Payments | Credit Card Topics

What is a Credit Card Processor? A Guide to the Networks That Power Transactions

By: Eric Bank, 11/19/2024

I figure it’s one of those things most folks don’t give a second thought to — how credit cards really work. You swipe it, wait a tick, and bam! Transaction approved. Truth be told, there’s a whole lot going on behind the curtains that you probably don’t know anything about — including credit card processors. A credit card processor is the intermediary that handles and routes payment information between your bank, the merchant, and the card network to complete a... read more »

What is an Outstanding Balance? A Guide to What You Owe on Your Credit Card

By: Eric Bank, 10/8/2024

When I was young, I always thought outstanding only meant something great — like my mom’s famous meatloaf surprise. You know, the best. But it wasn’t until I got into the wonderful world of finance that I realized it had a meaning that wasn’t as fantastic as my mom’s meatloaf. In the world of credit cards, an outstanding balance is the amount of money you owe, including what you spend on purchases, balance transfers, and cash advances, plus all the interest and fees. To... read more »

What is a Minimum Payment on a Credit Card?

By: Eric Bank, 10/3/2024

I wouldn’t advise only making minimum payments on your credit cards, but it can make sense in certain situations. Most of the time, you’ll want to steer clear of minimum payments because they lead to interest charges and debt piling up fast. But if you are in a financial pinch or using the snowball or avalanche methods (don’t worry, I’ll cover them later), making minimum payments could actually be helpful. A minimum payment is the least amount you must pay by the due date to... read more »

What Are Contactless Payments? A Guide to Convenient and Secure Transactions

By: Eric Bank, 8/14/2024

If there’s one thing credit companies are great at, it’s making it easier for you to spend money. Whenever I tap my credit card to make a payment at the grocery store, all I think about is how simple that was, not the hundreds of dollars I just dropped on weekly necessities — except for that Milky Way candy bar. Tapping your credit card to pay is a form of contactless payment, which means you don’t have to insert your card or enter a personal identification number... read more »

What is the Credit Card Competition Act of 2023?

By: Marcie Geffner, 6/24/2024

The Credit Card Competition Act (CCCA) is a proposed federal law that would change the way most credit card transactions are processed in the U.S. Currently, almost all transactions can be processed on only one card network. Visa card transactions are processed only via the Visa network; Mastercard card transactions are processed only via the Mastercard network; American Express cards are processed only via the American Express network, and Discover card transactions are processed... read more »

Buy Now, Pay Later: More than 1 in 4 Americans Currently Using BNPL Services

By: Jon McDonald, 5/21/2024

The growing popularity of Buy Now, Pay Later (BNPL) services has revolutionized online shopping. BNPL allows consumers to split the cost of a purchase into smaller installments, typically interest-free, and pay it off over a set period. While many appreciate the budgeting benefits and convenience, a sizable number also worry about the potential financial risks. We surveyed 1,000 American consumers to better understand how Americans are using BNPL services, current purchase and... read more »

Credit Cards vs. BNPL Services: What to Know in 2024

By: Erica Sandberg, 2/12/2024

Payment options for consumer goods and services abound. Credit cards are most common. According to data collected by the Federal Reserve, roughly 69% of Americans had such an account in the second quarter of 2023. But buy now, pay later (BNPL) plans are also becoming popular. A Morning Consult survey found that 1 in 5 U.S. adults said they made a purchase with one of these short-term loans in August 2023. So should you use a credit card or a BNPL to get what you want?... read more »

25 Fascinating Credit Card vs. Cash Spending Statistics (2024)

By: Andrew Allen, 12/5/2024

Consumers have plenty of options when it comes to paying for transactions. Cash and credit cards are two of the most popular methods of payment, and both of them come with their share of benefits. Whether you reach for a stack of bills or whip out your credit card to complete a transaction often depends on your personal preferences and which option is most convenient for that particular purchase. Or maybe you reach for something else altogether. Advances in technology have... read more »

25 Shocking Credit Card Processing Statistics (2024)

By: Erica Sandberg, 11/27/2023

When you use your credit card to pay for purchases online or in a store, or to transfer and receive money, a sort of technical magic takes place. A lot is happening on the backend to make sure those transactions are seamless, accurate, and fast. You will not generally notice the processing fees because they are often embedded in the cost of doing business. Sometimes, however, the merchant directly passes those costs onto the consumer. Here are 25 credit card... read more »

What Happens If You Miss a Credit Card Payment?

