Summer 2015

Tips on Choosing and Using Bank “Rewards”

ALSO INSIDE

Mobile Banking and At the ATM Establishing or Rebuilding Credit Scores A Forward Look at Reverse Mortgages Answers to Deposit Insurance Questions

FEDERAL DEPOSIT INSURANCE CORPORATION BANKING ON THE GO

Mobile Banking and Payments: New Uses for Simple Steps for Phones...and Even Watches Safe Mobile Banking While mobile banking and payments Mobile banking allows consumers to can be convenient, FDIC Senior use their mobile phones to perform Policy Analyst Jeff Kopchik said transactions they might otherwise consumers should always take certain conduct from their personal computers precautions. For example: or at a bank. Similarly, mobile payments • Make sure that to your enable consumers to use a mobile mobile phone is protected by a device to transfer funds to another personal identification number person (sometimes referred to as (PIN) in case the phone is lost or person-to-person, peer-to-peer or stolen; “P2P”) or to pay for goods or services • Only download mobile banking at retail locations. Here’s a look at and apps from your bank’s recent developments in mobile financial website or another reputable app services for bank customers. marketplace; Mobile banking is popular. A recent than swiping your credit or ’s • Consider installing anti-malware survey by the Federal Reserve Board magnetic stripe card in the terminal software on your phone. Your bank concluded that, as of December 2014, because the merchant never sees your may provide this software for free; about 81 percent of U.S. banks offered actual card number and all the sensitive • Monitor your transactions mobile banking services to their payment information is encrypted,” said regularly so that you can spot and customers and that one-third of their Jeff Kopchik, a Senior Policy Analyst report fraud to your bank right away; customers used these services. The with the FDIC. overwhelming percentage of banks • Before using a mobile device to offering mobile banking is driven, in Using your smartphone to make connect with your bank from a part, by the 87 percent of U.S. adults purchases at stores or restaurants is public area, such as a coffee shop or who own a mobile phone, of which generally a two-part process. First, an airport, always check to make sure 71 percent are smartphones. Also determine if your smartphone has a that you are connecting using your according to the study, 15 percent of mobile wallet app you can use to link cellular service and not an unsecured online banking customers accessed that to one or more payment methods to public Wi-Fi network; and service exclusively through their mobile make payments with your phone. If • Contact your bank with any phones. it does not, download one from your questions you have before you bank’s website or other reputable app sign up to use mobile banking or The survey also showed that the most marketplace. Second, enroll in the payments. common use of mobile banking (by 94 service with your bank and specify percent of consumers who use mobile which credit or debit card will be used “P2P can be much more convenient banking) is to check account balances to pay for purchases. than trying to find an ATM in your and recent transactions. In addition, bank’s network that doesn’t charge fees half of mobile banking users have To use your mobile phone to pay at for withdrawing cash,” said Elizabeth deposited a check by taking a picture of a store, place it next to a compatible Khalil, a Senior Policy Analyst with it with their phone. terminal located on the checkout the FDIC’s Division of Depositor and counter and either enter your personal If you are interested in mobile banking, Consumer Protection. identification number (PIN) or use the many financial institutions offer mobile phone’s fingerprint reader (if it has one). Before using any P2P service, also make banking applications (apps) that you sure you understand whether any fees can download to your phone or have For more about using your smartphone will be charged. websites that are specially designed to to make payments at retail locations, see be viewed on a mobile device. Banks our Winter 2015 issue (www.fdic.gov/ High-tech wristwatches are and other companies also may offer consumers/consumer/news/cnwin15/ becoming fashionable for some bank apps that help consumers more closely paybysmartphone.html). customers. A few large banks have manage their finances by keeping created financial apps for smartwatches As for person-to-person payments, as track of their spending, purchases and that allow their customers to read long as you and the other party are savings. messages from the institution or access enrolled in the same P2P service, you basic services by just glancing at their Mobile payment services can offer can send the money by simply entering wrist. “For example, a smartwatch could convenience and security. “Paying the recipient’s mobile phone number send you an alert if you are nearing the by smartphone can be more secure and the amount you want to transfer. continued on the back page FDIC Consumer News Summer 2015 2 BANKING ON THE GO

