Credit

A 17-year-old McDonald’s employee on Jan. 9 was sentenced to 60 days in jail for skimming credit cards at the drive-thru window to steal more than $13,000 from cardholders. He also was ordered to pay $13,000 restitution.

The sluggish market for credit card portfolios may pick up this year, if card losses continue to abate and potential buyers stay on the path of rebuilding capital.

The number of companies caught in data breaches exposing consumers’ credit, debit and bank account numbers is growing, but the best way to make amends to customers is not yet clear.

Consumers have long memories when it comes to a loss of trust in a bank or card company from a data breach. The damage from a spate of high-profile consumer data breaches over the past year appeared to bruise trust in several major brands, including that of Citigroup Inc.

The Members Group and Co-op Financial Services have entered into a strategic partnership to create the largest payment-services provider for credit unions, the companies announced Jan. 5.

Visa Inc. says it plans to convert $1.6 billion of the shares that it holds on behalf of credit unions and banks to help fund a potential $4 billion settlement with merchants over a civil price-fixing suit.

Two polls suggest consumers might be planning to lean more on credit cards again after overindulging in card use before the recession. And though the economy remains relatively sluggish, fewer Americans seem worried about their personal debt.

QNB Ltd., formerly known as Qatar National Bank, has launched a promotional campaign to garner more holders of a credit card it cobrands with mobile operator Qtel Ltd., the card issuer announced Dec. 27.

Consumers are paying down their debts across an increasing number of loan categories, according to the American Bankers Association.

Young consumers are so turned off by the prospect of overdraft and debit card fees that some are turning their backs on financial institutions.

Payment innovation quickened its pace from technology to strategic partnerships last year, setting the stage for some dominant trends in 2012.

QNB Ltd., formerly known as Qatar National Bank, has launched a promotional campaign to garner more holders of a credit card it cobrands with mobile operator Qtel Ltd., the card issuer announced Dec. 27.

Shifting business-to-business payments from paper invoices to commercial cards streamlines certain processes, but many companies still cling to time-sapping policies requiring managers to check each transaction manually looking for mistakes and abuse.

Citigroup Inc.'s new Facebook application moves the ball forward for banks that want to combine social media with banking activity, but it also raises concerns about privacy and security of consumer data.

Justice Department lawyers say a former government informant convicted of hacking into TJX and more than a dozen other leading retailers was never authorized by the U.S. Secret Service, which was employing him as an undercover informant, to steal data on more than 150 million credit card accounts.

Consumers might be warming up a bit to using credit cards again after overindulging in card use during the recession, a new poll suggests.

The economy may be crawling back to normal in some sectors, but credit card industry revenue continues to fall, according to one longtime observer.

South Korean credit cardholders face a use-it-or-lose-it proposition under a proposal designed to scale back the country’s debt problems.

Credit card issuers failing to promote recurring-payments options appear to be missing a significant opportunity to establish a fixed source of revenue and a means to reduce charge-offs.

Which has their heads in the clouds? Merchants and consumers who fear a lack of data security in a cloud-based payment system? Or the vendors selling the systems that assure they are safer than centralized security platforms?