This Week In Credit Card News: More New Card Rewards, And Relief, From Issuers During Pandemic - Forbes

This Week In Credit Card News: More New Card Rewards, And Relief, From Issuers During Pandemic - Forbes


This Week In Credit Card News: More New Card Rewards, And Relief, From Issuers During Pandemic - Forbes

Posted: 17 Apr 2020 12:29 PM PDT

Some Amex Cardholders Can Now Enjoy 20% off Amazon Purchases and Other Limited-Time Offers During Coronavirus

American Express AXP announced it will be offering a variety of new benefits to help cardmembers save on spending amid the ongoing coronavirus pandemic. For a limited time, eligible U.S. Amex card members enrolled in Membership Rewards can save up to $50 on Amazon.com AMZN purchases. Membership Rewards cardholders will soon be able to earn 2X Membership Rewards points on Grubhub and Seamless purchases through the end of the year. [CNBC]

You Can Now Redeem Capital One Miles for Food Delivery and Streaming Services

In light of people staying home and putting travel plans on hold until pandemic concerns subside, Capital One has added three new categories where you can redeem your miles at a fixed-value. Now through June 30, 2020, you'll also be able to use the Venture purchase eraser feature on takeout, delivery and streaming services. For Spark Miles business cardholders, you'll be able to use the business purchase eraser feature for takeout, delivery and phone services. [The Points Guy]

Master List Of Credit Card Issuer COVID-19 Policies

In these unprecedented times, credit card companies have lined up to offer special dispensation to their cardholders. If you need to reach out to a specific issuer, here is how credit card companies are responding to the challenges consumers face during the COVID-19 outbreak. [Forbes]

Walmart's MoneyCard Will Let You Direct Deposit Your Coronavirus Stimulus Check

Walmart set up a way for new MoneyCard customers to direct deposit their stimulus checks in a move that could help those who don't have access to traditional bank accounts. New MoneyCard customers can direct deposit economic impact payments to its Green Dot-backed, reloadable debit card. The big box retailer said the entire process can be done online and is meant to be affordable and fast. [USA Today]

Some Chick-fil-A Stores are Banning Cash

Certain Chick-fil-A locations are going fully cashless or strongly encouraging that customers avoid that method for payment. According to posts on Facebook from various Chick-fil-A locations in states including Florida, Indiana, Georgia, Virginia, and Maryland, stores are shifting toward cashless payment models to slow the spread of the virus. While some stores are simply encouraging the use of mobile or credit card payment, other stores are restricting the use of cash altogether. [Business Insider]

Citigroup Profit Tumbles 46% on Expected Credit Card Losses

Citigroup reported a 46% plunge in quarterly profit as it prepared for losses driven primarily by its credit card business, and analysts raised worries that there is more pain to come as the economic outlook darkens. Citi's high exposure to unsecured credit card loans makes the bank more susceptible to hefty writedowns, since credit card delinquencies have historically risen in lockstep with unemployment. [Reuters]

JPMorgan Chase Profit Plummets as it Sets Aside Cash to Cover Loans Hit by Coronavirus

JPMorgan Chase said its first-quarter profits plunged by 69% from a year ago, as the bank was forced to set aside billions of dollars to cover potential losses tied to the coronavirus pandemic. Chase, the nation's largest bank by assets, is facing billions of dollars in losses, as borrowers who were in fine shape just weeks ago are now at risk of running out of money and defaulting on loans. [Associated Press]

Mastercard Stock Could Underperform with COVID-19 Travel Woes Extending into 2021, Analyst Warns

Travel spending could be slow to recover, warns Guggenheim analyst Jeff Cantwell, which could pressure Mastercard Inc. MA 's stock into 2021. He became the second analyst to downgrade Mastercard shares over the past two days, cautioning that sluggish travel spending may continue to dog the company's cross-border segment even after the worst of the COVID-19 pandemic is over. [MarketWatch]

5 Things You Should Do with Your Stimulus Check

The first set of Americans have received their economic impact payments, and more disbursements should arrive in the coming weeks. Before you run to the nearest electronics store for a $1,200 TV, take a moment to think about long-term goals. What is the best way to use your stimulus payment? How can this help you in the present and in the future? Here are some tips to help you make the most of your stimulus check. [LowCards.com]