At the ATM: 10 Ways to Minimize Fees and Maximize Security Many depositors who need cash often enough to cover a future, pre-arranged turn to automated teller machines withdrawal, such as a payment for a (ATMs) because of the convenience. recurring utility bill. You can avoid But that convenience can come with overdrafts by keeping an up-to-date costs. Here are 10 things to keep in record of your account balance and mind at the ATM so that the cash the scheduled transactions to come. coming out of your account goes into “Something as simple as a -based your pocket. log or an app on a smartphone can help,” said Luke W. Reynolds, Chief 1. Know which ATMs you can of the FDIC’s Outreach and Program use for free. For many people, the Development Section. availability and cost of ATMs are big reasons why they choose one bank Also note that under federal rules, if you over another. Generally, you can “opt in” to an overdraft program, the use your own financial institution’s bank can charge you a fee to process an ATMs without incurring fees. Your ATM or everyday debit card transaction institution may also be part of a larger, that exceeds your account balance. For no-fee ATM network. Talk to a bank more about those rules and changes that machine. The FBI recommends representative to learn more or visit may be coming, go to the Consumer inspecting the ATM for anything your institution’s website to search for Financial Protection Bureau’s website that looks unusual, such as scratches its ATMs. at www.consumerfinance.gov. Also see or tape near where your card would consumer tips on avoiding overdraft go. Those could indicate fraudulent 2. If you cannot use a fee-free ATM fees at the ATM and the cash register recording devices have been attached to in your bank’s network, know that in the FDIC brochure “Your Guide to the ATM for “skimming” or gathering fees can vary. By law, the fee that the Preventing and Managing Overdraft information from the magnetic strip operator of an ATM may charge for a Fees,” which is online at www.fdic.gov/ on the back of the card. For similar withdrawal or other transaction must be consumers/overdraft. purposes, fraudsters also use transparent disclosed on the screen of the machine overlays on ATM keypads that can or on a printout so that you can cancel 5. See if your bank’s ATMs have record keystrokes and tiny cameras that the transaction before paying any fees. new features that can be helpful to are focused on where ATM users enter These charges can vary widely, so you. For example, some institutions their personal identification numbers consider finding another ATM if the fee allow consumers to use an app on their (PINs). is larger than you expect. In addition to smartphone to withdraw cash at an incurring fees from the ATM operator, ATM without using an ATM/debit 8. Take precautions with your ATM you may be charged a fee by your . Some banks enable customers who cards. Know where your current cards for using a machine that’s not within its have questions to speak with a teller are and keep them safe. “Also make ATM network. through an ATM. You also may be able sure to destroy old or expired ATM to have an ATM receipt e-mailed to you cards. If your debit or ATM card falls 3. Consider other ways to keep ATM instead of getting a paper copy. into the wrong hands, someone could fees down. If you anticipate needing try to create a counterfeit or use the cash for multiple reasons, withdrawing 6. Keep personal safety in mind. information on the card to fraudulently more money at one time (such as $100 ATM manufacturers and owners, order a new one from your bank,” or $200 instead of $20 or $40) can mean including financial institutions, go to said Michael Benardo, Manager of the fewer trips to the ATM and savings on great lengths to prevent robberies and FDIC’s Cyber Fraud and Financial transaction fees. Using your debit card fraud at cash dispensing machine. But Crimes Section. “Be sure to cut through to get “cash back” from a merchant at even so, you need to be careful. Be the account number and magnetic strip checkout (such as a grocery store) for aware of your surroundings, particularly before throwing the pieces in the trash.” no fee is another option. While the if there is anything suspicious, such as amounts may seem small, reducing a broken light or someone loitering Also keep in mind that banks are or eliminating ATM fees can result in nearby. Have your card in your hand increasingly replacing credit and significant savings over time. as you approach the ATM. And, if you debit/ATM cards with new cards with withdraw cash, put it away promptly. computer chips that can better protect 4. Guard against overdrafts, which The time for counting your money can against fraud. Learn more about chip can be costly. Overdrafts can occur if come later in private. cards at www.fdic.gov/consumers/ you withdraw more money than you consumer/news/cnsum14/chipcards. have available in your account or if the 7. Walk away if you notice html. new balance in your account won’t be something suspicious at the continued on Page 7 FDIC Consumer News Summer 2015 3 From Coupons to Cash Back: Our Latest Tips on Choosing and Using Bank “Rewards”

