Tag: Visa Inc

Mastercard to buy Swedish startup that makes it easier to manage and cancel subscription plans

BARCELONA, SPAIN – MARCH 01: A view of the MasterCard company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain. (Photo by Joan Cros Garcia/Corbis via Getty Images)

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Mastercard said Tuesday that it’s agreed to acquire Minna Technologies, a software firm that makes it easier for consumers to manage their subscriptions.

The move comes as Mastercard and its primary payment network rival Visa are rapidly attempting to expand beyond their core credit and debit card businesses into technology services, such as cybersecurity, fraud prevention, and pay-by-bank payments.

Mastercard declined to disclose financial details of the transaction which is currently subject to a regulatory review.

The payments giant said that the deal, along with other initiatives it’s committed to around subscriptions, will allow it to give consumers a way to access all their subscriptions in a single view — whether inside your banking app or a central “hub.”

Minna Technologies, which is based in Gothenburg, Sweden, develops technology that helps consumers manage subscriptions within their banking apps and websites, regardless of which payment method they used for their subscriptions.

The company said it works with some of the world’s largest financial institutions in the world today. It already counts Mastercard as a key partner as well as its rival Visa.

“These teams and technologies will add to the broader set of tools that help manage the merchant-consumer relationship and minimize any disruption in their experience,” Mastercard said in a blog post Tuesday.

Consumers today often have tons of subscriptions to manage across multiple services such as Netflix, Amazon and Disney Plus. Owning multiple subscriptions can make it difficult to cancel them as consumers can end up losing track of which subscriptions they’re paying for and when.

Mastercard noted that this can have a negative impact on merchants because consumers who aren’t able to easily cancel their subscriptions end up calling on their banks to request a block on payments being taken.

According to Juniper Research data, there are 6.8 billion subscriptions globally, a number that’s expected to jump to 9.3 billion by 2028.

Financial services incumbents such as Mastercard have been rapidly growing their product suite to remain competitive with emerging fintech players that are offering more convenient, digitally native ways to manage consumers’ money management needs.

In 2020, Mastercard acquired Finicity, a U.S. fintech firm that enables third parties — such as fintechs or other banks — to gain access to consumers’ banking information and make payments on their behalf.

Earlier this year, the company announced that by 2030, it would tokenize all cards issued on its network in Europe — in other words, as a consumer, you wouldn’t need to enter your card details manually anymore and would only have to use your thumbprint to authenticate your identity when you pay.

Visa, meanwhile, is also trying to remain competitive with fintech challengers. Last month, the company launched a new service called Visa A2A, which makes it easier for consumers to set up and manage direct debits — payments which are taken directly from your bank account rather than by card.

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October 1, 2024
Justice Department accuses Visa of debit network monopoly that affects price of ‘nearly everything’

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The U.S. Justice Department on Tuesday sued Visa, the world’s biggest payments network, saying it propped up an illegal monopoly over debit payments by imposing “exclusionary” agreements on partners and smothering upstart firms.

Visa’s moves over the years have resulted in American consumers and merchants paying billions of dollars in additional fees, according to the DOJ, which filed a civil antitrust suit in New York for “monopolization” and other unlawful conduct.

“We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” Attorney General Merrick Garland said in a DOJ release.

“Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service,” Garland said. “As a result, Visa’s unlawful conduct affects not just the price of one thing — but the price of nearly everything.”

Visa and its smaller rival Mastercard have surged over the past two decades, reaching a combined market cap of roughly $1 trillion, as consumers tapped credit and debit cards for store purchases and e-commerce instead of paper money. They are essentially toll collectors, shuffling payments between banks operating for the merchants and for cardholders.

Visa called the DOJ suit “meritless.”

“Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services,” said Visa general counsel Julie Rottenberg.

“Today’s lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving,” Rottenberg said. “We are proud of the payments network we have built, the innovation we advance, and the economic opportunity we enable.”

More than 60% of debit transactions in the U.S. run over Visa rails, helping it charge more than $7 billion annually in processing fees, according to the DOJ complaint.

The payment networks’ decades-old dominance has increasingly attracted attention from regulators and retailers.

Litany of woes

In 2020, the DOJ filed an antitrust suit to block Visa from acquiring fintech company Plaid. The companies initially said they would fight the action, but soon abandoned the $5.3 billion takeover.

In March, Visa and Mastercard agreed to limit their fees and let merchants charge customers for using credit cards, a deal retailers said was worth $30 billion in savings over a half decade. A federal judge later rejected the settlement, saying the networks could afford to pay for a “substantially greater” deal.

In its complaint, the DOJ said Visa threatens merchants and their banks with punitive rates if they route a “meaningful share” of debit transactions to competitors, helping maintain Visa’s network moat. The contracts help insulate three-quarters of Visa’s debit volume from fair competition, the DOJ said.

“Visa wields its dominance, enormous scale, and centrality to the debit ecosystem to impose a web of exclusionary agreements on merchants and banks,” the DOJ said in its release. “These agreements penalize Visa’s customers who route transactions to a different debit network or alternative payment system.”

Furthermore, when faced with threats, Visa “engaged in a deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete,” the DOJ said.

Paying off competitors

The moves also tamped down innovation, according to the DOJ. Visa pays competitors hundreds of millions of dollars annually “to blunt the risk they develop innovative new technologies that could advance the industry but would otherwise threaten Visa’s monopoly profits,” according to the complaint.

Visa has agreements with tech players including Apple, PayPal and Square, turning them from potential rivals to partners in a way that hurts the public, the DOJ said.

For instance, Visa chose to sign an agreement with a predecessor to the Cash App product to ensure that the company, later rebranded Block, did not create a bigger threat to Visa’s debit rails.

A Visa manager was quoted as saying “we’ve got Square on a short leash and our deal structure was meant to protect against disintermediation,” according to the complaint.

Visa has an agreement with Apple in which the tech giant says it will not directly compete with the payment network “such as creating payment functionality that relies primarily on non-Visa payment processes,” the complaint alleged.

The DOJ asked for the courts to prevent Visa from a range of anticompetitive practices, including fee structures or service bundles that discourage new entrants.

The move comes in the waning months of President Joe Biden‘s administration, in which regulators including the Federal Trade Commission and the Consumer Financial Protection Bureau have sued middlemen for drug prices and pushed back against so-called junk fees.

In February, credit card lender Capital One announced its acquisition of Discover Financial, a $35.3 billion deal predicated in part on Capital One’s ability to bolster Discover’s also-ran payments network, a distant No. 4 behind Visa, Mastercard and American Express.

Capital One said once the deal is closed, it will switch all its debit card volume and a growing share of credit card volume to Discover over time, making it a more viable competitor to Visa and Mastercard.

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September 24, 2024
Visa debuts a new product designed to protect consumers making bank transfers

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Visa said it plans to launch a dedicated service for bank transfers, skipping credit cards and the traditional direct debit process.

Visa, which alongside Mastercard is one of the world’s largest card networks, said Thursday it plans to launch a dedicated service for account-to-account (A2A) payments in Europe next year.

Users will be able set up direct debits — transactions that take funds directly from your bank account — on merchants’ e-commerce stores with just a few clicks.

Visa said consumers will be able to monitor these payments more easily and raise any issues by clicking a button in their banking app, giving them a similar level of protection to when they use their cards.

The service should help people deal with problems like unauthorized auto-renewals of subscriptions, by making it easier for people to reverse direct debit transactions and get their money back, Visa said. It won’t initially apply its A2A service to things like TV streaming services, gym memberships and food boxes, Visa added, but this is planned for the future.

The product will initially launch in the U.K. in early 2025, with subsequent releases in the Nordic region and elsewhere in Europe later in 2025.

Direct debit headaches

The problem currently is that when a consumer sets up a payment for things like utility bills or childcare, they need to fill in a direct debit form.

But this offers consumers little control, as they have to share their bank details and personal information, which isn’t secure, and have limited control over the payment amount.

The open banking movement is inspiring consumers to ask who owns their banking data

Static direct debits, for example, require advance notice of any changes to the amount taken, meaning you have to either cancel the direct debit and set up a new one or carry out a one-off transfer.

With Visa A2A, consumers will be able to set up variable recurring payments (VRP), a new type of payment that allows people to make and manage recurring payments of varying amounts.

“We want to bring pay-by-bank methods into the 21st century and give consumers choice, peace of mind and a digital experience they know and love,” Mandy Lamb, Visa’s managing director for the U.K. and Ireland, said in a statement Thursday.

“That’s why we are collaborating with UK banks and open banking players, bringing our technology and years of experience in the payments card market to create an open system for A2A payments to thrive.”

Visa’s A2A product relies on a technology called open banking, which requires lenders to provide third-party fintechs with access to consumer banking data.

Open banking has gained popularity over the years, especially in Europe, thanks to regulatory reforms to the banking system.

The technology has enabled new payment services that can link directly to consumers’ bank accounts and authorize payments on their behalf — provided they’ve got permission.

In 2021, Visa acquired Tink, an open banking service, for 1.8 billion euros ($2 billion). The deal came on the heels of an abandoned bid from Visa to buy competing open banking firm Plaid.

Visa’s buyout of Tink was viewed as a way for it to get ahead of the threat from emerging fintechs building products that allow consumers — and merchants — to avoid paying its card transaction fees.

Merchants have long bemoaned Visa and Mastercard’s credit and debit card fees, accusing the companies of inflating so-called interchange fees and barring them from directing people to cheaper alternatives.

In March, the two companies reached a historic $30 billion settlement to reduce their interchange fees — which are taken out of a merchant’s bank account when a shopper uses their card to pay for something.

Visa didn’t share details on how it would monetize its A2A service. By giving merchants the option to bypass cards for payments, there’s a risk that Visa could potentially cannibalize its own card business.

For its part, Visa told CNBC it is and always has been focused on enabling the best ways for people to pay and get paid, whether that’s through a card or non-card transaction.

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September 5, 2024
Banks face tough new security standards in the EU — their tech suppliers are under scrutiny, too

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Financial services companies and their digital technology suppliers are under intense pressure to achieve compliance with strict new rules from the EU that require them to boost their cyber resilience.

By the start of next year, financial services firms and their technology suppliers will have to make sure that they’re in compliance with a new incoming law from the European Union known as DORA, or the Digital Operational Resilience Act.

CNBC runs through what you need to know about DORA — including what it is, why it matters, and what banks are doing to make sure they’re prepared for it.

What is DORA?

DORA requires banks, insurance companies and investment to strengthen their IT security. The EU regulation also seeks to ensure the financial services industry is resilient in the event of a severe disruption to operations.

Such disruptions could include a ransomware attack that causes a financial company’s computers to shut down, or a DDOS (distributed denial of service) attack that forces a firm’s website to go offline.

The regulation also seeks to help firms avoid major outage events, such as the historic IT meltdown last month caused by cyber firm CrowdStrike when a simple software update issued by the company forced Microsoft’s Windows operating system to crash.

Multiple banks, payment firms and investment companies — from JPMorgan Chase and Santander, to Visa and Charles Schwab — were unable to provide service due to the outage. It took these firms several hours to restore service to consumers.

In the future, such an event would fall under the type of service disruption that would face scrutiny under the EU’s incoming rules.

