This Week In Credit Card News: Older Consumers Propping Up Economy; Cannabis Sellers Using Prohibited Payments

America may be having a youth session right now: Consumers over 60 are supporting the economy

Social security is a major factor in recent spending habits. Is America going into recession or not? It depends on who you ask and how old they are. According to Bank of America, households between the ages of 20 and 50 now spend significantly less on credit and debit cards than they did a year ago. For now, especially those over 60 and especially over 80 continue to support the economy. Call it a 'youth session'. The older generation, the "traditionalists" or the "silent generation" spent 5% more on their cards last month compared to the same period a year ago. This is the generation born before 1946, meaning they are now 78 or older. Spending by baby boomers also increased, but only by 2%. Meanwhile, Gen X, Millennials and Gen Z spend about 2% less than a year ago. Gen X spending just dropped. [Market Review]

Cannabis sellers still use banned payment solutions

Even under the threat of thousands of dollars in daily fines, some marijuana dealers still use a verification form designed to hide the nature of the payment from card companies and authorities. Called a cashless ATM, this payment option resembles a conventional point-of-sale terminal and allows merchants to indirectly support debit card payments. Visa and Mastercard vietano esplicitamente i bancomat senza contanti ei blocchi remoti automatici nei negozi al detaili esistono almeno dal 2014. Mai i processori di pagamento affermano che il methodo di transazione fraudolento è vivo e n'armmento de l'a liminminmanman ın ı ı ı ı ı ı ı ı ı ı ı ı ı ı ı ı ı ı. Juana even. Payments experts say part of the problem is that some merchants don't fully understand the legal risks associated with cashless ATMs, or use cashless ATMs under a different name, such as script terminals, bank points or even "debit." [American banker]

The Fed's rate freeze will not delay nearly $1 trillion in US credit card debt.

The Federal Reserve's decision to hold off on key interest rate hikes is no respite from Americans' worries about credit cards. Even if the Fed's decision causes a break in credit card interest rates, Americans will still be saddled with all that interest-bearing debt. Household credit card debt was $986 billion in the first quarter of 2023, according to the Federal Reserve Bank of New York. This is a 17% increase from $841 billion in the same period last year. According to the FED, the number of people with a card balance in the first quarter of the year averaged 20.92% per month, compared to 16.17% in the same period last year.

CFPB warns of side effects of using medical credit cards and loans

The CFPB's report says that Americans facing rising health care costs are being forced to use alternative debt financing products, such as medical credit cards and medical installment loans, which can have costly side effects. According to the CFPB, these alternative debt instruments can carry interest rates in excess of 25%, which is much higher than the typical annual interest rate of 20% currently charged by traditional credit cards. Instead of relieving financial stress, credit cards or medical loans can help because they can lead to limited access to credit, lengthy and expensive debt collection lawsuits, and a higher likelihood of bankruptcy. [Hunting business]

93% of credit card users appreciate that their bank supports local charities.

The PYMNTS study found that those who spend the most money monthly with credit cards are more involved in their local communities and are more interested in involving and supporting financial institutions in community organizations. For these consumers, the interest in FO's community involvement is great enough to influence where they keep their accounts. [PIMNC]

Chase is introducing the Freedom Rise Card to new customers

Chase Bank has announced the launch of Chase Freedom Rise, a non-annual bonus card designed specifically for those new to lending. The card carries a flat 1.5% cashback on all purchases, and those with a Chase checking account with a balance of $250 or more will have the best chance of getting approved. Unlike other Chase Freedom cards, there are no bonus tiers. Cardholders can earn $25 by signing up for autopay in the first three months with the card. They can also check their credit scores for free with Chase Credit Journey and access educational resources to help them reach their credit-building goals faster. [Forbe]

About 80% of Gen Z and Millennials want to improve their credit, but most don't know where to start.

Credit is the cornerstone of financial well-being, and most young people are aware of it. According to a recently published study by Experian, 79% of millennials and Gen Z want to actively improve their credit score now instead of putting it off later. At the same time, most of these consumers (52%) do not know how to start lending. [NBC]

Are we moving towards a cashless society with mobile payments?

Despite the benefits, the transition to a cashless society is fraught with pitfalls and challenges. One of the barriers to mobile payments is the digital divide, when not everyone has access to smartphones or a stable internet connection. Digitization of payments raises privacy and security concerns as personal and financial information is exposed to cyber threats. In addition, relying on digital payment infrastructure raises concerns about system failure and technical reliability. While mobile payments are convenient, financial inclusion and accessibility must be ensured for a cashless society to be inclusive. Efforts should be made to ensure that low-income communities and rural residents have access to digital payment systems. These include improving communications, promoting financial awareness and building relationships between financial institutions and mobile network providers. [financial tycoons]

Top 15 Features People Look for in a Mobile Banking App

According to the study, the top five priorities for US users when it comes to mobile banking are: view account transactions, including transaction details; cancel a lost or stolen card; check account balance; eg access to digital account documents. reports, balance confirmation; suspend or block all debit or ATM transactions. [fiscal mark]

Taco Bell fined for violating California gift card laws

Fast food chain Taco Bell will pay thousands of dollars for denying customers the right to use gift cards worth less than $10. The judgment ordered Taco Bell Corporation and its subsidiary GCTB LLC to pay $85,500 for violating the California gift card law. Pursuant to California Civil Code 1749.5, a gift card holder with a balance of less than $10 may receive a refund from the merchant if they do not wish to spend the remaining amount. [CCSAN]

Take a look at the private label credit card market today

According to Javelin Strategy & Research analyst, while "buy now, pay later" is gaining popularity, this option poses no threat to private label cards because of the similar rent-to-buy proposition. BNPL Instant Funding does not offer you the same kind of rewards or loyalty benefits that you can get with a private label card. They also don't have the same promotional offer you'd find on private label store cards. So we don't see pay later as a real threat to the store card product because it loses some of the loyalty and rewards you can get with store credit cards. [Payment Journal]

This week, two portfolio managers discuss how to invest in the markets.