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CBS News
23-07-2025
- Business
- CBS News
What's the minimum payment on a $2,000 credit card balance?
Carrying a balance on your credit card is far from unusual these days. With prices climbing due to sticky (and rising) inflation, more people are leaning on plastic to cover everything from their everyday expenses, like groceries and rent, to their unexpected bills. That, in turn, has made it more difficult for many cardholders to get rid of any credit card debt they have, and today's nearly 22% average credit card rates are only compounding the issue. But if you're feeling the financial pressure from carrying a credit card balance in today's high-rate, inflationary landscape —let's say $2,000 in this case — and wondering how much you absolutely have to pay this month to stay current, the answer might surprise you. Your credit card minimum payments are designed to keep your account in good standing, but they're not necessarily your ticket to becoming debt-free anytime soon. So, what exactly is the minimum payment on a $2,000 credit card balance right now, and what should you know before making that payment? That's what we'll examine below. Find out what credit card debt relief options are available to you today. Credit card issuers use different formulas to determine your minimum payment each month. While the calculation methods vary slightly from one company to the next, they all share one thing in common: They're designed to keep your account in good standing while ensuring the lender earns interest. Here are the most common ways credit card minimums are calculated: To better understand how these calculations work, let's crunch the numbers for a $2,000 balance at an APR of 22%. Flat percentage of your balance (2%): Percentage plus interest and fees (1% + interest): Flat dollar minimum ($35) Many issuers set a floor for minimum payments. With a $2,000 balance, you'd likely pay more than $35 because the percentage-based formulas apply to higher balances. Interest-only minimum Learn how to get rid of your credit card debt for less now. Making only the minimum payment each month might feel like it's giving you some financial breathing room, but it's an expensive habit to fall into. Credit card interest compounds, meaning that over time, both your principal balance and the interest charges accrue more interest, so the longer you carry a balance, the more in total interest you rack up. On the other hand, adding even a little extra to your payment each month can shave years off your repayment timeline. The more principal you pay down early, the less interest you'll owe in the long run. Paying more than the minimum isn't always feasible, though. If you're struggling to pay more but want to get rid of your debt, you may want to consider these debt relief strategies: The minimum payment on a $2,000 credit card balance might be as low as about $40 to $60, depending on your issuer. But while paying that amount keeps you in good standing, it's not a strategy for getting out of debt quickly or cheaply. To avoid years of payments and high interest, aim to pay as much above the minimum as you can. And if your balance feels overwhelming, explore your debt relief options to regain control before your debt situation worsens.
Yahoo
17-07-2025
- Business
- Yahoo
Can a merchant store my credit card details without permission?
Key takeaways Storing your credit card information makes it easier for merchants to facilitate future and recurring transactions. For data security or consumer privacy purposes, however, you may not want merchants to retain your credit card details. State laws, card industry security standards, FTC guidance and other regulations all influence how and when merchants are allowed to store your card details. If you shop frequently at particular merchants with your top credit cards, you might find that allowing them to store your card information can streamline your transactions at checkout. And if you have recurring charges — like those for streaming or subscriptions — allowing for the storing of your card details helps merchants to automatically bill you each month without asking for your card information each time. That's well and good — especially when you've consented to storing your data. But can a retailer store your credit card details without permission? Can companies keep your credit card details on file without permission? The short answer is no. While there is no rule that governs how or when issuers can store your card information, many states have laws on the books to deal with credit card fraud, which fall under the umbrella of financial transaction card fraud. Laws like one passed in Georgia explicitly bar merchants from using your card without your permission or authorization. This means companies can only keep your credit card details on file and use it for transactions with your consent. Security standards for merchants The type of credit card information that merchants are allowed to store after consent is given is dictated by the Payment Care Industry Security Standards Council (PCI SSC), an organization founded the by credit card issuers and networks American Express, Discover, JCB International, Mastercard and Visa. The PCI SSC sets security standards for merchants that transmit, process or store payment card account information and provides best practices that merchants are required to comply with. Its purpose, as noted on page 8 of its Quick Reference Guide, is to 'encourage and enhance payment account data security and facilitate the broad adoption of consistent data security measures globally.' Some of