Buy Now Pay Later Plans No Longer Payable with Chase Cards from 10/10/24
Buy Now Pay Later plans have become all the rage for companies in the last few years as a way to entice customers to pay for goods, services and travel that they can’t afford to pay for out of pocket right now. For the most part, these plans aren’t a great option for those who are financially strapped due to the high interest rates that can be payable on them. Chase appears to be concerned about incurring debt on top of debt as they’re now advising customers that from October 10, 2024 they’ll no longer be allowed to pay for Buy Now Pay Later plans using Chase credit cards. [Frequent Miler]
Macy’s Credit Card Tests the Interest Rate Limits
Macy’s sent a letter to its card users announcing an increase in the interest rate on its credit card to 34.49%, which appears to be a record high. Macy’s joins a group of other retailers now offering APRs over 30% on their store cards, including Petco, Good Sam, Michaels, and Exxon Mobil. Store-only cards charge an average interest rate of 30.24%, according to figures compiled by Bankrate. By comparison, the average credit card interest rate is 21.19%. Two basic factors are causing rates to reach new heights. In addition to the Federal Reserve keeping interest rates high, retailers are seeking out sources of revenue to compensate for the Consumer Financial Protection Bureau’s push to lower late fees. [Payments Journal]
Mortgage and Credit Card Debt a Reality for Over a Quarter of Retired Investors
Retirees are increasingly rethinking their financial strategies and lifestyles as the traditional perceptions of retirement evolve, according to research from Nationwide. Nearly one-third (31%) of retirees anticipate feeling less secure in their retirement compared to previous generations. This uncertainty is compounded by ongoing financial obligations. Over one-fifth (22%) of retired investors are concerned about affording their monthly expenses. Moreover, 26% of retirees continue to pay off their mortgage, while 25% are still dealing with credit card debt. [Investment News]
Delinquent Credit Card Payments Rising
With credit card debt rising, a spike in delinquent payments has followed. Not paying on time can mean a hit on your credit score and future borrowing power. For many Americans the only way to get by is to charge it. Now overdue credit card debt is climbing to its highest level in more than a decade. Those under 35 years old are struggling the most with interest rates topping 22%. The Federal Reserve reports severely delinquent debt which is more than 90 days overdue rose 10.7% in the first quarter of 2024. [ABC 33/40]
JPMorgan Aims to Amass 15% of US Consumer Deposits, Boost Credit Card Share
The biggest U.S. bank wants to get even bigger. JPMorgan Chase has set an ambitious goal of attracting 15% of the country’s consumer deposits. The bank had an 11.3% share of U.S. retail deposits at the end of June 2023, the latest available data. The lender also wants to provide credit cards that account for 20% of the nation’s spending, expanding from a current 17%. [Reuters]
NYC Mayor Faces Bipartisan Blowback Over New Round of Migrant Debit Cards: ‘The gravy train’ Must Stop
New York City leaders from both parties slammed a move by Mayor Eric Adams’ administration to distribute another tranche of thousands of prepaid debit cards to migrant families. While Adams’ office claimed at its February inception the program would save the city as much as $7.2 million per year, some city lawmakers decried the latest allocation of 7,300 cards as a signal for more border-crossers to come. [Fox News]
Mastercard’s Adoption of Palm Payments Shows Biometrics Are Going Mainstream
Mastercard’s pilot of a pay-by-palm biometrics payment scheme in Uruguay could prove successful if it can further streamline the checkout process. Smartphone manufacturers’ integration of biometrics into phone security measures has driven awareness of biometrics in consumers’ eyes. Now, with consumer acceptance of biometrics’ reliability and security, the payments market is ready to integrate the solution into its systems. If the palm scanner can prove to be a seamless and straightforward validation method, then it is likely to take off in SCA due to consumers’ strong demand for simplicity and speed. If successful, more opportunities could await the scheme in Europe and Asia-Pacific, given that customers in these regions favor simplicity and speed even more than in the Americas. [Yahoo Finance]
Airline Credit Cards: Sky Money
In May, the Biden administration honed in on an unlikely piece of plastic: the airline credit card. The Consumer Financial Protection Bureau held a hearing that put airline credit cards on blast, with federal officials accusing carriers of using deceptive practices to lure customers. The thing is, that sentiment isn’t shared with the people choosing to get them. Airline credit cards are incredibly popular: In the U.S., some 30 million people have them, according to Airlines for America, the airline industry’s trade group. That’s one in every four U.S. households. Many users stockpile rewards on the cards to put toward free travel and lodging. But the problem is that airlines determine how much those credits are worth, and that could change at inopportune times. [Quartz]
Slain Man’s Thumb Sliced Off and Used to Steal from His Mobile Payment App
The thumb of a man in Washington, D.C., who authorities believe died violently in April, was cut off to access his mobile payment app and steal money from him, authorities said. [NBC News]
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