Credit cards: refinancing conditions change in balances greater than $ 200,000

The Central Bank ordered this Wednesday new conditions for credit card refinancing. Banks must maintain as maximum interest of 43% per year for its clients who want to finance unpaid balances of up to $ 200,000 for each plastic issued.

Above that figure, the rate may be up to 25% more than that charged for personal loans, which currently stand at around 55%.

However, the regulations clarified that “only on additional balances banks may apply the differential rate”. In other words, if a client has a consumption to finance of $ 210,000, the 43% cap will be applied on $ 200,000 and on the remaining $ 10,000 the bank may charge that differential rate.

The limits to the interest rate were defined by the Central last April, after the first extension of social, preventive and mandatory isolation to try to contain coronavirus infections. The measure allowed the refinancing of unpaid balances for consumption with credit cards in up to nine installments and with a three-month grace period, with a maximum interest rate of 43% per year.

Refinancing applied automatically if at the expiration date of the account summary the client had not made the full payment or had made a partial cancellation, with no maximum limit on the amount.

The objective of the measure was alleviate the accounts of families whose income was heavily affected by the crisis caused by the pandemic.

Already in a stage of social distancing and with a large part of commercial and productive activities made more flexible, the Central Bank reformulated the scope of the measure, establishing a benefit cap according to the amount the client must refinance. If the balance is up to $ 200,000, banks must charge a maximum of 43% annual interest which, as it does not include other factors that end up increasing the Total Financial Cost (CFT), in fact ends up representing up to 64% of final interest rate.

For debts over $ 200,000, Banks may apply a differential rate up to the maximum allowed by the Credit Cards law, established in 25% above what they charge for personal credits. In this way, a fee ends up being charged similar to that applied by non-bank cards.

According to estimates by the monetary authority, the benefit of the interest rate cap will be maintained for “95.5% of the users that use this financing mechanism”. Only 4.5% of the cards issued register balances above the ceiling of $ 200,000 and only on these additional balances the banks may apply the differential rate.


Apple advises keeping bank cards away from the iPhone 12 – risk of damage

The Magsafe induction charger is actually one of the plus points of the iPhone 12. But it also has a disadvantage: it could damage EC or credit cards.

The new iPhone 12 has three small bar magnets hidden behind its back cover. These are there to dock the optional, puck-shaped induction charger Magsafe quickly, conveniently and optimally on the back of the phone.

The magnets are small, but quite strong. As a precaution, Apple therefore advises that it is better not to bring bank and credit cards with magnetic strips, access and security IDs, passports and key fobs with RFID chips near the magnets, as they could otherwise be damaged.

At least one should take cards out of iPhone cases before loading them if one is using them and storing them in them. Because also and especially electromagnetic charging by induction could be dangerous for magnetic strips and other data carriers.


Bank fraud increases from fake calls, says Citibanamex

The CEO of Citibanamex, Manuel Romo, said that it has increased the fraud from phone calls to bank customers, so it seeks to intensify prevention campaigns to reduce this crime.

“From our point of view, physical fraud is a fraud that has decreased this year and phone calls, as we are closer to the cell phone and we are more receptive there, has increased, unfortunately, because calls generate a dynamic where customer data is requested, customers grant and gain confidence in the telephone operator and begin to give personal information and at that moment fraud is generated “, he explained.

Also read: Because of trust in banks, clients give information to criminals in fake calls, says BBVA Mexico

At a press conference, he said that banks will reinforce the messages to their clients so that they do not answer these types of calls, which are frauds where banks can no longer stop the transfer of resources by being authorized based on data provided by them. customers.

“Do not give information to any phone call. Talk to the company. If someone speaks, be it a telephone operator and asks for information, we should not give it over the phone and better then talk. In 99% of the cases it will be a fraud ”, he said.

Also read: ASenior cult, victim of a fake call from his bank: 355 thousand pesos are stolen from him!

Profits decrease

Citibanamex reported that from January to September 2020, its profits registered an annual drop of 43.7%, with a total of 12 billion pesos, before a greater creation of provisions to face the impact of Covid-19.

According to the manager, from July to September, profits reached 4.5 billion pesos, that is, a reduction of 40.2% compared to the same period of 2019.

Also read: So far in 2020, there are 45 thousand claims for possible bank fraud: Condusef

“The above is explained by the construction of reserves, mainly, as well as a small decrease in business volumes. The changes we see in billing behavior, credit and debit cards are being used less, as well as the lower sale of traditional banking products, which, although they are recovering, do accumulate the months where we were below the months from last year. All this, derived from the challenging economic environment that we are witnessing and in line with what we had planned ”, he explained.

Romo said that a rebound in the delinquency rate is expected at the end of 2020, in addition to the effects of the pandemic will continue in 2021.