its best practices for storing and transmitting card data include: Pin transaction security Software security Point-to-point encryption Mobile security standards Compliance with the PCI Data Security Standard (PCI DSS) requires merchants to limit storing and retaining customer names, card account numbers and expiration dates only for the time required for business or legal purposes. And it explicitly frowns on merchants storing, for example, a card verification value (CVV) or personal identification number (PIN). By following these standards after you've given consent to store or use your credit card information, merchants protect your privacy and can help combat identity theft and fraud. You can opt out of automatic online card storing As you shop online, you've likely received a prompt from the site asking if you would like to save your card information to make it easier to shop in the future. It's one way for merchants to lure you back for future purchases. However, you shouldn't need to allow the retailer to store your card information to continue your purchase. Rather, most retailers allow you to check out as a guest, completing the transaction without allowing the site to retain your card details. If that isn't an option, a workaround is to provide your card information to complete the transaction and then edit your payment options after it's complete to remove that information. Learn more: Is it safe to give an app my credit card information? Federal Trade Commission weighs in The Federal Trade Commission (FTC) agrees that merchants shouldn't collect information they don't need, further advising that, if a merchant does collect card information, it's in their interest to hold on to it only as long as there is a real business need to do so. This means that, while a retailer needs your card information to process a transaction, it shouldn't store it if the merchant doesn't anticipate future transactions. And once a business decides that it must store your card details, the FTC requires it to safeguard this sensitive information adequately, including from employees that don't have any business with your information. The bottom line Merchants will typically ask you for permission before storing your card information to avoid running afoul of laws, and it's common for online sites to ask to store your information to facilitate future transactions or to enable recurring charges. But if there's no legitimate business need, stringent industry data storage laws advise there's no incentive for a merchant to store your card information.
Yahoo
09-07-2025
- Business
- Yahoo
Yahoo Finance Best Credit Cards 2025: Our methodologies
Best cash-back credit card Best travel credit card Best rewards credit card Best 0% APR credit card Best balance transfer credit card Best student credit card Best secured credit card Best business credit card Best airline credit card Best grocery credit card Our best credit card award winners are based on a series of rubrics developed by our credit card experts. For each category (business, travel, balance transfer, etc.), we created these unique rubrics to rate eligible cards according to their benefits, fees, and other factors. While we did not rate every possible card from every credit card company, we did research dozens of credit cards available from every major credit card issuer today. In addition to category-specific criteria, we evaluated standard details for every card rating — including fraud monitoring, mobile app experience, and issuer accessibility. The information we used comes from a combination of credit card issuer websites, cardholder agreements, and our own data collection from issuers. Finally, we allowed some room for subjectivity in our ratings from our team of credit card experts. Read more about the specific rubrics for each award category below. Our best cash-back card pick began with a list of nearly 40 cards offering cash-back rewards today. We wanted to focus on general cash back for a broad range of users, so we did not include co-branded retail cards or business cash-back cards in our analysis. One of the most important factors in our best cash-back card choice is the actual amount of cash back cardholders can earn each year. We used Consumer Expenditure data from the Bureau of Labor Statistics to compare the average American household's spending to each card's potential rewards earnings. We focused only on categories that make sense for credit card spending, which included food at home, food away from home, gasoline, entertainment, and more. We also included all eligible non-category spending at 1%, so each card's 'potential annual cash back' is based on the same overall spending total. Potential cash-back earnings make up a big portion of our rubric, but we also looked at annual fees, introductory 0% APR offers, interest rates, welcome offers, annual benefits, and any foreign transaction fees. Finally, we awarded (or in some cases took away) additional points based on the editorial discretion of our credit card experts. Our top cash-back credit card scored the highest on our rubric, while also earning a competitive amount of annual cash back rewards based on average annual spending data. We began our search for the best travel card with a list of 70 credit cards that offer travel rewards and benefits. This list includes general travel cards with flexible rewards programs, as well as co-branded hotel and airline cards that earn points and miles within a specific program. Our best travel credit card rubric focuses on cards that offer a solid value to a broad range of travelers without a significant annual cost. Welcome offers played