Money – Nags Head Pickhill Wed, 20 Oct 2021 02:31:36 +0000 en-US hourly 1 Money – Nags Head Pickhill 32 32 Eedenbull Partners Diners Club International Tue, 19 Oct 2021 17:32:08 +0000

FinTech focused on B2B payments EedenTaurus and global payment services platform Diners Club International Tuesday, October 19, announced a strategic partnership to fill some of the gaps they see in the space, according to a Financial IT report.

The deal means that EedenBull banks will have Diners Club International cards available for issuance to B2B customers who are particularly interested in travel and entertainment. It is part of EedenBull’s growing Payment as a Service (CPaaS) platform.

“As the global business community begins to engage in international travel again, it is vitally important for businesses to have effective and efficient spending and expense management,” said Nicki bisgaard, CEO and co-founder of EedenBull, in the joint announcement.

“Our new agreement allows banks to offer payment solutions associated with Diners Club International alongside market-leading technology from EedenBull,” he said. “EedenBull is delighted to be working with Diners Club International and seeks to broaden our integration for the benefit of both companies and our common clients internationally.

The partnership brings together EedenBull’s network of technology and banking partners with the global reach of Diners Club. EedenBull’s banking partners will benefit from reduced complexity, reduced costs and an improved user experience for their businesses and professional customers, the announcement says.

“We see many new opportunities for us to jointly help banks launch and digitize their commercial product offering,” said Matt Sloan, Vice President of International Markets at Diners Club International, in the joint announcement.

“Ever-increasing regulation and technical complexity, along with other priorities within banks, make the EedenBull and Diners Club International offering very attractive to banking clients of all sizes,” he said.

Diners Club International, part of the Discover Global network, is accepted at nearly 40 million outlets and 1.3 million ATMs in more than 200 countries and territories.

Related: EedenBull explains why now is the time for businesses to move to B2B automation

The pandemic has accelerated the need for many businesses to upgrade their domestic and cross-border B2B payment processes for speed and efficiency, Bisgaard said in a previous interview with PYMNTS. Many companies, he said, seek the same level of transparency in their business transactions that they have had for years as private consumers.

The quest to eliminate this friction has led to the adoption of virtual cards for businesses that allow them to enable payments managed on a single platform.



On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

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Tompkins Financial Corporation – Consensus indicates downside potential of -0.9% Sun, 17 Oct 2021 13:15:33 +0000

Tompkins Financial Corporation found using ticker (TMP) now have 2 analysts covering the stock with the consensus suggesting a rating of “Hold”. The target price ranges between 83 and 80 with the average target price standing at 81.5. Given that the previous close for shares was at 82.24, this would imply a potential decline of -0.9%. The 50-day moving average is 79.12 and the 200-day moving average is 79.28. The company’s market capitalization is $ 1,207 million. For more information, visit:

Tompkins Financial Corporation, a community-based financial services company, provides commercial and personal banking services, leasing, trust and investment management, financial planning and wealth management, as well as insurance services. The company operates in three segments: Banking, Insurance and Wealth Management. It accepts a variety of deposit products including checking accounts, savings accounts, term deposits, IRA products, negotiated term deposits, reciprocal deposits, and municipal money market accounts. The company also offers loans for a variety of business purposes, including real estate finance, construction, equipment finance, accounts receivable finance and commercial leasing; residential mortgage loans; personal loans; residential real estate loans; home equity loans; commercial and industrial loans; commercial real estate loans; agriculture-related loans; and consumer loans, such as personal installment loans, direct and indirect auto financing, and overdraft lines of credit. In addition, it provides letters of credit and sweep accounts; credit and debit cards; and deposit and cash management, Internet account, remote deposit, secure deposit, voice response, ATM, and mobile and Internet banking. In addition, the company provides investment, trust and estate management, financial and tax planning services; property and casualty, life, disability and long-term care insurance services; employee benefit consultancy services; and insurance planning services. It is primarily aimed at individuals, business executives, small business owners and high net worth individuals. The company operates through a network of 64 bank offices, including 44 offices in New York City and 20 offices in Southeastern Pennsylvania. Tompkins Financial Corporation was founded in 1836 and is headquartered in Ithaca, New York.

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Marlette approaches market with third 2021 ABS for $ 319 million Fri, 15 Oct 2021 18:17:00 +0000

Marlette Funding LLC returns to the securitization market with a deal that has many similarities to two somewhat larger deals that the sponsors structured earlier in 2021.

