Category: Credit

When you’re house hunting, finding the right home is only part of the battle. You’ll also need to decide how to finance your home purchase. If you’re going to take out a loan, you need to know which type of mortgage to use.

Conventional loans and U.S. Department of Veterans Affairs (VA) loans are among the most popular mortgages. Both can be great ways to buy a home, but there are key differences between the two.

Conventional Loan and VA Loan Basics

Conventional loans are mortgages that aren’t insured by the government. VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs.

Anyone who meets a lender’s credit and debt-to-income (DTI) ratio requirements can qualify for a conventional loan. In contrast, VA loan eligibility is limited to certain service members, – including those on active duty and in the National Guard or Army Reserve – veterans of the U. S. military and their qualifying surviving spouses.^[1]

Conventional loans are either conforming, meaning they meet the eligibility requirements of Fannie Mae and Freddie Mac, or non-conforming, meaning they don’t meet the minimum Fannie Mae and Freddie Mac standards to purchase the loan. Most conventional loans are conforming. However, some conventional mortgages, like jumbo loans (loans that have limits of up to $1 million – $2 million), are not conforming.

For the 2022 calendar year, conforming conventional mortgages have loan limits of $647,200 for a single-family home. However, in certain higher-cost areas, that limit increases to $970,800.^[2] 

Eligible VA loans over $144,000 no longer come with limits, meaning there’s no down payment.^[3]

Let’s take a closer look at some of the requirements for conventional loans and VA loans.

Comparing Conventional vs. VA Loan Requirements

Conventional loans and VA loans come with different requirements, from the type of property you can buy to the fees they charge.

Mortgage Requirement	VA Loan	Conventional Loan
Property type	Primary residences[4]	Primary residences, second homes, investment property[5]
Credit score	No minimum requirement[6]	Minimum of 620[7]
Down payment	None[8]	As low as 3%[7]
Mortgage Insurance	Not required[9]	Typically required for down payments less than 20%[10]
Fees	VA funding fee, origination fee, VA appraisal fee[11]	Origination fee, appraisal fee

Property type

You can use a VA loan to purchase a primary residence, like a single-family home or residential property with 1 – 4 units.^[3] Conventional mortgage loans can finance the purchase of primary residences and second homes, including vacation homes and investment properties.^[5]

Credit score

To qualify for a conventional loan, most mortgage lenders expect a minimum credit score of 620.^[7] The VA loan program doesn’t have specific credit requirements, though individual lenders can set their own minimums.^[6]

Down payment

Qualified borrowers can put as little as 3% down on conventional loans.^[7] Although, borrowers with lower credit scores may have to make a down payment of 10% – 20% to qualify for a conventional mortgage.^[10] VA loans don’t have a down payment requirement, except in cases where the purchase price for the property exceeds its fair market value. 

Private mortgage insurance

When a borrower takes out a conventional loan with a down payment of less than 20%, they’re obligated to pay private mortgage insurance (PMI). PMI protects the lender’s investment if the borrower defaults on the loan. In other words, if you don’t pay your mortgage, your PMI will guarantee the lender gets their money. 

VA loans don’t have any mortgage insurance, even if you put down less than 20%. The government backs VA loans, and the program is funded in part by the upfront VA funding fee.

Mortgage rates

The 30-year fixed-rate VA loan interest rate average is generally slightly lower than the 30-year fixed-rate conforming conventional mortgage average.

Fees

When you take out a loan, most lenders charge an origination fee to process it. In some cases, you may be able to negotiate with your lender to reduce or eliminate the origination fee altogether.

Both conventional loans and VA loans can have origination fees. In addition, VA loans and conventional loans require a home appraisal, which the borrower typically pays for.

A key difference between VA loan fees and conventional loan fees is that VA-backed mortgages charge an upfront funding fee. VA funding fees range from 1.4% – 3.6% of the loan amount and vary based on the size of your down payment and whether you’ve used the VA loan benefit before.^[11]

For example, if it’s your first time using the VA benefit and you put down 10% or more, you’ll only pay a 1.4% funding fee – compared with a 3.6% fee if it’s your second use and you put down less than 5%. 

How To Choose Between a VA Loan and Conventional Loan

Both VA loans and conventional loans can be excellent options to help military veterans and service members finance a home purchase. Choosing which type of loan to use comes down to personal preference and identifying the mortgage that best suits your needs.

If you’re having difficulty deciding, compare the benefits of VA mortgages and conventional mortgages to see which appeals to you more.

Benefits of a VA loan

Benefits of a VA home loan include:

• No down payment requirements
• No mortgage insurance
• No minimum credit score requirements
• Lower interest rates

Benefits of a conventional loan

Advantages of a conventional loan include:

• Anyone creditworthy can qualify
• More lender options
• Usually favored by sellers (over government-backed loans, including VA, USDA and FHA loans)
• No PMI (with a 20% down payment)
• Can be used to purchase a second home or investment property
• No upfront funding fee

Do sellers have a preference?

Home sellers tend to favor offers from buyers using conventional loans over offers from buyers with VA loans. Conventional loans are generally more flexible than government-backed loans, and they close faster on average.^[12] Some sellers may also perceive buyers with conventional financing as more reliable and financially secure, since conventional loans have tougher credit requirements and often include larger down payments.

VA Loan or Conventional Loan: What’s Next?

Don’t have a sizeable down payment ready but still want the best interest rate? Sounds like a good fit for a VA loan. Want to make the strongest possible offer and skip the VA funding fee? Try a conventional loan. Once you’ve decided which loan is better for you, contact a reputable loan officer to get your conventional mortgage or VA preapproval.

In the United States, there are many different paths to homeownership. One of the most common ways to buy a home – especially if you can’t make a huge down payment – is with help from the Federal Housing Administration (FHA).

Established after the Great Depression, the FHA offers a variety of programs to help people acquire properties that might otherwise be out of reach. In some cases, you might be able to purchase a home via an FHA-backed loan with a grant to cover any money required for a down payment.

In many cases, you can use an FHA loan to buy a foreclosed home. However, there will be a lot of things to keep in mind, such as whether the condition of the foreclosed home can pass the FHA’s pre-purchase inspection.

In this guide, we’ll answer some of the most common questions you might have about buying a foreclosed home with an FHA loan. By taking some time to learn about how this process works, as well as the various pros and cons that come with it, you can decide if buying a foreclosed home with an FHA loan is right for you.

Can You Buy a Foreclosure With an FHA Loan?

Yes, in many cases, you can buy a foreclosed home using an FHA loan. The FHA doesn’t have a policy forbidding you from buying a foreclosed property. In fact, thousands of people use FHA loans to buy foreclosed properties every year.

However, as we’ll further explain in this guide, there are some limitations regarding the type of property you can buy. To start, you have to meet the FHA’s basic borrowing standards. After that, you’ll have to make sure you choose a property that meets the FHA’s minimum property standards, such as passing an FHA appraisal and  inspection. But as long as you can work within the pre-established framework, buying a foreclosed home with an FHA loan is very possible.

FHA Loan Standards for Borrowers

The FHA loan is very transparent about the standards it has for borrowers. This means that whether you’re hoping to buy a foreclosed property – or any other type of property – with an FHA loan, you shouldn’t run into any big surprises.

Generally, these standards fall into one of two categories: standards for borrowers and standards for the property itself.

Borrower requirements

To secure an FHA loan, most borrowers will need to meet each of the standards listed below:

• Credit score: With some exceptions, FHA loans will require all borrowers to have a credit score of at least 580. Having an even higher credit score may help you secure better terms.
• DTI ratio: Your debt-to-income (DTI) ratio represents the portion of your income that’s used to service debt, including mortgages, credit cards and other types of debt. The maximum DTI ratio you can have with an FHA loan is 57%, though a lower ratio will be better.
• Down payment: The FHA requires most borrowers to make a minimum down payment of 3.5% to secure a home. However, there are a few programs available that might allow you to purchase a home without a down payment.

