Banks are Helping Consumers Prepare for a Busy Holiday Shopping Season: Fighting Fraud, Providing Financial Tools, & More

As millions of people make purchases for family and friends this holiday season, America’s leading banks are working to support consumers by providing the innovative financial tools they rely on to meet their financial needs, while simultaneously taking steps to prevent fraud and scams.

Why It Matters: According to the National Retail Federation, consumers are expected to spend between $979.5 billion and $989 billion in total holiday spending in November and December, compared with $955.6 billion during the same timeframe last year. 

Some Frequently Asked Questions from consumers below:

1. I’ve heard fraud and scams are on the rise, what kind of fraud should I watch out for and how do I prevent it?

There is no doubt financial scams are worse today than they have ever been. Technologies like artificial intelligence (AI) and caller ID "spoofing" now make it much easier for scammers to trick people out of their money. During the holiday season, you should be on heightened alert for these sorts of threats. The good news is that banks have invested billions of dollars and thousands of hours to combat fraudsters and scammers each year. One easy way to combat fraud is to use the tools your bank offers like multifactor authentication and account fraud protection to make sure you are safe from scams during the holidays. 

Learn more about how to protect yourself from scams HERE. 

2. I want to optimize my holiday purchases and spending this year, how do I determine what credit card is best to use this holiday season?

There are over 4,000 credit card issuers across four major credit card networks in the U.S. With so many options available in the market and companies competing for your business, determining which card to use can feel overwhelming. Start by asking yourself three simple questions: 

1. Will I pay my balance in full each month? Cardholders who may not pay their balance off every month should focus on how much they may pay in interest and fees before choosing a card. 
2. How much time will I spend optimizing benefits? Credit card issuers offer a variety of ways to gain rewards from using your credit card, from cashback to dining, entertainment, or airline miles. 
3. What am I looking for with this particular credit card? On average, cardholders have four cards in their wallets, reflecting their unique lifestyles and preferences. Many consumers use different cards to optimize different benefits at different times. 

To get a better understanding of your credit card options, click HERE. 

3. If I can’t qualify for a credit card, what emergency safety nets are available to me, if I need them, while shopping?

Overdraft services are one of the many tools offered by banks to use, if needed, during the holidays. As many as 25 percent of Americans choose to use overdraft services to make ends meet and cover unexpected expenses.

Overdraft services are conveniently linked to a checking or savings account and offer a bridge to cover a purchase or expense like a recurring bill when you do not have the needed cash on hand. Banks have taken proactive steps to make these services work even better for consumers and to better empower consumers to manage their finances, by providing real-time payment updates, grace periods, payment control, low-balance alerts, and no-fee overdraft accounts. 

Find out more about the innovations and choice offered by banks relating to overdraft services at by clicking HERE. 

4. What should I do if I can’t afford my credit card payments because of too much debt?

Holidays can be expensive, and it can be easy to find yourself in a place where you can’t afford to pay your credit card bills. 

When this happens, the Consumer Financial Protection Bureau (CFPB) recommends contacting your credit card company or financial services institution directly. Banks can often provide a safe and fast solution to get back on track.

Another option is to contact a non-profit credit counselor. These counselors can provide additional education and can even negotiate on a consumer’s behalf, which can result in consolidation of debts into one lower monthly payment.

You should be aware of the risks of using for-profit debt settlement companies. Despite their advertising, they can actually make your financial situation worse by charging excessive fees that add up over time, according to the CFPB.

Click HERE to find out more information.

5. Okay, I want to know more! What financial tools can help me plan during the holidays?

The answer to this question might be right in your hand (or wallet!). Over the past decade, banks have used technology to innovate and provide customers with a holistic banking experience, including on mobile apps. New tools such as AI chatbots are now widely available to you 24/7 to assist with basic banking needs. Additionally, other innovations such as low-balance alerts or deposit alerts and even spending analyzers can help you make informed financial choices this holiday season.