Latest news with #creditcards
Argaam
13 hours ago
- Business
- Argaam
SAMA issues updated rules for issuance, operation of credit cards
The Saudi Central Bank (SAMA) issued the updated rules for the issuance and operation of credit cards. The updated rules aim to reduce costs for customers and enhance disclosure and transparency related to credit card transactions. They also seek to keep pace with ongoing developments and align with the growing variety of credit card products in line with global best practices. The rules include detailed provisions on the issuance and operation of credit cards and increased clarity regarding financial transactions related to the cards. This is in addition to increasing financial awareness among customers, as well as creating innovation-friendly regulatory environment in the financial sector. SAMA also coordinated with global payment companies to review and reduce the costs associated with credit card transactions. This move is part of SAMA's broader efforts to develop and strengthen the digital payments ecosystem and offer diverse payment solutions to both residents and visitors in retail outlets across the Kingdom, in line with Vision 2030.
Yahoo
a day ago
- Business
- Yahoo
Amex, Fiserv cite inflation benefit
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Inflation could benefit credit card behemoth American Express and payment processing giant Fiserv as long as price hikes don't get out of control, the chief financial officers for both companies said in recent presentations. Higher prices mean more payments volume, on a dollar basis, and that results in more revenue for New York-based Amex, Chief Financial Officer Christophe Le Caillec explained at the June 11 Morgan Stanley U.S. Financials Conference. That's because merchants pay the company interchange fees, based on the size of the transaction, whenever an American Express cardholder swipes a credit card. 'It provides a bit of support for our revenue growth, and our expenses don't travel at the same speed,' the CFO said in a question-and-answer session. However, if inflation runs too hot and tips the economy into a recession, that would likely mean shoppers pare back their total spending, hurting companies like American Express, Le Caillec said. But on balance, 'we're in a good place, as long as inflation doesn't translate into unemployment,' he added. Le Caillec's statement on inflation echoed comments from Fiserv Chief Financial Officer Bob Hau at the JPMorgan Global Technology, Media and Communications Conference on May 15. 'A little bit of inflation is actually a good thing,' Hau said, noting that slightly higher prices result in more payment volume for the Milwaukee-based company. But 'it's got to be a little bit,' he said. 'If it's too much, that has a macro impact.' Bank of America analyst Mihir Bhatia agreed that inflation could help the bottom line for companies 'as long as it is modest and doesn't affect overall [economic] activity.' 'As long as it stays in check, it's good for them,' he said in an interview. Prices may be getting a boost as a result of the White House's new tariff policies. President Donald Trump's 10-percent, across-the-board tariffs took effect in April, with higher tariffs on certain goods such as aluminium and steel. So far, tariffs have not supercharged inflation, as some economists feared. Annual inflation was 2.4% in April, the last month for which statistics are available, which was a lower figure than many economists had predicted. However, prices could still rise as Trump has repeatedly threatened to impose more import duties. Tariffs could also impact payments companies by increasing costs. Some of the card readers that Fiserv and restaurant point-of-sale provider Toast sell to retailers and restaurants, for example, are manufactured overseas and therefore subject to tariffs. Boston-based Toast is seeing 'slightly higher tariff expenses related to our hardware,' the company's chief financial officer, Elena Gomez, said in a May 8 earnings call with investors, although she did not say where Toast's hardware is manufactured. Fiserv's 2024 annual report listed tariffs as a potential pain point, noting that the company's point-of-sale devices are manufactured mostly overseas. Spokespeople for Amex, Fiserv and Toast did not immediately respond to requests for additional comment on the impact of tariffs and inflation. Recommended Reading Fiserv says US trade war could harm demand
Yahoo
a day ago
- Business
- Yahoo
Chase Sapphire Reserve card members will see a major fee increase: Here's when and what to expect
The chase is on among premium credit card issuers. Pentagon Pizza Index: The theory that surging pizza orders signal global crises 5 signals that make you instantly more trustworthy at work How Field Notes went from side project to cult notebook JPMorgan Chase has announced some big changes to its high-end Chase Sapphire Reserve credit card, which include a hefty new annual fee of $795, up from $550. The Sapphire Reserve card, which is known for its slate of perks and benefits including travel credits and access to airport lounges, is also getting a counterpart in the Chase Sapphire Reserve for Business card. When the card was first introduced in 2016, the annual fee was $450, so it has increased by more than 75% since then. Interestingly, customers don't seem to mind: The amount paid in annual fees totaled $6.4 billion in 2022, more than double the $3 billion paid in 2015, according to a 2023 report from the Consumer Financial Protection Bureau (CFPB). According to Chase, customers still have a few days to sign up for the card at the old rate. If you're already a Sapphire Preferred member, or if you sign up before Monday, June 23, you can expect the same benefits and fee through October 25 of this year. Though the fee is increasing significantly, there will be new card designs, and new credits and benefits that arrive along with the revamp. Specifically, for cardholders who spend at least $75,000 per year on their cards, there will be new perks, such as exclusive online shopping experiences, and status rewards at IHG Hotels, and Southwest Airlines. Points earnings rates and multipliers are also changing through a new Points Boost program. The new Business card will also have credits for services from ZipRecruiter, Google Workspace, and more. 