Home requirements

Not every foreclosed property will be eligible for an FHA loan. Here are some of the home requirements you’ll want to keep in mind:

• Primary residence: The FHA will only issue loans for homes that will be used as your primary residence, meaning these loans can’t be used for vacation homes or investment properties.
• FHA approved appraiser: If you want to get a loan from the FHA, you’ll need to get an appraisal from a pre-approved FHA appraiser – be sure to check your appraiser’s qualifications.
• U.S. Department of Housing and Urban Development (HUD) habitability: The FHA will only issue loans for homes that a person could reasonably live in without significant changes. So if the foreclosed property you’re considering is in pretty bad shape, you might not be able to use an FHA loan.

Pros and Cons of Buying a Foreclosure With an FHA Loan

As with any home loan, you should carefully consider both the pros and cons of buying a foreclosed property with an FHA loan before making your final decision.

How To Buy a Foreclosed Home With an FHA Loan

Once a home has been foreclosed on, the mortgage lender will become the outright owner of the property – and then usually look to sell it. If you’re considering buying a foreclosed property, be sure to work with a real estate agent who’s familiar with this unique market.

There are several different points in the foreclosure process where you can buy a property. This includes pre-foreclosure, short sales, property auctions and more. In some cases, you might be able to buy the property directly from a federal agency. Generally, the process is fairly similar to buying any other property.

Use an FHA 203(k) loan

A 203(k) loan is a special type of FHA loan that can be used to purchase a house in need of repair. 203(k) loans are often used to buy older homes that haven’t been lived in for a while. However, one important thing to keep in mind is that the property will still need to meet the HUD’s livability standards.

How To Find Foreclosures for Sale

Foreclosed homes are often listed alongside other homes for sale, though you might need to set your search to include the qualifier “foreclosed homes.” You can also work with a real estate agent who specializes in these sorts of properties – they’ll often have knowledge of a foreclosure before the rest of the market.

Qualifying service members, veterans or surviving spouses turn to VA loans to help make buying a home less expensive and becoming a homeowner more affordable. With a VA loan in hand, borrowers can close on a new home without a substantial amount of money upfront. 

One of the biggest benefits of a VA loan is that you don’t make a down payment – but you will pay closing costs on your VA loan.

To help you understand the unique features and protections of VA loans, we’ll walk you through their associated fees and closing costs.

What Are VA Loan Closing Costs?

VA loans provide qualifying veterans, active service members and surviving spouses with affordable mortgage options, thanks in large part to the loan not requiring a down payment, more affordable interest rates and no private mortgage insurance (PMI).^[1]

But just like other home loans, VA loans have closing costs. The fees are pretty similar across the board (think: recording fees, origination fees, property taxes, etc.) – but some fees are unique to VA loans. 

In addition to your standard closing costs, borrowers also pay the VA funding fee. 

The VA funding fee

The VA funding fee is a closing cost that is unique to VA loans. Unlike the other loan fees, the VA funding fee isn’t paid to lenders, real estate agents or third-party service providers. The fee is paid to the Department of Veterans Affairs (VA). This one-time fee helps the VA continue to fund the VA loan program.

How much the VA funding fee costs will depend on whether it’s your first VA home purchase and the size of your down payment. The larger your down payment, the smaller your VA funding fee will be.

With your first VA loan home purchase, you’ll pay the associated VA funding fee:^[2]

Down Payment	VA Funding Fee
Less than 5%	2.3%
5% to 10%	1.65%
More than 10%	1.4%

For every VA loan home purchase after that, you’ll pay the associated VA funding fee:

Down Payment	VA Funding Fee
Less than 5%	3.6%
5% to 9%	1.65%
10% or more	1.4%

VA appraisal fee

Appraisals are typically required for mortgage loans – including VA loans. But with VA loans, the property must be appraised by a VA-approved appraiser. With a VA appraisal, the appraiser must assess the home’s value and inspect the home to ensure it meets the VA’s property standards. Completing both tasks will take a lot of work – and time – making the VA appraisal process more time-consuming and more expensive. The VA appraisal fee will vary by location, but you can expect to pay anywhere between $525 and $1,100.^[3]

Your lender will select the VA appraiser, but you will pay the fee. And, by the way, the fee has gone up with the increased demand for VA appraisals.^[4]

Do VA Loans Affect How Much My Lender Can Charge for Closing Costs?

There are certain limitations set on lender closing costs on a VA mortgage. Some of the most commonly capped expenses include origination fees.

Limited origination fee

A VA lender cannot charge more than 1% of the total loan amount as the loan origination fee^[5] the fee covers the cost to process the loan). Most lenders typically charge around 1%, but setting a limit ensures you’ll never pay more than that.

Non-allowable fees

The Department of Veterans Affairs has requirements about which closing costs home buyers can pay – and don’t pay. The closing costs the VA won’t allow lenders to make you pay are non-allowable fees. Some non-allowable fees include:

• Application fees: Your lender cannot charge you an application fee for a VA loan.
• Escrow fees: While you will pay escrow fees to a title or escrow company, a lender cannot charge what it costs to open an escrow account.
• Rate lock fees: Rate locks, which temporarily lock in mortgage interest rates, have fees lenders cannot charge you for taking advantage of the benefit.
• Real estate attorney fees: Attorneys typically charge fees for their work helping you close on a property, but with a VA loan, you don’t have to pay attorney fees. 
• Real estate broker fees: You are not allowed to pay real estate broker fees. 
• Real estate agent fees: Like a broker’s fees, the VA says you cannot pay real estate agent fees. 

How Can I Calculate Closing Costs on a VA Loan?

VA loan closing costs include the VA funding fee, VA appraisal fee, mortgage lender origination fees and other fees that generally add up to about 3% – 6% of the total loan amount. The final amount you pay in closing costs will vary based on a few factors, including the size of your down payment, the type of home you’re buying and the specifics of the loan (think: buying or refinancing, first or second home, etc.). 

Who Pays VA Loan Closing Costs?

When you get a conventional mortgage, closing costs get split between you and the seller. The same is true for VA loans. 

You and the seller can negotiate and decide who will pay which closing costs, but with a VA loan, sellers can only pay up to 4% of closing costs. 

When it comes to the VA funding fee, that money will come out of your pocket.

Can Closing Costs Be Included In a VA Loan?

You typically pay your closing costs the day you finalize the home purchase. While some VA closing costs must be paid before or at closing, you can fold the VA funding fee into the loan. In fact, it is the only closing cost you can wrap into your VA loan. Your monthly mortgage payments will be higher, but you won’t have a big upfront payment to worry about to purchase your home. 

VA Loan Closing Costs: Mission Accomplished

The Department of Veterans Affairs is on a mission to serve the people who served this nation. One way they accomplish their mission is by helping qualified service members, veterans and surviving spouses secure affordable housing.It’s a benefit you should look into if you think you’re eligible. If you decide a VA loan isn’t right for you, your dream of homeownership shouldn’t end there. There are a variety of low- or no-money-down loans to help you buy a home.

Editor’s note: This post has been updated with new information.

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If you are planning a dream getaway in the near future, now is a good time to determine your earning strategy and rack up those points and miles. As usual, one of the easiest ways to amass a large chunk of rewards is through credit card sign-up bonuses.

United loyalists are in luck because Chase and United have teamed up to offer valuable sign-up bonuses across their lineup of cobranded credit cards.

Let’s take a look at each card to see which makes the most sense for your wallet.

United Club Infinite Card

Sign-up bonus: Earn 100,000 bonus miles after you spend $5,000 on purchases in the first three months from account opening.

Annual fee: $525.

Earning rate: Earn 4 miles per dollar on United purchases, 2 miles per dollar on dining and all other travel, and 1 mile per dollar on everything else.

Is it worth it?

TPG currently values United miles at 1.21 cents each, making this bonus worth $1,210. This is the highest offer we’ve seen on this card, so now is the time to apply if you’ve been considering it.

Read more: 5 trips to take with the United Club Infinite Card

The United Club Infinite Card is made for loyal United flyers who want access to United Club lounges when they travel — along with a few additional benefits that help upgrade the traveling experience.

Cardholders can enjoy United Club membership, including access for two guests or one adult and dependent children under the age of 21. It also offers the first and second checked bag free for the primary cardholder and one travel companion on United-operated flights (a savings of up to $320 per round trip), a $100 TSA PreCheck/Global Entry application fee credit every four years, Premier Access travel services, expanded award availability and lower average award prices.

