Buzz
If you were to explain why you use a credit card for daily expenses like groceries, you'd likely mention the advantages of paying bills later, the added consumer protection against fraud, and the convenience of not having to carry cash or constantly monitor your checking account balance.
However, these benefits come at a cost. Geoffrey A. Fowler, a technology columnist for the Washington Post, embarked on an investigation to reveal how credit card companies and their affiliates monetize your personal data. In a lengthy story involving two bananas, an Amazon Prime Visa card, and a freshly minted Apple Card, Fowler highlighted six ways your credit card activity may be leaking more personal details than you'd expect.
The credit card issuer
Credit card companies can share your data with third parties unless you explicitly opt out, as detailed in the card's privacy policy (more on that later).
The card network
In addition to the bank that issues your card, the card networks—such as Visa and Mastercard—can take your data, anonymize it, and sell 'data insights.' 'Visa mentioned that it lets clients access data from groups as small as 50 people, often tied to specific Zip code areas,' Fowler wrote. This purchasing data might be used, for example, by a company planning to open a new store in your area.
The retailer
Every time you use your card, a retailer can add the details of your receipt to your purchase history. Depending on the store, your data could be sold to or, as Fowler pointed out, 'shared with' another company.
The payment processor
You might not give much thought to the payment terminal where you swipe your card, but these devices are also gathering your personal data. Some of this data can be stored as part of a customer profile, such as on register tablets that remember where to send your receipt. These services could be combining your purchase history with others’ to create a dataset shared beyond that specific retailer.
Your mobile wallet
Forgot your wallet at home? No worries, your phone's got you covered. But if your privacy settings aren't adjusted, your mobile wallet may be sharing your personal information. For example, Google Pay can use your data to target you with marketing from other Google companies, Fowler mentioned. On the other hand, Apple Payments, Inc. and Green Dot Bank keep Apple Pay Cash data separate from the rest of Apple's services. Most of your data, in fact, is not shared at all.
Your financial apps
If you link your spending to a budgeting app, the company behind it might be combining your data with others' and selling it to external parties. For example, EveryDollar mentions that it shares aggregated, anonymized data within its parent company, The Lampo Group.
How to opt out of all that credit card data sharing
At this point, it's likely that any product or service you've signed up for is sharing your data in one way or another. Whether it's being sold or used for industry research, the idea of all the ways you've exchanged privacy for convenience might make you want to disappear and hide in a bunker.
But maybe you're okay with sacrificing some privacy in exchange for easier shopping or earning loyalty rewards. If you aren't planning to stop using credit cards anytime soon, there are a couple of steps you can take to limit the amount of personal data that's shared.
First, credit card companies are required to provide an option to opt out of data sharing. Check your card issuer's privacy policy to learn how to remove yourself from their marketing lists.
Once you've taken care of the card issuer, don’t stop there—you may also need to reach out to the card networks to stop sharing your data. Visa and Mastercard both offer online options for this, while Discover and American Express allow you to manage your privacy settings either through your online account or by phone.
Cutting back on the sharing of your credit card data won’t make your shopping habits as private as paying with cash, but it can at least decrease the number of ‘personalized’ offers that end up in your junk mail.
