This Week In Credit Card News: Due To Pandemic, Will Card Fees Go Up Or Down? Will Cash Be Phased Out?

Another Challenge for Small Businesses: Higher Card Fees Could Be on the Way

Many small businesses could have another thing to worry about when they come out of a coronavirus coma: higher credit card fees. Visa
V
and Mastercard
MA
had planned to raise swipe fees on many merchants this year, and the changes in some cases would be hardest on small businesses. It is unclear if the fee changes will be rolled out if the pandemic persists. [
The Wall Street Journal]

Harris Calls for Credit Card Fees to Be Suspended During Coronavirus Crisis

Sen. Kamala Harris (D-Calif.) said that all interest, fees and penalties on credit cards should be suspended during the coronavirus crisis, as many people have lost their jobs and are struggling to cover their expenses. “I’m calling for the suspension of credit card interest, fees, and penalties until at least four months after this crisis is over,” Harris wrote. “In the midst of this crisis, no one should be profiting from these hardships. There must be moral and corporate responsibility to support consumers and prevent an economic catastrophe in the lives of American families.” [The Hill]

Businesses Banning Banknotes, Asking Customers to Use Credit, Debit Cards

Despite assurances from public health officials, some retailers are banning banknotes. In Chicago, Open Books, a non-profit bookstore, sent an email to customers asking they not use cash. A chain of diners in Washington state has stopped accepting cash and door-to-door delivery services like Grubhub and Door Dash have put “no contact” policies in place and have either removed cash payment options or are actively discouraging them. [Fox Business]

Hilton and American Express Donate Up to 1 Million Free Nights for Medical Workers

American Express and Hilton have partnered to offer health care workers free rooms across the United States. The two companies announced they’ll donate up to one million nights to frontline medical professionals fighting the novel coronavirus. The two companies detailed that doctors, nurses, EMTs, paramedics and other frontline medical staff who need a place to “sleep, recharge or isolate from their families,” will be eligible for the donated rooms. [The Points Guy]

Demand for Real-Time Payments Rises Amid COVID-19 Pressure

The demand for real-time payments has taken on a new urgency in recent weeks. The need to access immediate funds has forced businesses and individuals to leverage various means of moving funds across town and across borders to provide the basic necessities of every day living and business continuity. [Mobile Payments Today]

The $35 Billion Airline Refund Tidal Wave Is Complicated By Credit Card Companies

Airlines are pushing back on calls to refund customers up to $35 billion for tickets for canceled flights. While governments in the U.S. and EU have stated that consumers have a right to get their money back, it’s not a straightforward transaction. In fact, some airlines may not yet have received the cash they are required to refund from the credit card companies that process airline payments. [Forbes]

Mastercard Pledges $250 Million In Help For Small Businesses

Recognizing that Main Street is being hard hit by the coronavirus pandemic, Mastercard committed $250 million over the next five years to support small- to medium-sized businesses. The company pledged to help defend businesses and their employees through free cyber vulnerability assessments and identity theft protection for the 28 million SMBs eligible to participate in the Small Business Administration’s Paycheck Protection Program. [PYMNTS]

DoJ Calls for Mandatory Data Breach Reporting to Law Enforcement

A Department of Justice Deputy Assistant Attorney General called upon Congress to enact legislation that would create a uniform nationwide data breach disclosure law (presumptively superseding state data breach laws) and include a requirement that companies report breaches not just to customers but also to law enforcement. [Security Boulevard]

LA Rolls Out Prepaid Cards for Covid-19 Financial Assistance

Amid the coronavirus crisis, the City of Los Angeles is providing no-fee prepaid debit cards to get financial assistance to the most in-need residents faster. The program was deployed with Accelerator for America and Mastercard’s City Possible. The partners say the approach could be quickly scaled to other cities. The funds are being distributed to citizens who are experiencing financial hardship due to Covid-19-related job losses or furloughing. [Smart Cities World]

Citi Premier Will Become Less Valuable for Travelers

Citi has announced major changes to the Citi Premier Card that will take effect Aug. 23, 2020, generally making the card less valuable for travelers despite some added benefits. The changes to the Citi Premier Card make it better for spending at supermarkets and on high-cost hotels booked through the Citi ThankYou portal, but worse for travel in general. [NerdWallet]

Chinese Mobile Users Delay Buying 5G Phones

Chinese consumers have pushed back plans to buy new smartphones, including the latest 5G models, as the COVID-19 pandemic dampens big-ticket purchases. A survey by Strategy Analytics found that 37% have delayed buying a new smartphone while 32% put off adopting 5G. The delayed or canceled plans to buy a new smartphone come as many Chinese consumers express caution about their spending. Two-thirds of survey respondents said they postponed a planned trip, while 40% delayed purchases of cars, furniture or major appliances. [Mobile Marketer]

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