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Credit cards : the year in review

December 26, 2012

The payment industry has gone through major changes in 2012 that will have ramifications in the new year and beyond.

 

The payment industry has gone through major changes in 2012 that will have ramifications in the new year and beyond. New oversight and regulations from federal agencies are imminent, and with a recent settlement, lending practices may soon be changing, meaning that fewer individuals might be approved to swipe new plastic cards at the credit card terminal. A variety of mobile payment options have shaken up the industry in some ways, and for some, may be replacing credit cards in the coming years.

Although credit cards will not disappear, there is greater competition, and with economic instability caused by the fiscal cliff on the horizon, many Americans might be saving more and spending directly from bank accounts as opposed to credit lines. Those that do are set to have stronger protection from the Consumer Financial Protection Bureau (CFTB), which will begin oversight of lenders and collectors, ensuring that consumer information is used fairly and securely. Security will also be a big issue for credit card companies upgrading to mobile payments or cloud computing, and all possible network failures and data encryption standards should be implemented for better merchant fraud protection measures.

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