“Our expectations are that the growth in non-performing loans will come towards the end of this year and the beginning of 2021, it is something that we have contemplated,” he said.

vare / jcgp


Japan is running out of credit card numbers due to increased consumption from home

Illustration for the article titled

Photo: Victoriafly (Shutterstock)

Credit card issuing companies are running out of 16-digit number combinations in Japan, and although it seems impossible, it has an explanation.

According to the newspaper Mainichi, the shortage of numbers coincides with an increase in consumption from Japanese households due to the pandemic, as well as a sudden increase in cards issued following the introduction by the government of a points-based rewards program to incentivize transactions without cash (although this has been in effect since October last year, when Japan raised the excise tax from 8 to 10%).

Even so, how is it possible to run out of combinations of a 16 digit number? There are about 280 credit card issuing companies in Japan, the vast majority of which issue 16-digit cards associated with international brands such as Visa and Mastercard. The first six digits are known as the issuer identification number (IIN) and represent the type of issuer, the issuing network, the brand and the country, among other information. The remaining digits are handled by the credit card companies themselves and contain information such as the cardholder’s account number and type of membership.

Japanese broadcasters fear a shortage of combinations from the seventh digit by 2025.

As of March last year, the number of credit cards issued in Japan was 283 million. So far, that number was growing 2% per year, with cards accounting for 29.9% of transactions (versus 3.9% for e-money and 0.5% for QR code payments). But the Covid-19 outbreak and incentives to increase cashless transactions has accelerated the demand for credit cards.

What will the card industry do? The possibility of increasing the number of digits was discussed years ago, but companies preferred to reuse old and canceled card numbers, which considerably increases the risk of fraud. The only viable solution is to increase the number of digits, which implies reforming the system, studying and implementing anti-counterfeiting measures and, ultimately, investing close to a billion dollars.


Solaris Bank cooperates with American Express for installment loans

Solaris Bank

Chairman of the Board Roland Folz is excited about the short development time of the “Splitpay”.

(Photo: Bloomberg)

Berlin In the spring of 2020, the Financial Manager of the Solaris Bank, Thom Rasser indulged in insinuations. In the case of a planned cooperation with a major supplier to a modular credit product that could be integrated in the payment processes.

It is now clear that the German Fintech Solaris Bank, which is equipped with a full banking license cooperates with the credit card company American Express (Amex). In the future, holders of an American Express card in Germany for the first time an installment payment option. You will apply for card payments of 300 euros.

The “Splitpay” baptized installment payment model was developed by the Solaris Bank and should be made in the course of the year 2020 all American Express card holders. The customer would like to take an installment loan, the Solaris Bank as lender. The credit can be fully processed online.

“By Splitpay our customers can use in the future, your American Express card even more flexible,” says Fabiana Mingrone, managing Director for the private customer area at American Express. “Splitpay” is a strong example of continuous innovations and show, “that we find for our customers, always looking for new ways to make payments convenient, easy and fast,” says Mingrone. According to Statista three million people in Germany have just under a American Express credit card.

For the Chief Commercial Officer of Solaris Bank, Jörg Diewald, the cooperation is a further proof that the business model works The Solaris Bank provides partners banking services and products, without even a Bank and regulatory requirements. “We, we are to underline that in Europe, one of the leading Banking-as-a-service platforms,” says Diewald.

Dominated in the cooperation so far of the smaller names in the Solaris Bank, such as, for example, the smartphone Bank Tomorrow, or online banks for business customers, Penta and Kontist, it manages the Solaris Bank now, increasingly, to attract larger customers. The Solaris Bank has reported a few months ago, to accept the legitimacy check to the dealer for Otto, Germany’s largest online retailers. Now, with Amex, a “global Powerhouse”, as it is called Solaris, Bank CEO Roland Folz, to come. As a success Folz recognized that the development time was only six months.

Use Amex customers in the future, more on installment loans, is likely to provide the Solaris Bank for increasing interest income. Caution the company, the loan volumes of exercise, which might be faced by the Solaris Bank. But a installment loan volume in the double-digit million range in the medium term, held to be not unrealistic. Finally, other partners can integrate the Solaris Bank “Splitpay” in your offer.

More: Deutsche vermögensberatung launches Advisor App by using Finleap.


4.7 million asked to defer payment of debts

Mexico City (Jessika Becerra). – About 4.7 million companies and individuals have requested their banks to deferment of payment of debts, with which they can cover them within four or six months without generating late fees and interest, informed the Association of Banks of Mexico (ABM) in a statement.

The agency reported that its Management Committee met Tuesday with the Parliamentary Group of the National Action Party (PAN) in the Senate of the Republic, in order to share the actions that the banking system has taken to help its clients in the face of the economic crisis derived from the health contingency.

4.7 million asked to defer payment of debts. | Photo: Reforma

4.7 million asked to defer payment of debts. | Photo: Reforma

At the meeting, Luis Niño de Rivera, president of the ABM, explained to senators that the deferral program has benefited micro, small and medium-sized companies (MSMEs), cardholders, business loan customers, mortgages and individuals with business activities, among others.

