What's New in Credit Cards for 2015?

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What's New in Credit Cards for 2015?

As the economy continues to recover, credit card companies are introducing new products and features to attract and retain customers. Here are some of the latest trends incredit cardsfor 2015 and what they mean for consumers.

Rewards Programs

Rewards programs remain a popular way for credit card issuers to differentiate themselves and incentivize spending. However, the types and terms of rewards are evolving to reflect changing consumer preferences and merchant partnerships. For example, some cards now offer bonus points for online shopping, dining, or travel, while others have rotating categories that change every quarter. Some cards also allow customers to redeem points for statement credits, gift cards, merchandise, or experiences, although the value of the rewards may vary depending on the redemption option. To maximize the benefits ofrewards programs, consumers should compare the costs and benefits of different cards, pay off their balances in full every month, and avoid overspending or carrying a balance.

EMV Technology

EMV, which stands for Europay, MasterCard, and Visa, is a global standard for payment cards that uses embedded microchips instead of magnetic stripes to store and transmit data. EMV technology is designed to reduce fraud and increase security by generating unique codes for each transaction that cannot be easily duplicated or intercepted. In the United States, many merchants and card issuers are adopting EMV technology in response to a liability shift that will take effect in October 2015. This means that merchants who do not accept EMV payments may be liable for fraudulent transactions that could have been prevented by using EMV cards. However, the transition to EMV may also cause some confusion and inconvenience for consumers who are not familiar with the new cards or the different ways of inserting or tapping them at the point of sale. To prepare for the EMV migration, consumers should contact their card issuers to request EMV cards if they don't already have them, learn how to use them, and be patient with any delays or errors during the transition period.

Mobile Payments

Mobile payments, which allow consumers to use their smartphones or other devices to pay for goods and services, are gaining momentum as more merchants and card issuers offer this option. Popular mobile payment platforms include Apple Pay, Android Pay, Samsung Pay, and PayPal. Mobile payments typically use a combination of NFC (near field communication) and tokenization to transmit encrypted data that is unique to each transaction and does not expose the actual card number or other sensitive information. However,mobile paymentsalso raise some concerns about security, privacy, and usability, as well as compatibility with different devices, operating systems, and payment networks. To use mobile payments, consumers need to have compatible devices, install the relevant apps, add their credit or debit cards, and follow the instructions for activating and using the payments. They also need to be aware of the fees, limits, rewards, and protections associated with mobile payments, and monitor their accounts regularly for any unauthorized transactions or errors.

Balance Transfers and 0% APR Offers

Balance transfers, which allow consumers to transfer their existing balances from high-interest credit cards to new cards with lower interest rates or 0% APR (annual percentage rate) offers, are still a popular way for consumers to save money and pay off their debts faster. However, the terms and fees of balance transfer offers can vary widely, and consumers need to read the fine print carefully to avoid surprises or mistakes. Some balance transfer offers may have a limited time frame for the 0% APR, charge a balance transfer fee (usually 3-5% of the amount transferred), or require a minimum monthly payment that may not cover the entire balance. Consumers who usebalance transfersshould also avoid using their old cards, which may accrue more interest and fees, and focus on paying off the transferred balance as soon as possible.

Conclusion

Credit cards are powerful financial tools that can help consumers build credit, earn rewards, and manage their expenses. However, credit cards also carry risks and costs that consumers need to be aware of and avoid. To make the most of credit cards, consumers should shop around for the best deals, read the terms and conditions carefully, use the cards responsibly and strategically, and monitor their accounts regularly. By staying informed and disciplined, consumers can enjoy the benefits of credit cards while minimizing the drawbacks.