Mike Sleightholme, president of fintech firm Broadridge International, notes that a standout factor of DORA is that it doesn’t just focus on what banks do to ensure resiliency — it also takes a close look at firms’ tech suppliers.

Under DORA, banks will be required to undertake rigorous IT risk management, incident management, classification and reporting, digital operational resilience testing, information and intelligence sharing in relation to cyber threats and vulnerabilities, and measures to manage third-party risks.

Firms will be required to conduct assessments of “concentration risk” related to the outsourcing of critical or important operational functions to external companies.

These IT providers often deliver “critical digital services to customers,” said Joe Vaccaro, general manager of Cisco-owned internet quality monitoring firm ThousandEyes.

“These third-party providers must now be part of the testing and reporting process, meaning financial services companies need to adopt solutions that help them uncover and map these sometimes hidden dependencies with providers,” he told CNBC.

Banks will also have to “expand their ability to assure the delivery and performance of digital experiences across not just the infrastructure they own, but also the one they don’t,” Vaccaro added.

When does the law apply?

DORA entered into force on Jan. 16, 2023, but the rules won’t be enforced by EU member states until Jan. 17, 2025.

The EU has prioritised these reforms because of how the financial sector is increasingly dependent on technology and tech companies to deliver vital services. This has made banks and other financial services providers more vulnerable to cyberattacks and other incidents.

“There’s a lot of focus on third-party risk management” now, Sleightholme told CNBC. “Banks use third-party service providers for important parts of their technology infrastructure.”

“Enhanced recovery time objectives is an important part of it. It really is about security around technology, with a particular focus on cybersecurity recoveries from cyber events,” he added.

Many EU digital policy reforms from the last few years tend to focus on the obligations of companies themselves to make sure their systems and frameworks are robust enough to protect against damaging events like the loss of data to hackers or unauthorized individuals and entities.

The EU’s General Data Protection Regulation, or GDPR, for example, requires companies to ensure the way they process personally identifiable information is done with consent, and that it’s handled with sufficient protections to minimize the potential of such data being exposed in a breach or leak.

DORA will focus more on banks’ digital supply chain — which represents a new, potentially less comfortable legal dynamic for financial firms.

What if a firm fails to comply?

For financial firms that fall foul of the new rules, EU authorities will have the power to levy fines of up to 2% of their annual global revenues.

Individual managers can also be held responsible for breaches. Sanctions on individuals within financial entities could come in as high a 1 million euros ($1.1 million).

For IT providers, regulators can levy fines of as high as 1% of average daily global revenues in the previous business year. Firms can also be fined every day for up to six months until they achieve compliance.

Third-party IT firms deemed “critical” by EU regulators could face fines of up to 5 million euros — or, in the case of an individual manager, a maximum of 500,000 euros.

That’s slightly less severe than a law such as GDPR, under which firms can be fined up to 10 million euros ($10.9 million), or 4% of their annual global revenues — whichever is the higher amount.

Carl Leonard, EMEA cybersecurity strategist at security software firm Proofpoint, stresses that criminal sanctions may vary from member state to member state depending on how each EU country applies the rules in their respective markets.

DORA also calls for a “principle of proportionality” when it comes to penalties in response to breaches of the legislation, Leonard added.

That means any response to legal failings would have to balance the time, effort and money firms spend on enhancing their internal processes and security technologies against how critical the service they’re offering is and what data they’re trying to protect.

Are banks and their suppliers ready?

Stephen McDermid, EMEA chief security officer for cybersecurity firm Okta, told CNBC that many financial services firms have prioritized using existing internal operational resilience and third-party risk programs to get into compliance with DORA and “identify any gaps they may have.”

“This is the intention of DORA, to create alignment of many existing governance programs under a single supervisory authority and harmonise them across the EU,” he added.

Fredrik Forslund vice president and general manager of international at data sanitization firm Blancco, warned that though banks and tech vendors have been making progress toward compliance with DORA, there’s still “work to be done.”

On a scale from one to 10 — with a value of one representing noncompliance and 10 representing full compliance — Forslund said, “We’re at 6 and we’re scrambling to get to 7.”

“We know that we have to be at a 10 by January,” he said, adding that “not everyone will be there by January.”

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August 7, 2024
San Francisco downtown is a ‘ghost town’ that needs revival, mayoral candidate says

With San Francisco facing record high commercial vacancies, one mayoral candidate has a plan to reshape the city’s business district and surrounding areas.

Democrat Mark Farrell, former interim mayor, is proposing a 20-year vision to revitalize San Francisco’s downtown in a bid to help the city bounce back from challenges exacerbated by the pandemic. His plan includes a new park at Embarcadero Plaza and mixed-use buildings that provide more housing options.

He’s also proposing tax incentives for businesses that relocate to the area, and for those that mandate workers return to the office four days a week. The goal is to incentivize industries beyond technology.

“As I’ve traveled around the world and in our own country over the past few years for work, other downtowns and other cities have recovered from Covid,” Farrell told CNBC in an interview. “Unfortunately, our city now ranks dead last in economic recovery post-Covid. And that, to me, is an embarrassment and it needs to change.”

Commercial real estate vacancies in San Francisco hit a fresh high of 34.5% in the second quarter, according to a report last week from Cushman & Wakefield, up from 5% before the pandemic. Manhattan’s vacancy rate for the quarter was 23.6%. Farrell’s goal is to cut San Francisco’s vacancy rate in half by the end of a first term.

A key piece of Farrell’s plan involves getting workers back into the city. Many of San Francisco’s top employers, including Salesforce, Uber and Visa, have embraced hybrid work, with staffers coming in, at best, three days a week. On top of that, the tech industry has been battered by layoffs over the past two years, removing thousands of people from payrolls.

Under Farrell’s proposal, business that relocate downtown would receive a gross receipts tax incentive, as would companies that compel employees to come to the office four days a week. Such mandates have seen pushback in some cities, most recently in Philadelphia, where unionized city workers lost a bid to extend further an in-person work deadline.

“Right now, if you come downtown, the issue is, is the lack of people; it’s a shell of what it used to be,” Farrell said. The incentives are designed to make sure “employees come back to work multiple days a week in the office to create that vibrancy that will really bring the future of downtown forward,” he said.

Public safety is a major concern, as certain parts of downtown San Francisco are rife with drug use and homeless encampments. Farrell is calling for an increase in police staffing, adding that safety and street conditions impact every neighborhood, beyond San Francisco’s downtown core.

On Tuesday, Elon Musk said he’s moving the headquarters for X, formerly known as Twitter, to Austin, Texas, from San Francisco. X had already been looking to sublease most of its building in the city, and Musk posted on X on Tuesday, “Have had enough of dodging gangs of violent drug addicts just to get in and out of the building.”

Conferences and tourism have also been slow to return to the city since the shutdowns that began in early 2020. The park at Embarcadero Plaza would be part of a plan to bring some of that back, Farrell said. He envisions a clean and open park outside of the Ferry Building to draw in workers, residents and tourists. He likened it to Mission Dolores Park, a San Francisco landmark.

An image commissioned by Mayoral Candidate Mark Farrell’s campaign to show its plans for a new “world class” park on the Embarcadero in the future.

Courtesy: Farrell for Mayor Commissioned from Gensler

For housing, Farrell’s plan includes “aggressive tax-increment financing” and local incentives to drive faster housing development as well as conversion of commercial buildings to residential. Farrell is also seeking to increase height limits in neighborhoods including the Financial District, SoMA and Mission Bay to create “tens of thousands” of new units and residents, and encourage more housing in places like Union Square, which recently lost major tenants including Macy’s and Nordstrom.

Farrell said the idea is akin to New York’s Hudson Yards, which opened before the pandemic. That project was criticized for its hefty price tag, but has since turned into a success story with lower office vacancies than other Manhattan neighborhoods. Farrell said his proposal promises to be a revenue generator for the city but that it needs anchor projects.

“Right now the problem is downtown,” Farrell said. “We don’t have people working here. And it is a ghost town. And what that translates into is a loss of sales tax revenue, property tax revenue that is decreasing in major ways when buildings are selling for 10 or 20 cents on the dollar. At the end of the day, those resulting commercial property taxes are putting a massive hole in our budget here in San Francisco.”

Farrell is just one of a number of well-known local candidates, including sitting Mayor London Breed, philanthropist Daniel Lurie and Board of Supervisors President Aaron Peskin. According to the city government’s website, 13 people have qualified for the November mayoral election.

— CNBC’s Ari Levy and Jordan Novet contributed to this report.

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July 16, 2024
San Francisco’s AI boom can’t stop real estate slide, as office vacancies reach new record

Artificial intelligence has been a big boon for San Francisco real estate. But not enough of one to make up for the broader struggle across the market.

The vacancy rate for San Francisco office space reached a fresh record of 34.5% in the second quarter, according to a report Monday from commercial real estate firm Cushman & Wakefield. That’s up from 33.9% in the first quarter, 28.1% in the same period a year ago and 5% before the pandemic.

Meanwhile, the average asking rent dropped to $68.27 per square foot in the quarter, the lowest since late 2015, down from $72.90 a year earlier and a peak of $84.70 in 2020.

San Francisco is reeling from the twin challenges of bringing people back to the office after the Covid pandemic and a slowdown in the tech market that’s led to mass job cuts across the industry. Tech companies have laid off more than 530,000 employees since the start of 2022, according to the website Layoffs.fyi, with major downsizing at Alphabet, Meta, Amazon, Tesla, Microsoft and Salesforce.

Softening the blow of late has been the soaring popularity of generative AI and the decision by fast-growing startups to open large offices in San Francisco.

OpenAI, the market leader with a private valuation that’s topped $80 billion, announced in October that it was leasing about 500,000 square feet of space in the Mission Bay neighborhood, the biggest office lease in the city since 2018. Robert Sammons, senior research director at Cushman & Wakefield, said OpenAI is continuing to look for more space in the city.

Also last year, OpenAI rival Anthropic subleased 230,000 square feet at Slack’s headquarters. And in May of this year, Scale AI signed a lease for a reported 170,000 to 180,000 square feet of space in Airbnb’s office building.

“San Francisco is certainly the center of AI, but AI is not going to save the San Francisco commercial real estate market,” Sammons said. “It will help.”

While richly capitalized AI startups are signing large leases for new space, the bigger trend is that tech companies, law offices and consulting firms are looking to reduce their footprint when existing leases come up, Sammons said, reflecting the widespread move to hybrid work.

In many cases, companies are looking to relocate to higher quality space in more desirable parts of the city, because prices have come down and employers need to be near restaurants and shops to get staffers to come back, Sammons added.

“The best quality trophy space continues to perform well, because tenants want to be in the best locations with the best amenities around them,” Sammons said.

Some of the city’s top employers, including Salesforce, Uber, Visa and Wells Fargo, have brought employees back to offices for part of the week. That’s helped in the financial district, where the vacancy rate is still 34.2% on the north side and 32.7% on the south side at the end of the quarter. In SoMa, which historically was a popular area for venture-backed startups, the vacancy rate is almost 50%.

SoMa is further away from mass transit options and has also been hurt by large retail departures. Vacant office space across San Francisco for the quarter totaled 29.6 million square feet, Cushman & Wakefield said.

