Say hello to the card of the future.
MasterCard is planning to release a new breed of credit and debit cards that will help protect consumers rather than gouge them. According to the New York Times, MasterCard will likely announce sometime this week that it is partnering with Citigroup to put out cards with new technology that can help customers budget better and avoid scams.
“The service, called inControl and already in use by some Barclaycard holders in Britain, is a sort of financial chastity belt that offers the potential to prevent a variety of budget sins and other money traps,” the Times reports.
Consumers signing up for this new card will have the ability to set monthly spending limits, prevent purchases above and beyond the amount in their checking account and even to pre-program countries and businesses that should be banned from charging their card in order to reduce fraud.
Currently, there are online tools such as Mint.com that allow consumers to keep track of their spending habits and better manage their budgets. But MasterCard’s service will actually allow consumers to police themselves by prohibiting users from making purchases above their pre-established budget.Of course, just because this service is available doesn’t mean all consumers will be eager to sign up for it. Sometimes we don’t like to stick to our own self-imposed budgets, as a recent survey found that more than a quarter of Americans plan to opt in to overdraft protection so they have the option to overdraw their accounts from time to time.
We’d like to hear from you. Would you sign up for a credit or debit card that stopped you from making more purchases? Let us know in the comments section!
Check out MainStreet's step-by-state guide to dealing with debit card fraud.