Venmo and Zelle will not be free for for much longer
With latest technologies come latest rules for his or her use. That’s the case with peer-to-peer electronic payments, too. Last week, a U.S. Senate committee joined the talk over whether these are comparable to money or to bank payment channels. That’s a vital distinction—each for consumers and the businesses that provide this free service. But while no bank would accept liability if a customer loses their wallet to a pickpocket, the senators’ debate focused on who’s responsible when fraudsters goal electronic wallets. Last 12 months, customers of the three largest banks—Bank of America, JPMorgan Chase and Wells Fargo—lost a complete of $370 million through Zelle, the platform those banks co-own with 4 others. The banks only reimbursed about $100 million of that, leaving consumers to foot the remainder. While that is small in comparison with the full volume processed through Zelle – $806 billion last 12 months, of which these banks processed 73% – it’s little consolation for purchasers. [Bloomberg]
Will your payment apps remain free?
The Fed could soon cut rates of interest
Consumers have been waiting for rate cuts for the reason that Federal Reserve stopped raising rates a 12 months ago. Their wish may soon come true. Fed policymakers opted at their July meeting to maintain the benchmark rate of interest at 5.25% to five.50%, the range it has been in for the reason that last hike in July 2023. At the identical time, they suggested that inflation was approaching the extent at which they might favor a rate cut. Investors are betting that rate cuts will begin before the tip of this 12 months, possibly as early as September. The highest Fed rates in nearly 20 years have pushed up borrowing costs for every little thing from buying a house or automobile to financing a university education. [The Wall Street Journal]
Bank of England cuts rates of interest after Fed’s reluctance
The Bank of England cut its benchmark rate of interest for the primary time in over 4 years, making the Federal Reserve certainly one of a dwindling variety of central banks which have not yet cut borrowing costs amid easing inflation. Britain’s central bank cut its benchmark rate of interest by 1 / 4 of a percentage point to five% on Thursday. It had kept rates at their highest since 2008 last 12 months, constraining lending and increasing pressure on the heavily indebted British government. Investors were split ahead of the meeting on whether the central bank would cut rates now or wait for further signals of easing inflation. [The Wall Street Journal]
Chase bans customers from using bank cards for “pay later” loans
JPMorgan Chase, the nation’s largest bank card issuer, will prohibit its customers from using its bank cards to repay the increasingly popular buy now, pay later installment loans. Chase said in an emailed statement that buy now, pay later installment loans are “a form of credit” and that the bank “generally does not allow customers to pay for credit products” with their Chase bank cards. Chase has notified its customers of the change, which takes effect Oct. 10. Chase just isn’t the primary bank card issuer to take this motion. Capital One, the fourth-largest card issuer, banned using its bank cards for buy now, pay later installment loans in late 2020. [The New York Times]
Is Visa preparing to phase out its cards?
While Visa has been raising doubts concerning the long-term sustainability of its card business for years, the threats on the horizon appear to have come into sharper focus recently. Digital competition, including real-time payments, bank-based payment options and buy-now-pay-later financing, is increasing the variety of alternatives to card payments. In addition, legal and regulatory pressure is growing. The card business is a mature industry with roots that return almost a century. And in lots of parts of the world, it’s losing importance as a method of payment. In Asia, digital alternatives akin to Alipay, which is linked to smartphones, are gaining ground. In Africa, digital wallets are also evolving faster than cards. And in India and Brazil, nationalized real-time payment systems are enabling consumers to forgo cards. In the US, two such real-time payment systems, RTP and FedNow, are also now competing for growth. [Payments Dive]
Maryland is the primary state to pass a law against gift card abuse
Maryland has change into the primary state within the U.S. to pass a law aimed toward stopping an increasingly common scam called gift card draining. The Gift Card Scams Prevention Act of 2024 would require gift cards sold in stores to be packaged in secure packaging so thieves cannot illegally obtain their numbers. Without proper packaging, experts say, the amounts stored on gift cards are vulnerable because their barcodes and PIN numbers, hidden only by a scratch-off sticker, are visible. Thieves can easily remove the sticker over the PIN and replace it with a brand new one, making a card look unused. [CBS News]
The Bank of Starbucks: Coffee retailer has $1.77 billion in unredeemed gift cards
The latest Starbucks results show that while the retailer is struggling to sell coffee, it’s convalescing at selling customers the precise to purchase coffee in the long run. Starbucks said customers have stored $1.77 billion in unredeemed gift cards, up 9% from the previous 12 months. [MarketWatch]
DoorDash extends free delivery and promotional discounts on Chase bank cards through 2027
If you’ve got a Chase bank card, it’s possible you’ll be eligible for unlimited free deliveries and as much as $20 off per thirty days through 2027. DoorDash and Chase are expanding their partnership, which incorporates a free DashPass for many Chase bank card holders. The free DashPass subscription through Chase should expire sometime in 2024. If you’ve got certainly one of the Chase Sapphire cards now, you may enjoy unlimited free deliveries until it is time to next-next president. Most other Chase bank card customers get at the very least six months of free DashPass. [Business Insider]
I even have a bank card only for my rent and it is totally price it
The Bilt Rewards program helps you to earn one point for each dollar of your rent, with a cap of 100,000 Bilt points per 12 months. Also, in case you be sure that your rent is reported to the credit bureaus, it may well be an excellent technique to construct a great credit rating. While it is not a cash-back card, Bilt points will be redeemed in a wide range of ways, including on the corporate’s rotating choice of home decor and art, fitness classes, and Amazon purchases. You may even use the points toward your rent or down payment on a house, with redemption value coming in at a few penny per point. [The Wall Street Journal]
Wells Fargo and Expedia introduce latest bank cards
Wells Fargo and Expedia Group have partnered to launch two latest bank cards: the One Key Card and the One Key+ Card. Both cards will let you earn rewards within the One Key program, the loyalty program of Expedia, Hotels.com and Vrbo. In addition to useful bonus spending categories for common purchases, these cards offer welcome bonuses valued at $400 to $600. If you’ve got the old Hotels.com Rewards Visa bank card, you shall be switched to the One Key Card with no annual fee. [CNBC]
Affirm asks CFPB to review BNPL’s unique business model
Since the CFPB’s comment period for potential buy now, pay later rules has expired, Affirm has submitted an in depth response advocating for adjustments to higher reflect the unique points of BNPL products. The CFPB’s proposed interpretive rule under the Truth in Lending Act and Regulation Z seeks to expand consumer protections just like those for traditional bank cards. While Affirm’s motion supports the CFPB’s intent to enhance consumer protections, it’s urging the CFPB to regulate its regulatory approach to avoid consumer confusion and undue compliance challenges. Other BNPL firms have asked for more time to organize for the brand new rule before implementation. [PYMNTS]