The firm said in its report that there are positive signs in the market, with absorption poised to improve in the second half and office job numbers stabilizing following a steep drop-off. But Sammons said it looks like there’s more room for rents to fall and for vacancies to rise. Uncertainty surrounding the upcoming presidential election may be a factor delaying new leases, he said.

“Sometimes tenants postpone making decisions when there are major elections,” he said.

WATCH: Commercial real estate vacancies in San Francisco are at an all-time high

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July 8, 2024
BlackRock-backed fintech Trustly says IPO still at least one year out even as profits jump 51%

Trustly CEO Johan Tjarnberg.

Trustly

The boss of Swedish financial technology startup Trustly says an initial public offering for the company is still a year or two away from happening, even after a 51% jump in operating profit.

In an exclusive interview with CNBC, Johan Tjarnberg, CEO of Trustly, said that his firm still needs time to prove the value of its open banking technology to investors before going public.

“We need another year or two to really demonstrate to the market that open banking is happening happening, it’s here,” Tjarnberg told CNBC.

“For me, there is so much we want to demonstrate to the market in terms of user adoption, merchant adoption. We still need some time to execute on our existing playbook.”

Trustly is holding out on an IPO even after reporting a strong set of financials. Results shared exclusively with CNBC show the firm reported revenues of $265 million in its 2023 full year.

Growth accelerated significantly in the second half of the year, Trustly said, climbing 27% compared with the same period in 2022. That was as transaction volumes spiked 48% over the same period.

Tjarnberg told CNBC that the company’s performance in 2023 was heavily driven by the growth at its U.S. business. Trustly merged with American rival PayWithMyBank in 2020.

“We invested a lot into the U.S. market,” Tjarnberg said. “We were roughly 20 people there four years ago; we now have 500 supporting the U.S. market.”

Tjarnberg said that, in the first quarter of this year, Trustly saw heightened growth in areas like utilities, retail, and travel, with 22% of volumes coming from those core verticals, up 44% over 12 months.

Chipping away at Visa, Mastercard?

Trustly increased operating profit by 51% in full-year 2023, with adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) climbing to $51 million from $33 million in 2022.

That was as overall transaction value processed during 2023 climbed by 79%, to $58 billion.

Trustly helps companies integrate the ability to accept payments via open banking technology.

This tech lets consumers make payments directly to a merchant’s bank account without the need for an intermediary such as a card issuer.

It provides an alternative to incumbent credit card programs such as Mastercard and Visa, which charge merchants high fees for transactions.

In the U.S., Tjarnberg said, Trustly is seeing heightened demand from merchants “trying to take down costs,” as high card processing fees have made them more price-conscious.

“There is no secret that our objectives and ambition is to bring a good alternative to other payment methods, including cards,” he told CNBC.

Open banking is a trend which has gained significant momentum, particularly across Europe.

That’s thanks to the introduction of regulations which require banks to open their clients’ account data and payment functionalities to third-party firms.

It has paved the way for new entrants into finance including fintechs, startups and tech companies. Founded in 2008, Sweden’s Trustly competes with the likes of GoCardless, TrueLayer, Volt, Bud, and Yapily.

Future product plans

Trustly expects to launch a feature that allows its merchants to set up recurring payments for customers. That will be targeted at things like telecom packages and subscription-based music streaming services.

Tjarnberg said Trustly is “bullish” on the mobile space, particularly in the U.S. after having seen early success in mobile billing partnerships with the likes of AT&T and T-Mobile.

Trustly is used by more than 9,000 merchants worldwide including Facebook, Alibaba, PayPal, eBay, AT&T, Unicef, Dell, Lyft, DraftKings, Wise, and eToro.

Trustly is majority-owned by venture capital firm Nordic Capital, which owns a 51.1% stake in the business. Alfven & Didrikson is its second-biggest backer, with a 11.1% stake, while BlackRock holds an 8.9% stake.

Aberdeen Standard Investments and Neuberger Berman own 0.7% and 0.9% stakes in Trustly, respectively, while others including the Trustly management and employees own 27.4%.

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May 30, 2024
Switching Your Credit Card May Not Stop a Streaming Service’s Recurring Charges

Millions of Americans pay for streaming services, doling out anywhere from $5 to $75 a month. It’s a common belief that you can get out of recurring charges like this by switching your credit card. The streamers won’t be able to find you, and your account will just go away, right? You wouldn’t be crazy for believing it, but it’s a myth that switching a credit card will definitely stop your recurring charges.

The TikTok Ban is Law. What Now?

Nearly 46% of Americans opened a new credit card last year, according to Forbes, which means millions of Americans also canceled old ones. When you switch cards, these streaming services don’t just stop your service — they just start charging your new card. Granted, it might be easier to just cancel your subscription directly with a streamer like Netflix. There’s a largely hidden service that enables most subscription services to keep throwing charges at you indefinitely.

“Banks may automatically update credit or debit card numbers when a new card is issued. This update allows your card to continue to be charged, even if it’s expired,” Netflix says in its help center, though it’s not alone in this feature.

Most major card providers offer a feature that enables this, including Visa. In 2003, Visa U.S.A. started offering a new software product to merchants called Visa Account Updater (VAU), according to a 2003 American Banker article. The service works with a network of banks to create a virtual tracking service of Americans’ financial profiles. Whenever someone renews or switches a credit card within their bank, the institution automatically updates the VAU. This system lets Netflix and countless other corporations charge whatever card you have on file. It’s a seamless switch that allows the dollars to keep flowing toward corporate America, while you don’t have to lift a finger.

“Visa understands the challenges faced by merchants when it comes to staying on top of account information changes,” Visa say in marketing materials to corporations. “VAU delivers updated cardholder account information in a timely, efficient, and cost-effective manner, benefiting all parties involved in the electronic payment process.”

VAU was an instant success, quickly adopted by banks and corporations around the world. Visa’s service follows you whenever your issuer switches between any major credit card provider, whether it’s Discover, Mastercard, or American Express. However, if you close out an account entirely, or change to a different credit card provider yourself, the VAU will simply list your account as being closed.

Some customers of Visa’s tracking service include Netflix, Amazon, Facebook, Google, and Disney, according to a 256-page list of the software’s adopters from 2022. VAU allows merchants to keep customers roped into their subscription services, but Visa also argues it helps customers.

“Visa Account Updater (VAU) was built to help ease the burden on consumers of inputting a new account number and expiration date in recurring subscriptions,” said a Visa spokesperson in a statement to Gizmodo.

Visa’s not entirely wrong about this. If your electricity or internet bill is tied to your credit card, you could be in a real bind if you forget to update your new card. However, practices like these can also keep people bound in endless cycles of payments that follow them everywhere.

“The issuing bank determines whether to provide updated card information or to provide a closed account or contact cardholder advice through VAU,” said the spokesperson. “VAU only provides information to merchants at the direction of the issuing financial institution and only for merchants where the cardholder has already stored their payment credentials.”

Origins of the Myth

Before services like VAU popped up, switching your credit card was a pretty surefire way to get out of recurring charges, whether you wanted to or not. When Bank of America adopted VAU in 2003, it described the product as a solution for billing changes that had once left merchants with “unappealing choices.”

“One would be that the merchant would shut off the customer’s service,” said a Bank of America executive in a 2003 press release. “Another would be that the merchant would continue the service but send the customer a nasty letter.”

So VAU really came about with the onset of the internet. Practices like this have become increasingly popular in the Internet age. Subscription services have become easier to start, but increasingly difficult to stop. Recurring charges can truly follow you to the ends of the Earth unless you outright contact the company to stop them.

Why It’s Pervasive

Visa’s Account Updater is only really marketed to businesses, so most consumers have no idea it exists. I’d bet most people have no idea there’s a way to opt out of Visa’s credit card tracking service, and even fewer know they’re default opted in. It’s largely a hidden service to the average person, with no clear indicator from your bank or subscription service that you’re being tracked in this way.

Credit cards are also widely regarded as a more anonymous way to move through the financial world. While they typically are more secure than using a debit card, make no mistake, banks are still tracking your every move. The VAU just allows them to coordinate with corporations to keep your financial information constantly up to date.

The VAU undoubtedly offers some benefits to consumers. However, it’s important to understand why. The system reduces “churn” for corporations, and ensures you can keep paying them your dollars no matter what’s going on in your financial world. Banks make it effortless to keep paying these recurring charges. However, stopping them can be much harder. If you really want to stop a subscription, there’s still no substitute for calling up the company and canceling.

Maxwell Zeff

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April 29, 2024
CNBC’s best credit cards of 2024
There are credit cards designed to meet all kinds of financial situations and needs. Whether you’re a foodie, road warrior, traveler, student or someone looking to build credit, there are many card options to choose from.

To help narrow down the best credit card for your lifestyle, each month, CNBC Select publishes a list of the top credit cards available. It can change depending on limited-time sign-up bonuses, benefits and more.

However, some cards deserve extra recognition for consistently differentiating themselves from the competition and topping our rankings month after month. These cards offer extra generous rewards and perks and continuously evolve to meet changing needs.

Here, CNBC Select rounds up the best credit cards of 2024 for a variety of consumer habits based on rewards, fees, introductory and standard APRs, as well as other perks like annual statement credits, discounts at select retailers and built-in insurance. (See our methodology for more information on how we choose the best credit cards of 2024.)

Best credit cards of 2024

Best cash-back credit card: Chase Freedom Unlimited® Card

Best travel rewards card: American Express® Gold Card

Best credit card welcome bonus: Chase Sapphire Preferred® Card

Best no annual fee credit card: Citi® Double Cash Card

Best no annual fee travel credit card: Discover it® Miles

Best balance transfer credit card: Citi Simplicity® Card

Best low-interest credit card: Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union

Best secured credit card: Discover it® Secured Credit Card

Best for building credit: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Best for college students: Discover it® Student Cash Back

Best dining rewards credit card: Chase Sapphire Reserve®

Best gas rewards credit card: PenFed Platinum Rewards Visa Signature® Card

Best grocery rewards credit card: Blue Cash Preferred® Card from American Express

Best for paying rent: Bilt Mastercard®

Best entertainment rewards credit card: Capital One Savor Cash Rewards Credit Card

Best credit card for Global Entry and/or TSA PreCheck® credit: Capital One Venture Rewards Credit Card

Best for airport lounge access: The Platinum Card® from American Express

Best for premium perks: Capital One Venture X Rewards Credit Card

Best cash-back credit card

Chase Freedom Unlimited®

Rewards

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Member FDIC. Terms apply.

Who’s this for? The Chase Freedom Unlimited® Card is ideal for consumers who want a robust rewards card with no annual fee.

Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstores and dining at restaurants (including takeout) and 1.5% on all other purchases. Plus, there’s a generous welcome bonus.

This card has no annual fee, and you can benefit from an introductory APR offer. This card also offers 5% cash back on Lyft purchases through March 31, 2025 and complimentary three months of DashPass with 50% off for the next nine months. Simply activate by December 31, 2024.

Best travel rewards card

American Express® Gold Card

Rewards

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Welcome bonus

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Who’s this for? If you love food and travel, the American Express® Gold Card could be the ideal card for you. Whether you dine out or cook at home, this card earns a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, travelers can benefit from the 3X points on flights booked directly with airlines or on amextravel.com.

The value of Membership Rewards points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at sites like Amazon to redeeming for gift cards or a statement credit to booking travel. See more on how points are calculated.

