Visa changes mean Americans may have fewer physical credit and debit cards of their wallets
Your wallet may soon be getting thinner. Visa has announced big changes to how credit and debit cards work within the U.S. in the approaching months and years. The latest features could mean Americans will carry fewer physical cards of their wallets, and the 16-digit credit or debit card number printed on each card will change into increasingly irrelevant. These will probably be a number of the biggest changes to how payments work within the U.S. for the reason that U.S. adopted chip cards just a few years ago. They also come as Americans have many more ways to pay for purchases beyond “credit or debit cards,” including “buy now, pay later” firms, peer-to-peer payment options, paying directly through a bank, or digital payment systems like Apple Pay. [Associated Press]
Significant changes may soon be coming to your debit and bank cards
From AI to mobile, technology is reinventing debit and bank cards
Visa’s “One Card” concept and implementation via the Flexible Credential allows consumers to “switch” between debit, credit, installment options and cryptocurrencies using a single, digitally issued card. One card linked to multiple bank accounts eliminates the effort for consumers of segmenting and juggling credit and debit cards from different banks when managing their every day funds. [PYMNTS]
Supreme Court defends CFPB with 7-2 vote against conservative lawsuit
The Supreme Court upheld the existence of the Consumer Financial Protection Bureau in a ruling Thursday. The CFPB’s funding structure had been challenged in court by conservative groups led by a short-term lending organization, however the court ruled 7-2 in favor of the CFPB’s constitutionality. The CFPB was created within the wake of the 2008 financial crisis, which was sparked by irresponsible actions by the American banking industry, and has been the goal of conservative ire throughout its existence. [New York Daily News]
The variety of bank card arrears is increasing. Inflation and rates of interest are responsible
More and more Americans have maxed out the limit on their bank cards. Nearly a fifth of bank card holders used not less than 90% of their available credit line in the primary quarter of 2024. The New York Fed called attention to America’s “creditless borrowers” in a report this week. Credit card balances and related delinquencies have risen steadily since late 2021, a pointy reversal from historic lows recorded at the peak of the pandemic. Delinquencies have risen beyond pre-pandemic levels, the Fed reports. [USA Today]
Late payments are increasingly likely amongst overdrawn borrowers
More and more borrowers are falling behind on their bank card payments. In this post, we examine the connection between bank card delinquencies and changes in bank card “utilization rates.” The national overall bank card utilization rate—that’s, the share of the whole credit limit that’s getting used—was about 23% last quarter, the identical as in previous quarters. However, individual utilization rates vary widely: 52% of borrowers used lower than 20% of their available credit in the primary quarter, while 18% of borrowers used not less than 90% of their available credit (19% were between 20% and 60% utilized and 11% were between 60% and 90%). [Liberty Street Economics]
UK slot machines go cashless as debit cards allowed
The UK government desires to allow people to make use of debit cards to play on slot machines. The move will allow pubs, casinos and gaming machines to stay competitive in an increasingly cashless society, ministers argue. Players will still be banned from using bank cards on the machines. There can even be a cap on the quantity they’ll spend per gaming session, with staff notified when the limit is reached. Systems that require payment authorisation, similar to Apple Pay, will probably be allowed, but otherwise contactless payments will remain banned. [BBC]
Cannabis industry and gaming payment startup Aeropay now offers an alternative choice to Mastercard and Visa
The key to taking up the established players within the fintech industry is likely to be to go where they’ve never gone before. That’s exactly what Aeropay is doing. The enterprise pay-by-bank solution provider began by helping cannabis retailers and gaming firms with their payments, and is now entering Visa and Mastercard territory by innovating the payment networks. Aeropay allows businesses to supply compliant, cashless and contactless digital payments to their customers each in-store and online. To do that, the corporate has developed its own bank aggregator called Aerosync, which connects bank accounts and enables customizable integrations using open APIs. It can connect over 12,000 banks, and once the merchant has connected to a checking account, they’ll allow their customers to pay as they’d in any e-commerce environment. Merchants can even use a QR code for payments and haven’t got to pay transaction fees or mess with money. [Tech Crunch]
Fed surveys show continued appeal for faster, digital transactions
Consumers and businesses, spanning all possible transaction types and demographics, are increasingly turning to faster and digital payment options. According to 2 reports from the Federal Reserve Financial Services, overall use of digital wallets by businesses increased 31% within the last 12 months, and consumer use increased about 32%. 86% of companies and 74% of consumers said they used faster or easy payments within the last 12 months. One in 4 consumers said they would like to make use of easy payments to administer their funds. The Fed’s Consumer Research Brief found that 57% of consumers expect to make use of faster payment options more often in the longer term. Key use cases that profit from easy payments include online shopping and last-minute bill payments, in keeping with the Fed. [PYMNTS]
Citi Strata Premier Card replaces Citi Premier
Citi has rebranded its popular mid-price travel bank card, Citi Premier, to the Citi Strata Premier Card. The latest Strata Premier Card is sort of similar to the old Citi Premier, but offers additional travel protection, bonus spending categories, and a brand new limited-time welcome offer. The Citi Strata Premier Card permits you to earn transferable Citi ThankYou points and get them in bulk. It also currently offers a welcome bonus value 70,000 points once you spend $4,000 in the primary three months of account opening. This bonus is value $700 in gift cards, money back, or travel. The most notable changes with the Strata Premier, nonetheless, are the brand new travel insurance policies, including: trip cancellation/interruption, trip delay, lost or damaged baggage, and MasterRental insurance (rental automobile insurance). [CNBC]
Amex introduces latest offers for the fortieth anniversary of the Platinum Card
Since its launch in 1984, the Platinum Card from American Express has been synonymous with luxury and standing, offering greater than 40 premium lifestyle and travel advantages valued at $1,500. Now, to mark the cardboard’s fortieth anniversary, American Express has announced latest, exclusive offers and experiences for cardholders. Free third night at select hotels. 40% Platinum Card points transfer offer. Special dining advantages. Amex Platinum Card fortieth Anniversary Offers. Unique menu items on the Centurion Lounge. Premium event access. [Forbes]
Issuer’s bank card application rules
Many people apply for brand new bank cards to earn worthwhile rewards, make the most of special perks, or get interest-free financing. These features can get expensive for card issuers, in order that they set rules to limit how often you may apply for a brand new bank card. Some rules are explicitly stated, while others are learned through trial and error. Read up on the bank card application rules of major card issuers so you understand when to make the most of lucrative offers. [USA Today]