Marlette Funding Trust 2021-3, valued at $ 319 million, is divided into four tranches, comprising $ 210 million of “AAA” rated bonds with an initial credit enhancement (CE) of 40.65% ; an “AA-” portion with an EC of 22.30%; an “A-” piece providing an EC of 14.85%; and a BBB portion with a 9.75% CEO, according to a recent Kroll Bond Rating Agency (KBRA) pre-sale report. The CE consists of an overcollateralisation, a subordination for the three best rated tranches, a reserve account funded at the close and a surplus spread.

The “AAA” and “AA-” parts of the Marlette Funding Trust 2021-2 transaction are valued at 35 basis points and 70 basis points respectively, five basis points below the lower end of the forecast, and the two lower tranches are valued at 95 basis points and 145 basis points respectively, in the lower part of the guidance.

The larger size of the current deal stems mainly from the “AAA” coin, which was $ 210 million compared to $ 162 million in the latest Asset Backed Securities (ABS) offering. Previous transactions, also rated by KBRA, hovered around $ 250 million.

The more recent of Marlette’s two funding deals was priced in July, below initial expectations.
Goldman Sachs structured the direction of the earlier 2021 agreements, with JP Morgan and Robert W. Baird acting as joint heads of the two.

Marlette Funding operates an online marketplace lending platform that offers high yield, premium installment personal loans (HYP) under the Best Egg brand, created by Cross River Bank. KBRA notes that HYP loans last for 24 and 36 months and are offered to borrowers who are not eligible for blue chip loans, typically with a FICO score of 683 and annual income of $ 73,000, and Marlette does not. issued such loans since the second quarter of 2020 and none are in the current securitization.

Private company Marlette generated net income from 2017 to 2019, but ended 2020 with a net loss, mainly due to lower assembly volume and a related decrease in fees, KBRA said, adding that the company had generated net income from 2021 to August.

The rating agency says Marlette has $ 250 million of multi-year warehouse facilities with staggered maturities from two major financial institutions, and the proceeds from the ABS transaction will be used in part to repay part of the debt in course in the company’s revolving credit facilities.

“As of August 31, 2021, approximately $ 102 million is drawn, giving Marlette approximately $ 148 million of available capacity,” KBRA says in its report.

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Crypto loans unlock money, but they come with risk Thu, 14 Oct 2021 21:18:53 +0000

THELike a house, car, or other investment, your cryptocurrency can serve as collateral for crypto loans, which are loans that may have low interest rates, same-day funding, and no credit checks.

The wrong side? If the value of your crypto drops, you may need to pledge more crypto.

“This will be the biggest downside to crypto,” says Travis Gatzemeier, certified financial planner and founder of Kinetix Financial Planning near Dallas. “It’s not a normal, stable asset that you use to borrow.”

Despite the risks, cryptocurrency – and the borrowing against it – have become popular topics on public forums like Reddit and YouTube. But is a crypto loan right for you?

What is cryptocurrency?

Cryptocurrency entered the financial dialogue in 2008, with an anonymous programmer’s white paper on the concept of bitcoin.

Bitcoin is a cryptocurrency, or a digital form of money. It might sound complex – and depending on how you use it, it can be – but it’s basically digital tokens as opposed to physical money. It can be exchanged for goods and services on the blockchain, which is a digital ledger that keeps track of every bitcoin transaction.

“The idea is meant to be fairly simple,” says Ariel Zetlin-Jones, associate professor of economics at Carnegie Mellon University in Pittsburgh.

Throughout history, we have accepted physical tokens in exchange for goods and services, believing that we can then exchange those tokens for money for other goods and services in the future. Blockchain and bitcoin facilitate the same type of transactions but without the need for physical tokens, Zetlin-Jones explains.

What is a crypto loan?

A crypto loan is a type of secured loan, similar to a automatic loan, in which you pledge an asset to secure funding.

In this case, cryptocurrency is the asset offered to a lender in exchange for money that you will repay in installments. If you don’t repay the loan, the lender will liquidate or cash out the cryptocurrency.

Crypto lenders like BlockFi, Celsius, and Unchained Capital have relatively low annual percentage rates and loan terms of one to three years, but high minimum loan amounts.

For example, BlockFi’s crypto loans start at 4.5% APR on one-year loans, but the minimum loan amount is $ 10,000.

Why borrow against crypto?