Cardholders also receive an annual dining credit of up to $120 ($10 in statement credits a month) at participating partners, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Terms apply. Enrollment required. There are also *no foreign transaction fees.

This card does have a *$250 annual fee, but it can be reduced to effectively $130 if you take advantage of the $120 dining credit each year. Then, the rewards you earn help further “pay” for the card.

Gold Card members can also participate in Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. For example, a recent offer for Wine.com states: “Spend $50 or more, get $10 back.” These limited-time offers are location-based and additional terms apply.

*See rates and fees.

Best credit card welcome bonus

Chase Sapphire Preferred® Card

Rewards

Enjoy beneﬁts such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.

Annual fee

Intro APR

Regular APR

21.49% – 28.49% variable on purchases and balance transfers

Balance transfer fee

Either $5 or 5% of the amount of each transfer, whichever is greater

Foreign transaction fee

Credit needed

Who’s this for? If you want to get a lot of value right out of the gate, consider the Chase Sapphire Preferred. The card is currently offering new cardholders the chance to earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Travel℠. You can even potentially get more value if you transfer Chase points to Chase’s travel partners, like Hyatt hotels and United Airlines, and book business-class flights and luxury hotels.

The Sapphire Preferred is also a great travel rewards credit card and has strong earning categories for those who spend on travel and dining. It earns 5X on travel purchased through Chase Travel℠, 3X on dining, select streaming services and online groceries, 2X on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.

Best no annual fee credit card

Citi Double Cash® Card

Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24

Welcome bonus

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% for the first 18 months on balance transfers; N/A for purchases

Regular APR

Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Foreign transaction fee

Credit needed

See rates and fees. Terms apply.

Who’s this for? The Citi® Double Cash Card is a straightforward rewards card that continues to offer one of the best flat-rate cash-back programs since it launched in 2014. Cardholders earn 2% cash back on all purchases — 1% when you make a purchase and an additional 1% when you pay your credit card bill.

There is no limit to the amount of cash back you can earn and you don’t have to worry about activating bonus categories. Cashback can be redeemed for a statement credit or direct deposit.

This card is also a good choice for debt consolidation as it offers a useful introductory APR offer on balance transfers.

Best no annual fee travel credit card

Discover it® Miles

Rewards

Automatically earn unlimited 1.5x Miles on every dollar of every purchase.

Welcome bonus

Discover will match all the Miles earned for all new cardmembers at the end of your first year.

Annual fee

Intro APR

0% Intro APR for 15 months on purchases.

Regular APR

17.24% to 28.24% Variable

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Who’s this for? The Discover it® Miles card comes with a generous rewards program — all for zero annual fee — that makes it a standout among travel cards.

The Discover it Miles card offers users unlimited 1.5X miles for every dollar spent on all purchases. But for higher spenders, Discover offers a welcome bonus that’s hard to beat: It will do a mile-for-mile match of all miles earned the first year (for new card members in their first year only). If you rack up 35,000 miles within the first 12 months, Discover will match you with 35,000 miles. That’s a total of 70,000 miles or $700 toward travel.

With this card, there are no blackout dates when you pay for travel purchases using your card. And, you can easily redeem miles as a statement credit for travel, restaurant or gas station purchases, as well as a deposit to your bank account. The best part is that miles earned never expire — even if your account is closed.

Best balance transfer credit card

Citi Simplicity® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR

Balance transfer fee

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Foreign transaction fee

Credit needed

Who’s this for? The Citi Simplicity® Card offers one of the longest balance transfer intro periods at 0% for 21 months from the date of the first transfer (after, 18.49% – 29.24% variable APR). Balance transfers must be completed within four months of account opening. This is nearly two years to pay off debt, which can be helpful if you have a large balance or if your cash flow doesn’t allow you to pay off the debt within the 6-, 12- or 15-month time periods of other balance transfer cards.

This card has no annual fee and comes with an introductory balance transfer fee: either 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum). This can be worthwhile if you’re paying high-interest charges.

New cardholders have four months to complete their balance transfer (longer than the typical 60 to 90 days). While you have more time to complete a transfer, the intro APR period starts at account opening — so try to make the transfer as soon as possible to get the most benefit of the interest-free period.

This card also never charges late fees (though we always recommend you pay your balance on time and in full). There isn’t a welcome bonus or a rewards program.

Best low-interest credit card

Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union

Rewards

3X points on gas and grocery purchases and 1.5X points on all other purchases

Welcome bonus

Earn 10,000 points when you spend $1,500 within the first 90 days

Annual fee

Intro APR

N/A for purchases and balance transfers

Regular APR

13.74% to 18.00% variable on purchases; 13.74% to 17.99% on balance transfers.

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

Low 9.49% to 16.49% variable APR

No fee charged on purchases made outside the U.S.

Cons

Credit union membership required, though it’s free

No special financing on purchases or balance transfers

Balance transfer fee of 1.5%, or $50, whichever is greater.

Estimated return after 1 year: $543

Estimated return after 5 years: $2,314

Rewards totals incorporate the points earned from the welcome bonus

Who’s this for? The Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union stands out for offering low interest rates, a strong rewards program and no foreign transaction fees — all at no annual fee.

This card offers a variable APR of 13.74% to 18.00% on purchases. If you carry a balance, you can benefit from low interest charges compared to other cards that have high interest rates. Balance transfers do incur a fee of $10.00 or 2.00% of the amount of each cash advance, whichever is greater.

Beyond interest rates, the Visa® Titanium Signature Rewards Card offers a generous rewards program: Earn 3X points on gas and grocery purchases and 1.5X points on all other purchases. Plus, there’s a welcome bonus of 10,000 points after you spend $1,500 within the first 90 days.

In order to open this card, you need to join Andrews Federal Credit Union, but anyone can join. If you don’t meet the qualification requirements, you can opt to join the American Consumer Council (ACC) for free with the promo code “Andrews.”

Best secured credit card

Discover it® Secured Credit Card

Rewards

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.

Welcome bonus

Discover will match all the cash back you’ve earned at the end of your first year

Annual fee

Intro APR

Regular APR

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Pros

Cash-back program

Generous welcome bonus

Starting at seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit

Cons

Cash-back program limits earnings: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%

Low credit line prevents cardholders from charging high-cost items or many expenses

Who’s this for? The Discover it® Secured Credit Card is a well-rounded secured card that offers many benefits that are typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Cardholders earn a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%. Plus, you can earn unlimited 1% cash back on all other purchases automatically. The welcome bonus is also unique: For new card members in the first year only, Discover will automatically match all the cash back you’ve earned at the end of your first year. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

This card requires a minimum $200 security deposit, which is fairly standard for secured credit cards. It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back). Starting at seven months from account opening, Discover will automatically review your credit card account to see if they can transition you to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you’ll qualify for an unsecured credit card.

Best for building credit and average credit

Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Rewards

1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants

Welcome bonus

Annual fee

Intro APR

Regular APR

18.24% – 32.24% variable

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No credit history required (if you do have a credit history, that does factor into the credit decision)

No fees whatsoever

1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants

Credit limits range from $300 to $10,000

Cons

Card isn’t for rebuilding credit, but it’s good for building credit

No special financing offers

No welcome bonus

Estimated rewards earned after 1 year: $249

Estimated rewards earned after 5 years: $1,577

Who’s this for? The Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, is easier to get approved for because it takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility.

This is especially beneficial for applicants who may not have any credit history. However, if you do have a credit history, that does factor into the credit decision.

The Petal 2 Visa Credit Card is one of the few cards that charge zero fees*: no annual fee, no late payment fee and no foreign transaction fees. And it stands out for consumers trying to build credit because there’s no security deposit required.

It also offers a rewards program with 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments. This is not only a nice perk, but a great way to encourage responsible behavior. Cardholders also earn 2% to 10% cash back from select merchants.

Best for college students

Discover it® Student Cash Back

Rewards

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Welcome bonus

Discover will match all the cash back earned for all new cardmembers at the end of your first year

Annual fee

Intro APR

0% for 6 months on purchases

Regular APR

18.24% – 27.24% Variable

Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Foreign transaction fee

Credit needed

*See rates and fees, terms apply.

Who’s this for? The Discover it® Student Cash Back is a well-rounded card that offers college students enrolled in a two- or four-year college the chance to build credit while earning rewards. You must be over 18 and a U.S. citizen to apply.

Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically.

There is also an introductory APR offer which can be perfect for financing dorm room essentials or textbooks. After you graduate, your Discover it student credit card becomes a regular credit card.

Best dining rewards credit card

Chase Sapphire Reserve®

Rewards

Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Travel℠.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

$300 annual travel credit for travel purchases

Global Entry or TSA PreCheck application fee credit up to $100 every four years

Priority Pass™ Select lounge access at 1,000+ VIP lounges in over 500 cities worldwide

Points are worth 50% more when redeemed for travel via Chase Travel℠

Special benefits at The Luxury Hotel & Resort Collection

Complimentary year of Lyft Pink membership

Cons

High annual fee, but it can be offset by taking advantage of all the card’s perks

No introductory APR

Estimated rewards earned after 1 year: $1,469

Estimated rewards earned after 5 years: $3,346

Rewards totals incorporate the points earned from the welcome bonus

Who’s this for? The Chase Sapphire Reserve® is geared toward foodies and frequent travelers looking for luxurious perks, such as free airport lounge access and complimentary hotel room upgrades. Cardholders earn a competitive 3X points on dining and travel worldwide. Based on CNBC Select’s calculations, we found the average American using this card could earn an estimated $165 per year in rewards for dining purchases alone (assuming you redeem rewards for travel via Chase Ultimate Rewards®, receiving 50% more value).

The value of Chase rewards points varies depending on how you use them. If you redeem points for cash and gift cards, each point is worth $.01, which means that 100 points equals $1 in redemption value. (See more on how the value of points is calculated.)

This card has a unique benefit where all points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®. For example, 60,000 points are worth $900 redeemed toward airfare, hotels, car rentals and cruises when you redeem through Chase Ultimate Rewards®. This perk is a great way to get the most value for your rewards.

While this card has a robust travel rewards program, it also comes with a steep $550 annual fee. All the card’s added credits and benefits provided by Chase can help offset the annual cost. The $300 annual travel credit effectively reduces the annual fee to $150. Cardholders can take advantage of a Priority Pass™ Select membership that has a value of about $429. They also get a Global Entry or TSA PreCheck application fee credit of up to $100 every four years.

Best gas rewards credit card

PenFed Platinum Rewards Visa Signature® Card

Rewards

5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on supermarket purchases, 1X point on all other purchases

Welcome bonus

15,000 points when you spend $1,500 in the first 3 months from account opening

Annual fee

Intro APR

0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*

Regular APR

17.99% variable on purchases; 17.99% non-variable on balance transfers

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

High 5X points on gas at the pump and 3X on supermarket purchases

No bonus category activations

Good special financing offer on balance transfers

Estimated rewards earned after 1 year: $513

Estimated rewards earned after 5 years: $2,167

Rewards totals incorporate the points earned from the welcome bonus.

*0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.

Who’s this for? Among the cards we analyzed, the PenFed Platinum Rewards Visa Signature® Card currently offers the highest rewards rate at gas stations with 5X points per dollar spent for gas purchases at the pump.