EMV Chip Cards Are Slow To Reach Gas Pumps

Debit and credit cards with EMV chips have been around for five years now, except at gas stations. That's because it is a lot harder to change card readers in gas pumps—where it may require breaking and repouring concrete—than it is to change out the card reader which sits on a countertop in a store. On October 1, 2020, if your local convenience station gets hit with a fraudulent transaction by a buyer using a mag stripe because his gas pump doesn't read EMV chips, it is his loss, not the credit card company's. [Forbes]

American Airlines Brings Back Credit Card Spending Toward Million Miler Status

American Airlines announced a slew of policy changes to its AAdvantage award program: extending elite status, reducing elite status qualification requirements, extending lounge memberships and upgrade certificates and reducing fees on award ticket cancellations. From May through the end of 2020, every dollar spent on an AAdvantage co-branded credit card will count for one mile toward Million Miler status in addition to the normal redeemable miles earned. [Forbes]

JPMorgan Says It's Processing 300,000 PPP Loans - pymnts.com

Posted: 15 Apr 2020 12:36 AM PDT

JPMorgan Chase reported results that showed the impact of the coronavirus, especially toward the end of the quarter, reflecting declines in consumer spending – and expectations that a significant number of loans and credit lines will sour.

In terms of the headline numbers, earnings came in at 78 cents a share, which missed the Street estimates of $1.84, as credit provisions weighed on results. Revenues were off by 3 percent to $29 billion in the quarter.

Eyes on Wall Street may have been focused on trading revenues, at a record $7.2 billion, stemming from huge volatility in the market. But drilling down into the numbers, the banking giant clearly is girding for a deep recession, marked by the inability of corporate clients and consumers to pay their bills across credit cards, mortgages and auto loans. The company boosted its credit reserves by $6.8 billion year over year to $8.3 billion, with more than half of that boost, at $3.8 billion, tied to consumer cards. JPMorgan has projected that the verticals most likely to be impacted by the "fairly severe" recession, per remarks made by CEO Jamie Dimon, would be energy, real estate and retail.

In terms of macro forecasts, management is looking for unemployment to reach 20 percent in the second quarter, as noted by CFO Jennifer Piepszak, and annualized GDP may shrink by 40 percent.

"We're prepared for a range of outcomes," she said.

Piepszak noted on the call with analysts that it is offering customer relief, including a 90-day grace period for credit card, mortgage and auto loans, and is not reporting payment deferrals to credit bureaus.

Supplemental materials released by the company show that within the consumer and community banking unit, revenues were down 2 percent year over year to $13.2 billion. Card income in the period stood at just over $1 billion on a consolidated basis, down 17 percent year over year.

Management said on the conference call that, in terms of the Paycheck Protection Program (PPP), as many as 300,000 loans are in some stage of the application process, tied to $36 billion of loans.

Piepszak said during the call that the bank's liquidity position remains strong, and financial results also show some increased activity in deposits into the end of the period. Average deposits were up about 7.6 percent to $733.6 billion. Card sales volume – across debit and credit – was up 4 percent to $266 billion.

Active mobile customers were up 11 percent to 38.2 million. Total digital customers were up 6 percent to 53.8 million.

Supplementals reveal that the net chargeoff rate for cards came in at 3.25 percent, up from 3.01 percent at the end of the year. The delinquency rate for the card business stood at 1.02 percent, up six basis points from the fourth quarter.

Dimon said on the call that amid loan loss reserves and some of the forbearance activity, "If we can help the country get through this, everybody's better off" – even if the bank loses more money to get there.

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PYMNTS LIVE VIRTUAL FIRESIDE CHAT: WEDNESDAY, APRIL 22, 2020 | 12:00 PM (ET)

FIs have traditionally approached resilience from a technology standpoint, but 'Black Swan' events like the COVID-19 pandemic expose what can go wrong when FIs don't prepare for the unexpected. Vincent Caldeira, Chief Technologist, FSI, APAC for Red Hat joins PYMNTS CEO Karen Webster to explore how preparedness is impacting FIs' ability to do business during COVID-19, and the lessons being learned.

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