Bank rewards programs tied to credit tailored to consumers at particular or debit cards or other products can stages in their lives. For instance, provide you with appealing offers for some credit cards allow consumers things such as points to be used for to automatically deposit cash-back travel and shopping or cash added to rewards into a college , your account. But finding great deals is and certain banks have bonus (above only half of the equation. market) interest rates on deposit accounts and rebates on ATM fees for “It’s important for consumers to senior citizens and students. understand that to make the most of any rewards program, they need to Remember what it takes to earn make sure that they do not overlook rewards. Many credit cards provide other, more important account features rewards when you use them to make in addition to the rewards,” said purchases, but it’s important to know Susan Boenau, Chief of the FDIC’s exactly how much you can earn. For Consumer Affairs Section. example, a card issuer may offer 5 by a merchant may result in you failing percent cash back on groceries, but to receive the full rewards amount Before jumping into any rewards the fine print may say that reward you’re due. program, consider these tips for is available only on the first $1,000 maximizing the potential benefits and Understand how you may lose access spent each year. Likewise, while some minimizing mistakes. to rewards. Consumers focus on the banks offer sign-up bonuses for simply potential rewards they may earn but Comparison shop different rewards obtaining a card, others may require can forget that it is possible to earn programs, including their fees and you to charge a certain amount of rewards and lose them. Here are some other costs, before deciding to apply money to the card within the first few examples involving credit cards: for one. One or deposit months. account might offer seemingly terrific • If a cardholder misses a payment In addition, some card issuers offer rewards but also charge fees that may on a monthly credit card bill, some specials that double or triple rewards negate the rewards. So it’s important card issuers will take back the rewards for purchases in certain categories. to take a look at other products (such earned during that month; “These specials change from time as a rewards card without an annual to time, so be on the lookout for • Some card issuers place expiration fee) and weigh the costs and benefits of opportunities to increase your rewards dates on using rewards, which may be each one. earnings by signing up for alerts or an unpleasant surprise if you plan to Choose a rewards program that checking your card issuer’s website,” save rewards over a period of time; and fits your lifestyle. The best way to said Heather St. Germain, a Senior • Card issuers may require customers maximize benefits and avoid spending Consumer Affairs Specialist at the to spend a minimum amount on the problems is to choose a program that FDIC. card to continue to earn rewards or rewards you for purchases or deposits While rewards can be beneficial, don’t keep the rewards they’ve already you would make even without the gifts. spend just to earn rewards. A recent earned. “You may want to about rewards Federal Reserve Bank of Chicago Also be aware that card issuers may programs in terms of reaching report noted that overall spending reserve the right to change the terms your goals, because each one has and debt accumulation may increase of their rewards programs or cancel different features,” Boenau added. slightly among consumers who use a the programs at any time. “For example, if you are planning a rewards credit card. “Make sure you’re vacation, then a credit card offering a not spending just to earn a small Manage your credit and debit cards. lot of points for airfare and hotel costs rebate,” St. Germain advised. “Use the Any rewards you receive can become may appeal to you. But if the card also card for purchases you would typically worthless if you allow fees or other has a high interest rate and you plan to make, and try to pay your account penalties to pile up. So try to pay your carry a balance, you may find another balance in full each month so you can credit card bill on time and in full each credit card offering a lower interest avoid interest charges.” month to avoid interest charges and rate may be a better deal overall.” late fees. And when using your debit Check your account regularly card, be careful to not overdraw your Also look for credit cards and other to make sure you receive your bank products that provide rewards rewards. A mistake or a coding error continued on the back page