Consulted, Mario Di Costanzo, former president of the National Commission for the Protection and Defense of Users of Financial Services (Condusef) stated that the deferrals program has represented a bit of oxygen for people who do not have liquidity due to quarantine and who have faced unforeseen expenses.

“The deferral program is going to be insufficient, there is going to be an increase in delinquency rates because there will be more than 5 million unemployed.”

“The banks helped where they can, but the government failed to create an employment support program,” he said.

Read: They ask me for a deposit to give me a loan, is it reliable?

Read: Do you want to take out a credit? Check these tips

He noted that no banking program can beat unemployment, however many banks will be careful with cards and will be restricting credit limits.

“The strong part of the crisis has not yet started; until June-July we will see the strongest effects on delinquencies and it is possible that banks will launch other types of programs that allow debt restructuring in the medium term. Now the main problem is unemployment, “he said.

On the other hand, at the meeting, Raúl Martínez-Ostos, vice president of the ABM, assured that foreign investors are still watching the national performance with caution, waiting for clear signs about the direction the country will take.

Meanwhile, Eduardo Osuna, also vice president of the organization, commented that the challenge for banks is to support clients so that they can continue to refinance.

“The fundamental thing, he said, is that the payment culture prevails in the country,” he said.

Finally, Vice President Julio Carranza reiterated that banks are well capitalized and in adequate conditions to face the crisis.


Visa withdraws full-year forecast – even though profit increases


The company also anticipates the corona crisis to impact its business.

(Photo: AP)

San Francisco The credit card giant Visa has increased profits and revenues significantly in the most recent business quarter despite the Corona pandemic. The surplus grew four percent year-over-year to $ 3.1 billion in the three months to the end of March, according to the Mastercard rival on Thursday after the US market closed in San Francisco, California.

Revenue rose seven percent to $ 5.9 billion. However, Visa warned that the pandemic had already led to a significant drop in consumer spending and that the coming quarters could be difficult. The company is therefore withdrawing its annual outlook.


American Express earnings down 76% on coronavirus

The pandemic caused by coronavirus It has wreaked havoc in all sectors nationally and globally, of which American express (AmEx) was not spared, as it registered a 76% drop in its profits from January to March this year over the same period last year, as its reserves destined to compensate for the non-payments of its credit cards increased.

And is that the coronavirus In addition to thousands of deaths, it has also caused an economic crisis in all sectors of the country, to the extent that credit card users have turned to these plastics to face unemployment and wage cuts since the pandemic began.

American Express earnings down 76% on coronavirus

American Express earnings down 76% on coronavirus

Only January and February were the good months of the beginning of the year, but “when March arrived, a different world began,” the president of American Express, Stephen Squeri. “The deterioration of the economy under the pressure of the impact of the Coronavirus, which began in the first quarter and accelerated in April, strongly affected our business volumes,” he explained.

Shopping drops with American Express

Stephen Squeri, head of American express He acknowledged that due to the pandemic Amex card purchases at retail stores, restaurants and online trading platforms fell. For this reason, he said that the group’s net profits were $ 367 million between January and March, compared to 1,550 million in the same period of 2019.

YOU MAY BE INTERESTED: Coronavirus: 500 thousand Banorte clients defer credit payments

The official stressed that American express had to increase provisions to cover defaults, from $ 1.7 billion to 2.6 billion, while turnover reached $ 10.3 billion in the first quarter, down 1% on the same quarter last year, somewhat below what analysts expected. The Covid-19 sank them.


How to finance credit cards that expire in April – Summary 3

The entities must refinance the unpaid balances of credit cards to a one-year term with a three-month grace period, in nine equal and consecutive monthly installments, and a nominal annual rate of 43%.

As ordered by the Central Bank in the current context of emergency due to the coronavirus pandemic, clients who choose not to pay the total maturity between April 13 and until April 30, must not carry out any procedure to access this benefit.

Deputy general manager of Commercial Intelligence Bancor, Osvaldo Levis, explained to Chain 3 that customers who were unable to pay their card in full or in part between these due dates, the balance will be automatically refinanced.

If the client wants to use the refinancing, they have to make a partial or no payment between the maturities of April 13 and 30

“It is free of charge within a year: the first three months of grace, and then in nine equal and consecutive monthly installments, at a rate of 43%. There is no formality to do, it is automatic,” he stressed.

Osvaldo Levis said that Bancor clients who want the full automatic debit refund of the summaries due on April 13 (and thus, enter the refinancing) should contact 0810-222-6267 and in the next 72 hours will register in his accounts the return of the money. He clarified that this measure includes the expenses of any type of consumption and that customers may also choose to cancel all or part of the financing before nine months. “If it is partial, of course the value of the monthly fee is decreased,” he said.

“If the client wants to use the refinancing, they have to make a partial or no payment between the maturities of April 13-30,” he concluded.

Report of Federico Albaranque.