Target the most recent retailer to announce it can not accept checks
Target is the most recent national retailer to announce it can not accept checks. The policy takes effect on July 15 and is one other sign of how the once ubiquitous payment method is disappearing. Target cited the “extremely low number” of consumers who still write checks because the fundamental reason for the motion. The company said it has “taken several steps to notify guests in advance” of the brand new check-waiver policy. Target’s move follows previous announcements by supermarket chains Whole Foods and Aldi that they’ll not accept checks. [CU Today]
Target is the most recent major retailer to stop accepting checks
Leading Fed officials say they’re “closer” to a rate cut
Senior officials on the U.S. Federal Reserve said on Wednesday that the central bank is “closer” to cutting rates of interest amid improving inflation and a more balanced labor market. The comments pave the best way for a primary reduction in borrowing costs in September. [Reuters]
Citi closes unused bank card accounts with increasing losses
Citigroup is closing unused bank card accounts as an increasing number of customers fall behind on their payments. The bank has also increased its bad debt collection capability to scale back losses on Credit card balancesThis work included reducing customers’ bank card limits after they weren’t using them and tightening lending policies to make sure that latest accounts were issued to customers with higher creditworthiness. [Bloomberg]
Consumers still have credit limits on their bank cards
For Bank of America, digital channels were a chance for further growth, especially in bank card spending. Management says there continues to be room for consumers to proceed paying with these cards. The company said in a second-quarter 2024 earnings release that 53% of its consumer sales were made through digital channels within the quarter, up from 51% previously. Combined credit and debit spending of $243 billion was 3% higher than a 12 months ago. In terms of bank cards, average outstanding loans were $99 billion, unchanged from the primary quarter and better than a 12 months ago ($94.4 billion). The net charge-off ratio was 3.9%, up from 2.6% a 12 months ago and three.6% in the primary quarter. [PYMNTS]
Capital One Walmart card might be discontinued; existing cardholders will switch to Quicksilver
Capital One has stopped applications for the Capital One Walmart Rewards Mastercard, in addition to the “closed-loop” Walmart Rewards Card, which could only be used at that retailer. Existing cardholders might be switched to the Capital One Quicksilver Cash Rewards Credit Card, even in the event that they have already got that card. Capital One and Walmart had announced in May 2024 that they might end their partnership, however the fate of the co-branded Walmart bank cards was unknown on the time. [NerdWallet]
By 2027, digital wallets will overtake debit cards for in-store payments
Digital wallets have revolutionized the payments space lately. They offer an easy, contactless, and secure option to make purchases and transfer money conveniently through smartphones. This method is the fastest-growing payment option within the United States, which is very true amongst younger consumers. Most Americans say they use digital wallets more often than traditional payment methods. Even more interestingly, consumers who use this payment method are inclined to spend greater than non-users. According to a brand new report from Worldpay, this payment method will overtake debit cards in transaction value for in-store payments in North America by 2027. However, merchants still have some catching as much as do to maintain up with this unstoppable trend. Several notable hindrances—including perceptions about security, complexity, and outdated technology—still hold many back. [PYMNTS]
Call centers and bank branches are major fraud risks
Recently released results from an Arizent survey show that bank branches and call centers are falling behind in protecting their digital channels from automated fraud, making them more vulnerable to in-branch fraud activity. [American Banker]
Chase pronounces huge bonus for brand new business card holders, but just for a limited time
Chase announced that it’s increasing the bonus on its Ink Business Preferred Credit Card for a limited time. New cardholders can earn as much as $1,500 in bonus credits after they spend $8,000 in the primary three months of opening the account. The annual fee for the cardboard is $95, but ongoing rewards in popular business spending categories, travel advantages and other perks could make the cardboard worthwhile. [U.S. News & World Report]
Capital One Savor Card is not any longer accepting applications
The Capital One Savor Cash Rewards Credit Card will not be on the issuer’s list of accessible bank cards for brand new applicants. Starting July 16, 2024, Capital One says it can not accept applications for the cardboard. “We are always listening to our customers and evaluating our products for the right offers,” a Capital One spokesperson said in an email. “Based on that, we have made the decision to remove Savor as a card offer.” [NerdWallet]
JD Power launches a certification program for mobile banking apps
JD Power announced early Monday the launch of a certification program for mobile banking apps. The program is designed to acknowledge app providers that provide an exceptional user experience. The certification process evaluates mobile apps against 146 best practice benchmarks, including app development, design and operational functionality. The first qualifying criterion is that an app have to be among the many top performers in probably the most recent JD Power North America Mobile App Satisfaction Index. The benchmark rankings are based on overall customer satisfaction with the mobile app experience for 259 brands across 11 industries. [Digital Transactions]
Klarna, Adobe partner for “buy now, pay later” services
The partnership between Klarna and Adobe Commerce builds on the buy now, pay later platform’s previous efforts to draw more customers in a difficult economic environment. Earlier this 12 months, the corporate launched a subscription service that allowed customers to pay a monthly fee and avoid service fees while earning reward points and access to special offers through partner merchants. Now, the take care of Adobe Commerce will enable more sellers to supply Klarna’s services. [Payments Dive]
