LowCards.com Weekly Credit Card Update–October 23, 2020

LowCards.com Weekly Credit Card Update–October 23, 2020

October 23, 2020         Written By Bill Hardekopf

JPMorgan Chase Takes on Square and PayPal with Smartphone Card Reader, Faster Deposits for Merchants
JPMorgan Chase is rolling out a checking account that is paired with a new fintech-inspired service called QuickAccept. QuickAccept lets merchants take card payments within minutes, either through a mobile app or a contactless card reader, and users will see sales hit their Chase business accounts on the same day. That fast funding is offered free, unlike competitors including Square, which typically take a day or more and charge a 1.5% fee to make instant transfers to external accounts. Story by Hugh Son for CNBC

42% of Americans Have Missed a Bill Payment during the Pandemic
It’s been over seven months since the COVID-19 pandemic hit the United States, and many Americans are still struggling to make ends meet. According to a new report from doxo, 42% of consumers have missed at least one bill payment during the coronavirus outbreak. Only 10% have missed a health insurance payment, and only 14-15% have missed a car or dental insurance payment. By comparison, 27% of respondents said they’ve missed an auto loan payment and 26% have skipped a utility payment. Rent and mortgage payments fell in the middle of the rankings, but that still shows that roughly 1 in 5 Americans haven’t been able to pay for housing at some point. Story by Heaven Speirs for LowCards.com

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Coronavirus Tanked the Economy. Then Credit Scores Went Up.
Millions of Americans lost their jobs and skipped debt payments this year. You wouldn’t know it looking at consumer credit scores. While the coronavirus was pummeling the U.S. economy, Americans’ credit scores were rising. The average FICO credit score stood at 711 in July, up from 708 in April and 706 a year earlier. The increase is largely thanks to the unprecedented financial assistance the government and lenders rolled out to consumers after the pandemic took hold in the U.S. Stimulus payments and expanded unemployment benefits helped many borrowers keep up with their bills and, in some cases, even pay down their debt. Widespread payment holidays on mortgages, auto loans and student loans freed up funds and kept credit reports clean. Story by AnnaMaria Andriotis for The Wall Street Journal

Southwest Airlines Flight Attendants Could Be Selling Credit Cards On Flights To Stem Pandemic Losses
Southwest Airlines is asking flight attendants to sell credit cards during flights in exchange for a smaller pay cut as the company tries to navigate expected losses from the COVID-19 pandemic. Southwest, which told union employees earlier this month they need to take a 10% pay cut next year to avoid furloughs, could start selling products during flights, including credit cards, as a way to increase revenue and make up for the dismal number of passengers booking fares. Story by Kyle Arnold for The Dallas Morning News

Chase Sapphire Credit Cards to Earn Bonus Points on Groceries for a Limited Time
Banks continue to enhance their travel credit cards in an effort to keep customers engaged during the pandemic, and on Tuesday, Chase announced a new limited-time bonus category on its trademark Sapphire credit cards. Starting November 1, Chase Sapphire Reserve card holders will earn 3 points for every dollar spent on grocery store purchases, while Chase Sapphire Preferred card holders will earn 2 points for every dollar spent. The bonus points in this limited-time category will be capped at $1,000 in total purchases per month, and the promotion lasts through April 30, 2021. Story by Julian Kheel for CNN

Millennials and Gen Z are Leading the Charge in Bettering Their Credit
Experian’s latest State of Credit report found that Americans of all ages are maintaining healthy credit profiles, despite the economic fallout brought on by the Covid-19 pandemic. The credit bureau’s 11th annual credit report highlights that, on average, consumers are managing their credit better year over year. Younger consumers, in particular, are showing responsible credit management trends. Some of the behaviors attributing to young people’s success include lowering overall credit card debt, reducing credit utilization rates and making fewer missed payments. Story by Elizabeth Gravler for CNBC

A Debit Account that Rewards Users for Shopping at Black Businesses
Urban One has launched a new digital bank account geared toward Black consumers that rewards users for shopping at Black-owned businesses. Urban One, which targets Black Americans and city dwellers, introduced the One VIP account. The account comes with a prepaid debit card and customers earn one point per every $2 spent on regular purchases and 1.5 points per $2 spent on select Black-owned brands, as well as Uber, Netflix, Starbucks and other big-name merchants. Customers can then redeem their points for cash back or as a donation to the Urban One Community Works Foundation, which will use the funds to support charities that serve people of color. Story by Miriam Cross for American Banker

Visa and Mastercard Accused of Charging ‘Excessive’ Fees in UK
Visa and Mastercard have been accused of cashing in during the coronavirus crisis by charging “excessive fees”. The British Retail Consortium says the fees charged by payment firms have almost doubled in the last two years. They warn that retailers will be forced to pass on the extra costs to consumers, with credit card bills rising by another £40 a year. However, Mastercard questioned the BRC’s findings and said shops were paying less than five years ago. Story by Simon Read for BBC

Virtual Prepaid Card Market Heats Up as Tech Firms Compete for Transactions 
Earlier this month the tech press was alight with news that Samsung was entering the financial sector with its own “innovative” virtual debit card. Prepaid debit cards may not seem like the most exciting technology advancement, but virtual cards are already changing how we pay for goods and services and Samsung’s decision to enter the marketplace demonstrates how important the sector has become. As smartphone sales plateau, technology firms are looking to expand their portfolio, and with many of these companies already offering financial services through the likes of Apple Pay and Google Pay, it should come as little surprise that they would want to move further into the space and take a larger slice of the fees on each transaction. Story in Descrier

My 1-Year-Old Is an Authorized User on My Credit Card. Here’s Why
My son turned one last month. For his birthday, I gave him a credit card with $85,000 in available credit. He has access to it because I made him an authorized user on my primary credit card. And I did that for an important reason: Because he’s an authorized user, the card’s history shows up on his credit report. By the time he’s 18 years old and ready to apply for a credit card, car loan, or other loans of his own, he’ll have a very long credit history and should be well on his way to earning a great credit score. Story by Christy Bieber for The Motley Fool

Study Indicates Smooth Digital Transactions are Key for Business Survival
Nearly 85% of global executives surveyed as part of the study said they believe smooth digital transactions are “essential to business survival” and providing it to customers means more than just a competitive edge. Approximately 85% of executives say biometrics are likely to be used to authenticate the vast majority of payments in the next ten years. About 43% of respondents noted that fraud detection and improved security is the greatest benefit to using AI. The vast majority of executives, 79%, think national digital IDs will help fraud prevention in consumer transactions. Story by Mobile Payments Today

LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for 20 years. For more information, contact Bill Hardekopf at 205-985-9725 or billh@LowCards.com. Follow our tweets: @lowcards

The information contained within this article was accurate as of October 23, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.