This card has no annual fee, so road warriors can maximize their savings. In addition to earning high rewards at gas stations, cardholders also benefit from unlimited 3X points for supermarket purchases.

PenFed is a credit union, so membership is required to open the PenFed Platinum Rewards Visa Signature® Card. Anyone can join by completing a few extra steps: You need to apply, open a savings account with a $5 deposit and maintain a $5 account balance.

Best grocery rewards credit card

Blue Cash Preferred® Card from American Express

Rewards

6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Welcome bonus

Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.

Annual fee

$0 intro annual fee for the first year, then $95.

Intro APR

0% for 12 months on purchases from the date of account opening

Regular APR

19.24% – 29.99% variable. Variable APRs will not exceed 29.99%.

Balance transfer fee

Either $5 or 3% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

High 6% cash back at U.S. supermarket spending (up to $6,000 a year, then 1%)

Unlimited 6% cash back on select U.S. streaming subscriptions

Unlimited 3% cash back at U.S. gas stations and on transit

Cons

2.7% fee on purchases made abroad

Estimated rewards earned after 1 year: $679

Estimated rewards earned after 5 years: $2,397

Rewards totals incorporate the cash back earned from the welcome bonus

Who’s this for? Frequent grocery shoppers will be happy to learn the Blue Cash Preferred® Card from American Express offers the highest cash-back rate at U.S. supermarkets at 6% (on up to $6,000 per year in purchases, then 1%). The average American can earn $310 in cash back each year when they do their shopping at qualifying supermarkets.

If you want to maximize cash back on groceries, this card is for you. In addition to high grocery rewards, there’s an unlimited 6% cash back on select streaming subscriptions, unlimited 3% cash back at U.S. gas stations, unlimited 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on all other purchases.

Cardmembers can also take advantage of Amex Offers, where users earn a statement credit or additional cash back at select retailers. For example, a recent offer gave you $25 back each month (up to three times), if you spent $70 or more a month on Sun Basket meal kit delivery. These limited-time offers are location-based and additional terms apply.

This card has $0 intro annual fee for the first year (then $95), but it can be offset by the cash back you earn and discounts you can get through the Amex Offers. (See rates and fees)

Best for paying rent

Bilt Mastercard®

Rewards

Earn Bilt Points when you make 5 transactions that post each statement period – up to 1x points on rent payments without the transaction fee (up to 100,000 points each calendar year), 3x points on dining, 2x points on travel, and 1x points on other purchases.

Welcome bonus

Annual fee

Intro APR

Regular APR

Balance transfer fee

Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer ($5 minimum).

Foreign transaction fee

Credit needed

See rates/fees and rewards/benefits; terms apply.

Pros

No annual fee

Solid rewards on broad spending categories

Ability to pay your rent with no transaction fees

Transfer points to leading frequent traveler programs at a 1:1 rate, including American Airlines, United and World of Hyatt®

Cons

No welcome offer

No introductory 0% APR

Who’s this for? The Bilt Mastercard® is the only credit card that lets you earn travel rewards on rent payments with no fees.

So long as you make at least five card transactions per statement period, you’ll earn 3X points on dining, 2X points on travel 1X points on rent (on up to $50,000 in rent payments every year) and everything else. Thanks to a new partnership with Lyft, cardholders can now also earn up to 5X points on their rideshares.

Thanks to the BiltProtect feature, cardholders are protected from using up their entire credit limit or risk going into debt by charging their rent to their card every month. Other benefits include cell phone protection; Purchase Assurance Plus, which covers your purchases for 90 days; exclusive discounts with brands like Lyft, DoorDash and ShopRunner; and access to the Mastercard Luxury Hotels & Resorts portfolio, which offers amenities like upgrades, free breakfast and property credits.

Bilt Rewards points are extremely flexible. They can be redeemed for travel either by transferring them to airline and hotel partners or by booking through the Bilt Travel Portal at a fixed rate of 1.25 cents per point. Other redemption options include using them to shop online, book fitness classes, pay rent and even make a down payment on a home.

Best entertainment rewards credit card

Capital One Savor Cash Rewards Credit Card

Rewards

4% cash back on dining and entertainment, 4% on eligible streaming services, 3% at grocery stores and 1% on all other purchases

Welcome bonus

Earn a one-time $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening

Annual fee

Intro APR

Regular APR

Balance transfer fee

3% for promotional APR offers; none for balances transferred at regular APR

Foreign transaction fee

Credit needed

Pros

Unlimited 4% cash back on entertainment purchases

Ability to redeem rewards at any amount, unlike some other cards with $25 minimums

No fee charged on purchases made outside the U.S.

Cons

$95 annual fee

No introductory 0% financing offers for purchases or balance transfers

Who’s this for? Sports fans, movie buffs and adventure seekers will all find a common reason to like the Capital One Savor Cash Rewards Credit Card: unlimited 4% cash back on entertainment purchases. Compared to other rewards cards, this is the highest unlimited rewards rate on entertainment spending, whether you’re buying movie tickets, taking a family trip to the zoo or spending the evening bowling with friends.

Cardholders can also benefit from exclusive access to entertainment events, such as the iHeartRadio Music Festival and the Capital One JamFest.

Beyond entertainment perks, there’s also 10% cash back on Uber rides, 4% cash back on dining and popular streaming services, 3% at grocery stores and 1% on all other purchases. Plus, you can enjoy an Uber One membership through Nov. 14, 2024 and foodie-centric perks through Capital One Dining.

This card does come with a $95 annual fee, but can be offset by the cash back you earn.

Best credit card for Global Entry and/or TSA PreCheck credit

Capital One Venture Rewards Credit Card

Rewards

5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening

Annual fee

Intro APR

N/A for purchases and balance transfers

Regular APR

19.99% – 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fee

Credit needed

Pros

5 miles per dollar on hotel and rental cars booked through Capital One Travel

Global Entry or TSA PreCheck application fee credit up to $100 every 4 years

Cons

No introductory APR

There’s a $95 annual fee

Who’s this for? The Capital One Venture Rewards Credit Card offers excellent rewards rates: Earn 5X miles on hotel and rental cars booked through Capital One Travel and 2X miles per dollar spent on all other spending. While Venture does come with a $95 annual fee, that’s low compared to some other rewards cards, with some annual fees of up to $550.

In addition to rewards, every four years cardholders receive a credit for a Global Entry or TSA PreCheck application, up to $100. Cardholders now also get two free visits to Capital One airport lounges per year. If you travel often, these are great perks that can save you time and money.

This card has no foreign transaction fees and comes with a bunch of additional travel perks, such as 24-hour travel assistance services and an auto rental collision damage waiver.

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Best for airport lounge access

The Platinum Card® from American Express

Rewards

Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases

Welcome bonus

Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit Needed

See rates and fees, terms apply.

Pros

Up to $200 in annual airline fee credits

$200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.

Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings, which requires a minimum two-night stay, through American Express Travel when you pay with your Platinum Card®.

$240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.

$155 Walmart+ Credit: Use your Platinum Card® to pay for a monthly Walmart+ membership (subject to auto-renewal) and receive a statement credit that covers the full cost each month. $12.95 plus applicable taxes. Plus Up Benefits not eligible.

Cons

$695 annual fee

No special financing offers on new purchases

Who’s this for? The Platinum Card® from American Express is for those who want a luxury card with a lengthy list of benefits. Although best known for its travel perks, this card also offers a number of everyday benefits, including digital entertainment, shopping and wellness credits (enrollment required), so you don’t need to be a road warrior to benefit from it.

To start, cardholders earn a respectable 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel (on up to $500,000 per calendar year), 5X points on prepaid hotels booked with American Express Travel and 1X points on all other purchases.

In addition, cardholders can enjoy over a dozen premium travel and lifestyle benefits, including:

Up to $200 annual hotel credit

Up to $200 annual airline fee credit

Up to $300 annual Equinox credit

Up to $100 annual Saks Fifth Avenue credit

Up to $189 credit to enroll in CLEAR®

Up to $240 annual digital entertainment credit

Up to $155 annual Walmart+ credit. Plus Ups not eligible.

Worldwide airport lounge access, including Delta SkyClubs and Amex Centurion Lounges

Up to $200 annual Uber credit

Up to $100 fee credit for Global Entry or TSA PreCheck

Automatic hotel elite status with Hilton Honors and Marriott Bonvoy

Comprehensive travel insurance

Complimentary Amex concierge service

Terms apply

Its $695 annual fee (see rates and fees) is higher than any other card on this list, but you can definitely come out ahead if you take full advantage of the benefits. And that’s before factoring in the card’s welcome offer, which many rewards experts value at $2,000. (See more on how the value of points is calculated.)

Best for premium perks

Capital One Venture X Rewards Credit Card

Rewards

10 Miles on hotels per dollar and rental cars, 5 Miles per dollar on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases

Welcome bonus

Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening

Annual fee

Intro APR

Regular APR

19.99% – 29.99% (Variable)

Balance transfer fee

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fees

Credit needed

See rates and fees, terms apply.

Pros

Large welcome bonus

No foreign transaction fees

Up to $100 statement credits for either Global Entry or TSA PreCheck®

Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network

Cons

High annual fee

No introductory 0% APR period

Who’s this for? If you value simplicity and want one, strong standalone credit card, it doesn’t get much better than the Capital One Venture X Rewards Credit Card. It offers a straightforward rewards structure, a myriad of valuable benefits and a lower annual fee than other high-end cards with similar features.

Cardholders earn 2X miles on everyday purchases, plus 5X miles on flights and a whopping 10X miles on hotels and cars booked through Capital One Travel. These miles can be transferred to airline and hotel partners, such as Accor Live Limitless, Air Canada Aeroplan and Etihad Guest. You can also redeem rewards toward travel through Capital One Travel, cash-back, gift cards, experiences and more.

On top of that, the Venture X card offers up to $100 in statement credit for either Global Entry or TSA PreCheck®, complimentary cell phone insurance, special perks on hotel stays book through the Premier Collection and access to Capital One Lounges as well as the extensive network of Priority Pass and Plaza Premium airport lounges worldwide. Every year, cardholders receive up to $300 back in statement credits each year for bookings made through Capital One Travel and a 10,000-mile bonus on each account anniversary (worth at least $100 for travel), making it easy to recoup the $395 the annual fee.

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Things to consider before choosing a credit card

Having a credit card is an important piece of your financial profile, but with so many options available, it can be hard to find the best one for your needs. Here are some common questions to ask yourself so you can decide what’s the best credit card for you.

Do you want to earn rewards?

There are hundreds of rewards credit cards out there, where you can earn cash back, points or miles on every purchase you make.

And if you want to earn rewards, what specific categories are most important to you?

Rewards credit cards come in all shapes and sizes. If you want to maximize rewards in specific categories, check out cards offering bonus rewards on gas, groceries, restaurants, entertainment, travel and more. Or keep it simple and opt for a flat-rate cash-back card.

Learn more: Are credit card points taxable? Here’s when you may have to pay taxes on your rewards

Are you looking to get out of debt?

If you’re carrying a balance on a high-interest credit card, consider transferring it to a balance transfer credit card offering no interest for up to 21 months. There are even cards with no balance transfer fees.

Do you want to build credit?

