🤔On The Current Situation of Currency. A bit of a shift in what I normally share with you, but businesses is business and today let's discuss a new challenge: Rising Credit Card Fees and Threats to Businesses + Increased Costs, Decreasing Value of Rewards Programs for Customers.
From everything I read and watch it appears storm clouds are gathering on the horizon.
Businesses are absorbing higher credit card fees-pressuring their bottom line performance.
Consumers are seeing a sharp return to higher interest fees coupled with constant security breaches.
Is there a new 'currency' or payment method to consider?
🤔Could it be the canary in the coal mine for (((gasp)))
💵Cash and Checks? I even shake my head at the prospect, but are we approaching a place where the severity of the threats are exceeding this supposed convenience.
These trusted forms of payment my re-enter in prominence. Even a small shift would create a seismic change.
I have seen a time where we had no choice and embraced more convenient options for both vendors and clients rapidly as they entered the market. But at this point, it appears the cost for these might have reached their breaking point.
👉 Businesses have always bemoaned the cc handling fees, often failing to factor in the cost of handling checks and cash.
However, today, this cost is far surpassed by the enormous risks, costs of attempting to avoid increased cyber-security attacks, and the chaos + reputation damage which emerges after a successful invasion.
👉Consumers
For many, interest charges haven't been an issue as they pay off balances monthly. The lure of rewards and points towards travel and cash-back offers were appealing. Again, those offers are beginning to recede, losing value as redemption rates to use those rewards skyrocket, further diminishing their value.
On to annual credit card fees: Have you looked lately?! Keeping my personal and businesses separate, this year I have seen these charges continue to escalate, slowly then quickly many squeezing in their attempts to broach the 5, 6, 700 hundred mark. Multiply this times the number of cards in your wallet, how convenient is it to have these various cards at your disposal.
Branded rewards cards, like my American Airlines and Marriott continue to devalue their benefits. I have shifted towards more predictable and flexible options such as my Chase Preferred Rewards.
Adding it up, are the security breaches, increased charges, diminished returns, higher handling fees, sharply increased interest rates and the escalation of annual fees equating to an opportunity for something old, something new to take over?
Let's track the gains we see towards cash, checks, new technology.
Consumer preferences are always the target and the behaviors to track.
We have people here across the full spectrum of industries.
What are you seeing and hearing? I would love to hear your insights and predictions.
hashtag#Auto and hashtag#Finance friends, please enter the room.
