Chase tightens customer data security on third party sites
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
If you’re like many of us here at TPG, you likely have a third-party app that tracks your account balances, free night awards and various credits for each of your rewards programs. For me, that means Award Wallet is my go-to website for managing all of my (many) accounts, though there are dozens of choices out there.
Now, it looks like it may become a bit more difficult for these websites to gain access to your information. According to the Financial Times, Chase is set to ban fintech apps from accessing your accounts via password. This includes companies like Award Wallet, which scrapes your account for balance information in addition to providing automatic logins to the website.
This is a move to make your accounts more secure, as current methods allow third parties complete access to your account. And while these third parties (hopefully) are not exploiting that data, handing over your password leaves your account vulnerable, as noted in a shareholder letter by Chief Executive Jamie Dimon. “Many third parties sell or trade information in a way customers may not understand, and the third parties, quite often, are doing it for their own economic benefit — not for the customer’s. Often this is being done on a daily basis foe years after the customer signed up for the services, which they may no longer be using,” said Dimon.
Unlike other companies that have outright banned third-party permissions, however, Chase will be looking to use a token-based system to allow these companies access. The token will allow limited information to come through to the third party, rather than complete access to your account information.
Companies are already jumping on board, with information aggregator Yodlee moving to token-based access, while Plaid (which connects to many other personal finance websites) has also signed up to start using tokens.
What does this mean, in practicality? It shouldn’t mean much, to be honest. Though you’ll lose the ability to automatically log in, it should be well within the scope of a token to provide reward balance information, which means your balance tracking apps should continue to work just fine. Even better, you can rest easy knowing your information will be secure.
Feature photo courtesy of golubovy via Getty Images.
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees