Industry News
an illustration of a hand stuffing money in a mortarboard

Student loan debt exceeds credit card debt as college costs rise

Americans now owe more for their student loans than their credit card debt. While people are paying down their credit card balances in the aftermath of the financial crisis, college costs continue to rise. Some analysts say less consumer protection for student loans than other types of borrowing is a reason for the trend. Others
A stack of credit card mail offers, with diagrams that highlight the major card issuers and the three major credit bureaus.

Recovery Watch: Credit card mail has increased dramatically

Most people find a mailbox filled with credit card offers unappealing, but look at the bright side: It’s a sign that the squeeze on consumer credit may be loosening. Bankrate reports that the consumer credit industry has experienced a kind of renaissance when it comes to credit card mail offers. The Mintel Comperemedia study found
American Express

American express to issue a new prepaid debit card

American Express will start issuing a new prepaid debit card June 21. The company, previously known for aiming at higher-end, luxury buyers, is staking new ground by targeting the average consumer. Other card-issuers are expected to follow suit. Building on the PASS card Lat year, American Express introduced the PASS prepaid card, designed to help
Mastercard

Anonymous takes MasterCard down | Visa next in Operation Payback

In an attack coordinated on the 4Chan message board, a group that calls itself Anonymous has pulled the MasterCard website down. This denial-of-service attack has been dubbed “Operation Payback.” The Anonymous attack on MasterCard was in response to the card company taking down WikiLeaks donations. Anonymous attack on MasterCard This morning, the MasterCard website was
Credit Cards

Small businesses relying more on credit cards

Contrary to popular belief, there is still credit for small businesses to obtain. Unfortunately, the credit they can obtain isn’t in the form of a business loan from a bank or the Small Business Administration as much anymore.  These days, more small businesses are having to rely on credit cards.  A lot of funding that
A Bank of America ATM machine.

Prepaid benefit cards exploit the unemployed, says study

Prepaid debit cards can work well as a gift, but monthly maintenance fees, withdrawal and ATM fees can take some of the usefulness out of them. According to the National Consumer Law Center, prepaid cards may not be the best way of distributing benefits to more than 13 million unemployed in the U.S., as is
Cutting Shears

Personal loans rise as credit cards fall

During economic recessions, you expect people to tighten their belts and cut down on their use of credit, of any form.  It is certainly true that some tightening has happened, but it isn’t as much as you’d think.  It is instead the case that some forms of consumer credit are being used more, while others
Escalator

Use of open credit loans declines with credit card delinquencies

Americans are paying off debt in greater frequency, as the popularity of open-ended credit loans is declining. The near collapse of the credit market has led to more people questioning the value of debt. More people want their payday cash going to their own pockets, not to banks and loan lenders. Credit card delinquencies decline
Cash

Shoppers favored cash over credit cards on Black Friday

Black Friday shoppers used more cash than credit cards. As the need to keep debt levels down came into sharp focus over the past couple years, Americans have been learning the value of only using their own money. In fact, use of fast cash increased by 50 percent. More using instant cash than credit cards
Picture of a Blackberry Smartphone.

Payments market shakeup: Smartphone credit card processing

Wireless carriers using contactless payment technology for Smartphone credit card processing could give credit card companies a worthy competitor. Wireless heavyweights AT&T, Verizon and T-Mobile are gearing up to face off against credit card heavyweights MasterCard and Visa with a test of a mobile payments system in which consumers make a purchase by holding a
Visa

Credit card delinquencies and debts fall in 2010

Fewer credit card delinquencies are being reported, and the level of credit card debt is declining as well. Data released by credit bureau TransUnion indicates that more people are paying off debt and more credit cards are being issued. Falling delinquencies indicate many people are paying off holiday shopping sprees. 2010 the year of debt relief
reigning in consumer spending

Falling credit card debt hurts economy, helps lending industry

American consumers are steadily paying off their credit card debt. The Federal Reserve reported that U.S. families cut back on credit card use for the 23rd month in a row. Overall consumer borrowing, which includes credit cards and auto loans but not home mortgages, fell at an annual rate of $3.6 billion in July —
Credit Card

Use of credit cards rises for first time in two years

The use of credit cards by consumers has started to rise again after a two-year decline. During the recent recession, fewer consumers have been making as many purchases on credit, and more people have been paying off debts. The credit card industry recently began booming again. Three straight months of increasing use of credit cards
A cell phone with the MasterCard logo on screen.

Smartphone pay has credit, debit cards wobbling on the ropes

Banks and credit card companies have made a great deal of money off consumers who have depended upon them for both impulse and emergency purchases via short term credit. However, there may soon be a way for consumers to escape the wheel of revolving interest debt if AT&T and Verizon Wireless have their way. According
Credit Card Applications

CARD Act could strip stay-at-home partners of financial identity

The CARD Act, passed in 2009, is intended to help protect consumers. Credit-providing companies are disallowed from providing credit to individuals who cannot prove income. One unintended consequence of these new rules is that stay-at-home parents may lose some financial freedom. Requirements of the CARD Act The CARD Act contains several provisions intended to protect
Visa

Interest rates on credit cards hit highest point in 13 years

The interest rates charged on credit cards have recently reached a 13-year high. Since legislation has changed the rules about how interest can be charged, card companies are raising the base rates to make up lost ground. It is working, as credit card companies are also posting high revenues. Legislation leads to higher rates on
credit card company promise

Credit card companies dodge rules by offering professional cards

New credit card rules mandated by the Credit Card Accountability and Responsibility and Disclosure Act of 2009 enacted robust consumer protections. But so-called “professional cards” aren’t covered by the CARD Act. Professional cards are immune from consumer protections such as limits on excessive late fees and surprise interest rate hikes. With billions of dollars in