How banks profit from your overdrafts; Are Crypto Rewards Good For Cardholders?



65% of people want crypto credit card rewards, but are they a good idea?

While not everyone understands cryptocurrency, most Americans still want it. In fact, 14% of Americans currently own crypto, and that number could double next year according to a survey by The Ascent. One of the ways that many people can jump on the crypto bandwagon is through their credit cards: 65% of survey respondents would like a credit card with crypto rewards. Issuers must read the same data, as crypto rewards credit cards are becoming a reality. [The Motley Fool]

Overdraft fees are a lot of money for small banks

Overdraft fees can be steep, often $ 35, sometimes charged for each pass of your debit card when you run out of money. These fees have become a large sum of money for banks, generating over $ 31 billion in revenue in 2020. They have also become a major cost for tens of millions of families: one in eleven Americans spends $ 350 or more per year in overdraft fees. JPMorgan Chase raised the most banks, over $ 2 billion in 2019. But stopping the analysis with the biggest banks misses an important reality: a handful of small banks are the real giants of overdraft. [Yahoo News]

Credit Cards Could Be the Next Big Opportunity in B2B Payments

With the advent of widespread remote working, businesses have made impressive strides in eliminating checks and embracing electronic supplier payments. These changes have mainly resulted in an increase in the number of ACH or direct deposit payments made. According to Nacha, the governing body of the ACH network, business-to-business payments for supply chains, supplier payments, invoices and other transfers increased by almost 11% in 2020. But as organizations embrace processes of electronic payment, there is another strategic opportunity. for accounts payable to consider: the electronic credit card. [CPA Practice Advisor]

Amex Launches New Welcome Offers on Delta Credit Cards

American Express has announced new welcome offers on its Delta SkyMiles line of credit cards, both for consumers and small businesses. Incentives include bonus miles and either a 0% APR introductory promotion and credit for Delta purchases or Medallion qualifying miles to help cardholders achieve Elite status. [Investopedia]

Credit card rewards loved by consumers of all income levels

Credit card rewards are accessible, valuable and well understood by consumers of all income levels, according to a new report from the American Bankers Association. The results contradict a number of frequently advanced arguments about who receives credit card rewards, including the fact that these programs redistribute money from the poor to the rich. According to the report, 77% of low-income cardholders have an active rewards credit card, a slightly lower percentage than all cardholders (86%). He also found that the use of rewards cards is more closely related to credit score than to income. [ABA Banking Journal]

Complaints against mobile payment apps like Zelle, Venmo rise 300% as consumers fall victim to more financial scams

Complaints against some digital payment services and apps like Venmo, Cash App or Zelle are skyrocketing. The nonprofit U.S. public interest research group says the main issues are scams, account usage issues, and poor customer service. The report found that more than 2,700 complaints were filed from January to April of this year, up from just over 600 during the same period last year. About four in five Americans use mobile payment apps. [CBS News]

California Law Seeks No-Cost Debit Cards For The “Unbanked,” Many Members of Minority Communities

A new California bill designed to create a public banking system with free debit cards for all citizens strikes a balance for the state on the part of entities that know financial organizations like the back of their hand. While viewed as well-intentioned, the California Public Banking Option Act receives a lukewarm response from banks, credit unions, and even state comptroller Betty Yee. The bill cites that one of two black and Latino households is either “unbanked” or “unbanked,” with the idea that most banking services are chargeable. [The North Bay Business Journal]

How quickly should businesses disclose data breaches?

In the United States, many cybersecurity incidents do not need to be reported at all, unless they involve a personal information breach. A new cybersecurity bill being prepared by Senators Mark Warner, Marco Rubio and Susan Collins aims to change that. It would require U.S. government agencies, federal contractors and critical infrastructure companies to report cybersecurity breaches to the government within 24 hours of detection. [Slate]

TikTok influencer brings cryptocurrency trading to the masses

The rapid rise of crypto-finance influencers coincides with the explosive growth of cryptocurrency, where the money rush has created a market of $ 1.3 trillion. Streamers like CryptoWendyO provide a cryptocurrency ramp for newbies and weed analysis for more seasoned investors. They serve as an information channel, a trader’s guide, and virtual entertainment, breaking down obscure topics or depicting the drama playing out on price charts. [The Washington Post]

There is now a credit card that people can use to pay rent and earn free rewards.

Kairos announced the very first credit card that allows tenants to pay apartment rent free of charge, while earning points in the process. The Bilt Rewards and the Bilt Mastercard will work in conjunction with over two million rental units in the United States. The program will allow users to earn points by signing a lease, referring a tenant and paying the rent monthly. In return, the points can be used for air travel, fitness classes, art and home decor, etc. [Complex]

Seeking to Increase Debit Card Use, Oxygen Launches Tiered Rewards Program

Seeking to make debit cards more attractive to consumers by offering incentives comparable to those of credit card rewards and loyalty programs, Oxygen Inc. launched Elements, a tiered rewards and loyalty program for consumers. debit card holders. The rewards available through Elements include cash back on daily purchases, increasing annual return percentages, savings on Netflix and Peloton subscriptions, and travel-related benefits, such as standard travel insurance on delayed baggage and lost and hotel theft; and rental car collision damage insurance waiver. As the annual fees increase, the reward packages on the cards get richer. [Digital Transactions]

Credit card interest: how it works and how to avoid paying it at all

Card issuers use your daily periodic rate and your average daily account balance to calculate daily interest charges. You can determine your credit card’s daily periodic rate by taking your APR and dividing it by 365. Your average daily credit card balance is the average debt you owe on your credit card over the course of a lifetime. billing cycle. You can use your statement to track each day’s expenses and find your daily balances, then add them up and divide them by the number of days in your billing cycle. Once you have the two digits, you can multiply them to find the daily interest charge. To find the interest charge for each bill cycle, you’ll multiply the daily interest charge by the number of days in your bill cycle. [Next Advisor]


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