When will the US become a gift card economy?
Posted On August 9, 2021
By MARGARET HILLAPAPHERAPHAAssociated PressWASHINGTON (AP) – The United States will become a credit card economy by 2025 if President Donald Trump is successful in his push to overhaul the nation’s credit card system, the National Association of Credit Card Recipients and the National Consumer Law Center said Thursday.
The change, expected in 2021, would make it easier for consumers to access more expensive and more frequent credit card services, as well as to spend their money on things like vacation trips and cars.
It is likely to spur innovation and a boost in consumer spending, they said in a report that also predicted more retailers and restaurants will accept credit cards.
The U.S. credit card industry has been reeling under years of missteps and lawsuits from disgruntled customers who feel they have been shortchanged in terms of payment and rewards, and from banks that charge too much.
The industry has also been hit by the recession and its ongoing efforts to make credit cards more convenient and convenient for consumers.
More than 80 percent of U.s. credit cards were issued in the first half of 2017, and they have lost about $4 trillion since 2006, according to the National Retail Federation.
That’s about one-quarter of total U..
S.-based consumer spending.
The new card rules, announced in January by Trump and Treasury Secretary Steven Mnuchin, were hailed by some consumer advocates as a big step forward for consumers and credit card companies.
The rules would let consumers buy more expensive goods and services, including luxury items, with credit cards, and pay for those purchases with money from their paycheck, rather than with cash.
The U.N. agency has also called for the elimination of fees for credit cards to help consumers.
The credit card issuers’ association said the new rules would make credit card transactions more convenient, and encourage people to spend more money on purchases.
It would also help consumers avoid debt and get loans at lower interest rates, said Mark Williams, chief executive of the National Credit Union Administration, which represents card issuer issuers.
“The U and AAA credit cards are both strong brands, and this is an opportunity to strengthen them even more,” Williams said in an interview.
“We’re very optimistic that the administration’s efforts will have an impact on the economy.”
The U, AA and Visa all declined to comment on the report.
The National Retail Foundation also declined to discuss its findings.
The American Bankers Association also did not respond to a request for comment.
The National Consumer Bankers Assn.
said the Trump administration should not be surprised by the progress it is making.
“This is a very, very long time coming, but the economy is already improving,” said Robyn Tittel, director of government affairs.
“Credit card spending has been growing at a steady pace and has grown substantially since 2006,” she said.
The NCABC’s chief executive, Susan Leong, said the administration is working on new rules that will make it more difficult for consumers who do not have credit cards in their wallets to take out large loans and for merchants to charge higher fees to get customers to spend.
The changes would also give retailers more leverage to negotiate lower interest rate deals with consumers.
The new rules could also improve the ability of consumers to obtain loans, she said, noting that the average credit cardholder would have to pay about $400 a month in fees to qualify for a loan, compared to about $500 in fees under the old rules.
The industry has come under increasing pressure in recent years to lower its interest rates.
A recent report from Standard & Poor’s, which was issued shortly after the NCABS report, showed the average rate for a consumer with a credit or debit card increased to 9.9 percent in 2019 from 9.7 percent in 2018.
The NCABB said the average interest rate for U.