Visa introduces digital card substitute service: How it helps travelers
The goal is to assist travelers travel stress-free by reducing the stress of losing a bank card while on the road. This service allows cardholders to receive near-instant assistance in the event that they lose their Visa bank card. Once a card is reported lost, a substitute digital card is shipped via text message or email. This latest card can then be authenticated and added to a digital wallet inside minutes. According to the Visa Global Travel Intentions Study (2023), 74% of U.S. travelers now use digital wallets when traveling. [Forbes]
Visa’s latest service could help travelers who’ve lost their bank card while on vacation
Federal judge rejects settlement of Visa and Mastercard bank card fees
A U.S. district judge has rejected a $30 billion antitrust settlement between bank card giants Visa and Mastercard and a bunch of shops that will have reduced the cardboard corporations’ so-called swipe fees for a limited time. But most retail groups criticized the proposed settlement since it didn’t go far enough to present them relief from Visa and Mastercard, which control about 80% of the bank card market. The preliminary settlement would have required the bank card corporations to chop their swipe fees – the proportion they charge merchants each time a card is used – by no less than 4 basis points for no less than three years and capped fees at 2023 levels for the subsequent five years. Opponents of the settlement said the deal was too temporary for retailers to make an actual difference. [UPI]
Amex focuses on spending in upscale restaurants
When American Express announced its purchase of Tock earlier this month, the corporate signaled it desires to double down on its efforts to offer premium experiences to its customers, analysts said. Tock works with upscale restaurants, and the $400 million acquisition suits well with Amex’s penchant for pushing luxury experiences under the noses of its cardholders. Amex announced last week that it plans to purchase Tock from Squarespace, which bought the reservations platform in 2021 for about $400 million. The bank card company also said it plans to purchase Washington DC-based payments platform Rooam for an undisclosed sum. Rooam offers point-of-sale software for restaurants. [Payments Dive]
China apparently demands that Visa and Mastercard reduce transaction fees
China is pushing Visa and Mastercard to chop their fees for bank card transactions within the country, an individual conversant in the matter said, as a part of efforts to make payments easier for foreign visitors. The Payment & Clearing Association of China is negotiating with global card issuers, including Visa and Mastercard, to cut back the fees charged to local merchants for foreign card transactions. The association has proposed reducing the fee to 1.5% from 2-3%, the person said. [Bloomberg News]
Mastercard plans to phase out manual card entry for online payments in Europe by 2030
From 2030, Mastercard will not require Europeans to manually enter their card number when trying out online, regardless of what platform or device they use. Instead of the 16-digit card number all of us use for transactions, this will likely be replaced by a randomly generated “token.” Consumers will find a way to pay with only one click on the checkout page, using biometric authentication via thumbprint. [CNBC]
Small businesses are piling up bank card debt to counter inflationary pressures
Small business Credit card debt is on the rise. And that is likely no less than partly resulting from inflation. According to data from the Bank of America Institute, small business bank card balances have increased 18% since 2019. Small businesses turn to bank cards for a lot of reasons. But in 2024, inflation appears to be the major factor putting financial pressure on businesses. In fact, a recent Goldman Sachs survey found that 71% of small business owners feel inflationary pressures on their businesses have increased up to now three months. Using bank cards is just considered one of the adjustments small businesses are making. Additionally, 47% said they’re raising prices, 45% are working more hours, and 32% are cutting their very own pay. [Small Business Trends]
Why Walmart broke up with Capital One and Dark Horse Bank will profit
When Walmart entered the bank card market in 2018, it turned to considered one of America’s largest banks, Capitol One. The two giants signed an exclusive long-term deal that promised to assist Walmart offer its customers the newest digital bank card products, while Capital One mainly got the keys to Walmart’s kingdom: access to a retail market larger than some countries’ GDP, without that pesky competition. It didn’t work out. Things began to collapse in 2023, when Capital One violated terms in its contract that dictated certain customer support requirements, including how long it might take to post charges on a minimum percentage of cards. Last month, Walmart ended its exclusive cope with Capital One, citing several problems with the bank’s customer support in court documents, but not before Capital One had amassed $8.5 billion price of bank card balances that it would keep. [Yahoo Finance]
Fitbit users can finally add American Express cards to Google Wallet
Fitbit users haven’t been capable of add American Express cards for payments since Fitbit Pay switched to Google Wallet. Although support for American Express cards appeared in a Google Play Services update changelog earlier this 12 months, Google removed the entry just a few days later and clarified that the update wouldn’t enable the feature. Google has re-added the feature to the newest Google Play Services update and it’s finally reaching users with the new edition. [Android Authority]
Consumers say they’re using credit to buy essential goods and spending more
A brand new PYMNTS study found that there are generally three kinds of borrowers. When “necessary financiers” use credit, it’s out of necessity greater than half the time. The second group, “intermediate financiers,” are those where only about half of their credit purchases are out of necessity. When “optional financiers” use credit, it’s out of necessity lower than half the time. This behavior is usually driven by economic pressures. For example, needed financiers are inclined to use money and debit cards first to stop their bank card debt from increasing with needed purchases. They use credit sparingly, reflecting a cautious approach to their funds. In contrast, PYMNTS Intelligence data shows that optional financiers spend more while accumulating bank card advantages reminiscent of reward points. In addition, this group is more prone to avoid interest charges by balancing their monthly balances every time possible. [PYMNTS]