A crypto loan can make sense if someone holds a substantial amount of crypto and wants to liquidate it without having to sell and possibly pay taxes on it, explains Gatzemeier.

These funds could then be used for a purchase or to invest in a business, much like borrowing from a bank. Personal loan.

Additionally, borrowers might see lower interest rates with a crypto secured loan. And unlike personal loans, there is no credit check.

The problem with crypto loans

From April 2021 to October 2021, the price of bitcoin fluctuated between around $ 30,000 and $ 64,000.

The unstable value of the crypto can lead to a margin call, where the borrower has to put in more crypto in order to maintain the value of the original pledge.

If the value of your pledged crypto drops below a threshold set by the lender, you have a limited time to pledge additional crypto.

In cryptographic parlance, the ratio of the loan amount to the value of your collateral is called loan-to-value or LTV. For example, the maximum LTV of crypto lender BlockFi is 70%. At this threshold, borrowers have 72 hours to raise the crypto.

In addition to volatile prices, crypto loans are also not federally insured, explains Gatzemeier. If you lose your funds in a security breach, for example, compensation is not guaranteed.

Alternatives to borrowing against your crypto

If you have equity in your home: With a Home equity line of credit, you can potentially borrow up to 85% of the value of your home. Be careful, however, because you can lose your home if you don’t pay it back.

If you are looking for a lower interest rate: A 0% interest credit card can offer free financing for 14-18 months. However, note that after the introductory period, you may be paying a high interest rate on overdue balances.

If you have bad credit: Loans from credit unions usually have flexible rates and terms. They also take into account your history as a member, which means they may have more flexible requirements.

If you need a small loan: A small personal loan – less than $ 2,000 – is also a viable option. However, the rates can be high depending on your credit profile and income.

More from NerdWallet

Chanell Alexander writes for NerdWallet. Email:

The article Crypto Loans Unlock Cash, But They Carry Risks originally appeared on NerdWallet.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Hawaii Enacts Major Changes To Small Dollar Lending Law | Ballard Spahr srl Wed, 13 Oct 2021 16:23:44 +0000

Hawaii recently enacted significant changes to its Low Dollar Loans Act that repeals the existing Hawaiian law on deferred deposits and creates a new regime for installment loans. Even if HB 1192 entered into force on July 1, the repeal of the existing law on deferred deposits is effective on January 1, 2022, as is the new licensing requirement for “installment lenders”.

HB 1192 provides that, unless exempted, no one can act as an “installment lender” in Hawaii without a license. It also cancels any loan granted without a license required and provides that no principal, interest, fees or other charges can be collected in connection with the loan. The law exempts insured financial institutions (banks, savings banks, savings and loan associations, financial services loan companies and credit unions), non-depository financial services loan companies, open credit such as defined in TILA and Advance Tax Refund Loans.

The definition of “installment lender” in HB 1192 is broad and, in its plain language, would purport to apply to loans made using a banking partnership model notwithstanding federal preemption issues. An “installment lender” means:

Anyone whose activity is to offer or grant a consumer loan, who contracts a consumer loan for a third party or who acts as agent of a third party, that this third party be exempted from the authorization of exercise under this Chapter or that approval, acceptance or ratification by a third party is necessary to create a legal obligation for the third party, by any means, including mail, telephone, Internet or any other electronic means.

HB 1192 allows an “installment lender” to make installment loans totaling up to $ 1,500 and caps annual interest rates at 36% plus a monthly maintenance fee of up to $ 35. $, which depend on the original principal amount of the loan. The total amount of borrowing costs on an installment loan cannot exceed 50% of the principal amount of the loan.

The minimum term for an installment loan is two months if the loan amount is $ 500 or less or four months for loans of $ 500.01 or more. The maximum loan term is 12 months. Installment loans must be repayable in substantially equal and consecutive installments of principal and interest. A lender can contract payments to be made every two weeks, twice a month, or monthly.

Illinois and Maine recently overhauled their low-cost loan laws to target loans made using a banking partnership model.

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Nelo joins BNPL rush, with $ 20 million in new funding and Mexican market in sight – TechCrunch Tue, 12 Oct 2021 14:33:05 +0000

Buy Now, Pay Later (BNPL) made headlines this year, from The proposed acquisition of Afterpay by Square To Affirm becoming public.

Yet Latin America remains an under-penetrated market in an increasingly crowded space.