FDIC Consumer News Summer 2015 4 Establishing or Rebuilding Credit Scores: Options for Moving Forward

Your credit scores are prepared by FICO example, managing both a credit card may help you obtain a loan. It is usually and other companies and are mainly and an installment loan, such as for a car, structured so that the primary borrower based on your history of managing could be viewed more favorably than just is expected to make the payment but the debts, such as whether you tend to make having one of those two loans). payment history will be reported in both payments on time. Your scores play a names. Your co-signer will need to know Obtain and review a copy of your free significant role in your everyday life that if you default on the loan, he or she credit report. Credit reports, produced because the next time you apply for a will be responsible for repaying it in full, by credit bureaus, detail each person’s loan or a credit card — or perhaps a new and missed payments will be reflected on financial history, and they are used to apartment or insurance — your scores both credit files. develop credit scores. Under federal law, could affect the final decision, including you can get at least one free report from Consider taking out a small loan. your costs. each of the nationwide credit bureaus A personal loan from a depository For the many consumers with damaged every 12 months. If you find an error, institution can help you establish credit. credit scores and those with no credit contact the credit bureau directly and You may be asked to offer collateral to record, here are some ways to improve correct the record. secure your loan. your credit scores. To order your free annual report from Be Patient. “Whether you have been Consider consulting with a reputable the three major credit bureaus — through a foreclosure, bankruptcy, credit counseling service. It can Equifax, Experian and TransUnion — divorce or made mistakes with your help you develop a customized plan visit www.AnnualCreditReport.com or finances, the road to recovery is to improve your credit score, which call toll-free 1-877-322-8228. possible,” said Angelisa Harris, an may include helping you decide how FDIC Regional Community Affairs For information on your right to see to prioritize your spending choices. Manager. “The key is to be focused and and correct reports from “specialty” Counseling services are available to help understand which steps will be helpful credit bureaus that, for example, track a consumers budget money, pay bills and in rebuilding your credit based on your person’s history of handling a checking develop a plan to improve their credit specific situation. You won’t be able to account, visit the Consumer Financial histories. rebuild credit overnight.” Protection Bureau website at www. Bear in mind, however, that not all consumerfinance.gov/blog/you-have-a- She added that “arming yourself with counselors are looking out for the right-to-see-specialty-consumer-reports- knowledge, obtaining advice from a consumer’s best interests. Be cautious too. reputable organization, and creating of counseling services that advise you to a plan can help you make significant If you cannot qualify for a regular stop making payments to your creditors strides toward improving your credit credit card, consider a no-fee or or to make your payments to the rating.” low-fee secured credit card. This is counselors instead (so they can negotiate a credit card for which you would keep For more tips and information, read on your behalf with the lender). These money (as collateral) in a the Federal Trade Commission’s programs can be costly, may result in at the financial institution issuing the publication “Building a Better Credit your credit score becoming even worse, card. Report” (www.consumer.ftc.gov/blog/ and they could be scams. building-better-credit-report-20). For example, if you want a card with Q For suggestions on finding a reputable a $1,000 limit, you might deposit that counseling service, visit the Federal amount into a savings account at the Credit reports detail each Trade Commission website at bank offering you the card. The lender www.consumer.ftc.gov/articles/0153- person’s financial history and would report how you manage the card choosing-credit-counselor. to one or more of the credit bureaus, and they are used to develop credit Understand what information is often it will provide you the opportunity most likely to influence your credit to obtain an unsecured credit card after a scores. Under federal law, you scores. In general, the most significant certain period of on-time payments. can get at least one free report factor affecting your score is whether Secured cards may have fees attached you repay debts on time. Also important from each of the nationwide to them and may have a higher interest is how much you currently owe on rate, so be sure to do your homework each account compared to its original credit bureaus every 12 months. before signing up. loan amount or . Additional If you find an error, contact the factors include how long you have had Look into having a co-signer if your current loans and credit cards and you have no credit history. A family credit bureau directly. the types of credit accounts you have (for member or friend guaranteeing payment