Experts agree the sooner you build credit, the better. Credit cards are a great way to do that. Check out secured cards for credit newbies or other cards for building or rebuilding credit.

Do you travel abroad?

A credit card with no foreign transaction fees is essential to save you the typical 3% fee per purchase made outside the U.S. Also, it can be a good idea to consider cards that waive Global Entry or TSA PreCheck application fees.

Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.

What credit score do I need to get the best cards?

When you apply for a credit card, the bank or lender will review your credit report from one or more of the three major credit bureaus. It will also typically check your FICO credit score, the top credit cards usually require a very good or excellent credit score.

This is how FICO credit scores are classified according to myFICO:

Poor/bad credit: Less than 580

Fair credit: 580-669

Good credit: 670-739

Very good credit: 740-799

Exceptional/excellent credit: 800 or higher

Building and maintaining a healthy credit score helps your personal finances in all sorts of ways outside of increasing your chances of getting approved for a great sign-up bonus. Your FICO score is calculated based on the following factors and each is weighted differently:

Payment history: 35%

Total debt: 30%

Length of credit history: 15%

New credit: 10%

Credit mix: 10%

FAQs

How many credit cards should I have?

Many people have multiple credit cards, and there are benefits to this. It can help increase your credit score by giving you more available credit and therefore a better credit utilization ratio.

At its most basic, having access to more credit can help you finance more purchases if you don’t have enough cash to cover everything up front.

You can also earn more rewards by optimizing which card you use for certain spending categories. For instance, you may make all your dining purchases with a card that earns bonus rewards in that category, but another card with a bonus multiplier for grocery purchases.

Ultimately, it’s up to you to decide how many credit cards you need. Make sure to evaluate your spending habits and research what card would be best for you.

What do I need to apply for a credit card?

Applying for a credit card is easy, and you’ll often get an instant decision on whether you’re approved or denied. To apply for a credit card, you’ll generally need to provide the following:

Full legal name

Date of birth

Social Security or Individual Taxpayer Identification Number

Mailing address

Email address and/or phone number

Annual income

Housing costs

How old do I have to be to get a credit card?

What is the easiest credit card to get?

Secured credit cards are generally the easiest credit cards to be approved for. They are similar to traditional cards (they extend credit, can incur interest charges and in some cases can even earn rewards) but require you to put down a security deposit to access a line of credit. The amount you deposit usually becomes your credit limit.

Which type of card is most accepted?

There are four major credit card issuers: American Express, Discover, Mastercard and Visa.

Visa and Mastercard are the most widely accepted credit card networks globally. That said, American Express and Discover still have 99% acceptance rates among U.S. merchants who take credit cards and are increasing their international footprints.

What is a credit card’s billing cycle?

When it comes to credit cards, most billing cycles are one month or 28 to 31 days. After your billing cycle ends, you typically have what is known as a grace period where you can pay off your full balance without incurring any interest charges. However, if you pay off your card balance before the billing cycle ends, it will help to keep your credit utilization down, which boosts your credit score.

Keep in mind that the grace period may not apply to all charges. Balance transfers and cash advances are usually charged interest starting on the transaction date.

Do I need a business credit card?

Having a separate credit card for your small business or side hustle is important so you can keep your personal and business activities separate. Business credit cards come in all shapes and sizes, there are business cards that offer cash-back rewards, travel rewards and everything in between.

The right business credit card for you should offer bonus rewards that align with your business spending. To keep it simple, you can start your business credit card search at the bank where you currently have your business bank accounts. If you bank with Wells Fargo, Bank of America or Chase, then it may be easiest to have all of your accounts with one institution.

Many of the banks that offer the best consumer cards also have top-notch business cards. For example, Chase has the Ink Business line of small business cards, which includes the Ink Business Unlimited® Credit Card and the Ink Business Cash® Credit Card. Both cards have no annual fee, hefty sign-up bonuses and generous bonus spending categories.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.

Our methodology

To determine which cards offer the best value, CNBC Select analyzed over 250 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards (e.g., cash back, points and miles), annual fees, welcome bonuses, introductory and standard APR, balance transfer fees and foreign transaction fees, as well as factors such as required credit score when available. We also considered additional perks (e.g., ongoing travel or merchant statement credits), consumer protections, the application process and how easy it is to redeem points.

For the cards that offered a rewards program, we considered consumer spending data from location intelligence firm Esri to determine what bonus categories are most useful for consumers. Since the value of a point or mile varies based on what they can be redeemed for, we also considered things like transferability and ability to redeem for cash-back.

When choosing the best balance transfer card, we focused on the card that provides consumers with the cheapest way to pay off their debt rather than the number of rewards they could potentially earn. When you’re in credit card debt, your primary focus should be repayment. Earning rewards should be seen as a bonus, and you don’t want to spend beyond your means to earn points.

For rates and fees of the American Express® Gold Card, click here.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.

For rates and fees of the Discover it® Secured Credit Card, click here.

For rates and fees of the Discover it® Student Cash Back, click here.

For rates and fees of the Discover it® Miles, click here.

For rates and fees of The Platinum Card® from American Express, click here.

Petal 2 Visa Credit Card issued by WebBank.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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April 9, 2024
The 14 best 0% APR credit cards: Finance debt or new purchases interest-free for up to 21 months
Credit cards can be a useful tool for financing new purchases and consolidating old debt. Some of the best credit cards offer no interest on new purchases, balance transfers or both — for up to 21 months. This can add up to substantial savings if you’re carrying a balance on a high-interest credit card, where a portion of your payment goes toward interest charges.

If you have lingering debt on an existing card or plan on making a large purchase, it’s financially smart to open an intro 0% APR credit card, if you use it responsibly. Below, CNBC Select rounds up some of the best credit cards that offer no interest, so you can maximize your savings. (Read more about our methodology below.)

Best for purchases and balance transfers

Wells Fargo Reflect® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.

Regular APR

18.24%, 24.74%, or 29.99% Variable APR on purchases and balance transfers

Balance transfer fee

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

No annual fee

Long introductory APR period on purchases and qualifying balance transfers

Access to Visa Signature® Concierge

Get up to $600 cell phone protection (subject to a $25 deductible)

Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining

Cons

No rewards

No welcome bonus

3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo Reflect® Card is ideal for someone looking to either pay off large purchases over time or consolidate existing debt.

The card offers a 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (18.24%, 24.74%, or 29.99% variable APR afterward). Balance transfers made within 120 days from account opening qualify for the intro rate, BT fee of 5%, min $5.

This card doesn’t offer any sort of spending rewards, but it does offer cell phone protection.

Best for low balance-transfer fee

Citi Simplicity® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening.

Regular APR

Balance transfer fee

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Foreign transaction fee

Credit needed

Pros

No annual fee

Balances can be transferred within 4 months from account opening

One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee

No rewards program

Who’s this card for? The Citi Simplicity® Card is a great option for someone looking to consolidate existing credit card debt from other cards. With this card, you’ll earn a 0% intro APR for 21 months on balance transfers from the date of the first transfer. (variable APR will be 19.24% – 29.99% afterward). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

This can also be a good option for someone who is actively looking to move credit card debt as new cardholders have four months to complete balance transfers (longer than the typical 60 to 90 days).

The only drawback is that it does not offer cash back or any other type of rewards.

Best for balance transfers

Citi® Diamond Preferred® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR

Balance transfer fee

5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.

Foreign transaction fee

Credit needed

See rates and fees. Terms apply.

Pros

No annual fee

Balances can be transferred within 4 months from account opening

One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee

Who’s this card for? The Citi® Diamond Preferred® Card is another great option for financing large purchases or transferring existing credit card debt. Cardholders get 0% intro APR for 21 months on balance transfers from the date of the first transfer and 0% intro APR for 12 months on purchases (18.24% – 28.99% variable APR afterward).

Best for welcome bonus

Citi Double Cash® Card

Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24

Welcome bonus

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% for the first 18 months on balance transfers; N/A for purchases

Regular APR

Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

2% cash back on all eligible purchases

Simple cash-back program that doesn’t require activation or spending caps

One of the longest intro periods for balance transfers at 18 months

Cons

3% fee charged on purchases made outside the U.S.

Estimated rewards earned after 1 year: $443

Estimated rewards earned after 5 years: $2,213

Who’s this for: The Citi Double Cash® Card is a generous cash-back credit card to use on daily expenses that also comes with a great balance transfer offer.

Upon approval for the card, you’ll get a 0% intro APR for 18 months on balance transfers (19.24% – 29.24% variable APR afterward; balance transfers must be completed within 4 months of account opening). The balance transfer fee is 3% of the amount you transfer ($5 minimum) within the first four months, then the balance transfer fee increases to 5% of any amount you transfer ($5 minimum).

Then, as you spend on the card, you will earn 2% cash back — 1% when you make a purchase and an additional 1% when you pay your credit card bill.

Best for low standard APR

U.S. Bank Visa® Platinum Card

Information about the U.S. Bank Visa® Platinum Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

Welcome bonus

Annual fee

Intro APR

0% for the first 18 billing cycles on balance transfers and purchases

Regular APR

18.74% – 29.74% (Variable)

Balance transfer fee

An introductory fee of either 3% of the amount of each transfer or $5 minimum, whichever is greater, for balances transferred within 60 days of account opening. After that, either 5% of the amount of each transfer or $5 minimum, whichever is greater

Foreign transaction fee

Credit needed

Pros

No annual fee

Cell phone protection plan

Cons

No rewards program

2% to 3% foreign transaction fee

Balances must be transferred within 60 days from account opening

Who’s this card for? The U.S. Bank Visa® Platinum Card is useful for those looking to transfer existing credit card debt or finance new purchases at a great rate. With this card, you’ll earn a 0% intro APR on purchases and balance transfers for the first 18 billing cycles of card membership (18.74% – 29.74% variable APR afterward). Balances must be transferred within 60 days from account opening.

The card doesn’t come with any spending rewards, but it has a solid cell phone coverage benefit and no annual fee.

Best for cash back

Wells Fargo Active Cash® Card

On Wells Fargo’s secure site

Rewards

Unlimited 2% cash rewards on purchases

Welcome bonus

Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual fee

Intro APR

0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate

Regular APR

20.24%, 25.24%, or 29.99% Variable APR on purchases and balance transfers

Balance transfer fee

3% intro for 120 days from account opening then BT fee of up to 5%, min: $5

Foreign transaction fee

Credit needed

Pros

Unlimited cash rewards

$200 cash rewards welcome bonus

No annual fee

Introductory APR period for first 15 months

Access to Visa Signature® Concierge

Get up to $600 cell phone protection (subject to a $25 deductible)

Cons

3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo Active Cash® Card is a great choice for earning cash rewards on your everyday purchases, as well as interest-free financing.

To start, this card comes with 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfer fee of 3% for 120 days from account opening, then up to 5%, min: $5. Then, as you spend on the card, you will earn unlimited 2% cash rewards on all eligible purchases.

The card also comes with a $200 cash rewards bonus after you spend $500 in purchases in the first three months.

