Visa has recently announced a new partnership with Web3 infrastructure provider Transak, allowing users in 145 countries to withdraw cryptocurrencies directly to their Visa debit cards through the Visa Direct solution. This means that individuals can now exchange their crypto for fiat currencies without using a centralized exchange.
With this integration, users can withdraw cryptocurrencies like Bitcoin from their MetaMask wallets and use their Visa debit cards to make purchases at over 130 million merchant locations where Visa is accepted. This move by Visa shows their commitment to embracing cryptocurrency and making it more accessible to their customers.
In addition, Visa’s competitor Mastercard is also exploring blockchain technology and digital currencies. Despite the initial threat that these technologies may pose to traditional financial institutions, both Visa and Mastercard recognize the potential benefits and are keen to secure a share of the revenue generated from the flow of funds to and from blockchain networks.
However, a recent survey by Quicken revealed that 45% of Americans still carry credit card balances despite knowing it is a bad financial decision. This behavior is concerning as it shows that many individuals are struggling to live within their means. The Federal Reserve has also kept interest rates steady, but they may need to consider cutting rates in the future if inflation continues to cool.
In the world of fraud prevention, Mastercard has developed a new AI model called Decision Intelligence Pro to help banks detect and prevent fraudulent transactions on their network. This advanced AI model will provide real-time assessment of suspicious transactions, further securing Mastercard’s network.
On the other hand, Visa is facing a lawsuit from consumers who claim that the company’s prepaid “Vanilla” gift cards are vulnerable to theft. Thieves can open the thin cardboard sleeves that these cards come in, record the account information, and reseal them without being detected. This allows them to make purchases using the stolen information, causing financial loss to consumers.
In partnership news, Dillard’s, Citi, and Mastercard have entered into a new agreement to provide a credit card program for Dillard’s customers. This new program will include a co-branded Mastercard and a private label credit card, with Citi providing customer service functions.
Meanwhile, Amazon is teaming up with Mexico fintech Kueski to offer “buy now pay later” options for purchases in bi-weekly installments. This is the first time Amazon Mexico will allow users without a credit card to make purchases, with Kueski providing the financing and determining credit limits.
Lastly, the Consumer Financial Protection Bureau (CFPB) has proposed a rule to supervise non-bank payment service providers, including wallets and digital asset providers. However, three senior Republicans on the House Financial Services Committee have urged the CFPB to reconsider the rule and assess its impact on consumers and competition.
In summary, with the increasing use of credit cards and the rise of new technologies, it is important for consumers to be aware of credit card surcharges and the rules surrounding them. While adding surcharges is now legal in most states, merchants must follow guidelines and adhere to specific rules set by credit card companies.
