Credit Cards in the News: May 17-23, 2014

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Credit card news pops up every week and it’s not always easy to keep track of each story, especially all the stories about fraud. That’s why we provide you with a summary of the top stories on the blog at CompareCards.com so you can read what matters the most and not worry about all the other stuff. Here are the highlights for May 17-23, 2014.

Attorney General Asks EBay for Credit-Monitoring Services

The New York Attorney General, Eric Schneiderman, recently asked EBay, Inc. to provide free credit-monitoring services. The services would be for customers who were affected by the security breach at the online site. On Wednesday, the company reported a breach that had occurred from late February to early March that exposed a database containing encrypted passwords and personal information; however, credit card numbers appeared to be safe. Read more...

Walmart is Beefing up Credit Card Security

The largest retailer in the United States is asking for additional information at the check-out on purchases that reach a certain purchase threshold. Several credit card issuers are already on board with the policy to require customers to enter their 3-digit security code located on the back of their credit card. This comes as an attempt to help stop credit card fraud because thieves don't traditionally steal that 3-digit number, just the card holder's name, card number, pin or password, and expiration date. Read more...

CFPB Report Confirms the Worst Non-Banking Entities

A new report by the CFPB provided insight into some faulty, sometimes illegal lending practices, particularly related to non-banking entities. To no surprise, the report focused on the questionable activities of payday lenders and debt collectors. The CFPB report found that payday lenders are often deceiving consumers with threats and added fees, while many debt collection agencies are intentionally violating the Fair Debt Collection Practices Act. Read more...

Reported Medical Debt Found to Over Penalize Consumers

A new study released by the CFPB found that medical debt not only affects all consumers' credit scores, as we already knew, but that it seems to be over penalizing when it's sent to collections. Current credit scoring models are underestimating the creditworthiness of consumers who owe and pay back medical debt in collections. More than half of the accounts in collections are from medical debt. The biggest cause for medical collections was due to consumers' being unaware that a medical bill even existed, let alone that it was sent to a collection agency. Read more...

Groupon Expands Its Payments Business

Groupon has announced expanding its payments business through a new service called Gnome. The service allows local business merchants to identify customers with Groupon coupons and enables them to process these coupons without a printed or digital voucher. Instead, they will be able to redeem coupons via Bluetooth. Gnome will also allow merchants to accept credit-card payments, all through the use of Apple's iPad mini. Groupon charges merchants a small monthly fee for the tablet plus an additional transaction fee. The credit-card processing service is sponsored through Wells Fargo & Co. Read more...

How to Choose a Credit Card With Airport Lounge Access

Choosing the right credit card can be confusing with all the different features, fees, interest, and rewards you have to consider. Travel rewards expert Jason Steele weighs in on what you should look for when selecting your next airport club-access credit card. You should consider things like if you will be traveling with guests and if you’re interested in additional travel benefits. Read more…

Two Canadian Banks Bring in Record Profits

Two of Canada's largest lenders beat analysts' estimates on gains from consumer banking and wealth management. Toronto-Dominion Bank (TD) and Royal Bank of Canada (RY) profits rose 15% and 16% respectively, in the second quarter. For six years now the World Economic Forum has ranked Canada's banks as the "world's soundest" banks. Given this accolade, it is not surprising that the Bank of Canada is looking to expand in the U.S. Read more...

U.S. Sanctions Benefit Russian Tech Companies

After U.S. President Barak Obama sanctioned three Russian banks, banning U.S. companies such as Visa and MasterCard from doing business with them, Russia has begun to shore up its own card system. Russia's president has been urging legislators to "approve a law that would create a national payment-card system". Telecom Billionaire Vladimir Evtushenkov is poised to receive the bulk of these domestic payment card orders, and the demand is estimated by experts to grow by at least 10 percent. The impact this has on American credit-card companies remains to be seen. Read more...

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