a strong role in our overall rating; we looked at the value of the bonus, how much you must spend to qualify for it, and the ratio of the welcome bonus to the card's annual fee. This helped quantify the direct value of the card (at least in the first year) to how much it costs. Rewards and ongoing benefits are the other major factors for travel cards. Cards with a wide range of rewards categories spanning both travel and everyday spending received the highest ratings. We looked for flexible redemptions too, prioritizing cards with multiple ways to redeem rewards. Finally, we compared travel benefits like annual statement credits, airline status, award nights, and companion passes that can help a travel card maintain its value over time. More factors include annual fees, APRs, foreign transaction fees, and issuer-specific criteria we evaluate for every type of card. Our best travel credit card pick is the highest-rated card on our rubric. Among our card experts, it is the top choice for our focus on travel flexibility and affordability for any type of traveler. To find the best rewards credit cards available today, we compiled a list of nearly 40 cards from major issuers that earn any type of reward on spending: cash back, points, or miles. While we included any type of rewards currency, we did limit this list to general, flexible rewards cards. We did not include credit cards for small business owners, co-branded travel credit cards, secured cards, or student credit cards. This allowed us to focus on the most valuable rewards options for the broadest range of cardholders. We compared both how you earn rewards and how you redeem them. This meant prioritizing flexibility from cards with multiple bonus categories and different redemption options. A rewards card's ongoing annual benefits and welcome bonus offer can play a big part in its overall value, so these factors were a major part of our rubric as well. We also compared annual fees, interest rates, introductory 0% APR offers, foreign transaction fee charges, and more. Our top rewards credit card pick is the top-rated card within this rubric. But our choices are also based on editorial discretion from our card experts. Our best rewards credit card is the option we believe offers both maximum rewards value for new cardholders and maintains that value over the long term. To find the best 0% APR cards today, we started with a list of all cards from major credit card issuers that offer an introductory 0% APR, which was nearly 30 eligible credit cards. For the best 0% APR credit card, the most important factor was, of course, the introductory 0% APR offer. Our primary focus was the length of each card's introductory period. Beyond the intro period, we also gave preference to 0% APR cards with rewards. A common use for 0% APR periods is to pay off a large purchase without interest over time, so we looked for cards where that large purchase could also help you save with rewards. Ongoing rewards can also be useful for maintaining long-term value after the intro period ends. Other details include annual fees, ongoing APRs, whether the card also has a balance transfer offer, credit score access, and more. The overall best 0% APR credit card has the highest rating within our rubric, and is our team of experts' qualitative pick for its overall affordability, long-term value, and useful introductory period. Our search for the best balance transfer card started by compiling more than two dozen credit cards from major issuers with balance transfer offers available today. The cards we looked at are widely available for American consumers (with the credit to qualify), no matter where you're located, what institution you bank with, or which issuer you already have a balance with. First, we analyzed the details of each card's balance transfer offer. This included the length of the balance transfer period, balance transfer fees, and whether the card also offers a 0% APR for new purchases. Like our top 0% APR picks, we prioritized great balance transfer cards that also have long-term rewards value, even after the initial intro period ends. Other details we compared include ongoing APRs, any annual fees, credit score access, and more. Our best balance transfer credit card pick is the top-rated card under our balance transfer rubric. It has a solid combination of a long introductory period and ongoing rewards value — helping new cardholders pay down existing debt while building good habits that can help them earn rewards without overspending in the future. We kept our search for the best student credit card simple by only evaluating credit cards designed for students. While students may also be able to qualify for secured credit cards, retail credit cards, and other credit-building card options, we wanted to find the best option specifically for college students. This narrowed our focus to an initial list of around 15 student credit cards available today, which we rated based on how much value they offer student credit cardholders looking to build a solid credit foundation. One of the biggest goals for student credit cards is to help cardholders build credit while they're in school. Some of the most important factors in our rubric include reporting activity to credit bureaus, credit score access for cardholders, and potential credit-building incentives. Second to credit-building is the opportunity for students to earn rewards and get perks for their spending, so we also compared rewards potential and welcome offers. More factors include annual fees, introductory 0% APR offers, interest rates, and the option to upgrade to a non-student credit card