FDIC Consumer News Summer 2015 5 A Forward Look at Reverse Mortgages

Every day, approximately 10,000 required by local or state law must have people in the United States turn age been paid. 62, according to the Census Bureau. The concern regarding non-borrowing And if they are homeowners, they may spouses has been the source of many be eligible to borrow against a portion reverse mortgage issues. Here’s why: of the equity in their house by using a The amount of money a reverse loan called a “reverse mortgage.” Unlike mortgage borrower can draw is based in a traditional mortgage, for which the part on the age of the youngest borrower borrower makes payments to the lender, — and unless all borrowers are 62 or with a reverse mortgage the lender pays over, they would not qualify for a reverse the borrower the money requested and mortgage. does not expect to be repaid until after the borrower no longer lives in the “Many borrowers who opted to exclude home. But as FDIC Counsel Richard the younger spouse from the loan in Schwartz noted, “While a reverse order to qualify for a HECM did so mortgage can be used to supplement with the hope that when the younger monthly income, obtain lump-sum occupant became 62 they could refinance plan, go to www.consumerfinance. cash or otherwise help a senior citizen and add the spouse,” said Andrea gov/blog/consumer-advisory-dont-be- ‘age in place,’ some borrowers may face Riche, an FDIC program manager who misled-by-reverse-mortgage-advertising. unintended obstacles and consequences, oversees reverse mortgage issues. “But especially if they no longer have when home prices nationwide dropped Before you decide to get a reverse the ability to pay taxes or property in 2007 and 2008, the possibility of mortgage of any kind, talk to a insurance.” refinancing into another HECM was qualified professional. You can find eliminated. And if the borrowing spouse HUD-approved HECM Counseling FDIC Consumer News last reported passed away, HUD or the private lender Agencies near you by accessing https:// on reverse mortgages in our Summer became entitled to take possession of entp.hud.gov/idapp/html/hecm_agency_ 2013 issue (www.fdic.gov/consumers/ the home and the surviving spouse was look.cfm or calling 1-800-569-4287. consumer/news/cnsum13/borrowing- almost always evicted. But now, HUD The Federal Trade Commission also from-your-home.html). Here is provides a mechanism for an eligible has a website on determining whether a an update with a couple of new non-borrowing spouse to stay in the reverse mortgage is a good product for developments. home.” you and links to additional information New rules from HUD add at www.consumer.ftc.gov/blog/ The Consumer Financial Protection protections for certain surviving reverse-mortgage-right-you. Bureau (CFPB) is warning consumers Q spouses after the death of a reverse about potentially misleading reverse mortgage borrower. The most popular mortgage advertising. In June 2015, reverse mortgage program is the New Date for Mortgage the CFPB issued a consumer advisory Home Equity Conversion Mortgage Disclosure Rule saying that many television, radio, (HECM), which is insured by the U.S. print and Internet advertisements for The Consumer Financial Protection Department of Housing and Urban reverse mortgages had “incomplete and Bureau (CFPB) has announced that Development (HUD). Until recently, inaccurate statements used to describe its new rule intended to improve if the non-borrowing spouse was not the loans. In addition, most of the the disclosure of mortgage costs on the loan, he or she was not entitled important loan requirements were often to loan applicants will now take to remain in the property following the buried in fine print if they were even effect on October 3, 2015. The death of the borrower. But under HUD’s mentioned at all. These advertisements agency’s “Know Before You Owe” new rules, a non-borrowing, surviving may leave older homeowners with the rule was originally set to take spouse can remain in the home if specific false impression that reverse mortgage effect on August 1, 2015. The rule, conditions are met. These changes apply loans are a risk-free solution to financial which requires more user-friendly to reverse mortgage loans in which the gaps in retirement.” disclosure forms that clearly lay borrowing spouse applied for a reverse out the terms of a mortgage for a mortgage before August 2014. In For example, the CFPB said, “After homebuyer, implements a provision addition, the couple must have resided in looking at a variety of ads, many of the 2010 Dodd-Frank financial the property as their principal residence homeowners we spoke to didn’t realize reform law. For more information throughout the duration of the HECM, reverse mortgage loans need to be about the new disclosures, go and taxes, property insurance and any repaid.” To learn more and for tips, such to www.consumerfinance.gov/ other special assessments that may be as the value of developing a financial knowbeforeyouowe.

