Watch Out for Covid Surcharges on Credit Card Statements
Industry reports indicate that credit card surcharges may be becoming a mainstream practice during the pandemic. Retailers are allowed to charge customers to cover the expenses of merchant fees when customers use credit cards. Merchants can pass along a charge equal to what they pay to accept the card which can be up to 4%. However, consumers should be wary of any credit card surcharge in excess of 1% to 1.5%, as this is usually the rate merchants pay to accept a card. Merchants may set a $10 minimum for credit card purchases under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Story by Tom Miller for NWest Iowa
Credit Card Companies Mailed 63% Fewer Offers Last Quarter
Competiscan found that credit card companies only mailed 407 million credit card offers in the third quarter of 2020. By comparison, the same companies mailed 1.1 billion card offers in the third quarter of 2019, marking a 63% decline versus last year. During the same period, there was a 53% decline in mailings for the insurance, telco and financial services sectors combined. Story by Heaven Speirs for LowCards.com
A Poor Credit Score Affects More than Just Getting a Loan or Credit Card
It’s practically a universal truth: having a low credit score is bad. But what you may not realize is that having a low credit score can have an effect on more than just your finances. Those with a credit score within the 300 to 549 range report their poor credit history has impacted their housing, careers, relationships and even their ability to communicate. In fact, about 28% of those with poor credit say they can’t rent the apartment they want, while 22% have been denied a cellphone plan, according to a new survey from Credit Sesame. Story by Megan Leonhardt for CNBC
How 5G is Going to Transform Digital Banking in 2021
Covid-19 sparked a digital banking boom, caused by social distancing measures and lockdown restrictions. It led to more people opening savings accounts with their mobile devices and existing customers putting extra money aside for an uncertain future. Next year will bring even more growth opportunities for digital banks and a remarkable transformation for financial services. But this time around, the catalyst for growth will not be the pandemic, but the launch of 5G. Digital banking is inextricably linked to mobile phones. And when it comes to mobile money and wallets, the biggest shift in service offerings will come from the next generation of mobile communication. Story by Evgenia Loginova for Computer Weekly
Visa Has Quietly Warmed to Crypto, Along with PayPal and Square
The price of bitcoin is up 190% in 2020, and hit a new all-time high on Wednesday. The surge has mostly been attributed to two factors: institutional investment from Wall Street firms, and public buy-in from PayPal and Square, two very big consumer-facing payment names. But Visa, a bigger company than the other two combined (by market cap or by revenue), has also quietly warmed to cryptocurrency. Visa’s crypto steps in the past year have likely gone less noticed because they are partnerships, as opposed to the outright solo initiatives from PayPal and Square. But Visa’s steps might hold the biggest potential for mainstream adoption. Story by Daniel Roberts for Yahoo Finance
Mastercard Loses $18.6 Billion Class Action Court Ruling in UK
Mastercard faces the prospect of an $18.6 billion U.K. class action, the largest of its kind, after losing another battle at the country’s highest court over illegal swipe fees. The Supreme Court ruled in favor of a group behind a proposed British suit, representing some 46 million consumers. Friday’s decision also sets the stage for a slew of class-action cases, after the judges made it easier to bring mass claims. Mastercard has faced numerous legal challenges since European Union courts said its payment fees unfairly restricted competition. Story by Jonathan Browning for Bloomberg
Millennials and Gen Z are the Most Likely to Use Mobile Banking Apps. Here’s Why
Mobile banking is a convenient way to manage your money on the go and continues to grow in popularity. In fact, 54% of consumers agreed that they use digital banking tools more now, due to the pandemic, than they did last year. It comes as no surprise that millennials and Gen Z are the two groups who are using mobile banking apps the most. The study found that 99% of Gen Z and 98% of millennials use a mobile banking app for a wide range of tasks, including viewing account balances, checking their credit score and depositing a check. Gen X and Boomers use mobile banking apps less (86.5% and 69.5%, respectively), but the ones who do are still in the majority. Story by Alexandria White for CNBC
Citi CEO Says Long-Term Productivity May Suffer with Remote Work
Citigroup’s Michael Corbat said he’s worried about potential long-term negative effects after many of his employees spent the vast majority of 2020 working from home. The CEO said in May that, unlike some of his competitors, he wasn’t considering the option of letting workers stay at home permanently after the pandemic ends. The bank, which has about 200,000 employees worldwide, wants to see how productivity changes over longer stretches of time and whether creativity suffers before deciding how much working from home to allow. Story by Jennifer Surane for Bloomberg
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It’s Not Too Late to Earn Extra Credit Card Rewards on Last-Minute Holiday Shopping
Just like many other industries, it’s been a rough year for credit cards. But card issuers are still hoping to end this year with a strong holiday season. This means that there are plenty of great deals currently available for holiday shoppers. So as the holiday shopping season comes to a close, it’s not too late to leverage your credit cards to save money on your purchases, your interest charges or both. Here are several ways you can use your credit cards to save money on your holiday shopping. Story by Jason Steele for Money
DoorDash, Payfare to Provide Instant Payment Solution to Dashers
DoorDash and Payfare have launched DasherDirect, a banking solution for DoorDash delivery drivers called Dashers, offering a Business Prepaid Visa Card and mobile banking app. With the DasherDirect Business Prepaid Visa Card, Dashers can get paid every day, with earnings automatically added to the DasherDirect Visa Card daily at no cost. Dashers can check their balance, pay bills, transfer money, find no fee ATMs on the app, and earn 2% cash back on fuel at any station. Story in The Paypers
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