Chase getting rid of credit cards?

[MiraclesTakeTime]

I read an article a couple fo weeks ago about Chase getting rid of their credit card division. Can't seem to find it now. Has anyone heard this or read it? Wondering if Disney will partner with a new company?

 

[CinderEmma94]

I really can’t see them doing that seeing how much money is made in the credit card business. All of our cards are with chase and I haven’t heard anything from them regarding closing my accounts or anything so Who knows.

 

[MiraclesTakeTime]

I really can’t see them doing that seeing how much money is made in the credit card business. All of our cards are with chase and I haven’t heard anything from them regarding closing my accounts or anything so Who knows.

Updated original post to link article.

 

[Eastern]

https://wealthofgeeks.com/chase-ends-credit-cards/

https://www.cnbc.com/select/chase-freedom-not-accepting-new-applicants/

 

[wabbott]

I've been a satisfied Chase cardholder for 25 years. I don't see it. There is simply too much money to be made. After all, lending money is how ALL banks make a profit, and credit card debt is just another way to lend money. It is but a revolving line of credit, with a very lucrative interest rate. According to 2021 data, 55% of card holders carry a balance, with 20% owing $20k or more. Why would Chase surrender that huge market to its competitors?

https://inside1031.com/credit-card-debt-2021/

 

[jujubiee4]

Good luck with that. We will just be switching more spending to Amex, Citi Capital one
Discover etc. Basically anyone with bonus categories for points/miles. I don't leave money
on the table.

*Also they stopped taking applications for Chase freedom a while ago i thought.

 

[afan]

https://wealthofgeeks.com/chase-ends-credit-cards/

https://www.cnbc.com/select/chase-freedom-not-accepting-new-applicants/

Given the quote is the first article uses cheques instead of checks, I'd tend to think this might be geared toward the UK or EU rather than the US. CCs are quite different over here. Never heard of the site but it seems they might've missed some context.

The 2nd is talking about the freedom they stopped offering in 2020, article even has that date. Something in it was updated getting it a new publish date. Not new news.

 

[MiraclesTakeTime]

Given the quote is the first article uses cheques instead of checks, I'd tend to think this might be geared toward the UK or EU rather than the US. CCs are quite different over here. Never heard of the site but it seems they might've missed some context.

The 2nd is talking about the freedom they stopped offering in 2020, article even has that date. Something in it was updated getting it a new publish date. Not new news.

That's a good catch. I bet it is EU/UK.

 

[supersnoop]

That's a good catch. I bet it is EU/UK.

All it says is that they're pushing a new system that pays merchants directly. So, imagine ApplePay. Or Venmo. But Chase-branded. Overzealous reporting.

 

[projectx3]

All it says is that they're pushing a new system that pays merchants directly. So, imagine ApplePay. Or Venmo. But Chase-branded. Overzealous reporting.

^This. Zero chance Chase gets out of the credit card market.

 

[Eastern]

There is a lot of discussion going on about this. Another one, read comments as well. https://viewfromthewing.com/chase-makes-over-5-billion-on-credit-cards-wants-to-drive-that-to-zero/

 

[Lewisc]

All of the rewards, auto insurance, travel protection etc are funded by high swipe fees. Same with the money made by banks.

More merchants are offering cash discounts 3-4%.

There is pressure to give merchants lower fees. That means less money available for cashbacks and rewards.
https://www.congress.gov/bill/117th-congress/house-bill/8874?s=1&r=5

Is a pending bill.
Chase is developing a strategy for a future where transaction fees are limited

 

[Anthony1971]

Credit card fees are spread among multiple hands. If you have a real merchant account which requires approval not Square, PayPal, Amazon pay, Stripe and many more the fees or discount is based on the credit card. A rewards card will be a higher rate where as a non reward card will be a lower rate. I could see a system like this working being ALL liability for fraud and unhappy customers has been pushed to the Merchant when chips were added. There will always be a network (could be owned by chase as Amex Discover and others did in the past) and fees but something like a debit card which has the lowest fees without a Visa, MC or Amex logo would reduce fees. They could still offer rewards especially if they own and operate the network also taking out the processor who funds the merchant and even the gateway which sort of keeps track of all the credit cards taken as the credit card information can NEVER be stored at a merchant level. EU is a good starting point as that is in fact where chip cards started before it came here except EU requires a PIN as well to prevent fraud.

