Commerce Feed: Issue No. 14 – March 2022

Credit Card Fees To Rise

Some large merchants may pay higher fees when they accept consumer credit cards. After postponing interchange fee increases for two years due to the pandemic, Visa and Mastercard are scheduled to up some charges in the next month.

DCA Insight:

Interchange fees are transparent to consumers. Paid by merchants and received by the bank that issued the card, fees collected are used for fraud prevention and innovation such as consumer-friendly loyalty programs. DCA member Mastercard reports their fees are going down for merchants with transactions below $5, as well as for hotels, casual dining, day care centers and other businesses hit hard by Covid.

Walmart Adding New Delivery Options

The world’s largest retailer isn’t letting up on its push to drive delivery innovation. Walmart is continuing efforts made early in the pandemic to provide new ways to get goods in consumers’ hands, including automated fulfillment centers attached to stores, autonomous trucks, employee drivers and deliveries made to inside the home.

DCA Insight:

Walmart’s betting e-commerce demand isn’t going away—and there’s still an untapped opportunity to make it more convenient than ever for shoppers to get what they want and need, how and when is best for them. This retail giant will continue to lead the pack when it comes to putting people, processes, and technology in place to satisfy customers.

Direct Payments Offered by DCA Board Level Member Discover

Merchants will soon have the option to access payments directly from shoppers’ checking accounts using an app, with no card required. The newly announced capability is made possible by DCA member Discover and fintech firm Buy It Mobility Networks.

DCA Insight:

The direct payment arrangement Discover is introducing is popular in Asia: Alipay and WeChat Pay are big players. In the US, debit and credit cards still rule. Discover’s network includes 11.8 million merchants, many of which are anticipated to offer discounts to customers who pay by checking account. Look for gas station, grocery, pharmacy and fast-food chains to be early adopters.

Fast Casual Chain Offers Bitcoin Rewards

Shake Shack is offering cryptocurrency as a customer reward. Consumers get 15% back on any purchase made with Cash Card, a debit card available to Cash App Users, and by buying items with Cash Boost, a rewards program available to Cash Card members.

DCA Insight:

Shake Shack is interested in expanding its customer base to include younger consumers, the demographic most likely to value bitcoin rewards. The new loyalty program will also help the company determine if and when it should begin accepting bitcoin as payment for its burgers, fries and shakes.

CardLinx April Webinar

Building a Differentiated Experience for FI Members with Travel Cash Back Offers

Wednesday, April 20th | 10am – 11am PST

Travel is back in a big way. With terms like GOAT (Greatest of All Trips) being used, consumers who spent the pandemic close to home are looking to get away, planning travel earlier, spending more, and staying longer. For banks and credit unions, this change offers an opportunity to surprise and delight their members, and keep their debit card top of wallet, with cash back offers on travel. Join this webinar to learn more about the shifts in travel, how the recently announced partnership between travel.win and Valuedynamx is making cash back offers available to our clients, and what this means for your organization.

Speakers |

Ed Wogan – SVP, Chief Merchant Officer, Collinson Valuedynamx

Ted Mooney – CEO & Founder, Travel.win

CardLinx Forum (a division of DCA) hosts a live, interactive webinar each quarter featuring speakers from some of the world’s most influential companies. They share insights on important and relevant topics for your business—including the impact of Covid-19 on consumer credit behavior, mobile wallet adoption, card-linking and lending trends. The webinar is always free to members and non-members are invited to attend at $99 per registration. Members and non-members are encouraged to register now as space is limited!