By: John Ulzheimer, 6/5/2023

One of the cardinal rules of having a credit card is to always pay your bill on time, if not earlier than the due date. If you miss your due date by even a single day, bad things can start to happen. And they get worse the later your card issuer receives your payment. But there are also some misconceptions about how missing a credit card payment may impact your credit history and credit scores. In truth, there’s a small window after the due date that gives you the... read more »

5 Bank of America Contactless Credit Cards (Dec. 2024)

By: Eric Bank, 12/2/2024

Bank of America offers a wide variety of credit cards to suit different needs, credit score categories (i.e., from excellent to bad credit), and lifestyles, and all are contactless. That’s important because using contactless cards significantly reduces fraud costs for banks, financial institutions, and consumers. According to a report by Visa, the adoption of contactless cards in Europe led to a 30% reduction in fraud compared with the incidence of fraud using traditional... read more »

How to Pay Bills With a Credit Card (2023)

By: Andrea Woroch, 4/10/2023

Credit cards offer many perks to consumers these days, including robust reward programs, purchase protection, exclusive retail discounts, and free travel insurance, to name a few. The most notable is the ease of payment these plastic cards offer, especially when making reservations online or booking travel. It may come as no surprise that 83% of Americans own at least one credit card. Among the most common items to charge on a credit card are daily expenses such as groceries and... read more »

Can I Change Missed Payments on My Credit Reports?

By: John Ulzheimer, 11/15/2023

There are many details that go into the calculation of your credit scores. But nothing is more important from a credit scoring standpoint than your payment history. Making or missing payments can make or break your credit scores. Case in point, your payment history accounts for 35% of your FICO credit scores. Payment history is worth 40-41% of your VantageScore credit scores, depending on the VantageScore version (3.0 or 4.0) used. So when a late payment or late payments... read more »

6 Ways to Pay Student Loans With a Credit Card (Dec. 2024)

By: Erica Sandberg, 12/2/2024

If you have significant student loan debt, you’re in good company. According to EducationData.org’s 2023 report, the average federal student loan borrower owes $37,574, and the private student loan borrower is hanging on to $54,921. Because the payments for these obligations can be tough to manage, you may be wondering if you can charge them. In some cases, yes. Although the U.S. Department of the Treasury doesn’t permit federal student loan lenders to accept credit cards,... read more »

Clearing The Confusion About Buy Now, Pay Later & Credit Reporting

By: John Ulzheimer, 1/24/2022

In late 2021, Equifax issued a press release indicating it would be the first of the credit bureaus to allow Buy Now, Pay Later accounts to be added to its credit reports. That set off a flurry of articles by bloggers and reputable websites seeking to capitalize on the news regarding this relatively new method of payment. Unfortunately, many of the articles published before and after the Equifax release contain factual errors and assumptions about Buy Now, Pay Later and their... read more »

How to Pay Your Credit Card Bill in 2024

By: Erica Sandberg, 12/13/2022

After using your credit card to make a purchase or to withdraw cash, you will need to make at least the minimum requested payment in about 30 days to keep the account in good standing. The fastest way to pay your bill is online or in person. You won't have to wait on the phone and go through the recorded prompts or speak to a customer service agent, both of which can take a long time. Payment Information For Every Major Card Issuer You have several payment options... read more »

Comparing Buy Now Pay Later Services vs. Credit Cards

By: Marcie Geffner, 9/20/2021

Buy Now Pay Later (BNPL) sounds simple: You get what you want now. You pay for it later. Great! Right? Well, maybe. The answer isn't as simple as the concept. If you're thinking about using a BNPL service — or maybe you already have -- you may have some questions. And we have the answers. What Is BNPL? BNPL is a short-term financing arrangement that allows you to split a purchase price into multiple payments known as installments. The first installment is typically due... read more »