'It's the culmination of five years of investment that we've made across Chase in completely uplifting and repositioning what we mean for premium travelers in the premium-card space,' Allison Beer, JPMorgan's head of card and connected commerce, told Bloomberg. 'This is about having the best-in-class travel assets and an end-to-end travel experience.' Chase's announcement comes shortly after American Express, one of its chief rivals in the credit card space, teased a forthcoming overhaul to its premium Platinum Card. Details are scarce, but those changes are expected by the end of the year. The Platinum Card currently has a $695 annual fee. In all, the board is set for Chase and Amex to duke it out with their premium offerings, which might provide some serious perks to customers who can afford them. 'We're going to take these cards to a new level,' Amex's said Howard Grosfield in a statement, 'not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers.' This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
How Chase's new Sapphire Reserve credit card compares to rivals
JPMorgan Chase (JPM) is hiking the annual fee on its Sapphire Reserve card from $550 to $795 and adding perks like new spending bonuses. Yahoo Finance Senior Credit Card Writer Ben Walker joins Wealth to break down how the revamped card compares to Chase Sapphire Preferred, American Express (AXP) Platinum, and Capital One (COF) Venture X credit cards. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Well, JP Morgan Chase unveiling the latest update to its Sapphire Reserve card on Tuesday. The changes include a hefty bump in its annual fee to $795. That's up from the prior $550. But with that extra money comes extra perks, including new credits, free status at IHG Hotels and additional perks after spending $75,000 in a year. So how do these changes stack up against other popular credit cards? For more on that, we have Ben Walker, Yahoo Finance senior credit card writer. So Ben, let's start by comparing this to a card many Chase fans hold, the Sapphire preferred card. What are the differences here? Because the preferred card, especially now, the annual fee is a lot less. Yeah, thanks for having me. I mean, the annual fee on the Sapphire preferred is $95 compared to the updated Sapphire Reserve, which is $795. That's a difference of $700. So that's the biggest difference you're going to find between these two cards. Um, I would recommend, just in general, or if we're talking about the vast majority of people, the Sapphire preferred is probably the better card because most people do not need to be paying $795 for a travel credit card. However, if you want premium benefits, including airport lounge access, then the difference, you know, in annual fees could make a lot of sense. The Sapphire Reserve also has a lot of new benefits. However, they could be a little complicated to use. So you have to look at those benefits and see how they align with your travel preferences. And do you think when the reserve card was in the 500s for the annual fee, did that make it worth it to choose a reserve over the preferred, or are you still a preferred guy? Uh, in general, still a preferred guy, but the Sapphire Reserve made a lot more sense for a lot more people when it was at the $550 annual fee. And that's just because the $300 flexible travel credit, you know, immediately cut out a lot of that annual fee. And then you could find a lot of value just by using, you know, the airport lounge access benefits. Yeah, good point there. Now let's compare the Chase Sapphire Reserve to some other travel cards. First, how does it stack up against the American Express Platinum card? Yeah, I would say the American Express Platinum card is probably, you know, the easiest comparison, uh, for premium travel credit cards, especially with the updates to the Sapphire Reserve and its annual fee. Um, so the Sapphire Reserve annual fee is 795, and the Amex Platinum is actually 695 right now. So the Amex Platinum has a little bit of an edge over the reserve in that regard. However, they both have tons of travel credits. They both have airport lounge access. You can transfer points to hotel and airline partners. Um, they're actually very similar cards in regards to their benefits. So I think it really comes down to, again, seeing how your travel preferences align with each card. For example, you know, if you prefer Chase Sapphire lounges compared to Centurion lounges, or if with the Sapphire Reserve new benefits you want that IHG Platinum Elite status compared to the Marriott or Hilton status on the Platinum. Interesting. And are there certain airline partners that either card has as well? Yeah, they have specific transfer partners. Um, you know, with Chase, one of the big ones is you can transfer your points to the World of Hyatt program. And that has consistently been one of the most popular transfer partners for getting a lot of value out of your points. And what about the Capital One Venture X card? How does the Chase Sapphire stack