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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – 2019 Outlook: U.S. Payments
- Positive:
Visa Claims Resolution breaks CC challenges into 4 categories: fraud, authorization, processing errors, and consumer disputes - Positive (Large Issuers):
Asset-Backed Securitization continues to grow (>$40bn). Only large issuers can afford them ($500mm or $1bn blocks) - Negative (Issuers & Acquirers):
“Honor All Cards” litigation was settled in 2018, but negotiations continue potentially limiting non-interest CC revenue - Negative (Issuers):
Current Expected Credit Loss accounting (CECL) could affect current loan loss revenue by up to 50% - Positive (Issuers):
Unbanked US population is in decline and “thin file” accounts are being added to the market - Positive (Credit Card Industry):
Regulatory developments in the Eurozone (PSD2 & GDPR) are net positives for the industry compared US fragmented US - Positive (Credit Card Industry):
The US interchange rate of 1.75% likely won’t last the next decade; US credit cards will begin to fit into the larger definition of retail banking
