A recent survey by J.D. Power and Associates finds that consumers are happier than ever with their credit cards. A combination of lower fees, better terms, and lower balances, seems to have boosted credit cards in the eyes of consumers.
This year - and for the sixth year in a row - American Express was rated as the best credit card issuer. The company retains its high marks with an emphasis on customer service and added perks. American Express has some of the best rewards of all credit card...
The Chinese government has been a stiff regulator of American banks in China, requiring US-based banks to work with Chinese banks when issuing loans and consumer lending products to Chinese consumers. Recently, however, the Chinese government eased restrictions on competition, allowing Citi, an American bank, the first entry into sole-branded credit cards.
Chinese company UnionPay will process the credit cards, while the cards will also be accepted abroad and serviced by MasterCard. The card...
Bank of America announced that it would drop its controversial product intended to backstop consumers when they cannot make a payment on their credit card. The product, known as debt-cancellation, is a type of insurance whereby customers accept a small monthly charge to have their debts reduced, forgiven, or requirement to pay suspended in the event of a job loss or disability.
Debt cancellation programs have drawn criticism from consumer protection agencies due to the high cost of the...
For years, banks have been engaged in a process known as "robo-signing", a phrase that describes the automatic processing of financing paperwork. Since the dot com boom, more banks are using computers to decipher signatures, validate paperwork, and track balances.
Now, some say that robo-signing may slow the settlement process. Credit card delinquencies peaked in 2008 when the financial crisis stymied economic growth. In 2009, millions of cardholders faced new lawsuits to recover funds left...
Credit card debt may be flat, but delinquencies are anything but. Recently, credit card users have been paying off their balances on time and with regularity. Delinquencies just touched a new 18 year low - the lowest since 1994.
A credit card is perceived to be delinquent by lenders as soon as a borrower misses a payment for 90 days or more. According to TransUnion, a leader in credit ratings for individuals, the delinquency rate now rests at a rate of 0.63 percent. Roughly speaking, one out...
Square is perhaps one of the hottest startups in all of mobile payment processing. The company, which is backed by a myriad of venture capitalists and Twitter co-founder Jack Dorsey, is setting the mobile payments space on fire.
The newly-improved app sports a payment method based on the credit cards in your wallet. As part of the app, a user can enter their key payment information including their credit card or debit card numbers to save for future use.
The new app works as...
The Federal Reserve reported on June credit card balances to show that credit card balances are in decline. Revolving credit - the official name for a variety of balances, but mostly credit card debt - fell from $868.3 billion to $864.6 billion, or $3.7 billion.
Credit card debt typically increases in the summer months as people go on vacations, take time off work, and use their credit cards during the season most well-known for its higher gas prices. This year, nationwide food and gas...
Under the 2009 CARD Act, credit cards will be limited only to people over the age of 21, or 18 year olds with sufficient income for a credit card. This rule change was intended to keep credit cards out of the hands of people who may or may not understand the risks involved with credit card debt.
According to a study from the same year, Sallie Mae found that the average college freshman had $2,038 in credit card debt. By the time students reach their senior year, credit card debt soared to...
The Federal Reserve Bank collects a tremendous amount of data on consumer spending and financial habits. Among the datasets the Fed collects is a database of account delinquencies for popular financial products like car loans, home mortgages, and revolving accounts like credit cards.
In a new data release, the Federal Reserve shows the rate of 90+ day delinquencies by geographic area. The data reinforces a few commonly-held beliefs about credit card debt:
1. Late payments are the most...
In the race for the mobile credit card processing business, Google is gaining on the competition. The company's newest Google Wallet app will allow for the use of multiple credit cards and make a payment with a mobile device.
Previously, Google Wallet worked only with Citibank cards and accounts, MasterCard branded credit cards, and very specific phones - phones that were available only on the Sprint network. Recent changes have improved the service so that Google Wallet can be used with any...
Kroger, one of the largest grocery chains in the United States, is considering a new policy which would give a discount to customers who pay for groceries with cash. The decision would mark the first time that a major retailer uses an option won in the recent credit card settlement that would allow retailers to give discounts for all-cash purchases.
Kroger has yet to announce how much it will discount cash payments. Most stores and gas stations which currently offer a cash discount provide...
Following a massive settlement between payment processors and retailers in the United States, the European Union sent new objections to Visa about its policies and interchange fees. The EU asserts that Visa's operations are anti-competitive, and the high price of interchange fees discourages competition while causing increased prices for consumers.
Retailers in the United States put up a similar defense. Because of the high cost of credit card processing, businesses have to charge more for...