After fee dispute, eBay not accepts American Express payments
eBay will remove American Express cards as a payment option on account of “unacceptably high fees.” eBay has notified its customers of the change, which can take effect on August 17. The two firms are locked in negotiations over the merchant rebates, also generally known as interchange fees, that Amex charges at the purpose of sale. The fees charged on each card payment have long been a headache for merchants. But Amex said its research showed its fees were comparable to those eBay has to pay to simply accept similar cards on other networks reminiscent of Visa and Mastercard, while offering more value. [Bloomberg]
eBay has removed American Express as a payment option
Borrowers, especially young people, are combating bank card debt – possibly a nasty sign for the economy
Consumers are increasingly having trouble paying their bank card bills, raising concerns that delinquencies are mounting and reducing consumer spending. Those of their 20s and 30s are having probably the most trouble paying their bank card bills. These age groups are inclined to have a mixture of lower earning power and lower savings. Consumer spending drives economic growth, so problems Pay bank card bills is a troubling signal. The direction of the labor market could determine whether debt stress becomes a bigger problem. Employment and wage growth helped cushion the blow of rising inflation on consumers’ wallets, but a sustained slowdown or reversal may very well be the deciding factor. [Associated Press]
Apple Pay overtakes PayPal as preferred mobile wallet in-store
A PYMNTS study found that PayPal was the popular digital wallet amongst retail customers in early 2022 — by a good distance. Since then, nonetheless, Apple Pay has taken the lead. Apple’s own digital wallet briefly overtook the previously popular online payment system in the primary quarter of last 12 months, but then fell back. Since the primary quarter of this 12 months, nonetheless, Apple has been ahead, and within the second quarter, that lead only widened. [PYMNTS]
Australia desires to curb the “buy now, pay later” principle with a credit check law
The Australian government introduced laws on Wednesday that will require firms issuing buy-now, pay-later loans to conduct credit checks on borrowers, in a bid to manage the fast-growing sector, which like other consumer credit products is popular with young people. Until now, the sector has avoided the foundations that apply to bank card providers because BNPL firms make the vast majority of their revenue from merchant fees moderately than interest payments. Under the proposed recent laws, BNPL providers might be required to carry an Australian credit license, making them subject to oversight by corporate regulator the Australian Securities and Investments Commission. [Reuters]
In the shop, customers pay with debit cards, but online with bank cards
According to a survey of greater than 2,100 U.S. consumers conducted in October, 44% of respondents had paid for his or her last retail purchase with a debit card, while 28% paid with a bank card. Conversely, 41% of consumers surveyed had paid for his or her last online retail purchase with a bank card, the next share than another payment method, while 36% used a debit card. [PYMNTS]
The financial dangers of store bank cards will be serious
Almost every store offers rewards bank cards to its customers, but not all offers lead to big savings. These offers are sometimes the “creation” of long-term problems. Store bank cards are just like other “savings” ploys utilized by retailers to get consumers to spend more with a purpose to save. Unlike other offers, reminiscent of “buy one, get one free” deals, bank cards include long-term financial risks. Retailers offer consumers two card options – a store card that’s accepted only at a particular retailer or family of brands, and a co-branded card that will be used widely. The cards are primarily offered to consumers at the purpose of sale, moderately than requiring them to finish an application process or go to the bank. The quick sales ploy of card promoting can “catch” unsuspecting consumers and create a “trickle-down” effect on their financial plans. [Fox Business]
Criminals steal grocery money from poor Americans by exploiting outdated debit cards
EBT cards – which offer the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF) and other government assistance – work like debit cards when searching for groceries in stores and withdrawing money from ATMs. But they lack a vital security feature that on a regular basis debit and bank cards have: a small computer chip that is nearly unimaginable to clone. Instead, EBT cards depend on the old-fashioned magnetic stripe for security. The strip accommodates all the knowledge needed to clone the cardboard, data that is easier for an illegal card reader to select up than a legitimate one when a card is swiped at a store or ATM. [Yahoo Finance]
Binance reintroduces crypto purchases via Mastercard
Binance, the world’s largest cryptocurrency exchange, will once more allow its customers to buy cryptocurrencies with Mastercard. Binance has resumed purchasing cryptocurrencies via bank transfer using Mastercard debit and bank cards for “frictionless transactions.” On the Binance platform, the choices to “buy crypto” via Mastercard have been re-enabled, with a maximum one-time purchase of as much as 5,000 euros, which is roughly $5,440 for transactions in euros and as much as $20,000 for purchases in US dollars. [Coin Telegraph]
Seattle is testing a brand new approach to treating addiction: gift cards
A brand new program is being offered in Seattle that ties small financial rewards to reducing or stopping substance use. It’s called “contingency management,” an inscrutably dry name for attempting to help people fight their addictions with a carrot moderately than a stick. Seattle City Hall’s interest comes as King County is seeing a record variety of overdose deaths, most of which involve each fentanyl and methamphetamine. More than 1,330 people died of overdoses in 2023. So far in 2024, nearly 500 people have died from drugs and alcohol. Seattle’s program continues to be in its infancy. Washington is considered one of two states within the country where public medical health insurance is allowed to try these programs, and Seattle is currently considered one of the few places in Washington running a pilot program. [Seattle Times]
Here’s how one can get help together with your bank card debt, in response to experts
With the rising cost of virtually every part on account of high and chronic inflation, it’s no surprise that many Americans are turning to bank cards to pay for necessities. While this approach may help fill within the gaps in your budget, it comes at a high price. According to the Federal Reserve Bank of New York, Americans currently have a complete of $1.12 trillion in bank card debt. And the common American now has nearly $8,000 in bank card debt, although the APR on bank cards has nearly doubled up to now decade. The average bank card rate of interest is now nearly 23%. These aspects could make bank card debt difficult to get under control. And some cardholders have even higher bank card balances than average, so it is important to know how one can get help with this sort of debt if and while you need it. [CBS News]
These Capital One bank cards will not include access to airport lounges starting in 2025
For frequent travelers, unlimited access to airport lounges is usually a invaluable bank card perk, but some card issuers are eliminating this profit. Starting in 2024, the Capital One Venture Rewards Credit Card and Capital One Spark 2X Miles cards will not offer two free airport lounge visits per 12 months. The premium Capital One Venture X Rewards Credit Card will proceed to supply free airport lounge access. [The Motley Fool]