Nelo, a startup founded by former leaders of Uber’s international growth team, began offering buy now, pay later services in Mexico earlier this year. Its ultimate goal is to expand to all of Latin America. And he just raised $ 20 million to help him move towards that goal. The Mexico City-based company is already active with over 100 merchants, including Steve Madden and Ben & Frank. Using the Nelo app, customers can make purchases from merchants such as Amazon, Mercado Libre, Telcel, Netflix, and Spotify.

“Our goal is to enable digital commerce throughout Latin America, and BNPL in Mexico is our first step towards this vision,” said CEO and co-founder Kyle Miller.

New York-based Two Sigma Ventures led the round, with existing backers including Homebrew, Susa Ventures, Crossbeam and an angel investor and popular podcast host. Antoine Pompliano also participate. New investors include angels like Gokul Rajaram and Emilie Choi, founders and employees of Wealthsimple, Orum, Alloy, Chime, Square and funds / syndicates in addition to Primer Capital, Gaingels and Moving Capital. With the latest Series A funding, Nelo has raised a total of $ 25.6 million since its inception in 2019.

To be clear, Nelo is not the only player in the Mexican market. A number of others, including Alchemy and Addi, have also come up with plans to buy now, pay later deals in the area. But what sets Nelo apart from its competition, according to Miller, is that it claims to be the only BNPL company in the region to have a mainstream mobile app in addition to an integrated payment experience for merchants.

“Our mobile app allows customers to buy now and pay later at over 75 merchants, and very soon, any merchant, ”Miller said,“ ultimately becoming the destination for any consumer who wishes to shop online. This captive consumer base is crucial to building the network that is Nelo.

Nelo launched its first product in Mexico in January 2020, similar to a neobank debit card offer. In the middle of the year, the company launched installment loans.

Then, in March 2021, Nelo launched its first product via an Android app. Customers can use its offer like a credit card, connecting directly with merchants such as Netflix and Spotify. Many users started out paying for things like utility bills and cell phone bills, moving them from prepaid to postpaid.

Today, the startup has apps on Android and iOS, and its revenue and GMV are growing by 50% month over month, according to Miller. It currently records over 100,000 new purchases / transactions per month.

Nelo plans to use his new capital to grow his consumer and merchant base, and continue to strengthen his team. The company has hubs in Mexico City, New York and remote employees. It currently has 23 employees, up from 12 in January.

For now, Nelo is 100% focused on Mexico, where Miller notes that e-commerce is “exploding” and home to “the fastest growing market in the world.”

“It has had a huge impact on our business,” he told TechCrunch. “Right now is the perfect time for this company and this product. “

Frances Schwiep, partner of Two Sigma Ventures, believes that Nelo has the potential to become the leading financing option for consumers in Latin America, starting with BNPL.

According to her, BNPL’s case in Latin America, and in particular Mexico, is even stronger than for BNPL in the many regions where it has already exploded in popularity like the United States, Europe and Australia. She points out that in Mexico, there is an “extreme” lack of access to credit with less than 15% of the Mexican population having a credit card. In addition, there is an existing behavior of installment payments in Mexico that has existed for several decades, called “meses sin interes”, but via “hard to access” payment vouchers.

Meanwhile, e-commerce spending in Mexico is growing much faster than access to credit, Schwiep noted, in addition to the open fintech regulation in the country, which makes everything easier.

“Mexico’s relatively young population is also more in tune with BNPL’s business demographic target,” she said. “On top of that, the accelerated adoption of banking and mobile e-commerce services in Latin America has created an environment for a cutting-edge business in the space today. “

On a personal level, having lived in Mexico for the past year (and having lived in Latin America in 2011), Schwiep told me that he had been “bonkers” to watch the digital commerce market transform. essentially overnight.

“I think Nelo has built the team, the product, the data divide and the go-to-market playbook that is best positioned to capitalize on this incredible market opportunity,” she said.

The fact that Nelo started out offering installment payments for essentials of daily living, such as utility and phone bills, before going into retail, gives the startup some advantages, Schwiep added.

“First, Nelo has a direct, deep and recurring relationship with the consumer,” she said. “Nelo is the only BNPL company in the region to establish trust and brand loyalty with the consumer in this way. “

In addition, the multiple monthly points of contact with consumers translates into an “extremely valuable longitudinal data asset for Nelo,” according to Schwiep.

“They’re building up a valuable repayment history on their platform that incumbents like Affirm and Afterpay and even local credit bureaus don’t have on consumers in the area,” she said.