United Club Infinite cardholders enjoy complimentary IHG One Rewards Platinum Elite status (worth $1,245 according to our valuations). Plus, you’ll get an up to $75 IHG statement credit, valid through Dec. 31, 2022.

Related: United Club Infinite Card review

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Official application link: United Club Infinite Card

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United Quest Card

Sign-up bonus: Earn 80,000 bonus miles after you spend $5,000 on purchases in the first three months your account is open.

Annual fee: $250.

Earning rate: Earn 3 miles per dollar on United purchases (after your $125 annual United statement credit); 2 miles per dollar on dining, all other travel and select streaming services; and 1 mile per dollar on everything else.

Is it worth it?

The United Quest Card is the newest card of the pack, offering premium perks for a reasonable $250 annual fee. The sign-up bonus alone is worth $847, so that can justify paying the annual fee for nearly four years of cardmembership — well before considering the ongoing benefits. We’ve seen higher bonuses on this card, but this is still a good offer to take advantage of if you need those miles soon.

Cardholders will receive up to $125 in statement credits each account anniversary year for United purchases, two 5,000-mile anniversary award flight credits after you redeem your miles for a United flight, first and second checked bags free and an up-to-$100 TSA PreCheck or Global Entry application credit.

Related: United Quest Card review

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Official application link: United Quest Card

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United Explorer Card

Sign-up bonus: Earn 60,000 bonus miles after you spend $3,000 on purchases in the first three months your account is open.

Annual fee: $95, waived the first year.

Earning rate: Earn 2 miles per dollar on United purchases, hotels (booked directly) and dining, and 1 mile per dollar on everything else.

Is it worth it?

TPG values this sign-up bonus at $605, which is pretty good for a card that has a waived annual fee in the first year. We recommend signing up for this card when you can get 60,000 or more miles — especially if it requires under $10,000 in spending. The current offer reflects that, so now is a good time to apply.

Aside from the sign-up bonus, United Explorer cardholders will get a nice roundup of benefits: free first checked bag, priority boarding, two one-time United Club passes each year, a 25% discount on inflight United purchases (including Wi-Fi, food and beverages), access to additional award space and less expensive award flights.

You can also earn up to 1,000 Premier qualifying points with $24,000 in annual spending on the card (500 points for every $12,000 in annual spending). If achieving United elite status is on your list in 2022, this mid-tier card could help you earn status without charging a steep annual fee.

Finally, like the Infinite and Gateway cards, you’ll get an up-to-$100 TSA PreCheck or Global Entry application credit.

Related: United Explorer Card review

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Official application link: United Explorer Card

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United Gateway Card

Sign-up bonus: Earn 30,000 bonus miles after you spend $1,000 on purchases in the first three months your account is open. Plus, you’ll get 0% annual percentage rate (APR) for 12 months from account opening.

Annual fee: $0.

Earning rate: Earn 2 miles per dollar on United purchases, gas, local transit and commuting; and 1 mile per dollar on everything else.

Is it worth it?

The United Gateway is the entry-level card into the United MileagePlus program, charging no annual fee. However, it can still provide value to beginners.

In addition to the solid rewards rate, you’ll get a 25% discount on inflight United purchases and have access to up to $6,000 in trip cancellation and interruption insurance (up to $1,500 per person) if your trip is canceled or cut short by covered reasons like sickness or injury.

If you’re someone who is planning on flying with United multiple times a year, you’ll likely get better value out of the other United card options. But for beginners looking for their first cobranded airline card, the United Gateway is a solid option. The new sign-up bonus is modest compared to the other United cards (clocking in at $242 in value, according to TPG’s valuations) but it is a step above many other no-annual-fee cards.

Related: United Gateway Card review

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Official application link: United Gateway Card

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United Business Card

Sign-up bonus: Earn 75,000 bonus miles after you spend $5,000 on purchases in the first three months your account is open.

Annual fee: $99, waived the first year.

Earning rate: Earn 2 miles per dollar on United purchases, dining, gas, local transit, commuting and office supply stores; and 1 mile per dollar on everything else.

Is it worth it?

The United Business Card offers solid perks to small-business owners, freelancers and those with side gigs. Cardholders receive the first checked bag free, priority boarding, two one-time United Club passes each year, a 25% discount on inflight United purchases and a $100 United travel statement credit after seven eligible United purchases of $100 or more with the United Business Card within an account anniversary year.

TPG values this sign-up bonus at $907. Furthermore, the card’s many benefits help make it valuable enough to offset the $99 annual fee to continue to keep the card after your first year. This is the highest bonus we’ve seen this card offer, so now is the time to get it if you’ve been planning to. Just note the high spending requirement.

Related: United Business Card review

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Official application link: United Business Card

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Maximizing United miles

United is a solid airline to bank miles with if you’re planning a stellar redemption. It’s also a Chase transfer partner, which can help you earn United miles across multiple credit cards. And the airline’s membership in the Star Alliance means you have even more options for redeeming miles across airlines, including Lufthansa, Air New Zealand and Turkish Airlines.

While United has a dynamic award chart that can make it harder to score redemption deals on some awards, the airline does offer some solid benefits for loyal flyers. In the past couple of years, United has improved its award sales, which can provide excellent redemption options, sometimes starting at just a few thousand miles per ticket. And United does offer other benefits such as the Excursionist Perk and the fact that United doesn’t impose fuel surcharges on award tickets (which can easily save you hundreds of dollars).

By taking advantage of low-cost domestic award tickets (such as flying from Houston to Orlando for as little as 3,500 miles) and free stopovers with the Excursionist Perk, you can stretch the miles you earn with your credit cards to help you plan your post-pandemic trips. Or, go big and start saving miles toward a fancy United Polaris business-class award.

Make sure to check out our guide to maximizing the United MileagePlus program.

Bottom line

With these United sign-up bonuses up for grabs, you’ll be able to get closer to a trip in 2023. But remember: Since these cards are issued by Chase, they will be subject to the issuer’s 5/24 rule. If you have opened five or more accounts in the past 24 months, you may have a hard time being approved for these cards.

Additional reporting by Emily Thompson, Senitra Horbrook, Stella Shon, Benét J. Wilson and Christina Ly.

Editor’s note: This post has been updated with new information.

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For most people, when they think of large-scale hotel chains, Marriott and Hilton are usually the first to come to mind. However, while Marriott and Hilton earn more annual revenue, Wyndham Hotels & Resorts is actually the world’s largest hotel franchising company by the number of properties, with more than 9,000 hotels in over 90 countries on six continents.

Wyndham’s impressive portfolio of 22 brands and its vast U.S. footprint is validated by the claim “chances are, you’re about 10 minutes from a hotel by Wyndham,” as declared in its marketing slogan. Along with locations worldwide and an impressive portfolio of budget and midscale brands such as Days Inn, La Quinta, Wyndham and many more, the Wyndham Rewards loyalty program offers a straightforward way to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally.

In 2020, Wyndham and Barclays revealed a refresh of their cobranded credit card lineup featuring the no-annual-fee Wyndham Rewards Earner® Card, the Wyndham Rewards Earner® Plus Card, and the Wyndham Rewards Earner® Business Card. The latter was the first Wyndham credit card created specifically for small businesses.

The information for the Wyndham Rewards Earner Business Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Given these three distinctive Wyndham card options issued by Barclays, you might be wondering which one will be best for your needs. Here’s a glance at the differences between them, so you can make the right choice based on your spending habits and travel goals.

Wyndham credit cards

Wyndham Rewards Earner® Card

Sign-up bonus: Earn 30,000 bonus points after spending $1,000 on purchases in the first 90 days.

Earning rate: Earn 5 points per dollar on eligible Hotels by Wyndham and gas station purchases, 2 points per dollar on dining and grocery store purchases (excluding Target and Walmart) and 1 point per dollar on all other purchases.

Benefits: Wyndham Rewards Gold status, which includes free Wi-Fi, preferred room selection and late checkout. Opportunity to earn 7,500 bonus points each anniversary year after you spend $15,000 on eligible purchases. A 10% points discount on redemptions for free nights, and no foreign transaction fees.

