When the Fed Raises Rates, Credit Card Holders Feel It First
Credit card costs are directly tied to the prime rate, which in turn is linked to the federal funds rate. The latter is what the Fed increased Wednesday. As both these rates move higher, so will the adjustable annual interest rate on credit cards. Since credit card debt is so much more expensive than forms of credit, like a mortgage or a car loan, an already expensive way to borrow will become even more burdensome. Experts always advise paying monthly balances in full, but roughly 40% of consumers don't do that. And among this group, the typical balance stands at nearly $17,000. The extra quarter-point's impact is small for now, equaling about $42 per year on that typical balance. [The New York Times]
Two Russian Spies Charged in Massive Yahoo Hack
Russian government spies were behind Yahoo's notorious 2014 security breach, stealing information about more than a half billion online accounts, including those used by U.S. military officials and by employees of firms in banking, finance and transportation. The Justice Department announced the indictments of two officers of Russia's Federal Security Service, known as the FSB, alleging they directed and paid for the illegal collection of information in the U.S. and abroad. It is the first such criminal case to directly target Russia. [The Wall Street Journal]
Obama-Era Prepaid Debit Card Rules Are Now Unlikely To Kick In Until 2018
Obama-era rules targeting prepaid debit cards and mobile payment apps are now unlikely to kick in until 2018, if they survive until then at all. Republicans have signalled their intent to scrap the entire set of rules, which restrict overdraft charges, require fees to be clearly disclosed and introduced fraud protections on two fast-growing sectors of the financial industry. The rules were completed in the final months of the Obama administration, making overturning them a fairly straightforward task for Congress and the President. The Consumer Financial Protection Bureau proposed delaying implementation of the rules until 2018, saying companies need more time. [BuzzFeed]
Here's How Banks Can Offer Credit Cards with Enormous Sign-Up Bonuses and Still Turn a Profit
It's not often that a CEO will announce a $200 million loss with a hint of pride, much less that they'll claim they wish the loss was twice as large. But that's exactly what JPMorgan Chase CEO Jamie Dimon did in January while discussing the impact of the company's insanely popular Chase Sapphire Reserve rewards credit card. They are not the only issuer offering high-rewards credit cards. [Business Insider]
This Start-Up is Building a Bridge Between Banks and Legal Marijuana Sellers
The marijuana industry is picking up as legalization sweeps the country, but there are still some wrinkles to be ironed out. In particular, most banks won't deal with weed businesses, which means they can't take credit cards. That means buyers have to carry cash, and sellers end up with huge amounts of cash on hand. But one company thinks it's found a way to keep both banks and legal weed businesses happy. Tokken is a secure mobile payment option coupled with identification checks that meet banks' stringent requirements. A purchaser agrees to let Tokken verify they can legally purchase weed. That verification may include checking mobile carrier records, gathering bioidentification data used to log into your phone or triangulating who you are based on GPS coordinates. Once your information checks out, you can upload your credit card information to the app. [CNBC]
Capital One Introduces Eno, an SMS Chatbot
Capital One launched a text message-based chatbot named 'Eno' that can help manage your credit card and bank accounts. Eno is "one" spelled backwards. Eno works a lot like Siri or Alexa, only you interact with the assistant via SMS chat instead of just by voice. Also, unlike Siri or Alexa, Eno's only function is to allow users to manage their Capital One bank accounts and credit cards via text message. Eno can check account balances for your Capital. [LowCards.com]
10 States With the Best Business Credit Scores
It's no secret that personal credit scores are a barometer of financial strength. The better your score, the easier (and cheaper) it is to get things like a mortgage or car loan. But, did you know small business owners have a separate business credit score for their company? While personal and business credit scores are both influenced by region, new data from Nav.com reveals other factors, like local policy climate, can impact business credit scores. Business owners with good scores will find it easier to qualify for loans and trade credit with more favorable terms. If you own a business in a northern state, your business credit score is more likely to outshine the rest of the country. [Credit.com]
McDonald's Begins Testing Mobile Order & Pay Ahead of Nationwide Launch
McDonald's began testing mobile ordering and payments on Wednesday in select U.S. markets, the first to receive the technology as part of a pilot test aimed at working out the kinks ahead of a full rollout across the U.S. and to other international markets by year's end. Initially, mobile ordering is available in 29 restaurants in Monterey and Salinas, California, through the company's mobile application. The test will then expand to 51 more restaurants in Spokane, Washington on March 20, McDonald's says. [Tech Crunch]
$14 Million in Virginia Tax Refunds Issued on Debit Cards Unclaimed
More than 100,000 Virginia taxpayers who had their tax refunds issued on prepaid debit cards never used them, leaving $14 million in refunds unclaimed. Virginia issued the prepaid cards from 2013 to 2015, in an effort to save money on paper checks. Taxpayers due refunds had the option of a direct deposit or a prepaid debit card. The program proved unpopular and was discontinued after tax year 2014. Recipients complained the cards were unwieldy and carried hidden fees. 9% of the 1.2 million cards issued were never activated. [Associated Press]
India Wants to Make Credit and Debit Cards Obsolete for Payments
Ever since India invalidated much of its cash, it has been encouraging its citizens to switch to mobile wallets and other epayment solutions. This week, it took another step in pushing its citizens to embark on the cashless payment solutions. The Indian government has launched BharatQR Code to enable people to pay for things they purchase without swiping their plastic cards. Instead, merchants can ask shoppers to scan a QR code and make payments directly from their bank account. The penetration of payment terminals machine remain low in India, with many merchants even complaining about the cost of the device and the high transaction fee. There are about 57.7 million merchants but only 1.5 million digital payment acceptance locations. [Mashable]
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 15.15%, slightly higher than last week's average of 15.00%. Six months ago, the average was 14.64%. One year ago, the average was 14.80%. [LowCards.com]
Provided by LowCards.com
