Target the Latest Retailer to Say It Will No Longer Accept Checks
Target has become the latest national retailer to announce it will longer accept personal checks. The policy will go into effect July 15, in yet another sign of how the once ubiquitous payment method is fading away. Target cited the “extremely low volumes” of customers who still write checks as a primary reason for the move. The company said it has “taken several measures to notify guests in advance” about the new no-checks policy. The move by Target follows earlier announcements by the Whole Foods and Aldi supermarket chains that they will no longer accept checks. [CU Today]
Top Fed Officials Say They Are ‘Closer’ to Cutting Interest Rates
Top Federal Reserve officials said on Wednesday the U.S. central bank is “closer” to cutting interest rates given inflation’s improved trajectory and a labor market in better balance, remarks that set the stage for a first reduction in borrowing costs in September. [Reuters]
Citi Shutters Unused Credit Card Accounts With Losses Soaring
Citigroup is shuttering unused credit card accounts as a growing number of customers fall behind on their payments. The bank has also increased its capacity for collecting bad debts as part of its efforts to manage losses on credit card balances. That work has also included decreasing customers’ credit card limits if they aren’t using them and tightening underwriting to ensure new accounts go to customers with higher credit scores. [Bloomberg]
Consumers Still Have Borrowing Power Left on Their Credit Cards
For Bank of America, digital channels have represented avenues of continued growth, making inroads with credit card spending in particular. According to management, there’s still room left for consumers to keep spending on those cards. The company said in a second-quarter 2024 earnings release that 53% of its consumer sales were made through digital channels in the quarter, up from 51%. Combined credit and debit spend of $243 billion was 3% higher than a year ago. In reference to credit cards, the average outstanding loans came in at $99 billion, flat with the first quarter, and up from $94.4 billion last year. The net charge-off ratio was 3.9%, up from 2.6% a year ago and up from 3.6% in the first quarter. [PYMNTS]
Capital One Walmart Card Discontinued; Existing Holders Moving to Quicksilver
Capital One has shut down applications for the Capital One Walmart Rewards Mastercard, as well as for the “closed-loop” Walmart Rewards Card that was usable only with the retailer. Existing cardholders will be transitioned to the Capital One Quicksilver Cash Rewards Credit Card, even if they already have that card. Capital One and Walmart had announced in May 2024 that they were ending their partnership, but the fate of the co-branded Walmart credit cards was unknown at that time. [NerdWallet]
Digital Wallets to Overtake Debit Cards for In-Store Payments by 2027
Digital wallets have revolutionized the payment space in recent years. They provide an easy, contactless and secure way to make purchases and transfer money through the convenience of smartphones. The method is the fastest-growing payment option in the United States, which is especially true among younger consumers. Most Americans say they use digital wallets more often than traditional payment methods. Even more intriguingly, consumers who use this payment method tend to spend more than nonusers. According to a new Worldpay report, the payment method will overtake debit cards in transaction value in North America for in-store payments by 2027. However, merchants have some catching up to do to keep pace with this unstoppable trend. Some notable stumbling blocks—including perceptions about security, complexity and legacy technology—are still holding many back. [PYMNTS]
Call Centers and Bank Branches Are Major Fraud Liabilities
Recently released results from an Arizent survey indicate that as banks look to protect their digital channels from automated fraud, branches and call centers have been left behind, leaving them more vulnerable to branch-based fraud activities. [American Banker]
Chase Announces Huge Bonus for New Business Card Holders, But Only for a Limited Time
Chase announced that it is bumping up the bonus on its Ink Business Preferred Credit Card for a limited time. New cardholders can get up to $1,500 in value by spending $8,000 in the first three months of opening an account. The card has a $95 annual fee, but the ongoing rewards in popular business spending categories, travel benefits and other perks may make it worthwhile. [U.S. News & World Report]
Capital One Savor Card to Stop Accepting Applications
The Capital One Savor Cash Rewards Credit Card will no longer be on the issuer’s menu of available credit cards for new applicants. Beginning July 16, 2024, the card will stop accepting applications, according to Capital One. “We’re always listening to customers and evaluating our products for the right offerings,” said a Capital One spokesperson in an email. “Based on this, we have made the decision to remove Savor as a card offering.” [NerdWallet]
J.D. Power Launches a Certification Program for Mobile Banking Apps
J.D. Power announced early Monday the launch of a mobile-banking app certification program. The program is intended to recognize app providers that deliver an exceptional user experience. The certification process rates mobile apps using a set of 146 best-practices benchmarks, including app development, design, and operational functionality. The first qualification criterion is that an app must rank among top performers in the most recent J.D. Power North America Mobile App Satisfaction Index. Benchmark rankings are based on overall customer satisfaction with the mobile-app experience for 259 brands across 11 industries. [Digital Transactions]
Klarna, Adobe Partner on Buy Now, Pay Later Services
Klarna’s partnership with Adobe Commerce builds on the buy now, pay later platform’s previous efforts to draw more customers amid a challenging economic climate. Earlier this year, the company introduced a subscription service that would allow customers to pay a monthly charge to avoid service fees while receiving rewards points and access to promotional offers through partner retailers. Now, the Adobe Commerce deal allows more sellers to offer Klarna’s services. [Payments Dive]
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