Mastercard has introduced a new software update that integrates artificial intelligence into its fraud-prediction technology to identify compromised cards faster. By analyzing patterns such as geography, time, and addresses, Mastercard aims to replace potentially compromised cards before they can be used by criminals. The use of AI allows the identification of patterns that go beyond what humans could do through traditional methods, potentially leading to more efficient fraud prevention. Additionally, the technology can be used to identify potentially compromised merchants or payment processors based on patterns in batches of bad cards.
The Consumer Financial Protection Bureau (CFPB) has classified “buy now, pay later” (BNPL) apps in the same category as credit cards to provide consumers with more protections. The move comes as BNPL apps have become increasingly popular, allowing users to make purchases in interest-free installments. However, consumers often face challenges when trying to return items or cancel bookings, as lenders may not always provide support. The new rules introduced by the CFPB will require lenders to investigate disputes and cover refunds, giving BNPL borrowers similar rights and protections as those with traditional credit cards.
Google Pay has introduced a new feature that allows users to see the shopping rewards and savings options available on their saved credit cards at checkout. The feature, currently available on select cards from American Express and Capital One, aims to simplify the checkout process by autofilling credit card details on online stores. Furthermore, Google Pay’s BNPL support is expanding to more websites, offering users the option to pay over multiple installments using third-party financial providers like Affirm or Zip.
A recent survey has shown that lower-income households in the US have higher credit card debt ratios compared to other income brackets. The analysis of consumer finances by the Federal Reserve of St. Louis revealed that more than half of US households had credit card debt in 2022. The study suggests that lower-income households may rely more on credit cards as an emergency fund, as they have less cash and savings than higher-income households. Consequently, credit card debt ratios tend to be higher among lower-income households, highlighting the challenges they face in managing their finances.
Visa has announced significant changes that will allow Americans to access payment options from multiple credit and bank accounts using a single card. The new Visa Flexible Credential will provide customers with a more convenient and streamlined payment experience, eliminating the need to carry multiple credit or debit cards. Additionally, Visa will be expanding tap-to-pay features on mobile devices, allowing consumers to make payments using various devices as point-of-sale terminals. These changes are part of Visa’s efforts to enhance the payment experience and give customers more flexibility in managing their finances.
American Express CEO Steve Squeri discussed the company’s strategy to attract younger consumers, noting that millennials and Generation Z customers accounted for 60% of new card acquisitions in the last quarter. Squeri emphasized the importance of offering high-value cards that appeal to younger clientele, as they have the potential for long-term customer loyalty. The company’s focus on providing valuable benefits for younger cardholders has helped attract a growing customer base. Squeri also highlighted the increased acceptance of American Express cards by merchants, contributing to the company’s success in attracting a younger demographic.
