💳 Who's Going After The Credit Card Industry?

Good morning. US stock futures rose in Wednesday morning trading as investors awaited the release of US GDP data.

💳 Financial watchdog trains eye on credit card rewards, “buy-now, pay later” industry  

📝 Our report: The bigwigs at the top U.S. agency for consumer financial protection have decided to take a peek under the hood of credit card reward programs and companies that offer “Buy-Now, Pay-Later” services. Rohit Chopra, director of the U.S. Consumer Financial Protection Bureau, said “We are going to be looking into the credit card rewards market due to an increase in consumer complaints," as he delivered remarks at an industry conference in Washington.  

 🔑 Key points:

• Credit card issuers sometimes hide the "darker side" of their offerings of cash back, miles and points in their terms and conditions, Chopra told attendees at a recently concluded Consumer Bankers Association conference.

• Chopra added that companies that offer "Buy-now, pay-later" (BNPL) services could also face stricter rules in the future.

• The watchdog was established after the 2008 financial crisis to protect consumers from unfair, deceptive, or abusive financial practices.

💡 So what: The U.S. Consumer Financial Protection Bureau's scrutiny of credit card reward programs and the buy-now, pay-later (BNPL) industry could lead to clearer disclosures, stricter rules, and enhanced consumer protection measures. This may result in improved transparency, better-informed consumers, and reduced risk of financial harm, impacting the profitability and competitiveness of these industries.

Wednesday - Fed Governor Christopher Waller Speaks

Thursday - US GDP

Friday - Fed Chair Jerome Powell Speaks

📈These are the 12 best investing books for beginners

💳 Robinhood brings credit card offering to market

🌉 Baltimore bridge collapse snags supply chain

 📈 Get 5.1% APY For Your Extra Cash

Many of you ask where we’re putting our extra cash to earn the highest interest while still having access to it.

I’ve looked through plenty of high yield options and my top pick is Moomoo. It’s offering one of the highest yields available today at 5.1% APY.

And the best part? No minimum deposits, no cap on interests, and you can withdraw your cash at anytime.

Moomoo is offering Daily Market Briefs subscribers a limited-time deal: earn 5.1% APY on your cash and get up to 15 free stocks.

PS: Despite the funny name, Moomoo is a registered broker dealer with the SEC and is a member of SIPC meaning you’re insured up to $500,000.

💳 Payment platforms reach settlement over fees

WHAT: Visa and Mastercard have reportedly struck a jaw-dropping $30 billion deal to rein in those pesky credit and debit card fees that always seem to sneak up on customers at the register. Under the settlement, Visa and Mastercard would reduce swipe rates by at least four basis points (0.04 percentage points) for three years, and ensure an average rate that is seven basis points below the current average for five years.

WHY: Merchants have long accused Visa and Mastercard of charging inflated swipe fees, or interchange fees, when shoppers used credit or debit cards, and barring them through "anti-steering" rules from directing customers toward cheaper means of payment.

💰 Crypto exchange charged for anti-money laundering failures

WHAT: KuCoin, one of the big shots in the cryptocurrency exchange world, is in some hot water with the Feds over an alleged slip-up in their anti-money laundering game. The company was charged in New York with violating U.S. anti-money laundering laws by failing to vet customers, allowing billions of dollars in illicit funds to be transferred since its founding in 2017.

WHY: KuCoin in December agreed to block New York users from its platform and pay $22 million to settle the state's lawsuit accusing it of failing to register there. KuCoin trails Binance, Coinbase and Kraken among cryptocurrency spot exchanges on factors including traffic, liquidity and trading volumes, according to the data company CoinMarketCap.

🍫 Cocoa prices surge to historic highs

WHAT: Cocoa futures skyrocketed to an eye-watering $10,000 per metric ton, catapulting higher in a rally so intense it could make Willy Wonka blush! The historically high price is the latest highlight in a year that has seen prices of cocoa already double.

WHY: Higher cocoa costs are pressuring profits of chocolate manufacturers, and cocoa’s advance is also bad news for consumers if companies keep passing on costs or sell products that are smaller or have less chocolate in them.

✏️ DMB Insider Quiz ✏️

🧑‍💻 We read your emails and poll replies daily.

Hit reply and let us know what you want more of!

See ya next time, Daily Market Briefs