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Annual fee: $0.

Analysis: Built for the traveler that occasionally stays at Wyndham properties, this no-annual-fee card may provide you with useful benefits alongside your stay. Aside from earning 5 points per dollar at Wyndham properties and at gas stations, it earns a solid 2 points per dollar on grocery stores (excluding Target and Walmart) and dining purchases.

With standard free night awards starting at 7,500 points per night, the welcome offer of up to 30,000 bonus points can easily cover multiple hotel nights on your next vacation. Since TPG values Wyndham Rewards points at 1.1 cents each, this sign-up bonus is worth $330 — a decent offer from a no-annual-fee hotel card.

If you seldom stay at Wyndham hotels but want to dip into Wyndham Rewards, the no-annual-fee Wyndham Rewards Earner® Card may be ideal for you. On the other hand, if you spend several nights a year at Wyndham properties, there’s considerably more value to be had with the Wyndham Rewards Earner® Plus Card.

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Official application link: Wyndham Rewards Earner® Card

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Wyndham Rewards Earner® Plus Card

Sign-up bonus: Earn 45,000 bonus points after spending $1,000 on purchases in the first 90 days.

Earning rate: Earn 6 points per dollar on eligible Hotels by Wyndham purchases and gas station purchases, 4 points per dollar on dining and grocery store purchases (excluding Target and Walmart) and 1 point per dollar on all other purchases.

Benefits: Wyndham Rewards Platinum status, which includes all the same perks of Gold status plus early check-in, car rental upgrades with Avis and Budget, and Caesars Rewards status match. Cardholders receive 7,500 bonus points each anniversary year with no spending requirement.

Annual fee: $75.

Analysis: If you routinely stay at Wyndham hotel brands such as Wyndham, Hawthorn Suites, Days Inn and La Quinta, the Wyndham Rewards Earner® Plus Card may be a valuable addition to your stays. The automatic Platinum status grants you additional perks such as early check-in, car rental upgrades and a 10% discount when redeeming points for free nights.

The sign-up bonus is worth $495, per TPG’s most recent valuations, and the automatic 7,500-point bonus each anniversary year helps offset the annual fee. Even if you spend only a few nights a year at Wyndham hotels, the higher elite status, improved earning rates on everyday purchases and superior welcome offer make the Wyndham Rewards Earner® Plus Card worthy of consideration.

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Official application link: Wyndham Rewards Earner® Plus Card

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Wyndham Rewards Earner® Business Card

Sign-up bonus: Earn 45,000 bonus points after spending $2,000 on purchases in the first 90 days.

Earning rates: Earn 8 points per dollar on purchases at Hotels by Wyndham and qualifying gas purchases; 5 points per dollar on marketing, advertising and utilities; and 1 point per dollar on all other purchases.

Benefits: Wyndham Rewards Diamond status, which includes all the perks of Platinum plus suite upgrades, a welcome amenity at check-in and the ability to gift Gold status to a family member or friend. Cardholders receive 15,000 points each anniversary year with no spending requirement. Cellphone insurance when using the card to pay your wireless bill ($50 deductible, $600 in coverage per event).

Annual fee: $95.

Analysis: Like the Wyndham Rewards Earner® Plus Card, the business version is a great card for travelers that stay at hotels by Wyndham a few times a year or intend to. Where this card outshines its fellow Wyndham cobranded cards is with two unique features.

Small-business owners can earn 5 points per dollar on utilities, with a broad definition of what constitutes utility purchases. Qualifying utility purchases are defined as telecommunications services, cable, satellite, electric, gas, heating oil and water, as identified by the merchant category code. A bonus category designed specifically for your bills at home, such as electricity and water, is virtually unheard of.

The second distinction that comes with the Earner® Business Card compared to the personal cards is cellphone insurance. While this benefit isn’t brand-new and is offered by other credit cards, this useful perk can save you up to $600 if you break your phone or if it’s stolen. If you’re a small-business owner and want to dive into Wyndham Rewards, this business card is hard to pass up.

The sign-up bonus is worth $495 according to TPG valuations.

The information for the Wyndham Rewards Earner® Business card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

How to use Wyndham Rewards points

The Wyndham Rewards loyalty program delivers a multitude of ways to earn and redeem your hard-earned points. You can use your Wyndham Rewards points for airline tickets or gift cards, or convert them into miles with airline partners. By far, though, redeeming Wyndham points for hotel reservations at more than 9,000 hotels worldwide provides the most value. For this guide, we’ll focus wholly on hotel stays as the best use of Wyndham Rewards points.

Related: The ultimate guide to earning and redeeming with Wyndham Rewards

Wyndham Rewards properties are divided into three simple free night tiers — 7,500, 15,000 and 30,000 points per night. You can also book award nights for Wyndham Timeshare properties. Keep in mind, Wyndham prices its timeshares per bedroom per night. Therefore, a one-bedroom unit will cost you 15,000 points per night. A two-bedroom unit would cost 30,000 points per night.

You can also use a combination of cash and points to redeem for free nights. For example, if you’re eyeing a property that costs 15,000 points per night but don’t have enough points in your Wyndham Rewards account, you can use 3,000 points plus a reduced cash amount to book your free night stay. If you’re short on points, you can also transfer your Capital One miles or Citi ThankYou points to Wyndham Rewards at a 1:1 ratio. This can be a practical option for booking more expensive Wyndham hotels.

Wyndham’s points-plus-cash awards are called go fast℠ awards and cost 1,500, 3,000 or 6,000 points plus a cash copay. The amount of cash you pay will vary by the property you choose and is determined by a percentage of the room rate. On top of reasonable nightly award rates, all cardholders, regardless of which Wyndham card they have, will receive a 10% discount when redeeming points for hotel stays.

Practically, that means you can book a standard free night award starting at just 6,750 points. Wyndham Rewards points offer a bit of flexibility with their redemption options, though hotel stays, in general, will deliver the best value.

Related: 14 best Wyndham properties to book with points

Which card comes out on top?

The no-annual-fee Wyndham Rewards Earner® Card is worth a look if you’re averse to annual fees and are a novice to hotel rewards. The entry-level card features a welcome offer of up to 30,000 bonus points that can cover up to four free nights at one of Wyndham’s many brands, with rates starting at 7,500 points per night. That’s noteworthy value for a starter card.

Still, if you’re looking for a more rewarding Wyndham personal card, the Wyndham Rewards Earner® Plus Card is equipped with better earning rates, higher elite status (and thus more benefits) and 7,500 anniversary bonus points in exchange for a reasonable $75 annual fee.

While the two personal Wyndham Rewards cards are strong choices, the card with the most to offer just might be the business version.

The Wyndham Rewards Earner® Business Card dishes out an elevated earning structure with 8 points per dollar on gas purchases and a unique utilities bonus category that accrues 5 points per dollar on common office or household expenses such as electricity and water bills. Add top-tier Diamond elite status, 15,000 anniversary bonus points with no spending requirement and a 10% discount on award redemptions, and the business version packs a serious punch for a hotel cobranded card.

Bottom line

If you’re a frequent guest at hotel brands by Wyndham, these three credit cards merit your consideration. The current sign-up bonuses offer solid value, as you can earn up to 45,000 bonus points with the Wyndham Rewards Earner® or the Wyndham Rewards Earner® Business cards.

Whether you opt for the personal or business version, all cards achieve a valuable sign-up bonus which can be used for multiple free night rewards at Wyndham properties including Wyndham, LaQuinta, Ramada, Days Inn and more.

In addition to garnering enough points for free night rewards solely with the welcome bonus offer, every variation of the Wyndham cards includes a higher points-earning structure, complimentary elite status, no foreign transaction fees and a 10% discount when redeeming points for free nights.

That said, if you rarely visit Wyndham properties and don’t plan to, consider alternative travel cards like the Chase Sapphire Preferred Card or Capital One Venture Rewards Credit Card.

Official application link: Wyndham Rewards Earner® Card
Official application link: Wyndham Rewards Earner® Plus Card

Additional reporting by Emily Thompson and Stella Shon.

