Credit card

Some lucrative Thanksgiving card bonuses; Visa and Amazon continue to fight


Target Refunds $ 15 for Every $ 100 Apple Gift Card Purchase

Target is offering $ 15 in Target Gift Cards with $ 100 in Apple Gift Card purchases. And here’s a bonus tip: If you use a Target card, you can get an extra 5% cashback for an extra $ 5 in savings. The Apple Gift Card can be used to purchase anything Apple sells, including subscriptions, movies, music, and of course, devices. Offer valid on any denomination as long as it totals at least $ 100. The offer is valid until Saturday 27 November. [Macworld]

Amazon credit cards offering up to $ 200 welcome bonus, 10% off select products

Until November 30, new and existing Amazon credit cardholders will be entitled to an additional treat. If you want to sign up for an Amazon credit card, you will earn an increased welcome bonus of an Amazon gift card of $ 100 or $ 200 immediately upon approval. Plus, new and existing cardholders can enjoy a 10% cash back in rewards on qualifying gift purchases. [CNBC]

Visa’s Amazon Spat Shows Power Shifts To Retailers In Fees Battle

Amazon’s latest row with Visa shows that big retailers, armed with a growing array of payment options, are gaining the upper hand in their power struggle with card providers. While Amazon may still back down on the UK front, the dispute is a bad sign for the card industry. Some analysts said this could portend a much bigger struggle in the US market. Credit cards dominated a third of e-commerce spending in North America in 2020, but mobile payment options like Venmo and buy now, pay later financing plans are shrinking their market share. The share of credit cards in e-commerce spending in North America fell 7% last year, while BNPL’s share rose 78%, making it the fastest growing payment method the fastest. [Reuters]

Attention Holiday Shoppers: The Pros and Cons of Retail Credit Cards

Retailers want you to sign up and use their credit cards. They know that if you have their cards in your wallet, it increases the likelihood that you will spend more with them. So, expect to be featured every time you check out this holiday season, both in store and online. Applying for credit can impact your credit score and your overall finances, so it should never be done without careful consideration. You need to understand the terms, fees and interest rate of store credit cards. Most retail credit cards have higher interest rates than traditional credit cards. [Consumers’ Checkbook]

Gen Z signs up for credit cards faster than any generation

Many banks have been forced to tighten their lending requirements during the height of the pandemic, which has included reducing consumer approval for new credit cards. But a year later, a lot has changed: Credit card issuance has nearly doubled to record highs, from 8.6 million in the second quarter of 2020 to 19.3 million in the second quarter of 2021, according to a report. quarterly from TransUnion. The report also found that the younger generation of consumers, Gen Z, is driving the rebound in the credit card industry with the biggest jump in credit card issuance. [CNBC]

Turkeys, inflation and the ability to repay credit cards

Inflation creates risk in the credit card industry. One of the challenges credit card issuers will face next year is that rising costs will impact consumers’ ability to repay. When the time comes to pay your monthly credit card bills, you will likely pay less. Note that credit card issuers have an opportunity since more credit will flow. The revolving debt of American consumers now exceeds $ 1 trillion and the average interest rate charged is 14.54%. While increased revenue creates opportunities, major credit card companies do not want to rely on more credit card revolvers, as this is an indicator of risk. The increase in revolving debt indicates that households cannot pay off their debts quickly. [Payments Journal]

AmEx has offered business clients a tax break that does not add up

In phone calls, emails, and in-person meetings with thousands of business owners, American Express salespeople have pitched the strategy. Use AmEx to pay your employees and suppliers, they said. You will have to pay a fee, but you will be a winner. This is because you can earn rewards on the transaction which can be converted into untaxed cash, while deducting the transaction fees for tax purposes. The pitch has helped AmEx generate billions of dollars in transaction volume since at least 2018. But there was one problem: The strategy was based on a shaky interpretation of how tax law treats reward points. In July, a whistleblower filed a report with the Internal Revenue Service alleging that AmEx knowingly persuaded business owners to underreport their income and taxes. [The Wall Street Journal]

Direct credit card issuance helps small banks and credit unions compete with larger rival FIs

Long stuck with cookie-cutter credit issuance capabilities due to their size, staff, partners and geographic limitations, small financial institutions have been at a distinct disadvantage in the crowded credit card market. credit. But issuer processors like i2c are changing the dynamic, offering them direct issuance services and other tools needed to level the playing field against the biggest players in the game. Digital banking and issuance platforms Cards like i2c’s provide solutions that enable these players to issue directly without the internal investments and staffing requirements of card programs. [PYMNTS]

Advance of Pandemic Widens Mobile as a Preferred Way to Perform Banking Transactions

Mobile banking was already the most popular method for U.S. consumers to interact with their bank accounts before the Covid-19 pandemic hit. According to a survey by the American Bankers Association, the proportion of customers using mobile platforms has jumped 11 percentage points since March 2020, while the proportion of customers for whom branch visits were the main option for operations. banking fell by the same margin. About 10% of users preferred to visit a physical location after Covid, up from 21% previously. Online banking with a laptop or personal computer ranked second before and after Covid, with 24% of respondents preferring this method before the pandemic, and 26% since. [Banking Dive]

Ghana’s new electronic transaction levy will be no escape

Ghanaian Finance Minister Ken Ofori-Atta announced that the government intends to introduce an electronic transaction tax (e-levy) in the 2022 budget. He said it was “Widen the tax net and the rope in the informal sector”. The proposed levy, which will come into effect on February 1, 2022, is a levy of 1.75% of the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inbound remittances. The initiator of the transactions will bear the costs except for incoming remittances, which will be borne by the recipient. [Quartz]

“Reverse Robin Hood” is a Myth and Capping Interchange Fees Would Hurt the Poor

The claim that credit card rewards benefit the rich at the expense of the poor has been repeated time and again by those who want to cap the fees charged to merchants by card issuers. The myth of this so-called “reverse Robin Hood effect” has been debunked several times and is troubling for a variety of reasons, not least because capping interchange fees would actually hurt the poor the most. [The Hill]