Card rewards are changing, but are they unfair to low-income people?

Will Congress Take Your Credit Card Off?

How would you feel about Congress stealing your credit card or preventing you from participating in credit card reward programs? Do not laugh. Leftist groups in Washington say the plastic card in your wallet is the financial villain that needs to be tamed. New study by researchers at the Federal Reserve Bank of Boston finds credit card rewards programs are unfair because they create an “implicit money transfer” to wealthy cardholders of low-income people who buy cards. things with cash or debit cards. [Real Clear Politics]

Cash Back, Miles or Wine? Credit card rewards evolve

There are generally two basic versions of Rewards credit cards: cash back and travel. But a number of new credit cards are reinventing the role a rewards program could play in your life. These cards can help induce certain behaviors and provide a greater degree of personalization. While these startups lack the brand recognition and deep pockets of big banks, they do have one thing going for them: speed. Some financial startups rely on the services of other technology companies that provide the infrastructure (including selecting the banking and payment network partner, and establishing underwriting guidelines) to launch a new card. credit. This makes it easier to turn an idea into reality. [NerdWallet]

Why Congress Should Regulate Cryptocurrency Now

The U.S. House Committee on Financial Services is hosting a hearing on cryptocurrencies and financial technology on Wednesday, following a Treasury Department report on stablecoins released last month. Executives from key industry players will discuss the risks posed by stablecoins and other cryptocurrency technologies, and identify opportunities to improve consumer protection and prevent illicit activities, such as trading. targeting ransomware, money laundering and terrorist financing. Regulators now need to create clear rules of the road to balance innovation with risk mitigation. The ability of these digital currencies to undermine control of the monetary system and thereby erode sanctioning power poses a particular risk to the United States. [Foreign Policy]

Amex unveiled 2 new platinum card models

From adding an array of new perks, to increasing the introductory bonus and increasing the annual fee to $ 695, Amex has done a lot of tinkering with the Platinum Card from American Express this year. And now there’s yet another change to this iconic map. Amex is rolling out two new card designs in early 2022, and they will be available to new and existing cardholders in addition to the classic card style. [Business Insider]

Chase Bank’s New Program to Help Customers Avoid Overdraft Fees

Chase Bank, the country’s largest bank, announced four key changes to the overdraft situation. Chase retains its $ 34 overdraft fee, and Chase clients can be charged a maximum of three overdraft fees per day. But next year, Chase will initiate a next day grace period where customers will have until the end of the next business day to correct deficits and add money to bring a balance back to where the customer might be overdrawn. of $ 50 or less to avoid the previous day’s charge. In addition, Chase will offer its customers early direct deposit, which would allow customers to access their directly deposited paycheques up to two business days in advance. [Detroit Free Press]

Another new premium travel card has just hit the market

2021 has been a remarkable year for the new and revamped premium reward cards. Now another issuer is joining this group with its latest product: the Bank of America Premium Rewards Elite credit card. With an annual fee of $ 550, the card is aimed at high net worth and high net worth clients of Bank of America. But it’s not exclusive to this clientele, and you don’t need to have a relationship with the bank to apply. [The Points Guy]

Buy now, pay later Services flourish

According to a new report from Adobe Analytics, purchases through buy it now, pay later platforms like Klarna and Affirm are up more than 20% from last year on Cyber ​​Monday. Millennials and Generation Z are the heaviest users. They use businesses as a budget alternative to credit cards that they may be afraid of or may not have access to. In fact, nearly 90% of payments processed by the Afterpay platform are made with debit cards. Afterpay customers typically spend more money: Average shopping carts increase by 20% at clothing retailers with Afterpay. [Marketplace]

Fraudulent Ecommerce Transactions Rise Between Thanksgiving and Cyber ​​Monday

17.46% of all global e-commerce transactions between Thanksgiving and Cyber ​​Monday were potentially fraudulent, a TransUnion report reveals. These figures were slightly higher in the United States where 19.66% were suspected of fraud. The number of suspected e-commerce fraud attempts during the 2021 holiday shopping season also increased by 25% from the 15.73% fraud attempts seen earlier in the year (January 1 to November 29). The top two reasons for potentially fraudulent e-commerce transactions: the number of accounts per device, which is triggered when a device has accessed the minimum number of accounts within the set time period; and the second was the existence of evidence, which occurs when an account or device has already had a fraudulent transaction. [Help Net Security]

Smart credit cards: the X1 card comes into the picture

The X1 card was recently unveiled, offering many unique security features and rewards. Advertised as 17 grams of stainless steel, the card will come to you in a branded box. You cannot “ask”; you can request an invitation to apply by submitting your name, email address and earnings. X1 says its credit card offers up to five times the spending limit of a traditional credit card, with an average credit limit of $ 24,300. This potentially gives cardholders a chance to increase their credit score by improving credit usage. And it features automatic virtual cards, which give out a unique and unique credit card number every time you make a purchase online. [CNet]

Almost 60% don’t know if credit card balances are high

Most Americans aren’t sure exactly how their credit card balances affect their credit scores, according to a new survey. Of those who indicate that they understand there is a relationship between the two, almost four in 10 say that a high credit card balance increases their credit score, which is incorrect. [U.S. News]

Scammers Favor Target In Gift Card Scams As Cost Of Fraud Rises

In the first nine months of 2021, consumers lost more money in identity theft gift card scams than in 2020, the Federal Trade Commission said. Consumers have said they have lost $ 148 million so far this year in scams in which scammers have told them to buy gift cards to use as a form of payment. The FTC said nearly 40,000 consumers made the reports, in which they said they paid crooks who impersonated large corporations or government agencies. Target gift cards were the most popular choice for scammers in reports received by the FTC. [NJ.com]