Best for no foreign transaction fees

Capital One SavorOne Cash Rewards Credit Card

Rewards

Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024, 8% cash back on Capital One Entertainment purchases, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel; Terms apply, 3% cash back on dining and at grocery stores (excluding superstores like Walmart® and Target®), 3% cash back on popular streaming services and entertainment, and 1% cash back on all other purchases

Welcome bonus

Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening

Annual fee

Intro APR

0% intro APR on purchases and balance transfers for 15 months

Regular APR

19.99% – 29.99% variable

Balance transfer fee

3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time

Foreign transaction fee

Credit needed

Pros

3% cash back on dining and entertainment purchases

Ability to redeem rewards at any amount, unlike some other cards with $25 minimums

Competitive special financing offer on both new purchases and balance transfers

No fee charged on purchases made outside the U.S.

Cons

3% balance transfer fee on the amounts transferred within the first 15 months

Who’s this card for? The Capital One SavorOne Cash Rewards Credit Card is a great pick for tiered cash-back rewards and an intro APR.

Cardholders get a 0% intro APR on purchases and balance transfers for 15 months; 19.99% – 29.99% variable APR after that; balance transfer fee applies (3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time; see rates and fees).

The reward rates are as follows:

10% cash back on Uber and Uber Eats

5% on hotels and rental cars booked through Capital One Travel

3% on dining and entertainment

3% on eligible streaming services

3% at grocery stores (excluding superstores like Walmart® and Target®)

1% on all other purchases

Perks include a complimentary Uber One membership through Nov. 14, 2024 and access to presale and VIP tickets for concerts, sports games and exclusive events through Capital One Entertainment. In addition, you can earn an easy one-time cash bonus of $200 by spending $500 on purchases within the first three months from account opening.

Best for online shopping

Blue Cash Everyday® Card from American Express

On the American Express secure site

Rewards

3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%, 3% cash back at U.S. gas stations, up to $6,000 per year, then 1%, 3% cash back on U.S. online retail purchases, on up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits or at Amazon.com checkout.

Welcome bonus

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

Annual fee

Intro APR

0% intro APR for 15 months on purchases and balance transfers, from the date of account opening

Regular APR

Balance transfer fee

Either $5 or 3% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Pros

3% cash back at U.S. supermarkets (up to $6,000 a year, then 1%)

3% cash back at U.S. gas stations, (up to $6,000 per year, then 1%)

Amex Offers, which provide statement credits or opportunity to earn more rewards at select merchants

Cons

2.7% fee on purchases made abroad

Not great for people who don’t regularly go grocery shopping

Estimated rewards earned after 1 year: $547

Estimated rewards earned after 5 years: $1,935

Rewards totals incorporate the points earned from the welcome bonus

Who’s this card for? Depending on your spending habits, it might make sense to get the Blue Cash Everyday® Card from American Express. The Blue Cash Everyday Card offers a 0% intro APR on purchases for 15 months from the date of account opening, then a variable APR of 19.24% – 29.99%, (see rates and fees). Balance transfers must be requested within 60 days of account opening and here’s a balance transfer fee that’s either $5 or 3% of the amount of each transfer (whichever is greater). The main difference is the earning rates.

As you spend on the card, you’ll earn as follows:

3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)

3% at U.S. gas stations (up to $6,000 per year in purchases, then 1%)

3% on U.S. online retail purchases (up to $6,000 per year, then 1%)

1% on all other purchases

The welcome bonus for the Blue Cash Everyday® Card from American Express offers a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months.

Best card for dining

Chase Freedom Unlimited®

Rewards

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

3% of each transaction in U.S. dollars

Credit needed

Member FDIC. Terms apply.

Pros

No annual fee

Rewards can be transferred to a Chase Ultimate Rewards card

Generous welcome bonus

Cons

3% fee charged on foreign transactions

Who’s this card for? The Chase Freedom Unlimited® is another great cash-back card with interest-free features and is similar to the Freedom Flex card.

You’ll get a 0% intro APR for 15 months from account opening on purchases and balance transfers (20.49% – 29.24% variable APR afterward). You’ll also earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back! Earn 6.5% cash back on travel purchased through Chase Ultimate Rewards®, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases.

Best for purchase protections

Chase Freedom Flex℠

Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases

Welcome bonus

Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% cash back on combined gas station and grocery store purchases (excluding Target and Walmart) on up to $12,000 spent in the first year.

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Member FDIC. Terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Pros

No annual fee

Generous welcome bonus

Opportunity to earn up to 5% cash back in select categories upon activation

Rewards can be transferred to a Chase Ultimate Rewards card

Cons

Bonus categories must be activated each quarter

3% fee charged on foreign transactions

Who’s this card for? The Chase Freedom Flex℠ is a terrific option for someone looking for a card with rotating spending categories, as well as interest-free financing.

With this card, you’ll get 0% intro APR for 15 months from account opening on purchases and balance transfers (20.49% – 29.24% variable APR afterward). In addition, you can earn solid cash back with the card, including up to 5% cash back on travel purchases through the Chase Travel Portal, 3% on drugstore purchases and dining and 1% back on all other purchases. However, the real value of this card is spending within Chase’s quarterly 5% cash-back categories, so if you regularly spend in different categories, this card may be a good fit.

As an added bonus, new cardholders can currently $200 cash back after spending $500 on purchases in the first three months from account opening.

Best for rotating categories

Citi Custom Cash® Card

Rewards

5% cash back on purchases in top eligible spend category each billing cycle, up to the first $500 spent (then 1%); unlimited 1% cash back on all other purchases

Welcome bonus

Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% APR on balance transfers and purchases for first 15 months

Regular APR

Balance transfer fee

5% of each balance transfer ($5 minimum)

Foreign transaction fee

Credit needed

See rates and fees. Terms apply.

Pros

No annual fee

5% cash back in eligible spend categories like restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment

$200 cash back welcome bonus if meet spending threshold

Cons

5% cash back is limited to top spend category, up to the first $500 spent

3% foreign transaction fee when traveling outside the U.S.

Who’s this for? The Citi Custom Cash® Card is ideal for those whose spending habits may change from month to month but still want to maximize their spending. Cardholders automatically earn 5% cash back on their top eligible spending categories, up to the first $500 spent (then 1%), each billing cycle in the form of ThankYou® Points.

Unlike some other 5% cash-back cards, you don’t need to go through the hassle of activating any bonus categories with the Citi Custom Cash. There are 10 eligible spending categories for the bonus, including restaurants, gas stations, select streaming services and others.

The card also offers a decent welcome bonus of $200 cash back after spending $1,500 on purchases within the first six months of account opening.

Best for travel rewards

Amex EveryDay® Credit Card

Information about the Amex EveryDay® Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X), 1X Membership Rewards® points per dollar spent on all other purchases

Welcome bonus

Earn 10,000 Membership Rewards® points after you make $2,000 in purchases in your first 6 months of card membership

Annual fee

Intro APR

0% for the first 15 months on purchases and balance transfers from the date of account opening

Regular APR

18.24% to 29.24% variable

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No annual fee

Competitive intro period on purchases

20% extra point bonus when you make 20 or more purchases in a billing period

Cons

2.7% foreign transaction fee

Who’s this card for? The Amex EveryDay® Credit Card is for someone interested in earning transferrable travel rewards, as well as having an interest-free financing option.

When you’re approved for the card, you will have 0% intro APR purchases and balance transfers for 15 months from the date of account opening (18.24% – 29.24% variable APR afterward; see rates and fees). As you spend on the card, you’ll earn 2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X) and 1X Membership Rewards points per dollar spent on all other purchases.

In addition, you can earn a simple welcome bonus of 10,000 Membership Rewards points after you use your new card to make $2,000 in purchases in your first six months of card membership.

Best for Bank of America customers

Bank of America® Unlimited Cash Rewards credit card

Rewards

Unlimited 1.5% cash back on all purchases, but you earn 25%-75% more cash back on every purchase if you’re a Preferred Rewards member

Welcome bonus

$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.

Annual fee

Intro APR

Introductory 0% APR for your first 18 billing cycles on purchases and balance transfers made within 60 days of account opening.

Regular APR

Balance transfer fee

3% of the amount of each transaction

Foreign transaction fee

Credit needed

Pros

No annual fee

Unlimited cash-back

$200 online cash rewards bonus

Cons

3% foreign transaction fee

Can’t receive a greater cash-back rate unless you’re a Preferred Rewards member

Estimated rewards earned after 1 year: $532

Estimated rewards earned after 5 years: $1,860

Rewards totals incorporate the cash-back earned from the welcome bonus and 1.5% back

Who’s this card for? The Bank of America® Unlimited Cash Rewards Credit Card is another solid option for someone looking for simple cash-back options as well as favorable financing options.

With this card, you will get 0% intro APR for your first 18 billing cycles for purchases and for any balance transfers made within the first 60 days of opening your account (17.99% to 27.99% variable APR afterward). As you spend on the card, you will earn 1.5% cash back on all purchases.

Additionally, you can earn a $200 online cash rewards bonus after spending $1,000 in purchases in the first 90 days from account opening.

Best for everyday purchases

American Express Cash Magnet® Card

Information about the American Express Cash Magnet® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the cards prior to publication.

Rewards

Unlimited 1.5% cash back on all purchases

Welcome bonus

Earn a $200 statement credit after spending $2,000 in purchases within your first 6 months of card membership.

Annual fee

Intro APR

0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No annual fee

0% intro APR offer

Cons

2.7% fee on purchases outside the U.S.

Cash back comes in the form of a statement credit (with a minimum redemption of $25)

Who’s this card for? The American Express Cash Magnet® Card is a solid cashback card for someone looking for simplicity, as well as a 0% intro APR period.

With this card, you’ll have a 0% intro APR on purchases for 15 months from the date of account opening, then a variable APR of 19.24% – 29.99%, (see rates and fees). As you spend on the card, you’ll earn 1.5% cash back on all purchases.

New cardholders have the opportunity to earn a $200 bonus after spending $2,000 in purchases within the first six months of card membership.

How to get the most benefit from 0% APR cards

A 0% APR card is most beneficial when you understand the terms of the offer and set up a plan to pay off your debt. Here’s what to keep in mind if you’re considering a 0% intro APR credit card for your wallet.

Read the fine print

Make sure you familiarize yourself with any fine print associated with the 0% APR offer, such as the expiration date, timeline for completing a balance transfer, any balance transfer fees and the interest rate once the intro period ends.

Create a repayment plan

You’ll need to come up with a plan to pay off credit card debt. The amount you need to pay each month to have a zero balance at the end of the intro period depends on the length of the intro period.

For example, if you have a $4,500 balance on the Chase Freedom Flex, which offers an intro APR period of no interest for the first 15 months on balance transfers and purchases (after, 20.49% – 29.24% variable APR), you’ll need to pay $300 each month to pay off your old balance before the intro period ends. But if you have the U.S. Bank Visa® Platinum Card, with 0% intro APR for 18 months on balance transfers (then 18.74% – 29.74% variable APR), the monthly payment decreases to $250.

Pay off your balance in full

It’s very important to pay off any transferred debt or lingering new purchase balances before the intro 0% APR period ends. If you don’t, expect to be hit with the regular purchase APR. And if you have a store card, you could be hit with a bill for all the interest you accrued since the date you made your purchase or transfer (known as deferred interest). None of the cards on this list charge cardholders deferred interest.

Learn more: 5 things to do once your balance transfer is complete.

