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U.S. bank deposits surge, credit card use declines

Feb 09 - 2021

U.S. bank deposits surge, credit card use declines

(Reuters) - U.S. consumers increased their bank deposits and reduced their credit card balances in January, according to data released by the Federal Reserve on Thursday. Deposits and credit card repayments were some of the uses of benefits paid out as part of the government's $900 billion fight against the new coronavirus, according to the data.

In the week to Jan. 27, private bank deposits surged $97.9 billion to a record high of more than $16.3 trillion. The increase was the largest in the past three months.

The increase in deposits since the end of December last year was $226.1 billion. The increase since the beginning of March last year is close to $3 trillion, which means that a four-year increase was achieved in this period.

credit card processing providers

Consumer loan balances at banks, excluding real estate, fell by $3.5 billion to $1.051 trillion, the lowest level in two years.

The main factor was the continued decline in credit card balances, which account for about half of outstanding loans, to a four-year low of $735.6 billion.

Since March last year, when the lockdown was implemented, credit card balances have declined by over 14% (about $121 billion).

Related Hot Topic

What is the typical processing cost for credit cards?

The average credit card processing fee, according to industry analysts, ranges from 1.5 percent to 3.5 percent of each transaction, while the precise proportion varies on a variety of variables.

Is it forbidden to churn credit cards?

Although churning is not unlawful, card issuers are opposed to it and consider it unethical. Churners would open several credit cards in quick succession, get the welcome bonus for each new account, and then close or cease using the cards before credit card issuers really caught on and put procedures in place to halt the activity.

What is a corporation that processes credit cards?

The company that facilitates communication between the cardholder's bank, the credit card network, and the retailer is known as a credit card processor (also known as a payment processor). The Payment Card Industry Data Security Standard must be followed by credit card processors and retailers (PCI DSS).

Who are the lenders who offer credit?

Credit providers include organizations or small-business owners whose primary source of revenue is the provision of credit, such as building societies, finance companies, or credit unions, as well as merchants who accept credit cards for payment of goods and services.

Who is the largest provider of credit card processing?

The top 10 credit card processing companies in the world are listed below. Ranking Company 1 J.P. Morgan Chase Bank ($127,702,020,000,000) (2) Bank of America: $89.11 billion 3rd-largest bank: Wells Fargo, $78.5 billion 4 PNC Merchant Services, worth $19.698 billion Added six rows