Biden could push for crypto oversight; Debit usage soars, cash plummets during pandemic

White House weighs a wide range of pressures for crypto oversight

The Biden administration is considering a cryptocurrency executive order as part of an effort to put in place a whole-of-government approach to the white-hot asset class, according to people familiar with the matter. The proposed directive would task federal agencies to study and offer recommendations on relevant areas of cryptography, affecting financial regulation, economic innovation and national security. The plan would push departments that have paid little attention to crypto to focus on it. Officials have also considered appointing a White House crypto-czar to act as a point of reference on the matter. [Bloomberg]

Debit cards have now become the number one payment method for a transaction


Why speed usage is soaring in the restaurant and hospitality industry

The pandemic not only forced restaurants to close in March 2020, but also ended the use of cash. Eight percent of U.S. businesses became cashless at the start of the pandemic, and that number jumped to 31 percent by the end of April. The cash ban stabilized at 20% in September 2020, but its impact on debit cards, the main beneficiary of the paper money withdrawal, has been considerable. A Federal Reserve study confirmed that debit cards were the most frequently used payment instrument last year, accounting for 28% of payment volume. He further revealed that as the demand for take-out in take-out restaurants increased, consumers were more likely to use remote payments at a wider range of restaurants and for a greater value gap. of payment. [PYMNTS]

Credit Card Companies Become Reluctant Web Regulators

Who Should Monitor the Internet? Social networks spend billions to moderate the content posted on their platforms, but are still criticized for either not removing enough toxic material or for stifling free speech. Banks and credit card companies also find themselves playing a greater role in what is said and done in the public arena, to their discomfort and that of their customers. The censorship limit is now extended further, in the area of ​​pornography. From October 15the, adult websites around the world will need to verify the age and identity of anyone in a photo or video, as well as the identity of the person uploading it. They will need to implement a quick complaints process and review all content before publication. These rules are not imposed by regulators but by Mastercard. [The Economist]

Chase announces Instacart Express benefit for most cardholders, including $ 10 rebate

Chase announced a new partnership with the Instacard grocery delivery service. More Hunt credit card holders can now enjoy a free Instacart Express subscription until April 2022 as well as a $ 10 discount on your next Instacart order of $ 35 or more. As more people have started to enjoy the convenience of grocery shopping and food delivery during the pandemic, many card issuers are responding by offering additional benefits to their customers. [CNBC]

80% of American consumers have at least one subscription

More than ever, consumers’ use of automated payments to manage their subscriptions is gaining ground. This comes with more subscriptions than ever. A new report shows consumers want these payments to be transparent. And if those expectations aren’t met – in a world where 80% of American consumers have at least one subscription, up from 72% a year ago – the churn rate is looming. About 27% of consumers who subscribed to a wide range of services said they experienced a drop in subscription payments in the past year. Among those who experienced a decline, more than a quarter of these customers canceled their subscriptions or changed services. [PYMNTS]

US bank launches two new secured credit cards with rewards

US Bank has launched two new secured credit cards with surprisingly good rewards programs. The US Bank Altitude Go Visa Secured card and the US Bank Cash + Visa Secured card offer the same reward rates as their unsecured counterparts. With either card, users can get a credit limit ranging from $ 300 to $ 5,000, equal to their initial security deposit. In either case, responsible use of the card over time could result in a switch to the unsecured version of the card, in which case the deposit will be refunded. Neither card charges an annual fee. [Investopedia]

Industry scrambles to prepare for CFPB debt collection rules

Banks, credit card companies and debt collectors have pushed for an overhaul of federal debt collection rules, and they are poised to reap the benefits of unlimited contact with consumers via e- mail and SMS. But with the CFPB rules coming into effect on November 30, many creditors and collectors are scrambling to make changes that require a high degree of coordination with each other. While the rules do not apply specifically to banks and other lenders seeking debt collection, they do require technological change and information sharing so that third party debt collectors can take advantage of certain “safe havens” that allow them. protect from liability. [American Banker]

Credit scores rose for consumers who faced Covid struggles

At least one credit score model has shown improvement for 18.7 million financially struggling borrowers during the pandemic. TransUnion found that 58% of those with a flag of forbearance or any other type of payment relief program in 2020 saw an increase during that year, when the CARES Act limited some adverse credit actions. Subsequently, a discrepancy appears in the data for a subset of those borrowers who continued to obtain bank cards between those who remained in the plans and those who came out of difficulties. Those who exit generally had higher credit utilization rates, were more likely to have mortgages, and experienced lower levels of bank card defaults, unless they were borrowers with particularly high scores. [National Mortgage News]

American Express closes some cardholders who have used Amex’s special welcome offer

American Express is closing all cards for certain cardholders who have opened a new Amex card with a special welcome offer. Most of the affected cardholders report having purchased a new Amex Business Platinum card through the same Amex representative who has worked with American Express OPEN since 2011. From the cardholder reports, the representative was able to suggest better welcome bonus offers than those available publicly. [Forbes]

Half-full message from JPMorgan Chase on credit card loans

JPMorgan Chase’s credit card business is showing signs of life, persuading company executives that a resumption of loan growth is approaching, but maybe not yet. While total personal and corporate banking loans declined 2% year-over-year in the third quarter, credit card spending continued to rise and overdue balances edged up. The rates at which customers make payments on their cards, while still unusually high, have started to return to more normal levels. [American Banker]

Advance holiday shopping could be the smart move this year

We are again told to “start now” on our holiday shopping this year. Wait too long, retailers warn, and you may not find everything on your gift list. While stores now have plenty of merchandise, retail experts have agreed: Global supply chain problems resulting from the pandemic are likely to create inventory shortages ahead of Thanksgiving. Simply put, the pandemic has disrupted manufacturing and delivery systems and they cannot meet increased demand from U.S. consumers. The production delays are due to shortages of materials and a lack of manpower. [Consumers’ Checkbook]

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