letter and a notice on its website. Cruises, activities, tours and retail merchandise will no longer be eligible for point redemption. The changes are effective in October. Cardholders can still redeem points for the discontinued items this month. A bank spokeswoman says cruises and retail merchandise were the least popular items for cardholders to redeem points for. BofA surveyed customers and determined exchanging those options for more hotel choices and gift cards would be preferred. [Charlotte Business Journal]
CFPB Warns Companies to Investigate Credit Report Errors
The Consumer Financial Protection Bureau is cracking down on companies that supply information to consumer reporting companies. This should make it easier for consumers to get reporting errors resolved. The CFPB issued a notice today that says these companies–called “furnishers”–are responsible for investigating consumer disputes forwarded by the consumer reporting companies. Furnishers must review all relevant information provided with the disputes, including documents submitted by consumers. [LowCards.com]
How to Stop an American from Charging
The only people in Britain who still have or try to use mag-stripe cards with a signature are foreigners. In theory, this is not a problem. Credit card companies insist that businesses that take their cards accept “any valid card.” So mag stripe, chip-and-PIN, chip-and-signature–it shouldn’t matter to the merchant. The trouble for American travelers arises in large part because many merchants have had it drummed into their heads that if they don’t verify a PIN at the terminal, they could be liable for a chargeback if the customer disputes the charge. This is mostly false. Under their agreements with their banks, merchants commit to using the best available security–so if a chip-and-PIN is available, but not used, they could be held liable. But if it isn’t, then accepting a signature card—with or without a chip–is no riskier for the merchant than accepting a chip-and-PIN. [Wall Street Journal]
LowCards.com Weekly Credit Card Rate Report
Based on the 1,000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.39%, slightly higher than the 14.38% from last week. Six months ago, the average was 14.32%. One year ago, the average was 14.36%. [LowCards.com]