FDIC Consumer News Summer 2015 6 Dear FDIC: More Answers to Consumer FDIC Questions About Deposit Insurance Consumer News The FDIC is known to generations of children live far away from me, but Published by the Federal Deposit consumers for protecting deposits in I have a niece who lives nearby and Insurance Corporation banks and savings institutions. More comes to check on me. I would like Martin J. Gruenberg, Chairman importantly, no depositor has ever to leave her some money when I pass lost a penny of insured deposits at an away, but I would like to have the use Barbara Hagenbaugh, Deputy to the FDIC-insured institution. FDIC staff of the money until then. What might Chairman for Communications answer more than 20,000 questions be a good option? David Barr, Assistant Director, each year from depositors and bankers Office of Communications (OCOM) You could establish a payable-on-death who ask about the deposit insurance account, also commonly known as a Jay Rosenstein, Senior Writer-Editor, rules to ensure that accounts are “POD” account, that would be owned OCOM correctly structured and the money is by you and that would name your niece fully insured. Here are answers to two Mitchell W. Crawley, Graphic Designer as beneficiary when you die. While you commonly asked questions we believe are alive, you — and not your niece — FDIC Consumer News is produced FDIC Consumer News readers will find would have full ownership and use of the quarterly by the FDIC Office of useful. Communications in cooperation with money. And under the FDIC’s rules, the other Divisions and Offices. It is I understood that the basic FDIC deposits in the POD account (which is intended to present information in a deposit insurance coverage is a type of revocable trust account) would nontechnical way and is not intended to $250,000 for each account, but a be separately insured for up to $250,000 be a legal interpretation of FDIC or other friend said the basic coverage is from the deposits in your revocable government regulations and policies. $250,000 for each depositor at each living trust because there are different Due to periodic changes in statutes and bank. Who is correct? beneficiaries. agency rules, always check the FDIC Web Your friend is correct. In determining You can learn more about FDIC deposit site — www.fdic.gov — for up-to-date deposit insurance coverage, the FDIC insurance coverage by calling us at information. Mention of a product, will add together all the deposits an 1-877-ASK FDIC (1-877-275-3342). service or company does not constitute individual has at a bank in each of several For the hearing-impaired, please call an endorsement. This publication may “ownership categories” — such as single 1-800-925-4618. Also visit the FDIC be reprinted in whole or in part. Please accounts, joint accounts, and certain online at www.fdic.gov/deposit/deposits credit FDIC Consumer News. retirement accounts — and insures that for more information on deposit Send your story ideas, comments, person’s total deposits in each category insurance, including publications, videos, and other suggestions or questions to: up to at least $250,000. our interactive Electronic Deposit Jay Rosenstein, Editor, FDIC Consumer Insurance Estimator (EDIE), and News, 550 17th Street, NW, Washington, I am elderly and I have a revocable BankFind (a tool for determining if your DC 20429, e-mail [email protected]. living trust that names my three bank is FDIC-insured). children as beneficiaries. All three Q Find current and past issues at www.fdic.gov/consumernews or request paper copies by contacting the FDIC At the ATM Public Information Center. Call toll-free continued from Page 3 1-877-ASK-FDIC (1-877-275-3342) or 9. Protect your PINs. Memorize a problem, the greater your federal e-mail [email protected]. your PIN and never write it on your protections are” under the Electronic Subscriptions: To receive an e-mail ATM card or on a piece of paper in Fund Transfer Act. notice about each new issue with links your wallet. Don’t your PIN Benardo also said to never respond to stories, go to www.fdic.gov/about/ with anyone who isn’t a co-owner of to unsolicited requests for your bank subscriptions/index.html. To receive the account. And, when you enter your account number and the PIN for your FDIC Consumer News in the mail, free PIN, block the keypad with your other. debit/ATM card. And, be sure to report of charge, call or write the FDIC Public Information Center as listed above. 