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Personal loans for cash flow management Mon, 11 Oct 2021 08:00:16 +0000

There has been a confluence of events to set the stage for the disintermediation of retail banking and further lending growth facilitated by online platforms.

Loan Club Financial health officer Anuj nayar these regulations have been updated, connectivity has improved, and everyone has computing power on their desk or in their pocket.

As a result, personal loans will be adopted by cash-strapped consumers, yes, but even by individuals and families with healthy incomes.

Going forward, Nayar said, the demand for personal loans (currently used by 24% of the general population) is expected to increase. We may have, collectively as a society, saved money during the pandemic, but the savings are reopening, so the main drivers of credit spending (which would be consumption) are returning to positive territory. When people take on more debt, they end up taking personal loans even more often in an attempt to manage their cash flow.

The conversation took place against a backdrop where the latest iteration of the Paycheck-To-Paycheck Reality Check Report found that 32% of Millennials and Bridge Millennials who live paycheck to paycheck to paycheck use personal loans.

Read more: Living Paycheck to Paycheck triggers a personal loan request

That’s a higher rate than what we see in other age groups, but Nayar said “it’s no surprise” that millennials are turning to these loans.

As he noted, this generation has been “stuck in the last two major recessions.” They graduated from high school just after the 2001 recession and then faced the Great Financial Crisis and subsequent major recessions in the early years of their working life and into the most earning years. high in their early thirties.

Running out of money and getting into debt

Along the way, they took on a lot more debt, Nayar said. College costs have led to high student loans, and the average millennial has over $ 27,000 in personal debt, excluding mortgages, credit card debt, installment loans and beyond.

Thus, they apply for personal loans with the aim of reaching new stages in their life – when they get married, start a family or buy a house. With the pressure of being the “sandwich generation” and caring for children while caring for aging parents, millennials are finding help in personal loans.

This does not mean that only young people borrow. The same report found that 57% of personal loan users have no difficulty meeting their financial obligations.

As Nayar said, personal loans have become a “standard financial tool for fighting debt and managing cash flow so they can do things like plan for the unexpected and build a savings cushion.”

Most Americans, he said, have less than $ 2,000 in savings, and only one event – a medical emergency, a car accident, or the need to send money to a limb. family – can destroy that cushion.

Thus, consumers take out these personal loans to get out of debt, such as credit card loans, consolidating these debts in order to pay them back or pay them back. This frees up capital to build up cash buffers (quite useful).

“It can help if you don’t have to remember all of those different due dates to pay off all the different debts that have accumulated over the years,” Nayar said.



On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

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What you need to know about consumer protection with “Buy now, pay later” Sat, 09 Oct 2021 23:37:21 +0000

Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

Have you ever bought a winter coat online only to find it looks nothing like the pictures you saw on the website when it arrived? While you will need to file a complaint with the merchant and possibly the credit card company before you get a refund, returning an item and getting a refund is usually straightforward when you buy it with a credit card.

But what happens when you buy the sweater using a “buy now, pay later” (BNPL) loan?

Will you have to continue making installment payments on the item even after you return it? Which company do you contact to resolve the issue: the BNPL provider, the merchant, or the issuer of the credit or debit card you used to fund the BNPL loan?

BNPL, also known as a point-of-sale loan, is an installment loan that allows consumers to split the cost of their purchase over time. BNPL options are available almost anywhere you shop, with a number of big name retailers like Walmart, Amazon, Target, and Sephora using them. A recent Karma credit study found that 44% of respondents had used a BNPL product at least once.

Yet, as consumers flock to this new way of financing, they need to be careful with them.

“BNPL loans are still new and government regulations have not completely caught up. This means that short-term financing options generally offer less protections for consumers, ”says Leslie Tayne, Founder and Managing Director of Tayne Law Group.

In fact, the Consumer Financial Protection Bureau recently cautioned consumers against the tendency to overspend when using BNPL services, the negative impact they could have on credit scores, their late fees and the lack of consumer protection.

Below, Select takes a look at the consumer protections offered by credit cards, debit cards, and some of BNPL’s top providers to help you choose the one that’s right for you.

Consumer protection for credit cards, debit cards and BNPL loans

Consumers are offered a number of credit card protections through the Fair Credit Billing Act. There are two types of complaints that consumers can file with their credit card issuer: A billing error or a problem with the quality of a good or service. A billing error can be an authorized debit, an incorrect debit or a mathematical error. If you have a “billing error,” the FCBA requires credit card issuers to investigate if a consumer files a complaint within 60 days of receiving their account statement.