The Business Platinum Card® from American Express might come with a high annual fee, but it also has a whole lot of credit card perks.

Despite the annual price tag of $695 (see rates and fees), the Amex Business Platinum card has plenty to offer — but many of the card’s best benefits aren’t automatic; you’ll have to enroll your card to get them. Here’s a quick look at what those perks are and how to register for them.

And remember, exclusively through The Points Guy, the card is also currently offering a lucrative introductory bonus of 150,000 Membership Rewards points after you spend $15,000 on eligible purchases in the first three months of card membership. That’s worth a whopping $3,000, according to TPG’s latest valuations, and matches the highest offer ever seen on this card.

The last time a 150,000-point bonus was available to the public was back in mid-2017, so more than five years later, this is a great time to apply for the card.

Overview of the Business Platinum perks

The Amex Business Platinum has over $1,400 in statement credits that you could potentially maximize. Of the seven credits, you must register for six before you can actually begin using them. Here’s a look at what those credits are:

Credit	Annual amount	Do I need to register?	How it works
Dell	Up to $400.	Yes.	Annual statement credit on all U.S. Dell purchases, up to $200 semi-annually. This is a $200 increase from the existing Dell benefit.
Indeed	Up to $360.	Yes.	Annual statement credit on all Indeed hiring and recruiting products and services to post open positions and find talent, up to $90 per quarter.
Adobe	Up to $150.	Yes.	Annual statement credit on select purchases, including Adobe Creative Cloud and Acrobat Pro DC.
Wireless telephone services	Up to $120.	Yes.	Annual statement credits for purchases made directly from any US wireless telephone provider, up to $10 per month.
Clear	Up to $189.	No.	Statement credits toward an annual Clear membership for expedited airport security.
Airline fee	Up to $200.	Yes.	Annual airline fee credit of up to $200 on charges by the airline you select per calendar year.
Global Entry or TSA PreCheck	Up to $100.	Yes.	Statement credits for Global Entry ($100) or TSA PreCheck ($85) every four years (4.5 years for PreCheck).

Besides statement credits, the Business Platinum card also has several other perks you have to register for. These include:

Finally, here are the other top Amex Business Platinum perks that don’t require registration:

• 1.5 points per dollar on purchases for up to $2 million per calendar year across new categories that include:
• Electronics goods retailers, software and cloud service providers
• Construction materials and hardware supplies
• Shipping providers
• 1.5 points per dollar earned on large purchases over $5,000
• 5 points per dollar on flights and pre-paid hotels booked in advance through Amex Travel
• Cellphone protection, for a maximum of $800 per claim with a limit of two approved claims per 12-month period. Note that a $50 deductible will apply.
• Access to the Cruise Privileges Program and the International Airline Program.
• Global Dining Access by Resy: Exclusive reservations at some of the world’s top restaurants, access to premium events, and other perks like priority notify and VIP status.

How to register

The golden ticket to accessing these perks is through your online Amex account under the “Benefits” tab. Once there, you can find every perk that you need to register for. In fact, there is an additional “Enroll” tab that breaks down the perks that require enrollment.

In addition, several perks even have a dedicated tracker within your Amex account. This is helpful to determine how much of a perk you have left remaining. For instance, in the screenshot above, this cardholder still has $200 left of their airline fee credit. (Don’t forget to register first.)

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Bottom line

The Amex Business Platinum Card is one of our top business cards that’s excellent for small businesses with expenses in the new statement credit categories. While it might not be worth the money for all business owners, its travel and lifestyle perks are difficult, if not impossible, to beat.

Most of its perks, however, do need to be registered for ahead of time — a worthy investment if you plan on making the most of your new card.

Official application link: Amex Business Platinum with a TPG-exclusive 150,000-point welcome offer.

Additional reporting by Ryan Wilcox.

For rates and fees of the Amex Business Platinum Card, click here

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As if the drumbeat of negative news from Alaska Airlines wasn’t enough, we are now getting reports that the main perk of holding the Alaska Airlines Visa Signature® credit card may become much harder to earn soon.

Alaska Airlines’ Mileage Plan is one of TPG’s favorite airline loyalty programs. Unfortunately, there’s been a steady drip, drip, drip of negative developments at the program.

Doctor of Credit was first to report this news, which was then picked up by View from the Wing.

Rumored changes coming to the personal Alaska card

According to an application link that Doctor of Credit temporarily got hold of, the personal version of this Bank of America credit card may soon have a minimum spending requirement to earn the valuable Alaska Companion Fare benefit.

According to the application landing page, which Bank of America has since pulled, you’d need to spend $6,000 per year to claim the Companion Fare benefit.

If the rumors are true, it’s not all bad news. There will reportedly be a largest-ever sign-up bonus for the card.

According to the limited-time email offer sent to some customers, the sign-up bonus would be a whopping 70,000 Alaska miles after you spend $3,000 on the card in the first 90 days of account opening. You’d also get a statement credit of $100 on Alaska purchases.

On top of that, you’d also earn 2 miles per dollar spent on gas, cable, streaming services and local transit (including ride-hailing services) purchases plus 3 miles per dollar spent on Alaska purchases. You would also get $100 off an annual Alaska Lounge+ Membership when you pay with your new card.

The annual fee would increase from $75 to $95.

One new benefit is priority boarding for cardholders, which will likely be similar to Group 4 or 5 boarding on American Airlines for its cobranded credit cardholders.

There is one other sweetener: a 10% rebate on miles earned per year if you have other accounts at Bank of America.

Related: Best sweet spots with Alaska Airlines Mileage Plan

TPG has reached out to both Bank of America and Alaska Airlines for comment. Alaska wouldn’t confirm any of the details but did say, “We’re currently working on enhancements to our Visa Signature Card. We announced this past March that additional benefits are on the way. We’ll have more to share in early 2023.”

This has led us to believe that Alaska might announce the card’s changes at the same time or soon after an expected devaluation of their award charts in late December.

What I plan to do with my Alaska cards

If you haven’t had the personal card, it might make sense to sign up under this improved offer (when it becomes available). For me, however, the changes to the annual fee and the Companion Fare perk would be a deal breaker.

I used my Companion Fare for my niece on a recent trip to Hawaii. Unlike the Delta companion certificate, you can use the Alaska Companion Fare on trips to Hawaii, which is nice, but I didn’t spend $6,000 on my Alaska card last year and I won’t this year either. It makes a lot more sense for me to use a card that earns me transferable currency.

Related: How my unused Alaska Companion Fare saved a co-worker nearly $700 on summer travel

I might reconsider if spending on the Alaska credit card helped me earn status, but aside from a temporary perk in 2021, the card doesn’t do anything to help you earn Alaska status.

There is a chance, I suppose, that existing cardholders get grandfathered into the current benefits. That strikes me as unlikely.

It’s not clear what happens to the Alaska Airlines Visa® Business card, which also offers a companion pass and which I also hold, but if these changes roll out to both those cards, I will product change both of them to a no-annual-fee Bank of America card. (TPG recommends downgrading instead of closing your card to help maintain your credit score).

It’s part of a trend with Alaska lately that I’m not happy about. Alaska has instituted dynamic pricing on some awards, making finding business-class awards hard to find and more expensive.

Alaska has also slashed earning rates on partners like Cathay Pacific and dropped valuable partners like Emirates.

Bottom line

These changes aren’t great, and worse may come as another potential devaluation looks to be on the horizon.

There are still lots of things to love about Alaska, including the ability to add stopovers for free on most awards and the fact that you still earn miles for every mile you fly on Alaska. (That means you get the same miles even for cheap tickets, unlike with the other major U.S. carriers.)

Still, I’m very worried about the direction Alaska is headed. Negative changes for current Alaska cardholders would be another change slowly driving me away from my onetime favorite airline.

It’s shaping up to be a busy Thanksgiving, with many families once again able to get together in ways they largely couldn’t during the past two holiday seasons. That means airports are sure to be packed, along with Thanksgiving dinner tables.

More than three-quarters of those surveyed this fall by market research firm IRI reported they plan to celebrate Thanksgiving just as they did before the pandemic. However, this year’s feast will cost more: Thanksgiving dinner expenses are expected to be up by more than 13% this year compared to 2021.