10. Immediately report a lost anything dangerous or suspicious you or stolen card or anything else see at an ATM to the police or the bank that could be a warning sign of a that owns the machine. For More problem. “Promptly notify your bank As you can see, there’s a lot to consider Help or Information if you misplace your card or if you spot about choosing and using ATMs. You Go to www.fdic.gov or call the FDIC an unauthorized ATM or debit card may also want to ask a customer service toll-free at 1-877-ASK-FDIC transaction on your account,” Benardo representative at your bank for other recommended. “The faster you report (1-877-275-3342) practical suggestions. Q FDIC Consumer News Summer 2015 7 Mobile Banking Bank Rewards can access those rewards while they’re continued from Page 2 continued from Page 4 shopping. credit limit on your credit card or you account or make other transactions At the same time, be certain you are close to overdrawing your checking that could rack up costly fees, such as understand how each mobile rewards account,” said Khalil. when using an ATM not affiliated with program works. “One issue to keep in your bank (see Page 3). mind is how your personal information The watch’s tiny screen size poses some will be collected, stored and used,” challenges to creating financial apps Be wary of signing up for too many cautioned Elizabeth Khalil, a Senior for the device. But, to date, several rewards programs. Some consumers Policy Analyst at the FDIC. “For banks have publicized that they allow take on many rewards cards, either location-based offers, you will need to customers to authorize a banking because they see a reward that is too allow the app to access your location transaction using a smartwatch instead enticing to pass by or they’re trying through your smartphone. No matter of the mobile phone itself. to build as many rewards as possible. the type of mobile rewards program, However, using several cards may The integration of mobile payments be sure you understand what you’re sometimes reduce your rewards. For with other smartphone apps can signing up for and that you are example, if your purchases are spread add convenience in additional ways. comfortable with it.” out among multiple cards, it may “Let’s say you make a dinner reservation be difficult to accumulate enough For more tips on choosing the right at a restaurant using an app on your purchases on one card to acquire accounts (with or without rewards) mobile phone,” Kopchik explained. “If rewards. Be sure to look strategically and managing them effectively, see the the reservation app is integrated with at the cards you have before making a Winter 2013/2014 FDIC Consumer a mobile payment app, the final bill decision to apply for another one. News article on credit cards (www. will be sent to your phone and you can fdic.gov/consumers/consumer/news/ authorize the payment while sitting at Using mobile banking services for cnwin1314/creditcards.html) and your table. There is no need to give purchases may also get you rewards. our Spring 2014 story on checking the waiter a credit card and pay the Some banks have relationships accounts (www.fdic.gov/consumers/ old-fashioned way.” with specific retailers that provide consumer/news/cnspr14/checking. customers with extra rewards when Some mobile payment apps also html). Q they shop with that merchant and pay coordinate with customer loyalty with the bank’s credit or debit card. programs, meaning that you may earn And with a mobile banking application points or discounts for dining at certain (app) on their phone, consumers also restaurants or paying with a certain app (see the next column). Q

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