If the FCBA does not apply to the quality problems of a good, the consumer can nevertheless file a complaint with its issuer. Since this type of complaint is under state law, consumers are more likely to resolve their issue or be reimbursed if they meet certain conditions. conditions like purchasing the item in their country of origin.

The FCBA only applies to “open” credit accounts, such as credit cards or retail cards with revolving accounts, so these rules do not apply to debit cards or installment loans, such as BNPL loans.

It should also be noted that some credit cards, like The American Express Platinum Card®, have benefits that include return and purchase protection, which can help you get your money back after a retailer’s return policy expires, or if your purchase has been lost, stolen, or damaged.

However, people who use debit cards also have protections when it comes to accusations of fraud through the Electronic Funds Transfer Act. Like credit cards, these protections do not apply to product quality issues. If consumers have any issues with the quality of a good or service they purchased with a debit card, they will need to resolve the issue with the merchant before contacting their debit card issuer, including some have their own zero liability policy.

BNPL loans, on the other hand, are not subject to the regulation of credit or debit card issuers. While countries like Great Britain are putting in place regulations on the BNPL industry that would allow consumers to file a complaint with a national agency, there are no special regulations for BNPL providers in the United States. . Some of the major BNPL providers, such as To affirm, Klarna and After payment have their own dispute resolution policies in place.

“If you purchase a defective item with a BNPL loan, you are subject to the policies of the merchant and the BNPL lender, which can make it difficult to navigate the return process,” says Tayne. “In some cases, you may need to continue paying for an item until the merchant notifies the lender that you have returned it successfully.”

For example, Affirm has a dispute resolution process that works similarly to a credit card dispute resolution process: consumers have 60 days to open a dispute with Affirm. Once the consumer and the trader have submitted information to support their claims, Affirm will then rule in favor of the trader or the consumer.

Consumers should also check whether they are required to make payments on returned items. Klarna, Affirm, and Afterpay all offer consumers the option of delaying payments. Klarna will allow you to withhold payments if you report a problem with your order while Affirm will not require continuous payments on a purchase if you open a dispute with them within 60 days of the transaction. Afterpay allows customers to extend the original payment due date by two weeks while the return is being processed.

Additionally, depending on how you fund your purchase through BNPL, you may need to contact the merchant, BNPL provider, and debit or credit card issuer to resolve issues. (Although some providers, like Affirm, just allow you to link your checking account for payments.)

Because Afterpay only allows consumers to pay with a credit or debit card, consumers are subject to the same protections as if they had used their payment cards directly at the retailer, says Amanda Pires, vice-president. president of communications at Afterpay.

This means that if you purchase an item with Afterpay and make payments with a debit card, you are subject to the protections offered by your debit card issuer. According to Pires, 90% of Afterpay transactions are funded by debit cards.

For consumers, knowing which companies to contact to return an item or report a defective item they purchased with a BNPL loan can be confusing.

Tayne suggests consumers contact the retailer to understand the return policy, research BNPL’s return policy, and as a last resort, contact the card issuer if they need further assistance.

“If a retailer does not accept the return or if the BNPL service is not cooperating, consider contacting the credit card company. The credit card companies will often ask you if you have tried to resolve the issue. with the seller, then do your best and dispute a transaction as the last option, ”says Tayne.

At the end of the line

Understanding your consumer protection rights as a credit, debit, or BNPL user can be complicated and confusing. Before returning an item that you believe is faulty, you should inquire about the return policies of the merchant, credit or debit card issuer or / and BNPL supplier. Most BNPL issuers and providers have dispute resolution procedures, but your first action should be to try and resolve the issue with the merchant.

If you don’t want the hassle of potentially having to contact three different companies to return a defective item, you should consider getting a credit card with a 0% APR introductory period on new purchases. Similar to some BNPL products, these cards offer a way to fund interest-free purchases, in addition to giving you the consumer protections of a credit card and possibly even earning rewards.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

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Focus on consumer credit: Stakeholders say consumer credit financing can boost sales tenfold Fri, 08 Oct 2021 19:18:35 +0000

By Jennifer Bardoner

The ‘buy now, pay later’ model has been shown to drive ticket sales, but the flooring industry has been slow to adopt financing programs that allow customers to share the cost of the purchase. in manageable monthly payments. Retailers without consumer finance could leave thousands of dollars on the table with every purchase, according to those who use these systems – and that was before home improvement spending jumped nearly 3%, to 420. billion, in 2020, according to Harvard University Joint Researchers at the Center for Housing Studies, who also note that another 4% growth is forecast for 2021.