Indeed, inflation is top of mind as many of us head to the grocery store to stock up on turkey, sides, drinks and desserts.

Those holiday food expenses will sting a little less, though, if you tap into some of the perks and offers from those same credit cards that get you key travel benefits. And if you approach it strategically, the money you spend on your Thanksgiving spread could help you work your way toward future free travel.

Here are a few things to keep in mind as you start scribbling down your Thanksgiving dinner shopping list.

Use a card that earns the most at grocery stores

Before you head to the grocery store, be sure to make note of which card in your wallet earns you the most points or cash back on groceries.

Groceries are a lucrative bonus spending category for a number of credit cards. You could turn your $150 grocery bill into 600 points with a card like the American Express Gold® Card, which earns 4 Amex Membership Rewards® points per dollar at U.S. supermarkets (up to $25,000 per calendar year). The Citi Premier® Card likewise earns 3 ThankYou Rewards points per dollar on groceries. Other cards on TPG’s list of best grocery credit cards can also earn you cash back.

In a lot of cases, this might be a different card than the one you’ll want to use on your big holiday gift purchases just a few days later. So, if you’re expecting a hefty grocery bill coming up ahead of the holiday, using a grocery-specific card could be a good way to diversify your points earnings before the gift-shopping begins in earnest.

The same goes for restaurants

Numbers from the U.S. Bureau of Labor Statistics show inflation for food purchased at grocery stores, by some metrics, is outpacing that for restaurant food this fall. This could lead more Americans to dine out this Thanksgiving.

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Even if you’re not planning to take the family out to eat for Thanksgiving dinner, some restaurants offer Thanksgiving takeout options you might want to take advantage of. For example, when my wife and I each had to work on Thanksgiving day last year, we got a huge, delicious Thanksgiving to-go spread from a local restaurant near our home in North Carolina for $120 that got us dinner and leftovers for days. While cooking Thanksgiving dinner is a beloved tradition, the food was so good we’d consider doing it again.

If some or all of your Thanksgiving dinner will come from a restaurant, be sure to select the card in your wallet that earns the most points, miles or cash back on dining, and tap into any dining credits you get for swiping your card at a restaurant.

Consider moving your grocery purchase online

Do away with the packed aisles and potentially earn more points by doing your grocery shopping online. With some credit cards, you’ll be able to earn at a higher rate when placing an online grocery order.

With the Chase Sapphire Preferred® Card, for instance, if you buy your groceries in person, you’ll earn 1 point per dollar. However, you’ll earn 3 Chase Ultimate Rewards points per dollar spent on online grocery store purchases.

So, not only will you avoid searching for a parking spot, standing shoulder-to-shoulder with other customers trying to grab a package of rolls and waiting in a frustrating line at the checkout, but you’ll also earn triple the points by knocking out your grocery list from the comfort of your couch.

Check third-party sites online

While we’re on the topic of shopping online for Thanksgiving, keep in mind that you may want to look beyond your typical, neighborhood grocery chain when it comes to your Thanksgiving dinner purchases. It can be a way to redirect your spending so you can earn at a higher rate and even potentially stack your earnings.

Cards like the Amazon Prime Rewards Visa Signature Card get you hefty returns on Amazon and Whole Foods purchases, for instance. That means an Amazon Fresh delivery order could be a way to maximize both convenience and cash back.

If you’re chasing elite status before year’s end or hoping to earn enough airline miles for an upcoming redemption, you might check airline shopping portals to see if there are any offers that could help you fill out your Thanksgiving table.

These shopping portals can do more than help you stock up on household items or purchase holiday gifts. There are food and wine retailers on many of these sites, too. Some might earn you 2, 3 or more airline miles per dollar spent. If you don’t have a card that earns big on groceries (or everyday purchases, for that matter) in your wallet, this could be a way to accelerate your earnings.

You may not be able to buy every aspect of your spread, but it could be a way, for example, to buy pies, meat and wine. Log into a portal and sort by “food and dining” to find options that might be of help.

If you pay for your purchase with a rewards credit card, this could be a way to stack your earnings for your Thanksgiving dinner purchases.

The information for the Amazon Prime Rewards and the Amazon Rewards cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Tap into credit card offers and benefits

Don’t forget about the offers you receive through your credit card portals. These offers can help you recover some of the money you spend on a particular credit card in the form of a statement credit. There are plenty of offers out there right now that could help you with holiday spending, and some offers might be of use to you as you do your grocery shopping.

For instance, I have access to the American Express portal through one of my credit cards. Here’s an offer I found that could be hugely helpful for Thanksgiving: Get $35 back on purchases of $100 or more with Crowd Cow, which is an online site that does meat and seafood delivery, including Thanksgiving turkeys.

And there’s always wine. Right now some members can get $50 back when they spend $100 or more at Macy’s Wine Shop through American Express — not to mention, you’ll enjoy free shipping on orders of six bottles or more.

Offers vary from one account and portal to another, so your best bet is to check on your offers. There could very well be one that could help you offset the cost of your dinner. Just be sure to add any offers you’re interested in using to your card before making the purchase.

Bottom line

Perhaps the easiest way to earn free travel (and in some cases, elite status) is through a strategic approach to your normal spending. Such a strategy becomes all the more important when the big expenses in life come around, and certainly, Thanksgiving dinner is among the biggest grocery expenses of the year for many of us.

While inflation might make the final tally a bit painful at checkout, knowing you’ve done everything to offset the cost — or, that you’re at least getting a nice return on your spending — can help soften the blow a bit.

If you’re an avid reader of TPG, you know that credit cards can provide outsized value beyond just earning and redeeming points.

In fact, many banks create and maintain partnerships with other companies that fall outside their traditional wheelhouse. Over the past few years, these partnerships helped provide ancillary value for cardholders, whether it’s through monthly statement credits or discounts.

For instance, American Express has a mile-long list of partners on its premium cards, such as Uber and Equinox. Chase is another major issuer with these similar relationships, including DoorDash and Lyft.

Last year, Chase introduced a partnership with Gopuff, a delivery service that can bring you groceries, home essentials and more to your door. Eligible Chase credit cardholders continue to get up to $10 in statement credits on Gopuff purchases each month.

What’s neat about this promotion is that you can get multiple statement credits if you carry several Chase credit cards … meaning that you could potentially get hundreds of dollars in value from this offer alone.

If you’re feeling the crunch of sky-high inflation and are hoping to snag some essentials at a discount, here’s everything you need to know about Chase and Gopuff’s partnership.

Promotion details

To access this promotion, visit gopuff.com or shop through the Gopuff mobile application. There’s no enrollment for this benefit — all you’ll need to do is pay with your eligible Chase credit card at checkout to receive a $10 statement credit each month. That’s a potential value of $120 per year on each eligible card in your wallet.

You’ll have until Dec. 31, 2023 to take advantage of this full offer for hundreds of dollars in monthly statement credits.

What is Gopuff?

Need something in a jiffy? Gopuff delivers snacks, groceries, home essentials, alcohol (in some markets) and more right to your door.

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Unlike Instacart Express or other grocery delivery services, there’s no mandatory membership or subscription fee you have to pay each month. Every Gopuff order you place comes with a $2.95 flat delivery fee, no matter how large the order is. However, signing up for the $7.99/month Gopuff Fam membership means you can get free delivery on all orders.

Gopuff currently services more than 1,000 cities, and you can check out if there’s a facility near you. Depending on where you live, Gopuff operates 24/7 and late-night everywhere else.

Nationwide, Gopuff is piloting an on-demand service — meaning you can get your order in 30 minutes (or less). As a New York City resident, I’ve been able to use Gopuff on-demand and have received my orders in record time — usually within 15 minutes.

Related: You can now get Gopuff delivery for free to select Hyatt Place hotels

Eligible Chase cards

The list of Chase cards that are eligible for this benefit is quite long — and even includes several no-annual-fee options:

*The information for these cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

The more eligible Chase credit cards you carry, the more savings you can get. You’ll simply have to swap out your Chase-issued credit card for another one if you are placing multiple orders.

