Credit Card News
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » New Mobile Wallets Have Hidden Costs

New Mobile Wallets Have Hidden Costs

Add to Favorites:
New Mobile Wallets Have Hidden Costs

A new era is upon us, one in which consumers can leave the cumbersome bundle of bills and credit cards at home and pay for whatever they need with a wiggle of their phone…well, maybe we’re getting a little bit ahead of ourselves. While the advancements in mobile wallet technology are progressing in leaps and bounds as multiple companies scramble to secure themselves a bigger chunk of the over $50 billion of revenue that is generated annually from transaction fees, according to Consumer Reports, people should educate themselves on the potential downsides of these digital wallets before casting aside their coin purses.

“As these new forms of payment grow more popular, consumers must be careful to understand the costs, and disparities in protections associated with the promise of new convenience,” said Senior Editor of Consumer Reports, Jeff Blyskal.

If you are one of the many who is eager to leave the bulk of a billfold behind you, there are a few things to be mindful of before making the move to mobile. Consumer Reports offers the following advice for anyone planning on “upgrading” to a digital payment device:

  • Before signing up for a new payment method, read the fine print and check the transaction costs.
  • Pay by credit card to get the best protections whenever you buy online or pay via cell phone, make a major purchase in a store, or worry that a seller might not deliver as promised. Avoid prepaid debit cards and billing to your telephone account. Ask your carrier to block third-party charges to your landline and cell phone.
  • Take convenience claims with a grain of salt. Consider new payment choices, but separate true benefits from marketing hype. Keep your mobile shopping tools independent from any branded digital wallet you might choose.
  • You can control the risk of loss by knowing the threats with each form of payment and taking steps to protect yourself. Don’t share your personal identification and account information, use security software and procedures for your e-commerce, and always keep cash and payment cards in a safe place.
  • After all, with well over a quarter of a million – say, roughly 300 million – non-cash transactions being processed each and every day, there are bound to be a few things falling through the virtual cracks. Make sure that you aren’t one of them.

    Add to Favorites:

    Related News:

    Citi and BRP Ink a Deal

    By Dar Dowling, Posted: January 24, 2017

    Citi Retail Services has signed a long-term financing services deal with BRP, a company specializing in the designing and manufacturing of power sports vehicles. Continue reading
    Citi Increases the Number of ATMS

    By Dar Dowling, Posted: January 23, 2017

    Citibank has just inked a new deal with Cardtronics, a ATM owner/operator, which will just about double the number of free ATMs in their U.S. network. Continue reading
    Fifth Third Bancorp Upgrades App

    By Dar Dowling, Posted: January 20, 2017

    Fifth Third Bancorp has upped the ante when it comes to their mobile app, in terms of how many ways users can pay for merchandise – now letting them make payments with all of the available payment platforms. Continue reading
    Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
    Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
    For Excellent, Good Credit
    You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
    For Excellent, Good Credit
    Guaranteed $500 Unsecured Credit Limit
    For Bad Credit