Credit card

Crypto threat to card networks; Should personal finance be compulsory in school?

67% say personal finance should be required in high school

A survey conducted in mid-February reveals that more than two-thirds of respondents believe that a course in personal finance should be mandatory for obtaining a high school diploma. On top of that number, another 26% say it should at least be offered as a high school option. According to Next Gen Personal Finance, 21 states require at least some personal finance education as part of their high school curriculum, but only 10 states require a one-semester personal finance course for graduation. The survey also shows that most young adults do not get their first credit card under the supervision of their parents. More than 56% of survey respondents got their first credit card on their own, either while in college or after graduating from high school. [US News & World Report]

Here’s why Visa, Mastercard and American Express are in trouble

When we swipe these cards, credit card transactions cost merchants nearly 3% just to complete. And even then, it can take days for the money to be deposited in their bank accounts. This is a direct cost that comes from their bottom line, and most traders have little choice in the matter. In the last month alone, there has been a breakthrough on the Solana blockchain that could nearly eliminate most of those credit card fees and replace them with blockchain transactions. Cryptocurrencies have long been considered a new way to conduct financial transactions, but most cryptocurrencies have high costs that make little sense for traditional transactions. Solana’s blockchain is different because it allows transactions that can be completed in seconds for a fraction of a penny. No more days of waiting; merchants can be paid almost immediately. [The Motley Fool]

Rising Use of Crypto Cards Warns Banks of Further Payments Disruption

Crypto card account openings are overtaking traditional cards in the UK. Using Visa and Mastercard as rails, several crypto platforms now allow consumers to make everyday purchases with cryptocurrency. Analysts say this is a crucial step in making crypto a mainstream form of payment. While using cryptocurrency to make everyday purchases seemed like a far-fetched idea just a few years ago, it’s now a reality and several steps are getting closer to routine. Until recently, consumers could only spend crypto at a handful of niche cafes or withdraw cash from ATMs. Yet, the phenomenal growth of crypto wallets and interest in cryptocurrencies in general has led many people to turn to plastic to open new doors and support transactions. [The Financial Brand]

Citi is the first megabank to kill overdraft fees

Citigroup says goodbye to overdraft fees, making it the largest U.S. bank to pledge to eliminate the controversial fee. By this summer, Citi plans to get rid of overdraft fees, insufficient funds fees and overdraft protection fees. The changes mean Citi will be the only one of the top five U.S. retail banks by assets to scrap fees that many Americans despise and consumer advocates say unfairly punish the most vulnerable in society. Citi joins a growing list of lenders making changes or eliminating overdraft fees altogether under pressure from congressional lawmakers and growing competition from online rivals. [CNN]

Senators ask JPMorgan Chase to explain its lawsuit against credit card customers

Saying they are “deeply disturbed by recent reports” that JPMorgan Chase has “renewed its predatory robo-signature practice,” six Senate Democrats have called on company CEO Jamie Dimon to provide “detailed information on the practices of debt collection by credit card from the bank”. The letter, signed by five members of the Senate Banking Committee and its chairman, Senator Sherrod Brown of Ohio, cited an article by ProPublica and the Capitol Forum that revealed how Chase launched an ongoing lawsuit against customers. in credit card debt when the pandemic began to hit the economy in early 2020. Chase had stopped pursuing credit card lawsuits nearly a decade ago when regulators found that legal documents from the bank were often faulty. [The Capitol Forum]

Bank of America and Capital One rake in billions while denying customers relief from Covid hardship

Two class action lawsuits against Bank of America and Capital One have been filed over the banks’ continued assessment of late fees and interest charges despite their promises of hardship relief throughout the coronavirus pandemic. Both plaintiffs claim they were denied meaningful forms of financial assistance when they became unable to make credit card payments during the pandemic. Meanwhile, the banks have raked in billions of dollars in revenue, according to court documents. The banks are each charged with unjust enrichment, breach of the covenant of good faith and fair use and violation of California consumer protection laws. [Top Class Actions]

Warren Buffett doubles down on Brazilian fintech Nubank with $1 billion stake

After cutting a $500 million check for Latin American fintech major Nubank in 2021, Omaha’s Oracle has increased its stake in the company to $1 billion. Berkshire Hathaway first invested in Nubank’s Series G funding round last June and was handsomely rewarded in the fintech IPO with gains in the region of $150 million . NuBank’s share price jumped nearly 12% on increased support from Buffett, while the US investor also revealed he had sold his $1.8 billion stake in Visa and his stake in $1.3 billion in Mastercard. The shifting investments clearly show Buffett’s desire to increase his exposure to fintech, while reducing his stake in more “traditional” financial companies. [AltFi]

Klarna will provide a physical payment card in the United States

Klarna opens the waiting list for its Klarna Card payment card to US consumers. A physical Visa card issued by WebBank, the Klarna Card will make available global retail banking’s “pay in 4” buy now, pay later, payment and purchase services for any in-store or online purchase. The Klarna Card will offer US consumers the same installment payment experience they receive when shopping in physical stores that they get using the Klarna Pay in 4 digital solution at a retailer’s checkout or in the app. Klarna. The new card will offer a bi-weekly repayment schedule and real-time credit checks. [Chain Store Age]

Amex strengthens its Delta relationship by offering the BNPL offer at its checkout

American Express has made its card-based buy-it-now, pay-later (BNPL) feature, Plan It, available at checkout on the Delta Air Lines website. Plan it, which launched in 2017, allows Amex cardholders to retroactively split transactions over $100 into monthly installments for a flat fee. It is a successful competitor to the BNPL: the volume of Plan It plans created in the fourth quarter of 2021 more than doubled compared to the fourth quarter of 2020, according to the issuer. Travel spending is picking up and payment providers have an opportunity to increase volume as demand for BNPL services in the industry grows. [Business Insider]

Scammers stole 70% more money from Americans last year than in 2020

The Federal Trade Commission on Tuesday released new figures showing Americans filed nearly 6 million fraud and scam complaints last year, representing a record amount of financial loss. In 2021, 5.7 million people filed reports and described losing more than $5.8 billion to fraud, an increase of $2.4 billion in losses in one year. The amount of money Americans lost to scammers in 2021 increased 70% from the previous year, with a median loss of $500 per person. In 2020, Americans reported a loss of more than $3.4 billion: another historically high figure. [Money]

Credit card ownership and usage statistics

Over 80% of American adults had at least one credit card in 2020. The average American has 3.84 credit cards. The average US household’s credit card balance is just over $5,300. Paying with a credit card grew in popularity, growing from 24% of transactions in 2019 to 27% in 2020. 41% of American adults said cash back was their preferred credit card feature. Experian found that baby boomers tend to have more credit cards than younger generations. In addition to longer credit histories, older consumers generally have higher credit scores than younger consumers, giving them access to a wider range of credit cards. [Bankrate]

Russia’s attack on Ukraine caused cryptocurrency prices to plummet

As the world woke up to Russia’s long-awaited invasion of Ukraine, the repercussions caused by the event had a disastrous impact on the prices of Bitcoin, Ethereum, and nearly every other major crypto. -currencies. By mid-morning, Bitcoin was down almost 8% over 24 hours, which was actually a slight rebound from where it was spending most of the night. Meanwhile, Ethereum fell 10% in early morning trading, followed by many other coins. In fact, every cryptocurrency with an individual price above $3.00 had a strong downtrend as of 10 a.m. ET. [ZD Net]