One in three Americans are maxing out their bank cards attributable to inflation
The rise in Credit card debt signals that many Americans are struggling to fulfill their basic needs. According to Debt.com’s survey, about 45% of Americans said inflation and rising prices are the rationale they rely so heavily on bank cards. Almost 9% of all respondents said that they had a bank card to cover a financial emergency. Additionally, 35% of Americans said they’ve maxed out their bank card limit in the previous couple of years. Of those that had maxed out their bank cards, 85% said inflation-related price increases had pushed them to make use of their cards to the limit. About 22% of Americans said they currently have between $10,000 and $20,000 in bank card debt, and 5% have greater than $30,000. [Fox Business]
35% of Americans said they’ve maxed out their bank cards in the previous couple of years
Repeal of CFPB bank card late fee rule approved by House of Representatives
Lawmakers advanced a bill to dam the Consumer Financial Protection Bureau’s rule capping late fees on bank cards at $8, triggering a vote within the U.S. House of Representatives. The House Financial Services Committee voted 28-22 on Wednesday to approve a measure from Rep. Andy Barr (R-Ky.) that may repeal the CFPB’s rule under the Congressional Review Act and prohibit the agency from submitting the same proposal . The Democratic-controlled Senate is unlikely to approve a measure to lift caps on the CFPB’s bank card late fees, especially given President Joe Biden’s strong support for the rule, although several Democrats have supported previous laws geared toward tightening regulations the CFPB and other authorities. [Bloomberg Law]
Americans value bank card rewards greater than trust
According to a survey by The Motley Fool Ascent, Americans place more value on bank card features akin to rewards, rates of interest and other perks than how much they trust a bank card issuer. The survey also found that cashback bank cards are the preferred bank cards in America and Capital One is probably the most common bank card issuer. Different generations have different bank card priorities. Gen Z members are almost certainly to have a bank card with a solid sign-up bonus, while baby boomers usually tend to have a store or brand-specific bank card. [The Motley Fool]
Young people spend an excessive amount of online. How social media and buy now, pay later apps play a giant role
Generation Z is the primary age group to grow up with social media and stands out as the almost certainly to incur debt in consequence. According to a Lending Tree survey, 62% of Generation Z feel pressure to spend money and sustain with their peers, in comparison with the national average of 32%. Additional data released in March by Credit Karma shows that the typical bank card debt of Generation Z is greater than twice that of Millennials. In 2023, Bankrate released a survey showing how influential social media could be in terms of overspending. According to this study, 48% of social media users reported impulsively purchasing something they saw advertised online, spending a mean of $754 on impulse purchases last yr. Such spending habits were much more common amongst Generation Z, with 60% of respondents ages 18 to 26 saying that they had spontaneously purchased something they saw on social media within the last yr. [Yahoo News]
As consumers lose hundreds of thousands to gift card fraud, lawmakers are putting pressure on corporations
Fraudsters steal a present card’s barcode, CVV number, PIN number or activation code from underneath the skinny cardboard packaging. They reseal the cardboard, wait for a consumer to buy it and cargo it with money, after which spend the remaining balance before the buyer can accomplish that. According to the newest data released by the FTC, card withdrawals and other gift card-related fraud accounted for $217 million of the nation’s record $10 billion fraud loss in 2023. Attorneys general and legislatures try to combat gift card fraud through consumer warnings, arrests and warning signs on store displays. Some even tell gift card manufacturers find out how to package their products. But retailers and card makers are pushing back, saying the micromanagement is unnecessary and would hurt small businesses. [Stateline]
The Klarna bank card launches within the US because the Swedish fintech expands its market presence
Klarna launches its bank card within the USA. With the Klarna bank card, the corporate now competes with the likes of Apple and rival BNPL player Affirm in terms of offering a bank card within the US. The card has no annual fee and no foreign transaction fees. Users can earn as much as 10% money back at select merchants after they use the cardboard of their app, and the cardboard integrates with the corporate’s AI assistant to search out deals on planned purchases, he said. Klarna’s virtual Visa card is compatible with Google and Apple Pay. [Tech Crunch]
Citi and Chase cover higher entry fees for premium cardholders worldwide
Starting October 1, 2024, Citi and Chase will cover higher global entry fees for certain cardholders. The news comes after US Customs and Border Protection decided to extend global entry fees by 20% from $100 to $120 through October, despite eliminating registration fees for minors. Global Entry allows pre-approved travelers to enter the United States more quickly. Chase and Citi are amongst bank card corporations that subsidize Global Entry fees for some customers. [Skift]
The Rise of Digital Wallets: A Look on the UK’s Payments Revolution
If digital wallet technology has been around since 1997, why has it only recently seen such growth? While making payments via SMS to purchase a soda was a novelty, the impressive rise of digital wallets and mobile payments is definitely the convergence of several sophisticated but different technologies which have turn into commonplace. For example, biometric authentication akin to fingerprint or facial recognition in smartphones has significantly increased the safety of digital transactions. Additionally, the near-field communications technology that has long enabled contactless payments for British consumers can also be integrated into smartphones, allowing people to make use of their devices to pay for things in person. [Tech Radar]
Mastercard brings industrial cards to digital wallets
Continuing the industry’s migration from business payments and expense management to digital platforms, Mastercard announced it’s bringing its industrial cards to mobile wallets. The move is available in the shape of a mobile virtual card app designed to supply financial institutions with options for providing secure, contactless payment services – a requirement increasingly voiced by the businesses’ banking and company customers. The app will leverage Mastercard’s robust virtual card and tokenization technology to supply enhanced data security and spending control capabilities, accessible through a consumer-like interface. It expands Mastercard’s commitment to business payments and management across multiple sectors, including healthcare, insurance and business travel. It also comes at a time when business travel and expense management has modified with the rise of distant work and the changing payment preferences of younger demographics. [PYMNTS]
Robinhood introduces its first bank card
With free accounts and trades ranging from just $1, Robinhood has turn into a preferred platform for beginners. To further expand this popularity, the Robinhood Gold Card was introduced in March 2024. This bank card gives you unlimited 3% money back on every purchase and includes free perks like travel and buy protection. To be eligible for the cardboard, a Robinhood Gold subscription is required, which costs $5 per thirty days (or $50 per yr). [US News & World Report]
How secure are banking apps really?
Mobile banking apps have a variety of built-in security measures that help keep your data secure and difficult for hackers to scale. And this is not just limited to the most important banks which have the resources to take a position in the newest and biggest technology. Even some smaller credit unions and community banks use tools like biometric authentication, which uses physical characteristics like your fingerprint or face to limit access to your account to the one one that must have access: you. Many banks also use multi-factor authentication, which requires a second type of identification, akin to: B. an SMS to your phone to prove that you simply actually need to access the account. Many banks also use end-to-end encryption, which prevents anyone from viewing your data during transmission. [CNet]