“When it comes to home improvement, offering financing options can take consumers away from a ‘What can I afford? To “What do I want?” ”Said Jason Farmer, vice president of advertising, branding and payment solutions for Synchrony, which partners with retailers across the country to provide financing options to consumers. “In a recent survey, Synchrony found that 75% of home improvement dealers said that offering financing options increased their average sales tickets. And 65% said the average sale increased by around 10% to 30%.

Many, like retailers who are members of CCA’s buying groups, use revolving credit programs in the form of a branded credit card, offering an unsecured line of credit that can be used over and over again for purchases. , thus building store loyalty and long-term sales. . An article from national debt service provider Americor reports that over 60% of consumers shop more often from retailers with which they have a credit card in store, and they are also more receptive to communications about events and promotions. this retailer. And a 2019 article from global e-commerce provider Scalefast quantifies it as roughly four additional store visits per year per cardholder.

Whether short term or long term, branded credit cards are big business. Private label credit card payments, which account for a growing percentage of all credit card payments, according to the Federal Reserve, have grown 12.7% per year in number and 11% per year in value since 2015 The 2019 Federal Reserve Payments Study put a value of $ 340 billion in 2018, the latest data available.

“Our average ticket for funded purchases is up to three times the average purchase by credit card,” says Keith Spano, president of Flooring America at CCA, Flooring Canada, International Design Guild and The Floor Trader. “It’s not uncommon for consumers to take advantage of consumer finance to not only buy better products, but also to add a coin or two to their initial purchase.

Spano says 85% of CCA member retailers take advantage of Synchrony’s fundraising program on a monthly basis and that customers have come to trust it. “Consumer finance has been an integral part of the sales process for CCA members for as long as I can remember, but the pandemic has certainly increased the use of consumer finance by our members, as our consumer is. waiting there, ”he said. Farmer points to the Synchrony study which found that 40% of flooring customers surveyed are still looking for financing options for large purchases, and that about a third of Synchrony cardholders would forgo a purchase if the financing didn’t. was not available.

The ability to pay the purchase price instead of being indebted for the amount in your bank account when you decide to buy often comes with high interest rates for the consumer, and retailers don’t get it either. the luxury of this option for free. While major brand partners like Shaw often reduce costs for retailers, whose combined volume can earn them competitive prices up front, it should be noted that “competitive” can be a nuanced term.

“As a manufacturer, we partner with a supplier to consolidate the volume of consumer finance for a large group of our customers, to provide our customers with access to a lower cost financing solution,” says Alan Hundley , vice president of corporate finance. for Shaw Industries. “The more volume we can add to the program, the more affordable it becomes for everyone. We have occasional promotional rates using our own funds [to supplement the cost]. “Hundley adds that Shaw’s brand-specific discounted rates as well as global purchases, as the cards can generally be used on any merchandise at a participating retailer,” have helped us promote acceptance and use of the program “.

The growing pool of financial partners has led to increased competitiveness overall, Hundley notes. “We noticed that flooring retailers really didn’t use this as other retailers, such as mattresses and furniture, were using it, and we thought cost was one of the reasons He said of Shaw’s decision to switch from Synchrony to Wells Fargo for its funding program starting in 2019. “There was only one major supplier in the industry at the time, and we didn’t really did not feel that this gave the industry enough rate competitiveness. So we introduced another competitor into the mix.

Dal-Tile’s sales manager Tony Wright also cites affordability as a potential barrier to using the program, but on the consumer side, which has led Dal-Tile to launch a new funding program through Service. Finance early in the year, increasing Dal-Tile’s (and parent company Mohawk) existing revolving credit option through Synchrony.

Modeled on installment loans, often used to buy a car, the new program offers a fairly low fixed interest rate (6.99% to 9.99%, depending on the program or loan product used) and a window longer repayment period. Common consumer revolving credit promotions like six- or 12-month deferred interest can still be unrealistic for many buyers, he says, and the cost to the retailer “increases dramatically” when revolving credit terms are reduced. stretched to make it affordable for the consumer.

