Cybersecurity
Equifax Credit Freezes Spell Pain for Banks Behind Store-Branded Cards
- Selling cards at point of sale could get tougher for issuers
- Synchrony Financial gets just 40% of its applications online
Equifax May Have Been Slow to Fix Security Flaw
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Equifax Inc.’s massive data breach could make an already tough market outlook even more daunting for the firms behind Gap Inc.’s and Ann Taylor’s store-branded credit cards.
Those retailers’ banking partners, including Synchrony Financial and Alliance Data Systems Corp., could see fewer account originations as more consumers freeze their credit to avoid hack-related fraud. Consumers have to take extra steps -- including calling the credit bureau, going online or paying fees -- to lift a block and get a new card.