For example, I’m a cardholder of the Sapphire Preferred and Freedom Flex. In the past, I have placed two separate orders on Gopuff and received a $10 statement credit on each card.

Bottom line

Chase partnerships come and go. Others are updated and extended multiple times, such as the complimentary DoorDash DashPass benefit that has been extended and is now valid through 2024.

This Gopuff benefit provides tremendous value because of its ease of use and stackable nature if you happen to carry more than one Chase credit card. The fact you don’t need to enroll in advance or sign up for any services that will automatically renew also improves this benefit.

Additional reporting by Emily Thompson.

Merchants and businesses serve a vital role in their customers’ digital lives, working to ensure their payment and cardholder data is kept safe from fraudsters.

Payment fraud is a prevalent issue affecting organizations of all shapes and sizes. To keep customers safe and your business operations intact, it is of the utmost importance to develop a strong payment fraud prevention strategy that is PCI compliant and highly effective.

In this article, we dive into the depths of payment fraud, including what it is and how your business can work to prevent it.

What is Payment Fraud

Payment fraud is a broad term used to describe the theft of a person’s private financial and payment information. With more payment methods than ever, payment fraud is becoming a larger issue for merchants and business owners.

Several types of payment fraud exist, with some of the most prevalent including:

• ACH Fraud: ACH fraud is a type of fraud in which a payment account is accessed without authorization to carry out unauthorized payments and withdrawals through the ACH system. This type of fraud is one of the easiest to execute, as the fraudsters only need a checking account number and banking routing number to pull it off.
• Wire Transfer Scams: Wire transfer scams have grown in popularity over recent years, as wire transfers can be difficult to track or reverse without the proper protections in place. The typical methodology of a wire transfer scam is for a fraudster to pose as a trusted acquaintance or source (such as a friend, family member, or coworker) and request an urgent wire transfer, usually to a different country.
• Friendly Fraud: Friendly fraud occurs when the customer is the culprit behind the fraud. In friendly fraud, a customer will make a purchase online using a credit card, then contact their credit card company claiming there was an issue with the purchase or that they did not authorize the purchase, resulting in a chargeback. Chargebacks are especially risky, as merchants and businesses not only lose out on revenue but can also face penalties or restrictions as a result.
• Phishing Fraud: Phishing fraud has flourished in the digital era of payments, as there seems to be an ever-increasing pool of methods for it to be carried out. Phishing refers to fraudulent communication in which a customer unknowingly shares their information with a fraudster, typically through email or by clicking dangerous links.
• Clean Fraud: Clean fraud is a type of fraud in which a fraudster carries out a transaction that appears to be legitimate, inhibiting fraud detection systems from alerting the transaction as suspicious. Oftentimes, this type of fraud involves stolen credit card information and a fraudster impersonating the cardholder with great finesse.

The Current State of Payment Fraud

In 2021, checks and ACH (Automated Clearing House) debits were the payment methods found to be the most susceptible to payment fraud, according to the 2022 AFP Payments Fraud and Control Report. 

Although check fraud has declined since 2010, ACH debit fraud increased from 34% to 37% between 2020 and 2021. Overall, the report found that 71% of organizations had experienced “Attempted and/or Actual Payments Fraud” in 2021.

Furthermore, 75% of larger organizations (at least $1 billion in revenue) experienced attempted or actual fraud compared to 66% of smaller organizations (less than $1 billion in revenue), making larger organizations the more susceptible option for fraudsters.  

This report ultimately reveals that — though small organizations are less susceptible to fraud — organizations of all sizes must be more aware of potential fraud risks and be proactive in solving these risks.

What is Payment Fraud Prevention?

Like payment fraud, payment fraud prevention is an overarching term used to describe different strategies, tools, and methods for preventing payment fraud from occurring. 

Having a robust payment fraud prevention model in place is essential for any business, merchant, or other entity conducting business digitally. Setting up a payment fraud prevention strategy involves several activities, including everything from in-depth staff training to automated tools designed for detecting suspicious activity before fraud can occur. 

Though there are many moving parts within a payment fraud prevention strategy, one of the most important components to preventing payment fraud is to maintain PCI compliance or use tools and solutions that are PCI-compliant. 

How Can Businesses Protect Customers from Payment Fraud? 

When it comes to how businesses and merchants can protect customers from payment fraud, the key lies in adopting an end-to-end payment fraud prevention solution. 

Besides maintaining PCI compliance, best practices for fraud prevention include:

• Defining a Fraud Prevention Program: Having a well-defined fraud prevention program is the first step to ensuring the safety of your customers’ payment data. This can include regular internal reviews, continuous transaction monitoring, and converting from paper checks to electronic payments wherever possible.
• Educating Employees & Organizing Tasks: These days, many fraud prevention tasks can be handled automatically using artificial intelligence, machine learning, and APIs. However, it is still highly important to provide proper education and training for staff members on how to recognize fraud, as well as to organize tasks to be handled separately by different individuals.
• Maintaining a Secure Electronic Environment: Electronic payment environments can be highly effective when kept secure. Like with the PCI compliance requirements, this necessitates regular updating of systems and software. It is also essential to implement dual controls that separate tasks such as issuing and approving online payments. Tokenization can also be a great way to carry out digital transactions without risking cardholder data.

Key Takeaways: Protect Your Customers with Spreedly

To ensure the safety of your customer’s payment data, it is crucial to work with companies that value security as well as efficiency.

With Spreedly’s global payment ecosystem, you can connect to a wide range of APIs, payment gateways, fraud prevention tools, and more all from a single platform. Spreedly helps your business achieve high approval rates while also enabling various payment methods, including localized payments. 

Plus, Spreedly helps you to improve your checkout experience to provide customers with a seamless payment experience that is highly secure and reliable. 

To access our production trial with 300 free API calls, get started with Spreedly today.

For merchants, having an efficient and secure payment system is a cornerstone to a successful business — but how can efficiency be achieved without placing customer data at risk? 

PCI compliance is a necessity for any merchant dealing with cardholder data. Not only does it protect the customer from data leaks and fraudulent charges but it also ensures merchants can avoid costly fines and other legal and business consequences resulting from data breaches. 

This article helps to define what PCI compliance is and the key requirements needed to achieve it. Plus, we discuss why PCI compliance is so crucial and how Spreedly can help ensure your business stays up to date on the latest PCI standards.

What is PCI Compliance?

PCI compliance is a set of security standards that must be met by any business that carries out payments or other transactions using credit card data. 

The standards of PCI compliance are set and enforced by the Payment Card Industry Security Standards Council, or PCI SSC for short. These standards set forth by the PCI SSC evolve alongside the payments industry to reflect changes to digital payment systems and their security needs. As such, businesses must provide documentation and proof of PCI compliance every 12 months. 

To be considered PCI compliant, businesses must meet 12 key requirements encompassing hundreds of sub requirements and test procedures to demonstrate compliance. The requirements and test procedures for PCI compliance are designed to achieve six main objectives to help protect cardholder data:  

• To build and maintain secure transaction networks and systems
• To protect cardholder data
• To maintain a vulnerability management program
• To implement strong access control measures
• To regularly monitor and test transaction networks
• To maintain a consistent information security policy

Although PCI compliance is not technically required by law, it is still considered a mandatory process since all major card brands (Visa, MasterCard, Discover, etc.) require this type of compliance for merchants who sign on with them for payment processing.

What are the 12 Key Requirements of PCI Compliance?

Altogether, the requirements and test procedures of PCI compliance form what is known as the PCI Data Security Standard (DSS). The 12 key requirements are:

     1. Implementing and maintaining firewalls to prevent unauthorized access to private information

      2. Employing appropriate password protections, such as a secure device inventory and regular password changes

     3. Protecting cardholder data, primarily through encryption processes

      4. Encrypting all transmitted cardholder data

      5. Utilizing antivirus and anti-malware software on all devices that interact with primary account numbers

      6. Embed security into all systems and software development practices

      7. Restricting access to cardholder data on a “need to know” basis

      8. Assigning unique IDs to anyone with access to cardholder and transactional data

      9. Restricting physical access to cardholder data by storing it in a secure, locked physical location

      10. Creating and monitoring access logs for all activity involving cardholder data

      11. Scanning and testing security systems for vulnerabilities regularly

      12. Maintain a strong security policy that is accessible to all personnel

Why is PCI Compliance Important?

