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New Year’s credit card strategy

December 28, 2012

The payment industry may be changing, but 2013 will not bring with it the death of credit cards, despite what some insiders have written about mobile and cloud payment trends.

The payment industry may be changing, but 2013 will not bring with it the death of credit cards, despite what some insiders have written about mobile and cloud payment trends. Businesses will likely be adjusting to new merchant services technologies, but at the same time, consumers will still be turning to plastic in cases where cash is not accepted as well as when online shopping and travel booking. As retailers adjust to a variety of payment methods, consumers will be trying to figure out the best ways to secure and manage lines of credit.

Consumers would be wise to choose cards that have low interest rates and offer high credit limits, because maxed out cards damage consumer credit. It may not be the best idea for those worried about credit scores to open store brand credit cards, as these count highly against credit. Retailers may offer rewards like discounts or a promotional gift card, but these deals might not pay off in the long term for consumers. As retailers adjust to new technology, securing consumer data will be a top priority. Both merchants and customers will have to evaluate payment methods this year, and weighing convenience against rewards will be crucial as the year unfolds.

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