April 18th, 2014 by Elma Jane
Capital One joins existing stakeholders equally owned by Bank of America, JPMorgan Chase, and Wells Fargo. Member-owner of the ClearXchange network.
Capital One has taken a stake in ClearXchange, the US bank-backed clearing house for person-to-person online payments transfer.
ClearXchange is the first network in the U.S. created by banks that lets customers send and receive (P2P) person-to-person payments easily and securely using an email address or mobile number.
With only the recipient’s mobile number or email address, the ClearXchange network enables customers to send funds directly from their bank account to the recipient’s bank account without the need to pass on more sensitive account information.
EVP of digital at Capital One, says partnering with clearXchange is another way of bringing safe and secure payments through convenient, digital channels to their customers.
With membership open to banks and credit unions of all sizes, ClearXchange has so far signed up only FirstBank as its sole non-owner participant, although it nonetheless claims to represent more than 50 percent of the consumer online banking market.
Posted in Credit card Processing, Electronic Payments, Merchant Services Account, Mobile Payments, Payment Card Industry PCI Security, Small Business Improvement, Smartphone, Visa MasterCard American Express Tagged with: account, bank account, Bank of America, Capital One, consumer online banking, digital channels, JP Morgan, market, mobile, online payments transfer, p2p, payments, person-to-person, secure payments, securely, U.S. Bank, US Bank, Wells Fargo
December 12th, 2013 by Elma Jane
The Consumer Financial Protection Bureau is reviewing whether credit card rewards program are misleading to credit card users.
Results of the review may be new. Strict rules about the transparency of rewards programs, including details about cash back offers, mileage awards and how these rewards must be redeemed.
In an email to Bloomberg News, CFPB Director Richard Cordray said, we will be reviewing whether rewards disclosures are being made in a clear and transparent manner, and we will consider whether additional protections are needed.
Credit card issuers like American Express, Bank of America, Chase, Citi and Discover rely on rewards programs to attract new customers as well as increasing the use of their cards by existing cardholders. Rewards are the No. 1 reason why customers select the card, and there’s almost a battle to provide the highest rewards.
What we’ve learned over time is, our best customers value rewards. Their spend behaviour changes based on rewards, said Edward Gilligan, the President of American Express.
The CFPB’s restrictions could put a damper on each company’s ability to draw in new cardholders.
While there are no apparently abuse issues with rewards programs at this time, the CFPB is taking the initiative to catch a problem before it happens.
Keep an eye out for notices from your credit card issuer about changes in your rewards program. Changes, or at least clarifications, could come as a result of this examination.
Posted in Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: American Express, Bank of America, cardholders, Chase, Citi, consumer, credit-card, Discover, financial, issuer, protection, rewards