after graduation. The winning student credit card is the highest-scoring option under this rubric. It has a valuable combination of credit-building opportunities and rewards value for students who want to save money and secure a great credit score for the future. We researched credit cards from major credit card companies, credit unions, and other lenders, to find the best secured credit cards. In total, we compared 25 secured credit cards for those looking to build credit. Secured credit cards are unique because they require a security deposit to open. For all the secured cards on our list, we looked at the minimum required deposit, the maximum possible deposit a new cardholder can put down, and whether deposits are refundable. Because secured cards are also often used to build credit, we also considered factors like whether the issuer reports to credit bureaus, credit score access, and whether there is an option to upgrade to an unsecured card with responsible use over time. More details include any annual fees, ongoing APRs, and whether a card offers rewards or a welcome bonus. The best secured credit card winner is both among the top scorers under our rubric and our overall editorial pick. This secured credit card is our top pick for its use as a credit-building tool and for the savings it can offer on your spending today. We researched nearly all available business card options from major card issuers to find the best business credit cards. Our full list was made up of 50 business cards for different types of small business owners — from cash-back cards to premium travel cards and co-branded airline, hotel, and retail options. Every business is different, so this wide range of cards allowed us to compare and find options for multiple different budgets and types of spending. There's no shortage of different types of business cards tailored for frequent business travelers, brick-and-mortar entrepreneurs, online freelancers, and everyone in between. With this in mind, we kept our criteria for rating business credit cards relatively broad. This included annual fees, ongoing APRs, introductory 0% APR offers, welcome bonus offers and their spending requirements, rewards, and more. We also included a category for employee cards, which can help add flexibility for your business spending. Our best business credit card winner is the top-rated card in our rubric that we believe offers the most value for a broad range of business owners, annual budgets, and regular purchase categories. We researched co-branded airline credit cards from major card issuers to find the best airline credit cards. Our list includes airline credit cards that earn rewards under an airline's loyalty program (United MileagePlus, Delta SkyMiles, Southwest Rapid Rewards, etc.). For our overall list of best airline cards, we did include general travel cards, which often offer benefits for air travel or transfers to airline programs. However, we focused on co-branded airline cards for this best airline card pick. We also only evaluated personal credit cards, and did not include business credit cards in this category. Each airline offers different tiers of rewards cards — from no annual fee options to premium rewards for frequent flyers. Our rubric is designed to find the most valuable option while still accounting for the card cost. We looked at a range of factors that can help cardholders save money on travel, including rewards categories, annual benefits, foreign transaction fees, and more. We also gave a preference to solid welcome offers, with points for not only the overall value but the spending amount required to earn the welcome bonus and how that bonus compares to the annual fee. Other details included annual fees, ongoing APRs, and any introductory 0% APR offers. Our best airline credit card winner is the top-rated credit card within this rubric, and offers the best ongoing value for a range of travelers — whether you fly a few times per year or very frequently. But keep in mind: Co-branded credit cards can be even more subjective than other types of cards. If you already have a preferred airline or you live near a hub, make sure you compare multiple options to find the best airline cards for your specific travel plans. We researched all available rewards credit cards from major issuers to find the best grocery credit cards. Our list only includes cards that earn rewards, such as cash back, points, or miles. We evaluated nearly three dozen different credit cards to compile our list. We created a rubric to determine the rating of each credit card on our list, including factors such as APR, annual fee, welcome bonus, and more. We also included each card's annual grocery rewards potential based on average American home food expenditures according to data from the Bureau of Labor Statistics. We chose our overall winner based on its high rubric rating and our own experience and research. Our winner provides top-quality earnings on groceries and other types of everyday purchases. It's also a low-cost option with a generous welcome bonus and introductory APR offer.
Bloomberg
24-06-2025
- Business
- Bloomberg
Europe Bond Sales Are Piling Up in Sign It's Business as Usual
A ceasefire between Israel and Iran — although tentative and possibly fleeting — drew the biggest rush of borrowers in two weeks into Europe's primary bond market. As many as 19 issuers are looking to raise at least €10.3 billion ($11.9 billion), with the biggest deal a three-part offering from oil and gas giant TotalEnergies SE, according to data compiled by Bloomberg. Many jumped into action having not even publicly announced the sales beforehand.
