Biometrics are expected to play a much larger role in making payments.
Will biometrics be the future of payments?
Tech companies Apple and Google, big influencers of consumer behavior, have done the heavy lifting when it comes to: biometrics acceptance. Their tech tools and ubiquitous smartphones have primed consumers to use their fingerprints or faces to access their devices. In addition, user IDs, PINs, and passwords have become a friction-filled headache for many. Consumers who have grown tired of the need for unique passwords will increasingly view biometrics as a welcome change. As the pandemic triggered a shift to contactless, payment players want to make transactions as frictionless and fast as possible, both to increase volume and satisfy customers. Using biometrics takes that one step further, proponents say, with ease of use and security, both necessary in the digital age. [Payments Dive]
Organized credit card fraud groups create fake sites to charge stolen credit cards
As with ransomware and other forms of cybercrime, the credit card fraud landscape tends to evolve over time and follow ‘industry trends’. A new report from threat intelligence agency ReasonLabs finds that since 2019, at least one major gang in this space has shifted their focus to building fake dating and customer support websites and using them to trick legitimate payment processors into granting them access to their services. . Once the scammers have the ability to charge credit cards, they buy stolen cards from the dark web and file charges against them. The fact that these dating sites are known to have high chargeback rates also works to the attacker’s advantage as it provides an explanation for what would otherwise be considered unusual business activity. The attacker is also likely targeting more fringe payment processors that have a lower acceptance threshold for high-risk businesses. [CPO Magazine]
Trade in your old devices for Amazon gift cards. here’s how
Older technology gets less flashy by the day and will eventually find its way into that one drawer full of other discarded gadgets, gathering dust and left forgotten. Unless you return the device or devices through a trade-in program. Amazon’s trade-in program is a quick and easy service that converts unwanted technology into Amazon gift cards and/or discounts. It’s also a satisfying way to recycle old electronics for free. Here is a step-by-step explanation of the service. You’d be surprised how many products, from Amazon and not, qualify for a decent trade-in offer. [ZD Net]
Square Officially Launches Tap to Pay Support on iPhone
Square publicly launched support for Tap to Pay on iPhone to merchants in the United States, allowing small merchants and independent retailers to use their “iPhone” as a payment terminal. Tap to Pay on iPhone allows merchants to accept contactless payments directly with an iPhone, without the need for additional hardware or dongles. The public launch follows Square’s Early Access program for Tap to Pay on iPhone, which kicked off in June. [MacRumors]
Credit card competition law could make banking more expensive and less secure
Look at previous attempts to lower interchange fees. More than a decade ago, Congress capped such fees for debit cards. The price control lowered the cost of accepting debit cards for merchants. But only 1.2% of traders used the savings to lower prices, a survey by the Federal Reserve Bank of Richmond found. The rest kept prices the same or increased them, while keeping the savings to themselves. Reducing the amount of money that supports the exchange system can have serious consequences for consumers. The biggest concern is fraud. Interchange fees help offset the mounting losses associated with fraud and the costs of fraud detection systems. [The Dallas Morning News]
JPMorgan strengthens Dining Push with new DoorDash credit card
JPMorgan Chase
JPM
46% of students with credit cards are in debt
According to a mid-September survey by US News, more than 67% of undergraduate students have a credit card in their own name and just over 9% have access to a credit card as an authorized user. Having a credit card in college is a great way to build your credit history, but only if you handle cards responsibly. Unfortunately, nearly half of respondents say they have credit card debt. Of the 46.1% of respondents with credit card debt, 27% say their credit card debt is more than $2,000. [U.S. News & World Report]
Goldman Sachs: Three Major Cobrand Credit Cards and Nearly Half of U.S. Households
Transitioning from investment banking to the rugged world of consumer banking isn’t easy, but Goldman Sachs is doing it with cobrand credit cards. First, there was Apple, which brought an addressable market of 113 million iPhone users in the US. Then came the GM Map, an iconic brand that accounts for a base of 2.2 million US auto sales (and a total of 61 million General Motor vehicles on the road). Now comes T-Mobile, with 22 years in the US market and 109 million customers. What a way to build a credit card company. Pre-screened potential customers in three vertical markets. No branches to manage, just good names to harvest and recruit. [Payments Journal]
CFPB Fines Regions $191 Million for Overdrafts
Regions Bank will pay $191 million to settle the Consumer Financial Protection Bureau’s allegations that the bank charged overdraft fees to customers for certain cash withdrawals and debit cards between August 2018 and 2021. The fine includes a $50 million fine and the $141 million CFPB orders the lender to pay to customers affected with “authorized positive” fees. The bank said it eliminated authorized positive fees more than a year ago when it rearranged the order in which transactions were posted. [Banking Dive]
Mastercard, Hi App Partner to spend cards with NFT Avatars
In partnership with Mastercard, the crypto and fiat financial app hi is launching what it calls “the world’s first debit card with NFT avatar customization”. Eligible owners of blue-chip NFTs can now customize Mastercard debit cards with avatars they demonstrably own. It means they can have their beloved character embellished on the plastic card that is in their pocket. For starters, hi-cards will initially be available in over 25 EEA countries and the UK. [Finance Feeds]
Understanding the risks of Buy now, pay later apps
A whopping 43% of Americans said they have used a BNPL service, according to an April 2022 LendingTree survey, up from 31% in 2021. These services are also most popular with women, Gen Z (aged 18 to 25) ) and those making between $50,000 and $74,999 per year. Students and recent graduates, who are part of Gen Z, usually have little to no credit history and are generally less financially literate. If mismanaged or overused, BNPL services can have drastic consequences for the already fragile financial well-being of a young consumer. Without understanding the hidden risks of BNPL lending, these services can do consumers more harm than good. Here’s what you need to know before considering using BNPL apps. [CNBC]
Samsung launches credit card in India
Samsung has launched two credit cards in India, entering a crowded category in which more than 50 companies are fiercely competing for consumer attention in the world’s second largest internet market. The South Korean giant said it is working with Mumbai headquarters Axis Bank and global payment processor Visa to launch the cards, which it calls the Samsung Axis Bank Credit Card. Consumers who purchase Samsung products and services through either card will receive a 10% cash back. [Tech Crunch]