up? Yeah, just, uh, first off, looking at the annual fees, the Venture X has a $395 annual fee. Compare that to the new $795 annual fee on the Sapphire Reserve, and that's a $400 difference. So immediately, the Venture X is going to be more appealing to a lot of people who don't want to pay such a high annual fee. Um, I also would recommend the Venture X to more people who want a premium travel credit card because it's just a little more straightforward to use. Um, there is one big downside of the Venture X coming up. They have changes that, they're getting rid of the guest access, the complimentary guest access to airport lounges. Um, so that is a big change that the Sapphire Reserve will still have two complimentary guests to airport lounges, and that's a big, you know, pro in their favor. Um, but the Venture X still is a more straightforward card. Uh, the Sapphire Reserve, uh, really got to look at the benefits, see if you can actually use them every year to get the value out of them. Otherwise, you know, that 795 annual fee is not going to make sense for a lot of people. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
2 days ago
- Business
- CBS News
$50,000 HELOC vs. $50,000 home equity loan: Which is cheaper this June?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Before borrowing money from their home this June, homeowners should first calculate their potential repayment costs. Getty Images Borrowing $50,000 can't always be done easily or inexpensively. With the average credit card interest rate over 21% now, just shy of a record high, securing a $50,000 credit limit may not only be difficult, it'll be costly. Personal loans, meantime, come with interest rates much lower than credit cards, but at an average rate of 12.65%, they also may not be the most cost-efficient way to borrow a five-figure sum of money right now. If you're a homeowner, however, you may have an affordable way to access $50,000 or more at your fingertips. With a home equity line of credit (HELOC) or a home equity loan, homeowners can borrow from their accumulated equity with relative ease. And, right now, with home equity levels rising and the average amount comfortably over $300,000, this may be your optimal way to borrow. But these products don't operate in identical ways and, as such, don't have identical interest rates. So it's important to start your home equity borrowing journey by calculating the potential repayment costs associated with both products. Between a $50,000 HELOC and a $50,000 home equity loan, then, which will be cheaper if opened this June? We'll do the math below. See how much home equity you could borrow here now. $50,000 HELOC vs. $50,000 home equity loan: Which is cheaper this June? To determine the costs of each, borrowers will need three primary figures: the amount of money being borrowed, the interest rate associated with each and the length of the repayment period. Fortunately for homeowners, interest rates on both have declined significantly over the past year or so and could continue to fall in the months ahead if interest rate cuts are issued as many expect. That noted, HELOC interest rates are variable and can change monthly based on market conditions, while home equity loan rates are fixed and will remain the same unless refinanced by the homeowner. In other words, while rates on both products are similar now (8.22% for HELOCs and 8.25% for home equity loans), they're unlikely to remain as closely aligned over time. Here, then, is what each costs if secured now, for borrowers with good credit: 10-year home equity loan at 8.25%: $613.26 per month $613.26 per month 15-year home equity loan at 8.25%: $485.07 per month 10-year HELOC at 8.22%: $612.47 per month $612.47 per month 15-year HELOC at 8.22%: $484.20 per month So, by borrowing $50,000 with either option this June, your payments will essentially be the same. But the difference in the rate structures and repayments is critical to understand. HELOCs may or may not remain as inexpensive as they are right now, thanks to that changing rate. While HELOC rates are still down from where they were last September, for example, they've since jumped a bit in recent weeks. And, with a HELOC, borrowers will be required to make interest-only payments for the initial draw period, giving them more flexibility before full payments are required in the repayment period. Home equity loans, on the other hand, come with predictability thanks to the fixed rate, which could be welcome in today's unique economic climate. But payments here will be required immediately since the home equity loan funds will be disbursed in a single lump sum versus the HELOC's borrow-as-you-go structure. So, there's a lot to consider before getting started. To better determine which product makes the most sense for your financial circumstances, it can be beneficial to speak with a home equity lending expert who can answer your questions and guide you toward the more appropriate option. Speak with a home equity loan specialist today. The bottom line This June, a $50,000 home equity loan comes with similar monthly repayment costs as a $50,000 HELOC. That means borrowers will need to dig a bit deeper to determine the true, long-term affordability by evaluating the potential for HELOC rates to change over time and by measuring the interest-only payments that the product comes with versus the full repayment costs the loan does. By measuring these items closely and by calculating their costs against a variety of potential rates, they can better determine long-term affordability and, importantly, get started with the home equity borrowing process now while home values are high and rates are relatively stable.
