US Credit Card Holders Of JPMorgan Chase & Co. Spent 40% Less Due To Coronavirus

Coronavirus

We have been experiencing the deadly impacts of Coronavirus since its arrival. We don’t know for how long we will have to put up with it. JPMorgan Chase & Co. which is an American multinational investment bank and financial services has also been affected by the COVID-19.

According to the new report published on Thursday, 14 May 2020, credit card transactions among some U.S. credit cardholders of JPMorgan Chase & Co. fell almost 40% during March and April compared to the last year. The report says that this is happening because Americans are keeping themselves on self-quarantine. In order to protect against the COVID-19.

Due to the impact of COVID-19, the transactions on non-essential goods as well as services such as restaurants, entertainment and retails have been decreased.

According to Diana Farrell, president and chief executive of JPMorgan Chase Institute. This is primarily due to job loss of many Americans and stay-at-home orders put in place by many U.S. states.

Diana Farrell said in a statement. “While surprising, we expect this may change over time as layoffs, furloughs and unemployment insurance further impact families’ bank accounts”.

According to the latest report, the overall downfall in spending was 8 times greater than the average drop in household credit card spending in the first month of unemployment during regular times.

If we particularly talk about the global outbreak of coronavirus, it basically compelled the governments across the globe to impose lockdown in order to stop the rapid spread of the virus. Well, it is also a fact that such a lockdown is heavily damaging the economic activity.

In the U.S. 32 million people have filed for unemployment benefits since March. In addition to this, the U.S. Federal Reserve warned that the country will see slow economic growth for a long period of time.

The JPMorgan Chase Institute has done a study on the data collected from more than 8 million Chase credit card users for the period from 1st March to 11th April. They have found that credit cardholders who have household incomes of less than %39,000 reduced their spending by 38%. On the other side, credit card users having an income of more than $92,000 reduced their spending by 46%.

The report showed that spending on healthcare and groceries is increased by 20%.

Spending on restaurants fell by 70% and dropped 505 on non-essential things.

What Is Virtual Terminal And How It Helps Small Business?

Virtual Terminal

Virtual terminal is the way forward. Everything is evolving with the help of technology and payment methods are not an exception as well. Now, if we make a breakdown of contemporary payment methods. We will get to see that credit cards and debit cards are playing an important role for invoicing. So, if you are running a brick-and-mortar store, you just need a Point Of Sale system and a merchant account to accept credit card payments.

Well, everything comes with negative aspects and this POS system is not an exception. In such a scenario, you have to invest a lot to buy expensive software or a heavy POS reader. Now, if you are running a small business or a small online business, going with the POS terminal in order to accept payment will not be a good move. So, what will be the alternative? Well, this is what we are going to tell you here and therefore, go through the following points.

Virtual Terminals

We are living in the 21st century where we all are quite familiar with the credit card machine. Now if we specifically talk about the virtual terminal, it is just a web-based version of such a machine. In other words, we can say that the machine is a kind of payment capture tool. Through which the merchant can make transactions 24/7 using any device with the help of an internet connection.

The best part of the virtual terminal is that it allows the merchant to input all the necessary credit card information manually. From this, you can understand how easy it is to operate. So, in order to run a system, one needs a computer or tablet or mobile device, an active internet connection, a web browser, and a merchant account paired with a payment processor.

How Does A Virtual Terminal Work?

As a virtual terminal is a web-based payment terminal, it is quite different from POS terminal or credit card machines. If you are a businessman and want to have the machine, you must know how it works to operate it effectively. So, check out the following points:

  • The customer provides all the necessary credit card information via phone or e-mail.
  • Merchant logs into the secure virtual terminal using a web browser and input the payment information.
  • After that, the merchant needs to click “process” to complete the transaction.

So, the process is so simple that a person without having proper technical knowledge can even operate it effectively.

Businesses That Get Benefits From Virtual Terminal

So, you have understood what the virtual terminal is and how it works. Now, you must know what kinds of businesses can get benefit from this. The system does not require a heavy setup and moreover, it supports CNP transaction or card, not present transaction. So, if you are running a business that does not have any brick and mortar location, the terminal will be ideal for you. Moreover, we have also added some points below to give you a better idea regarding this.

  • If you are having a business where you need to take orders over phone or e-mail, you must pair your business with a virtual payment terminal.
  • If you have a service-oriented business such as pet grooming or lawn care, you must go with a virtual terminal.
  • Professional services such as medical, legal, and accounting require virtual terminal.
  • If you are running any home-based business, you should have credit card processing with a virtual payment terminal.
How Virtual Terminal Helps Small Business
  • Easy Setup: When it comes to small business, a business owner always looks for easy-setup and in such a case, the virtual terminal becomes an ideal choice. You don’t need any additional hardware such as POS terminals as you can accept credit card payments online with the help of this.
  • Accept All Types Of Payments: When you have a small business, you should make it dynamic as much as possible. Otherwise, you might lose your customers. Well, a virtual terminal can help you in this regard as it can accept all kinds of payments such as debit card payments, recurring payments, and many more.
  • Supports Various Platforms: Well, virtual terminals support various platforms, and therefore, you don’t need to sit in front of your computer throughout the day to accept payments You can do it from anywhere with the help of your mobile phone or tablet.
Best Payment Processor For Your Virtual Terminal

Having a virtual terminal will not give you fruitful outcomes unless you select a reputable merchant processor for it. This is why we will suggest you go with International Payment Solutions that offers Virtual Terminal through which you can do a lot of things such as recurring payment, invoice, and billing, real-time reporting, etc. Along with these, multiple users can process transactions simultaneously on different computers. So what are you waiting for? Sign up with us right now.

Carrying A Credit Card Balance Is Not A Good Move; Warren Buffett Warns Against It

Credit Card

According to the 2019 Experian Consumer Credit Review, Americans carry an average of $6,194 in credit card debt. Alaskans have the highest credit card debt and it is almost $8,026. According to the latest data from the Federal Reserve Bank of New York. In the final quarter of 2019, U.S. credit card debt hit $930 billion which is the highest record till now.

After the outbreak of coronavirus, people have gone on self-quarantine and therefore, the number of online transactions is getting higher day by day. It can ultimately affect the credit card issuing companies badly.

Warren Edward Buffett, CEO of Berkshire Hathaway said tha. If someone has ways to pay down the credit card debt, it is better to do this as soon as possible. He said this during the Berkshire Hathaway annual shareholders meeting which was virtually held this year from Omaha, Nebraska.

Buffett recalled that a friend came with some money and ask him for advice. His first question to her was whether she had any credit card debt or not. Well, she had and she had been paying an interest rate of about 18%.

Buffett told in this regard, “If I owed any money at 18%, the first thing I would do with any money I had would be to pay it off. It is going to be way better than any investment idea I have got”.

Buffett said that. By paying off the debt, one can save more money on interest than one can get by investing the money in any stock market or any real estate. He added, “I don’t know how to make 18%”.

According to the recent consumer credit report presented by The Federal Reserve. The Central bank of the United States, the average credit card interest rate is about 16% as of May 2020.

Buffett added, “You cannot go through life borrowing money at those rates and be better off”.

The interest rate can increase anytime and therefore, it is better to pay down the debt as soon as possible. According to Buffett, the U.S. is having a very rocky economic times with millions of Americans are losing their sources of income and craving for unemployment benefits. In addition to this, he said if someone is having financial problems, there is no need to pay down the credit card debt. The main priority should be to cover the bills and buy the essential items.