 

[Anthony1971]

As a better explanation of Merchant fees
They are broken down into 4 fees:
Interchange the largest which mostly goes to the issuing Bank
Discount which is the Network fee
Fee which is the processor fee
Gateway which has a monthly and very small fee for each transaction the Gateway is the direct connection to a POS or where you pay.
There are hands in each one of the above for example Visa and Mastercard cha foe each swipe just for the Logo. If a merchant has to manually type a card that can be as much as 1% of the total transaction.
The credit card machines are not free most are rented as they cost about a thousand dollars and need to be supported if you buy them so that is $$$ employee costs. Also the security for the internet and more.. Much less the average 2-3% fraud loss. 3-4 % discount…. A cash only store could drop prices by 10% and make out well….

 

[georgina]

All of the rewards, auto insurance, travel protection etc are funded by high swipe fees. Same with the money made by banks.

More merchants are offering cash discounts 3-4%.

There is pressure to give merchants lower fees. That means less money available for cashbacks and rewards.
https://www.congress.gov/bill/117th-congress/house-bill/8874?s=1&r=5

Is a pending bill.
Chase is developing a strategy for a future where transaction fees are limited

Yep, that's why I am doing more with rewards cards now, I think the bountiful rewards will be drying up some.

Always a calculation in my mind, if there is a discount for cash vs if I am working toward a big bonus for spending X dollars.

 

[Lewisc]

https://thepointsguy.com/news/credit-card-competition-act/

Followup.

 

[EACarlson]

A cash only store could drop prices by 10% and make out well….

A cash only store would see such an increase in employee theft and fraud that they would have to raise prices to continue with the same profit margin. While CC fees are higher than they rightfully should be, choosing to use them still saves money over taking majority cash. Most if not all business bank accounts charge you by transaction also, taking CC is likely going to be cheaper than taking checks on most transactions.

The government doesn't want people going back to cash, they can't trace it and tax it. I would be curious to see how much the average tax liability went up for servers when folks moved from primarily cash and check transactions to CC where the tip could be easily tracked and reported to the IRS. I was managing a pizza place and my delivery guys' checks got cut in half once payroll started adding the CC tips to taxable income.

 

[DCLMP]

All of the rewards, auto insurance, travel protection etc are funded by high swipe fees. Same with the money made by banks.

More merchants are offering cash discounts 3-4%.

There is pressure to give merchants lower fees. That means less money available for cashbacks and rewards.
https://www.congress.gov/bill/117th-congress/house-bill/8874?s=1&r=5

Is a pending bill.
Chase is developing a strategy for a future where transaction fees are limited

It won’t be cash. They want a central bank digital currency so they can’t track every penny you spend.

 

[_19disnA]

Lots of bills get proposed but eventually go nowhere. Sometimes it is just an effort to create headlines and news stories when they already know the bill has zero chance of passing. Credit cards are convenient to use and you don't have to carry large sums of cash around with you. I doubt they are going away anytime soon.

Any link to an article that is just someone's blog post is mostly their opinion and you have no idea if they have any idea what they are talking about.

 

[scrapquitler]

https://wealthofgeeks.com/chase-ends-credit-cards/

https://www.cnbc.com/select/chase-freedom-not-accepting-new-applicants/

I read both these articles, and it does't sound to me like either article is implying that Chase is trying to exit the credit card business.
The first article seems to be talking about them trying a new type of product unrelated to credit cards. The second article refers to them no longer offering one particular credit card product, which they've replaced with another different program (different benefits, different terms). That article is over two years old, and we are still using our Chase Freedom card with no changes. Every credit card issuer offers a number of different types of credit cards (like Chase Freedom, Southwest Visa, Disney Visa, etc) and closing one of those usually means something new is being offered instead. Chase probably has dozes of different credit card options.
I can't imagine a scenario where a bank as big as chase would get out of offering all credit cards...its very profitable for them.