Visa reported earnings this week along with new insights into the strength of the credit card industry. According to Visa's numbers, total credit card spending was up, along with the number of transactions.
In the release, Visa reported that worldwide spending on Visa-branded debit and credit cards rose to $979 billion. Year-over-year, and adjusting for currency fluctuation, total spending volume rose 6.3 percent compared to the year ago period.
International spending grew the most,...
Two major retailers have bucked from the trend to announce their position against a recent settlement against credit card companies. The settlement for $6 billion in damages is to pay for aggressive pricing on credit card company's merchant fees, also known as swipe fees.
The case was brought about by other retailers, specifically Home Depot, which say that credit processing fees are the third-largest cost of business behind retail leases and employee compensation. Reducing the credit card...
Bank of America will begin issuing EMV credit cards to high-income, high-net worth consumers in the coming months as part of a new security program. EMV, which stands for EuroPay, MasterCard, Visa, is a card type popular in Europe, where credit cards are more frequently read off a chip rather than a magnetic strip.
Magnetic strip cards have been criticized for a lack of security. By using a chip to store customers’ data, banks can significantly cut down on credit card theft and fraud. A...
PayPal, a product and online payment processing company owned by eBay, announced a recent acquisition which will give it the opportunity to tap into mobile card payments. PayPal acquired a rival company, Card.io, which allows users to process credit cards by snapping a picture with their mobile device.
Online banking and payment processing has become especially popular with online banks like ING Direct (a product of Capital One) and Chase (a subsidiary of JP Morgan Chase). PayPal’s entry...
A new settlement between retailers and the credit card industry could leave individuals to pay fees to use their credit card. The industry settled with a collection of retailers to decide on a settlement for $6 billion. Inside the settlement was an agreement that allows retailers the right to pass on merchant fees to consumers. The decision may bring higher prices for credit card users.
The law also shifts the power to credit card users currently in default. Those in default would...
In a landmark decision, major credit card companies reached a $6 billion settlement with retailers over the fees credit card processors charge to process each swipe of a credit card. Businesses pay up to 3-4 percent of each transaction to accept credit card payments. These fees are known universally as interchange fees.
The settlement also allows for a change to the way the business has historically operated. In the past, credit card processors forbid businesses from charging credit card...
If credit card companies are known for anything, it's their marketing. This week, a new study from Mintel Compremedia, a marketing research firm, released a new report on total credit card mailing volumes.
Its most recent report measured 260 million credit card offers sent to American households in the past year. This was down by one-third from the year ago period, indicating that credit card companies are getting serious about finding new ways to reach consumers.
Persistent...
A new start-up named Wallaby wants to help you make better use of your credit cards. The company will not offer credit lines to customers, but instead give its users the opportunity to load their credit cards into a single physical card to use online or at normal point of sale processors.
The service works as follows: users upload their credit card information to Wallaby. Wallaby then looks through rewards and special offers to determine which credit card profile to use each time you swipe...
Many people see cash advances and balance transfer checks as one in the same: an easy way to draw money from your credit card account when you need it most. In reality, a cash advance is a very different offer from a balance transfer.
A balance transfer is almost always:
Lower interest than a cash advance - Balance transfer offers tend to have much lower rates of interest than cash advance offers because of the difference in the offer. Balance transfers are not meant for emergency...
Banks are loosening their lending standards to make more consumer loans, according to a new survey by the Office of the Comptroller of Currency. The study asked banks to qualify their lending standards, and the response was positive: banks were easing standards for consumer credit.
According to the data, 35% of banks offering credit cards are currently easing their lending standards compared to only one-quarter of banks in 2011. Banks are also engaging in more automotive lending, having...
Each quarter, banks release critical information about their financial standing to shareholders. This information also helps analysts survey the market for credit cards. As of its most recent quarterly report, it appears as though the credit card market may be making a rebound.
Discover Financial Services reported that its customers are using their cards more often in 2012 than in 2011. Also, the company sees improved financial management - more consumers are paying their bills on...
The market for consumer credit could get tighter as banks find it more difficult to find sources of capital. Credit cards, which are often financed by a bank's borrowing, are one such product that would be most affected. Traditionally, banks have priced credit card rates based on a premium to LIBOR, a rate at which banks lend to other banks.
Recently, ratings agencies downgraded some of the largest banks on fears of an economic slowdown. When a company's rating is cut, the cost it pays to...