Consumer Payment Card News

Another $1 Billion

The consensus is the Federal Reserve will hike interest rates another 25 basis points this morning. Of all forms of borrowing consumers will feel the impact most on bank credit cards. Nearly 85% of the nations bank credit card issuers use variable rate pricing and 75% of those rates are based on the prime rate. Weighted card interest rates stood at 18.02% this week, according to Bankcard Barometer. With aggregate industry outstandings of $392.7 billion, at the close of the first quarter, consumers will ultimately shell out an additional $1 billion in annual interest due to todays Fed action.

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