Hardship Accommodations By Credit Card Issuer in 2024

By: Erica Sandberg, 8/23/2021

There may come a time when you can’t manage even the minimum monthly payment for your credit card account. After exploring different methods to keep the account in good standing, you may still come up short. In that case, contacting the issuer to ask for assistance is the best course of action. A modification of the terms of the agreement may be available. Here is what each of the major U.S. credit card issuers recommends you do when experiencing financial hardship and... read more »

Credit Card & Electronic Payment Processors by Market Share

By: Erica Sandberg, 11/28/2023

You probably don't think about how your credit or debit card transactions are completed. You just swipe, tap, or wave your card at point-of-sale terminals, or submit the account information to an e-commerce website to make a purchase. After that, the retailer supplies you with the item or service -- and you either get the bill or the money is deducted from your checking account. But there is a lot going on behind the scenes during these transactions. Enter the card processor. These... read more »

9 Strategies for Managing Bill Payments During the Coronavirus Pandemic

By: Andrea Woroch, 10/22/2021

The coronavirus lockdown has flipped our world upside down. In addition to the health threat this virus poses, people are also suffering financially with millions losing their jobs or experiencing reduced hours and cut wages. In fact, a recent online poll from Fortune and SurveyMonkey found that 63% of U.S. consumers are worried they won't have enough money to pay their monthly bills. Managing your budget in the wake of this pandemic comes down to planning. Mapping out which bills to... read more »

What if I Can’t Make My Credit Card Payment?

By: Marcie Geffner, 4/20/2020

If you're worried about making your credit card payment this month, you're not alone. With the U.S. economy in a steep downturn and applications for unemployment benefits spiking, many people who can usually pay their bills without difficulty are struggling. Though you won't be able to pay your card with another card, you can take other steps to manage your situation. Here are four to consider: 1. Take Advantage of Your Card’s Grace Period If you usually make your payment as... read more »

Can You Pay Rent with a Credit Card?

By: Erica Sandberg, 11/28/2023

The traditional way to pay rent is with a paper check that you mail to your landlord, and the money is withdrawn directly from your checking account. However, in some circumstances, you can pay rent with a credit card instead. There are pros and cons to charging such an important recurring expense. Prior to pursuing this option, learn what they are -- and proceed prudently. Yes, But Not All Landlords Will Accept Credit Cards Merchants have to pay interchange fees when accepting credit... read more »

7 Best Credit Cards for Tax Payments (2024)

By: Eric Bank, 1/26/2024

Sometimes, tax payments are due, but the cash isn’t there. Even if you have the cash, you may want to use one of the best credit cards for tax payments to reap a signup bonus. On the other hand, if you need an extended period to pay, you can choose a card with 0% financing. In either case, you’ll need a new credit card to grab the introductory perks. Read on to discover the nine best credit cards for tax payments -- one or more may suit you perfectly. Overall | Signup Bonus | 0%... read more »

7 Best Contactless Credit Cards (Dec. 2024)

By: Anna Baluch, 12/2/2024

Imagine you’ve just arrived at your favorite coffee shop on a Monday morning. The line is long and you wish there was a way for you to speed up the purchase process so you’re not late for work. With a contactless credit card, you may be able to do just that. You won’t have to insert it into the card reader and wait for the approval. Instead, you can simply tap it at the terminal and complete your coffee purchase in mere seconds. So, where can you find contactless credit cards?... read more »

Can You Pay a Credit Card with a Credit Card? 3 Ways Explained (Dec. 2024)

By: Brittney Mayer, 12/2/2024

Perhaps your credit card bills are beginning to pile up, and staying ahead of the payments each month is becoming a struggle. You may be wondering, "Can you pay a credit card with a credit card?" Keep reading to learn more about this common quandary. Whenever a member of my social group starts thinking about getting their first tattoo, they turn to Alan, our group's resident expert with over two dozen of his own. Alan, well used to such queries, always gives the same advice: Be... read more »

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All articles tagged Payments (27)