Yahoo
17-06-2025
- Business
- Yahoo
Issuers must take urgent action against fraud as chargebacks escalate
Recent data shows that issuers and merchants are struggling with rising chargeback abuse. With all indicators pointing to the already considerable problem growing by a further 24% by 2028, financial institutions (FIs) must act or risk losing both customers and profits. According to the Mastercard's 2025 State of Chargebacks report, abuse of chargebacks is a rapidly growing problem, with both merchants and FIs taking a significant hit. And things are about to get worse. Worldwide, issuers and merchants have seen a 10% increase in chargeback volume in the past year. This rise has been driven by a rapid growth in digitization as consumers lean into the convenience of e-commerce. In addition, the ease of disputing transactions at the click of a button has seen FIs in both the US and UK experiencing a 30% to 40% increase in consumer dispute volumes via their digital channels. In fact, the report suggests that over the next five years, global chargebacks volume is set to grow from $261m in 2025 to reach $324m in 2028. For the US, this means chargebacks will total a staggering $20.47bn in just three years. For issuers, the picture looks even bleaker. Globally, only 28% of their chargebacks are legitimate disputes, while a whopping 72% are fraudulent (59% being third-party fraud, while 13% is first-party fraud). One of the biggest challenges facing FIs when it comes to third-party card-not-present (CNP) fraud that fuels chargebacks is aging infrastructure. Legacy systems are limited in their ability to handle this type of fraud due to outdated architectures, fragmented data, and reliance on rigid rule-based detection. Many systems are also still heavily reliant on manual investigation processes. Tracking fraud is another major headache. The same research found that not all FIs track whether the fraud is first-party or third-party. Misclassification and underreporting could lead to inadequate response strategies and higher operational costs, with FIs burdened by time-consuming and expensive investigations. In fact, some FIs report that they need one full-time employee for every $13,000 to $14,000 in incoming annual cardholder disputes. Issuers can attest: first-party fraud is especially hard to pinpoint. What's more, the cardholder's history may show no prior suspicious activity. Responding to a customer dispute by suggesting that they are lying or committing fraud will hardly help FIs maintain good relationships with their hard-won customers. In the US, for instance, FIs and merchants only win around half of their disputes and, in the absence of forensic proof, they are likely to issue the chargeback – even if the suspicions are valid. Many Fis may not be aware what a significant role an effective 3DS program could play in the fight against chargebacks. Stopping fraud at the point of authentication is the low-hanging fruit in reducing the cost of chargebacks. With the right 3DS access control server (ACS) and modern authentication methods, FIs can combat first-party fraud with forensic proof that the transaction was legitimately authenticated. Moreover, they can tackle third-party fraud by simply detecting fraud more effectively – without adding friction. To reduce the impact of first-party fraud, cryptographic device binding technology is able to link each customer's account to a specific device and app, creating a unique digital signature for every transaction. This allows FIs to prove that a transaction was performed from the legitimate user's device, enabling banks to present strong, tamper-proof evidence to refute first-party fraud claims. To battle third-party fraud, 3DS programs that harness risk-based authentication (RBA) and low- or no-friction authentication methods empower FIs to use strong security that improves the cardholder experience and increases transaction success. However, an FI's 3DS approach should be part of a broader, multi-layered fraud prevention strategy that includes context-aware authentication not only to detect fraud across banking and payment channels more effectively, but also to recognise customers across channels to deliver consistent, streamlined experiences. There has never been a more urgent time for FIs to consider how to update their chargeback reduction strategy. 3DS is an under-appreciated tactic in that regard. If issuers or merchants are concerned that fraud prevention will add friction that negatively affects transaction success, they are using the wrong fraud prevention authentication tools. Automated tools and AI learning models can help eliminate overall friction for consumers and improve the digital experience, while also providing more effective fraud detection. With robust authentication and clear transaction context, it becomes possible to dramatically reduce fraud and increase transaction success rates. While chargeback abuse and fraud are persistent challenges, new opportunities are available to issuers to combat increasingly sophisticated attempts in their earliest stages with the right combination of 3DS solutions, risk insights authentication, and modern authentication methods. FIs must act now – failure could risk further eroding already pressured margins, and customers looking to competitors that deliver more secure and user-friendly payment experiences. Frank Moreno is Chief Marketing Officer at "Issuers must take urgent action against fraud as chargebacks escalate" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