“With revolving credit, what you typically see offered in the flooring industry is 12-month deferred interest,” says Wright. “But think about it, $ 10,000 divided by 12 months is $ 833 a month. Most homeowners don’t have this in their budget. By giving buyers up to ten years to pay off the cost, which can go up to $ 15,000 for tile – “the most expensive flooring option sold by retailers,” according to Wright, customers of Wright may be even more likely to spend more this time alone. purchase which, unlike a car loan, is not guaranteed, making it easier for buyers to qualify for financing.
Wright says customers often arrive on a budget that’s set too low for what they want, and end up cutting items or switching to low-end products in order to keep that budget.

“When given an affordable payment option, whether it’s revolving credit or long-term financing, customers are more likely to go ahead without compromising on that. they want, ”he says. “For some clients, a 12-month deferred interest plan is the right answer, and for others, it may be a 60-month equal payment plan. Being able to offer consumers affordable payment options that fit their particular budget is a key factor in closing the sale. “

In Dal-Tile’s new program pilot, ticket sales were up to ten times higher, although he expects the long-term effect to be on average three times higher than unfunded purchases. Currently limited to the brand’s 300 or so Statements Elite partners, but not Dal-Tile products, the program offers another tool to qualified retailers when combined with the company’s established revolving credit financing through Synchrony, potentially allowing a client to start with an installment loan. then transfer their balance to their Synchrony account. Synchrony’s promotional terms – with payment / deferred interest, equal payment / no interest, and fixed payment / with interest – can range from six to 60 months, Farmer says.

“It is proven in a great many studies that, given a longer payment term, consumers spend a lot more money,” said Wright.

To some extent, however, it will still depend on the seller and their pitch. Synchrony and Wells Fargo both offer onboard training and ongoing resources.

“We are working in partnership with the vendor to help with marketing materials, advertising, training and technology to enable the program as part of our customers’ sales process,” Hundley said. “I have been heavily involved in all of our retail customer incentive programs over the past five or six years and, from my perspective, this program is by far one of the best tools we offer to. our customers to grow their business and improve their profits. . “

Copyright 2021 Floor Focus

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Should you take out a personal loan to pay off your credit card debt? Thu, 07 Oct 2021 13:00:22 +0000

No matter how hard we try to cover our expenses, sometimes life throws the curveballs at us, like home or car repairs that can’t be delayed. When this happens, it’s pretty easy to build up a credit card balance.

If you owe money on your credit cards, you might be wondering if consolidating that debt through a personal loan is the right choice. And the answer? It might be.

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The advantage of personal loans

A personal loan allows you to borrow money for any reason. So if you have multiple credit card balances hanging over your head, consolidating them with a personal loan could make a lot of sense.

In many cases, you will be entitled to a lower interest rate on a personal loan than your credit cards charge you on your debt. This is especially true if you have a high credit score. As such, using a personal loan to pay off credit cards could make your debt cheaper to eliminate.

Plus, as long as you make your personal loan payments on time, having that loan shouldn’t hurt your credit score. On the other hand, too much credit card debt can hurt your credit score.

One factor that goes into calculating your credit score is your credit utilization rate. This ratio measures the amount of available revolving credit you are using at one time.

The higher this ratio, the more damage it can cause. But personal loan balances are not factored into this ratio because they are not considered a revolving line of credit. Rather, personal loans are installment loans that are repaid in fixed amounts over time. So, from a credit score standpoint alone, a personal loan might be a smarter way to pay off debt.

The downside to personal loans

If you own a home and have a mortgage, you might remember that when you closed your loan you had to find a pile of cash for closing costs. Well, personal loans work the same way in that you will usually pay the closing costs on the amount you borrow. These charges could reduce your savings by lowering the interest rate on your debt.

Additionally, if you have good credit, it might be beneficial to consider a balance transfer before consolidating your credit card debt with a personal loan. A balance transfer allows you to transfer your existing credit card balances to a single card. Often, this new card will come with an introductory 0% APR that will help you avoid accumulating interest on your debt for a period of time. So, if you think you will be successful in paying off your debt before this introductory period expires, a balance transfer may be a better bet than a personal loan.

Finally, personal loans generally impose borrowing minimums. If you don’t have that much credit card debt, it might not be a good idea to take out a personal loan. In this case, a balance transfer may be a more suitable option to explore.

The bottom line

Using a personal loan to pay off credit card debt is a reasonable step. But before you embark on this path, make sure it’s the right choice for you. In some cases, a balance transfer might actually prove to be a more cost-effective way to pay off the debt you’ve accumulated.

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