Card Offers Now Flooding Mailboxes; The Catch With Buy Now Pay Later

Not just you. Banks are already sending out more credit card offers

Americans have paid off credit card debt during the pandemic. Credit card issuers spend huge amounts of money to get them to borrow again. Lenders spend on generous mailings and bonuses to attract customers and increase balances. Banks’ credit card marketing costs have risen in the past quarter. Credit card applications sent by mail are back to levels above pre-pandemic levels. Issuers offer cashback offers and other more generous rewards. [The Wall Street Journal]

Get Buy Now, Pay Later May Be Your Credit

Buy Now, Pay Later Payment plans allow consumers to split their total purchases at checkout into a series of smaller installments. But with promises of convenience, no interest, and minimal fees, many shoppers are wondering, “What’s the point?” It could be your balance. BNPL providers do not usually report payments on time to major credit bureaus, so unlike credit cards or loans, you cannot build credit with this type of financing. Some providers will report missed payments, which can eventually hurt your score. [Associated Press]

Amazon Visa may fall as US credit card partner

Amazon is considering ditching Visa as its co-branded credit card partner in the US after it confirmed earlier that it would stop accepting Visa credit cards in the UK as the dispute over payments intensified. Since Brexit, EU caps on fees charged by card issuers no longer apply in the UK, meaning providers are free to increase fees. Visa last month began charging 1.5% of the transaction value for credit card payments made online or by phone between the UK and the EU, up from 0.3%. [Reuters]

Eligible Chase cardholders now get $10 per month per card in Gopuff express delivery service credits.

Gopuff is an online service that offers you thousands of products for a small fee. From alcohol to electronics to medicine, you can get any “everyday” item through Gopuff. It boasts a fast delivery time of 30 minutes, although it’s not guaranteed. Now, Gopuff has partnered with Chase Credit Cards to give select card members new benefits, that’s $10 in statement balances each month they use an eligible card to make a Gopuff purchase. The service charges $1.95 per delivery, or you can join Gopuff Fam and pay $5.95 per month for unlimited delivery. The minimum order is $10.95, and there is an additional charge of $2 if your order contains alcohol. [Business Insider]

The majority of Americans are not very confident about their credit card options

It seems that most people aren’t sure they’ve chosen the right credit card, according to a survey by US News. In fact, nearly half of them are concerned that different cards can earn them more rewards. Only about 38% said they feel very confident that they have the correct cards in their wallet. Just over 36% of survey respondents say the most important feature of their latest credit card is the rewards program. Nearly 15% said they chose a credit card for the purpose of building credit. [U.S. News]

Credit card startup upgrade jumped 83% in just four months to $6.28 billion

Upgrade, a Fintech startup that turns credit card balances into installment loans, has completed a fundraising round that values ​​the company at $6.28 billion. The main product of the Upgrade program is the card that turns purchases into fixed-rate installment loans, making the startup the latest company to take advantage of the “buy now, pay later” trend in fintech. While traditional cards charge more than 18% per annum, the upgrade card starts at 8.99%. This made it one of the fastest growing cards in the country. [CNBC]

Bye, Staples Center. Hello, Crypto.com Arena

Staples Center will get a new name for Christmas: Crypto.com Arena. The downtown Los Angeles location – home to the Lakers, Clippers, Kings and Sparks – will wear the new name for 20 years under a deal between the Singapore-based cryptocurrency exchange and AEG, the arena’s owner and operator. Crypto.com paid out over $700 million for the naming rights, making it one of the biggest naming deals in sports history. [Los Angeles Times]

Morgan Stanley and American Express announced a new cashback credit card for brokerage customers

Morgan Stanley and American Express announced their first cashback credit card, exclusively for Morgan Stanley and E*TRADE customers with eligible brokerage accounts. With the new Morgan Stanley Blue Cash Preferred American Express Card from Morgan Stanley, cardholders can earn 6% cashback at US supermarkets on up to $6,000 annually in purchases (then 1%); 6% cash back on select US streaming subscriptions; 3% cashback at US gas stations and in transit; and 1% cash back on other eligible purchases. New cardholders can earn a welcome bonus of $300 on their statement after spending $3,000 on eligible purchases in the first six months. In addition, they receive an exclusive Morgan Stanley Cardmember privilege of $100 on their statement each year after spending $15,000 on eligible purchases. [CNBC]

Banks and credit unions decline in customer satisfaction survey

Banks have outperformed credit unions in a national customer satisfaction survey for the second year in a row. The 2020 US Customer Satisfaction Index saw a slight decrease in credit union score from the previous year. The industry score of 77 was one point lower than the banking industry. Last year was the first year that banks outperformed credit unions, and this year’s survey marks a historic low for credit union satisfaction rates, down 10 points from the industry’s peak in 2011. Although they do better than credit unions, banks’ scores In 2020 it was also better, down from the previous year. [American Banker]

US retail sales rise as holiday shopping begins, brightening economic outlook

US retail sales rose in October, as Americans eagerly began holiday shopping early to avoid empty shelves amid shortages of some goods due to the ongoing pandemic, giving the economy a boost at the start of the fourth quarter. The strong report from the Commerce Department indicated that high inflation has not yet dampened spending, even as concerns about the rising cost of living sent consumer confidence to a 10-year low in early November. [Reuters]

18 of the most amazing credit and debit card designs in banking

The banking industry may be ramping up digital innovation, but most credit and debit card designs are dull, boring and frankly vanilla. These little plastic (or metal) billboards are still used daily, and a handful of organizations (both traditional and digital) have found amazing new ways to make their cards stand out with consumers. [The Financial Brand]

Does mobile improve the in-store shopping experience?

A new survey finds that in-store shoppers continue to show up at the showroom, or use their cell phones to check competitors’ prices, but they also use their devices for purposes useful to the store they’re in. The most common in-store mobile phone shopping use among US consumers were loyalty cards or coupons stored on the phone (70%); visit the retailer’s website (68%); compare prices (68%); using the retailer’s application (64%); Read user reviews (63%); And scan QR codes or smart shelf tags for more information (53%). [Retail Wire]

.

Leave a Comment