This information can be a handy tool to help families budget for the coming year and determine where they can cut back in spending.Credit card issuers must state their privacy policies regarding personal information of customers.They are going to know where the person used the card." Keeping track Tracking is conducted for four primary reasons: Massive databases of information Millions of credit card users receive monthly statements detailing their spending during the billing cycle: The standard information provided includes the date of a purchase, the place of the purchase, including the name of the merchant, city, state, amount of the purchase and a transaction reference number.Every transaction processed by the card networks (Visa and Master Card) is assigned a merchant category code (MCC), a four-digit number that denotes the type of business providing a service or selling merchandise. For dating and escort services, it's 7273, and for massage parlors, it's 7297. The MCC is used, for example, to restrict health care spending on health care-related credit and debit cards.
The reason: Buying used clothing or retread tires may be an indication of financial distress and a preamble to missed credit card payments or defaults.It's not only your retail purchases, but your online purchases. Some people pay for their utilities with credit cards." Federal financial privacy laws (Regulation P) prohibit credit card issuers from sharing your personal and payment information with third parties not affiliated with the issuer (except under court order or when fraud is involved).Banks must send annual copies of their privacy policies to cardholders, but the law does not govern what the issuer does with payment information internally.The information is used to help make customer-specific offers of services."A lot of financial institutions are trying to find more ways to generate revenue." A rare glimpse into the details of behavioral modeling was revealed in a federal lawsuit filed by the Federal Trade Commission in June 2008 against subprime credit card marketer Compu Credit Corp.