With the global economy slowing and consumers fleeing the country, it’s not hard to imagine a scenario where home credit card applications are a big draw.
And as more consumers become savvy about using technology to pay for services, some companies are offering their customers a chance to make a little extra cash while also reducing the risk of fraud.
Websites such as Airbnb, Shopify, and Zelle are offering a variety of services and products to help people save money and save time on their credit card purchases.
But for many Americans, these services are more about convenience than convenience.
Many are looking for a way to pay with their phones and other devices.
Airbnb, for example, offers a service that lets travelers book rooms for their guests, which the company describes as “more convenient than waiting in line to book your next Airbnb stay.”
But a recent study conducted by CreditCards.com, an online credit card provider, found that more than half of those who took advantage of the service had their cards rejected by other card issuers.
The problem, says Mike Shafer, CEO of CreditCard.com and a former member of the Consumer Financial Protection Bureau, is that consumers are using technology instead of paying by cash.
And the fact that technology is being used instead of cash is raising questions about whether consumers should be using credit cards at all.
“The reality is that we are getting a lot of calls and emails from people who are using their credit cards for other reasons,” Shafer says.
“They’re using it to pay their bills.
They’re using their phone for other purposes.”
In fact, the study found that most people using credit or debit cards are not using their cards to pay other transactions.
In order to make it more difficult for consumers to find legitimate credit card providers, Shafer said, credit card issuances have introduced new payment processing fees that could increase the cost of credit cards.
“What this study shows is that there is no clear benefit in using credit card technology,” Shafar said.
“It’s the same reason why we’re banning the sale of tobacco in the United States.”
Shafer said the company has also seen a significant increase in fraud.
While the company’s data does not show a specific trend, it does indicate that more and more consumers are turning to mobile apps to make payments.
Shafer says these apps can also help consumers avoid being charged for services they don’t need or services that are not offered by the company.
“There is an opportunity to provide consumers with additional payment options through our products that they might not have previously,” he says.
Shafar also pointed to a recent survey conducted by the Pew Research Center that found nearly two-thirds of people think credit card companies are unfairly targeting consumers who use their cards for things like entertainment and travel.
“This is not a new issue, but it is becoming a bigger issue in the wake of the recession,” Shafi said.