This Week In Credit Card News: Facebook Mobile Payments Coming Soon; Get $20 Off At Amazon With These Cards

A Peek At Facebook’s Plans For Mobile Payments

Facebook is planning to introduce mobile payment options which will include Facebook Pay. The move will give the 2.5 billion Facebook users an easier and more user-friendly interface to pay. Facebook Messenger developer David Marcus will lead the development. The upcoming app has yet to be named but it will be available first in the United States. [Retail Customer Experience]

Get $20 Off At Amazon When Using Your Eligible Capital One Credit Card

Capital One credit card holders targeted for this new offer can save $20 on a purchase of $80 or more when using their miles or cash back at Amazon through September 30. You’re only required to use 1 mile for the discount to apply, and can then pay for the rest of your purchase with your Capital One credit card. [CNN]

Credit Card Delinquencies Take A Nosedive During Pandemic

A recent report from Experian showed that, from January 2020 to June 2020, the average instances of consumer delinquencies on credit cards decreased by 3.9%. This is all at a time of record unemployment and massive pay cuts in many industries. Experian says some of the positive movement is likely due to lender accommodations provided through the CARES Act. “With more consumers in forbearance, or with payments deferred through some accommodation, the decline in new delinquencies is understandable, as repayment for many loans has been paused.” [Bankrate]

Coronavirus Has Hurt The Credit Card Fraud Business

The coronavirus pandemic has changed just about every aspect of daily life, and credit card fraud has not been spared. In a new report from cybersecurity firm Sixgill, the first six months of 2020 saw 45 million compromised credit card accounts posted for sale on the dark web, down 40% from 76 million during the last six months of 2019. The obvious key reason has been the pandemic, which has kept people out of physical retail stores. Increased activity by law enforcement has also played a role. [Yahoo Finance]

Visa Unveils More Powerful AI Tool That Approves Or Denies Card Transactions

Visa said it has developed a more advanced artificial intelligence system that can approve or decline credit and debit transactions on behalf of banks whose own networks are down. The new service reflects the growing use of AI in banking. The service, Smarter Stand-In Processing, uses a branch of AI called deep learning that roughly mimics neurons in the human brain and is an underlying technology powering self-driving cars, voice-enabled digital assistants and facial recognition. [The Wall Street Journal]

Fight Against Fraud Slows Payments To Unemployed

As workers grow desperate for unemployment benefits, criminals filing fraudulent claims are clogging state unemployment systems, making legitimate claimants wait even longer for help. States with no income tax, such as Washington and Nevada, had no income records to help substantiate claims, making it easier for fraudsters to get money they didn’t deserve. New benefits for “gig” workers put states into uncharted waters, without the extra verification of a traditional employer with records of layoffs and wages. [Associated Press]

Mastercard and Ally Financial Teaming Up On POS Installment Lending Program

Ally Financial is entering the point-of-sale installment lending segment through a new tie-up with Mastercard. Ally announced that its Ally Lending subsidiary has established a partnership with Mastercard’s POS installment loan platform Vyze, under which Ally Lending will serve as the financier of the loans. The FinTech World Report 2019 indicates retailers utilizing POS installment financing enjoy an average 32% boost in sales, along with a 75% gain in order value. [The Motley Fool]

Japan Facing Credit Card Number Shortage

Japan had around 283 million credit cards in March 2019, but the number has been on the rise since the government introduced a point reward system for cashless transactions last October. Meanwhile, card payments have become more popular during the pandemic lockdown. The first six digits of a card number relate to country, brand and other information, with the final 10 decided by the issuer. Issuers are concerned that there could soon be a shortage of digit combinations from the seventh onwards. The problem could be addressed by adding a digit but this would cost tens of billions of yen and cause disruption. [FinExtra]

How Putting Your Credit Card Into Forbearance Can Affect Your Credit Score

When a lender grants a borrower forbearance on either a loan or credit card balance, it initiates an agreed-upon period of time in which monthly bill payments may get either reduced or put on momentary pause. Interest normally still accumulates during forbearance, and borrowers will still have to pay back the balance eventually. Forbearance itself doesn’t have a direct impact on your credit score, as long as you keep up with your payments as agreed. But borrowers who don’t fully understand their credit card forbearance programs can fall into a few common traps that can hurt their credit indirectly. [CNBC]

The Death Of The Wallet

Thanks to the pandemic, we are heading towards a cash-free society at a much faster pace, with consumers switching to touch-free payments to protect their health. Research from PayPal
PYPL
has shown that a fifth of consumers no longer carry cash, and around 7% of people have decided to scrap their wallets and purses entirely. [Tech Radar]

How To Get Help From Your Credit Card Issuer If Times Are Tough

A historic number of Americans are unemployed and feeling anxious about their financial future. Credit cards are an important financial tool for many Americans. But, if you cannot make on-time payments, credit card use can cause long-term problems, and drive you deeper into debt. Most of the major credit card companies are offering financial assistance to help cardholders who are facing financial challenges. Here’s what you should know to be smart about using credit cards when times are tough. [Next Advisor]

How Have Card Issuers Measured Up During The Pandemic

One surprising thing to note is that this decline in customer satisfaction with their credit card issuer wasn’t mirrored across other financial services sectors. Consumer satisfaction actually grew with retail banks and mortgage providers throughout the pandemic. The defining factor? Communication with customers. J.D. Power’s 2020 Credit Card Satisfaction Study found that just 36% of credit card customers were proactively contacted by card issuers over the past year, compared to 60% of mortgage customers and 48% of retail banking customers. [The Points Guy]