It’s a regulation that went into effect as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, but there’s been more than a decade of haggling over whether the requirement should apply to online transactions as well. The rule would force card issuers, most of which are banks, to offer merchants more than one debit routing option. The bank groups, including the American Bankers Association, the Consumer Bankers Association and the Credit Union National Association, waved a host of reasons in their letter as to why they shouldn’t have to meet a July 1 deadline to satisfy the rule. Retailers Oppose Banks Seeking More Time on Debit Routing RuleĪ group of banks asked the Federal Reserve Board to give them another year and a half to implement a debit routing rule, but a merchant and retail trade group argues they’ve had plenty of time to comply. Digital card issuance platforms allow card issuers to create cards using an API-driven approach enabling cards to be delivered instantly to digital wallets, with the option for a physical card boosting flexibility. Number of Credit Cards Issued Via Digital Card Platforms Projected to SurgeĪ new study from Juniper Research is forecasting the number of credit cards issued via digital card issuance platforms will exceed 321 million globally by 2027, up from 120 million in 2023. The program, which lets shoppers make purchases and then pay over installments, also will look at whether customers have applied for an Apple Card credit card and the other cards they have linked to their Apple Pay accounts. The Apple Pay Later service, announced last year but still in the testing phase, will evaluate borrowers based on their spending history and even which of the company’s devices they own. One key factor: whether you’ve been a good customer in the past. With Apple pushing into the lending business with a “buy now, pay later” service, the company is laying out rules for how it will approve transactions. Īpple to Scrutinize Customer History for New ‘Buy Now, Pay Later’ Service But that's a key reason why embracing the technology is a smart long-term strategy for both Visa and Mastercard. In many ways, blockchain technology heightens the competition for these large, traditional payment players. Mastercard, for instance, has at least 89 blockchain patents. They've also vowed to keep innovating around the technology as well. But rather, Visa and Mastercard, the two largest payment rails in the world, have embraced blockchain technology, implementing it into several of their products and services. It's a Smart Long-Term StrategyĬonsidering the disruptive nature of blockchain technology, one could be forgiven for thinking that traditional payment players would be very worried, and perhaps even combative towards, the new payment method. Visa and Mastercard Have Embraced Blockchain Technology. Other organizations recently reported that they’re seeing rising delinquencies among subprime and near-prime borrowers. This news came two days after Discover Financial reported that its credit card delinquency rate has been rising each month since May 2022, reaching 2.67% in January, and its net charge-off rate was the highest it had seen since February 2021 as it hit 2.81% in January. Both Bank of America and JPMorgan Chase said in filings with the Securities and Exchange Commission that their delinquency rates rose in January. have reported rising delinquency rates on their credit cards. Bank of America and JPMorgan Chase Report Rising Delinquencies
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