PCI compliance is important for many reasons, from maintaining customer loyalty to avoiding hefty non-compliance fines resulting from a data breach.

For example, merchants can be charged a a penalty of up to up to $500,000 (USD) in fines per incident should a security breach occur if a merchant is not PCI compliant. Additionally, should a breach occur, all customers or parties whose information may have been leaked must be notified in writing, informing them to be on alert for any potential fraudulent charges.

Aside from avoiding half a million dollars in fines per incident, additional benefits of maintaining PCI compliance can include:

• Less Risk: With a PCI-compliant transactional and payment system, your business is at a much lower risk of data breaches. In turn, you’re also much less likely to face increased audit scrutiny that can result from one or more incidents of leaked cardholder information.
• Lower Operational Costs: The cost of dealing with a data breach can be high, from having to spend extra money on written notifications to business expenses accrued during shutdown periods while a data breach is investigated.
• ‍Decreased Staff Burdens: In addition to heightened operational costs due to security-related shutdowns, merchants must also deal with increased burdens on staff. Not only must staff continue to be paid during a shutdown but, in many cases, additional training may be required to prevent future breaches.
• ‍Heightened Customer Loyalty: Customers hold much greater trust in merchants with effective security systems in place. As a result, you can maintain a better reputation and public image, leading to increased sales and improved customer loyalty.

Stay PCI Compliant with Spreedly

At Spreedly, we maintain Level 1 PCI compliance — the highest and strictest level of the security standard. We have achieved our 2022 Attestation of Compliance and are actively preparing for the new PCI-DSS 4.0 standard.

We have also re-certified for inclusion on the Visa Global Registry of Service Providers and the MasterCard SDP Compliant Registered Provider list. With this you can be assured that Spreedly is well positioned to assist you in reducing your PCI compliance burden.

Contact sales today to learn more about our flexible platform and payment ecosystem.

A hosted payment page refers to a webpage, popup, or embedded section where the customer is directed when they are ready to checkout and pay for their purchase. A hosted payment page is sometimes referred to as a hosted payment gateway and is typically enabled through a third-party service — hence why it is “hosted.”

There are a few different types of hosted payment pages, including:

• iFrames: An iFrame is an HTML element that is embedded naturally into your website or online shop. Using an iFrame is a great option for a hosted payment page, as it reduces the amount of redirection the customer must go through, making the overall checkout process much smoother and more seamless.
• ‍Webpages: Many hosted payment pages redirect customers to a separate secure webpage that appears in a different tab on their desktop or mobile web browser. These types of hosted pages are typically not seen when using a mobile app, as mobile apps need an embedded or pop-up page to carry out the checkout process.
• Pop-Ups: A pop-up is a type of hosted payment page that pops up — as the name suggests — directly on the webpage or app the customer is using. This involves less redirection, though it is not quite as convenient as an iFrame.

Though there are many benefits to using a hosted payment page for your online store or merchant business (which we discuss in greater detail momentarily), one of the most important benefits is the ability to maintain PCI compliance with ease.

Since hosted payment pages are supported by third-party payment service providers, the provider is often responsible for ensuring the checkout process meets all compliance requirements. 

In turn, merchants are less burdened by costly and time-consuming compliance activities while still providing an excellent customer experience to shoppers.

How Do Hosted Payment Pages Work?

Picture the last time you made a payment online. Whether you were shopping for goods, purchasing a service, or paying a bill online, you likely encountered a hosted payment page.

To illustrate how and when hosted payment pages come into play, let’s examine four key steps in the process:

1. Once a customer has selected the products, services, or bills they would like to pay for, they must then navigate to the checkout screen. This is often initiated by a button that reads “Checkout”, “Buy Now”, or a similar phrase. Placing this button in an easy-to-find location on your website is crucial, as this is how a customer arrives at a hosted payment page.

2. The Redirection: After clicking the checkout button, a customer is then redirected to a new webpage — this webpage is often a separate tab on their web browser that opens automatically. It can also, sometimes, be a pop-up screen or form that appears on the original web page where the checkout button resides. If you are using an iFrame for your hosted payment page, you can eliminate this step entirely.

3. The Checkout Form: With the redirection or embedded iFrame complete and the new section loaded, the customer will then see a checkout form with payment options and spaces to enter their payment information. Depending on how many payment methods you have enabled in your merchant system, the customer can then select their preferred payment method and enter the necessary authentication information to initiate the transaction.

4. The Confirmation: In most cases, the hosted payment page will offer a confirmation that the transaction has been processed and approved. This is an important step in the process, as it adds clarity and transparency for the customer regarding the transaction, letting them know immediately whether or not their payment has been approved in the system.

The Benefits of a Hosted Payment Page

Merchants and other online businesses who deal with digital transactions and payment processing can greatly benefit from hosted payment pages. Understanding what advantages there are to gain is essential when deciding which payment service provider to partner with to set up a hosted payment page.

Here are three key benefits of hosted payment pages:

• Enhanced Security: When a customer enters their payment information through a hosted payment page, the customer’s data does not pass through the merchant’s or business’s website directly. As a result, the entire transaction is processed by a third-party provider and the merchant is not responsible for securely storing customer payment information. Overall, this is a much more secure system that helps to protect the customer from fraud, identity theft, and more.
• Seamless Checkouts: Hosted payment pages make the checkout process more seamless and simple for customers. One of the key reasons for this is that customers can easily select their preferred payment method and enter their information quickly and securely. A seamless experience is vital, as it ensures the customer completes the transaction and does not abandon their cart due to a confusing or time-consuming checkout process.
• More Payment Options: Hosted payment pages are essential for any merchant or business that plans to activate alternative payment methods (PayPal, Apple Pay, SEPA payments, Zelle, Klarna, etc.). Every payment service provider is different, so it is important to be diligent when researching different providers and look for one that offers the payment integrations your merchant system needs.

When Should You Use a Hosted Payment Page?

To put it simply, a hosted payment page should be used anytime a customer is expected to enter their payment information. 

As mentioned above, hosted payment pages add an extra layer of security that alleviates the merchant of some of the burdens of compliance and protects the customer against fraudulent activity. 

Moreover, hosted payment pages make it incredibly simple for merchants to integrate and offer various payment methods. In turn, the merchant can better serve their customers and expand into new regions around the world where payment accessibility may be limited.

Key Takeaways: Connect to a Vast Payment Ecosystem with Spreedly

At Spreedly, our powerful API allows our clients to connect to a range of different payment methods and payment service providers. Plus, we offer an iFrame form that you can embed directly into your site’s HTML to make the checkout process as smooth and seamless as possible for your customers.

With specialized knowledge in how to support merchants, aggregators, and fintechs, Spreedly has both the technology and expertise your business needs to enable a speedier and more secure payment system. 

By partnering with Spreedly, you can access more than 200 partner services, allowing you to orchestrate payments with hundreds of different payment gateways, payment service providers, fraud tools, and more. Spreedly’s solutions are available in more than 100 currencies, making it easy to expand and conduct business across the globe. 

Check out our powerful array of products and create an account to get started with Spreedly today.

All businesses are structured differently, therefore you need a payments strategy that can mold to your specific business structure in order to maximize profit margins. Whether you’re a merchant, marketplace, or platform our knowledgeable team of Spreedly experts can assess your business model and strategically develop a mix of solutions to drive your business forward.

Despite this, no matter your business structure, payments are at the core of each and every business model. Although payments strategies may look different across business models, the need to securely transact, successfully transact, route payments, etc. remains the same. When you integrate a payments orchestration layer into your payments stack you open your business to numerous beneficial opportunities such as expand to new markets quickly, relieve tedious demands from your development team, and grow overall revenue.

We’re re-sharing the best videos from our Business Models series which highlight specific business models and how Payments Orchestration addresses each. Watch the wrap up of our Business Models series of vlogs to clearly identify the optimized mix of solutions for your business! 

Enjoy all of the top videos from our Business Models series below!