Best ways to use a 0% APR credit card

Credit cards that offer no interest on purchases and/or balance transfers are a great asset for consumers looking to save on interest charges when they carry a balance month-to-month. The best way to use a 0% APR card depends on your situation, but typically falls into one of three ways:

If you plan on making large purchases, such as a new iPhone or workout equipment, and need more time to pay them off, a 0% APR card can help you pay over time with no interest charges.

If you have debt on a high-interest card, completing a balance transfer to a card with no interest for up to 20 months can help you pay it off faster and cheaper.

If you fall into both categories, a card with no interest on new purchases and balance transfers can help you pay off large expenses and old debt at the same time.

Remember that you’ll need to make minimum payments on your balance and pay it off in full before the intro period ends to avoid interest.

Learn more: How 0% APR cards work and how to complete a balance transfer

How to compare 0% APR and low-interest cards

If you’re not sure whether a 0% APR card or a low-interest credit card is the right choice, ask yourself the following questions.

Are you carrying debt from a high interest credit card? Then you should consider a balance transfer credit card with up to 21 months of no interest.

Do you plan on making a large purchase? A 0% APR card can provide you with a lengthy intro period that allows you to pay off debt for over a year with no interest.

Do you carry a balance month to month? A low interest credit card offers a relatively consistent APR every month, compared to 0% APR cards that typically charge high-interest rates after the intro period ends.

After you determined which credit card you want to apply for, compare cards by these key factors:

Length of intro APR period: Cards can have intro periods anywhere from three months to 21 months. Many popular rewards cards offer no interest for 15 months, and non-rewards cards can have 18- and 21-month intro 0% APR periods. For new purchases or lingering debt, the longer the better, but if you’re completing a balance transfer, consider the cost of any balance transfer fees before applying.

Regular APR: Credit cards offering intro 0% APRs tend to have higher regular APRs than low-interest cards. Consider the regular APR before settling on a card if you think you may carry a balance once the intro 0% APR period ends.

Balance transfer fee: Many balance transfer cards charge a fee per transfer. This fee can be outweighed by the amount you save in interest, but make sure to do the math. If you want to avoid fees, check out the best no-fee balance transfer credit cards.

Annual fee: Most 0% APR cards and low interest cards have no annual fee, but some may. Make sure to review the annual fees associated with the cards.

Rewards and added perks: The best 0% APR cards also offer cash back, points and miles, in addition to added perks, such as purchase protection and exclusive entertainment access. While these are nice benefits, paying off debt should be your primary goal.

Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.

FAQs about 0% intro APR credit cards

How do 0% APR credit cards work?

A 0% APR credit card offers no interest for a set amount of time, usually 12 to 21 months. During the intro 0% APR period, you won’t be charged interest on new purchases or balance transfers. These cards can help you consolidate credit card debt with a balance transfer, pay for new purchases over time without incurring interest charges or both.

Balance transfer credit cards may set a limit on the amount of debt you can transfer, which is often less than your overall credit limit. Plus you may be charged a balance transfer fee, typically 3% per transfer.

What credit score is required for 0% APR credit cards?

Most 0% APR credit cards are reserved for consumers with good (670-739) or excellent (740 and greater) credit. If your credit score is fair (580 to 669) or poor (below 580) you may have trouble qualifying for a 0% APR card.

How does your credit score affect your interest rate?

In general, the lower your credit score, the higher your interest rate will be. It’s important to have a good credit score for a variety of reasons: It affects your ability to get certain types of loans and/or credit cards, the size of those loans and the interest rate on your card and/or loan.

A 0% APR credit card can help you avoid interest charges for a certain period. Using the extra cash you save not paying interest can help you pay down your debt faster, lower your credit utilization and increase your credit score.

When should I avoid a 0% APR credit card?

A no-interest credit card is a great tool for financing new purchases, but you need to be careful how you use one. If you have a history of overspending, you may be tempted to spend more on a 0% APR card since you have upwards of a year to pay off your entire balance without interest, compared to a regular card that requires you to pay your balance in full each billing cycle to avoid interest charges.

How do I avoid interest on a credit card?

The simplest way to avoid interest charges on a credit card is to pay your balance in full by the due date. However, there’s an exception with 0% APR cards. During the length of the intro period, you are only required to make the minimum payments on your balance, and you won’t be charged interest on new purchases and/or balance transfers. Once the intro period ends, any lingering balances or new purchases and transfers will incur the regular APR.

Do 0% APR credit cards hurt your credit?

When you apply for a credit card (including a 0% APR card), you’ll have a hard credit pull on your credit report, which typically comes with a dip of a few points in your credit score. However, this dip is temporary and you’re credit score should rise in a few months.

However, if you use a large amount of your credit line on your card for either purchases or a balance transfer, your credit utilization ratio could rise and cause a more significant drop in your credit score. Experts generally recommend keeping your credit utilization ratio below 30% of your total credit line. For example, if you had a $10,000 credit limit you’d want to keep your monthly spending under $3,000 to keep your credit utilization low.

Are there any 0% APR credit cards for 21 months?

There are a few credit cards that offer 0% APR on new purchases and balance transfers for up to 21 months.

The Citi Simplicity® Card offers 0% intro APR for 21 months on balance transfers from the date of first transfer and 0% intro APR for 12 months on purchases from the date of account opening (after, 19.24% – 29.99% variable APR; balance transfers must be completed within four months of account opening).

The Wells Fargo Reflect® Card offers 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (18.24%, 24.74%, 29.99% variable APR afterward). Balance transfers made within 120 days from account opening qualify for the intro rate, BT fee of 5%, min $5.

The Citi® Diamond Preferred® Card offers 0% intro APR for 21 months on balance transfers and 0% intro APR for 12 months on purchases (variable APR is 18.24% – 28.99% after; balance transfers must be completed within four months of account opening).

Bottom line

0% intro APR cards are powerful tools if you need flexible financing. However, needlessly holding onto debt is never a good idea, so be sure to have a plan in place to pay off any debt you have.

And if you’re considering a 0% intro APR card, be sure to also consider one that earns cash-back or travel rewards so you can get something back on your purchases.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best 0% APR credit cards.

Our methodology

To determine which credit cards offer the best value, CNBC Select analyzed 234 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

Select teamed up with location intelligence firm Esri. The company’s data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri’s data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net of the annual fee.

While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you may earn a higher or lower return depending on your shopping habits.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

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Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Information about the Bank of America® Unlimited Cash Rewards Card, Amex EveryDay® Credit Card, American Express Cash Magnet® Card has been collected independently by Select and has not been reviewed or provided by the issuers of the cards prior to publication.

For rates and fees of the Amex EveryDay® Credit Card, click here.

For rates and fees of the American Express Cash Magnet® Card, click here.

For rates and fees of the Blue Cash Everyday® Card from American Express, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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March 31, 2024
CNBC’s best tax software of 2024
Tax season can be stressful, but with the right tax software, you can save time and money and ensure accuracy. These programs guide users through the process so they can maximize deductions and increase their refunds. Many of the top tax filing software companies offer free and paid plans to cater to a wide range of users and stand behind their services with accuracy guarantees.

CNBC Select rounded up 2024’s best tax software providers based on factors like cost, user experience, expert tax assistance and additional features. (Read more about our methodology below.)

Best tax filing software of 2024

Best for user experience

TurboTax

Cost

Costs may vary depending on the plan selected – click “Learn More” for details

Free version

TurboTax Free Edition. ~37% of taxpayers qualify. Form 1040 + limited credits only.

Mobile app

Live support

Available with some pricing and filing options

Click here for TurboTax offer details and disclosures. Terms apply.

Pros

Step-by-step guidance with a Q&A format that is easy to follow

TurboTax Live provides on-demand advice and a final review from a tax expert

Live Full Service has a tax expert prepare, sign, and file your return

Audit support, which provides free assistance if you get an IRS or other tax notice

Cons

More costly than other software programs

Live expert assistance plans have additional costs

TurboTax is a leading tax preparation software that offers a variety of plans and backs its services with several guarantees. It guides you through each step with straightforward questions, and you get access to explainers, videos and extra tips. You can also pay to add live assistance — or let a professional handle your file altogether.

Standout features: TurboTax guarantees a maximum refund, 100% accuracy and audit support for your tax return. The software allows you to easily upload tax documents, and you can opt to file with the TurboTax app. Various levels of live assistance are available, including with free filing for qualifying users with TurboTax Free Edition. According to TurboTax, around 37% of filers qualify for free filing with expert help. Additionally, TurboTax offers tax refund advances.

Best for DIY filing

H&R Block

Cost

Costs may vary depending on the plan selected (Free Online, Deluxe, Premium, or Self-Employed) – click “Learn More” for details

Free version

Yes (for simple returns only)

Mobile app

Live support

Available with some pricing and filing options

Pros

Simple step-by-step guidance that’s easy to follow

Unlimited on-demand chat or video support with Online Assist plans

Ability to speak to a tax expert who has an average of 10 years experience (for paid plans only)

Over 11,000 physical locations so you can meet with a tax expert in-person

Maximum refund guarantee, or H&R Block will refund the plan fees you paid

Audit support guarantee, which provides free assistance if you get an IRS or other tax notice

100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000

Cons

Must have a paid plan to speak with a live tax expert

One of the more costly software programs

H&R Block is a tax preparation company operating in the U.S., Canada and Australia. It makes the filing process relatively simple, especially if you’re filing on your own, though you can also pay for a professional to review your return. Depending on the plan, customers can get live support online, over the phone or at over 11,000 tax offices nationwide.

Standout features: H&R Block provides access to AI Tax Assist with all plans. The company also guarantees a maximum refund, 100% accuracy, transparent pricing and process, as well as free audit assistance and mid-year care check-in. You can opt to file taxes online, with tax software or in person. H&R Block also offers tax refund advances.

Best free tax software

Cash App Taxes (formerly Credit Karma Tax)

Cost

Free version

Mobile app

Tax expert support

Pros

Completely free to use

Get access to Cash App Tax services like credit monitoring alerts and credit score updates

Audit defense, which gives you support from a representative if the IRS audits your tax return

Maximum refund guarantee, or Cash App will pay you the difference up to $100 ($25 minimum)

100% accuracy, or Cash App will reimburse you for any penalties up to $1,000

Cons

Only available in 40 states and D.C. You can’t file with Cash App Taxes (formerly Credit Karma Tax) if you lived in a state for only part of the tax year, earned income in more than one state during the tax year or earned income in a state you didn’t live in

No support from tax professionals

Cash App Taxes, formerly Credit Karma Tax, is worth looking into if your goal is to not spend money on filing your taxes. In most tax situations, you can use it to file your state and federal returns for free. Note that unless your return is simple, you need to be fairly comfortable doing your taxes yourself. It doesn’t offer access to professional tax advice or support certain situations, such as multistate returns or foreign income.

Standout features: Cash App Taxes guarantees a maximum refund and 100% accuracy. The company also includes free audit defense with every return.

Best affordable tax software

TaxSlayer

File your taxes for as low as $27.02 with TaxSlayer*

Cost

Costs may vary depending on the plan selected

Free version

Mobile app

Tax expert support

Pros

Cheaper plans, making this a more affordable choice if you don’t have a simple return and need to upgrade

Low state filing fees

One-on-one support from real tax experts with Ask a Tax Pro (select plans only)

100% accuracy, or TaxSlayer will reimburse you for any penalties or interest charges

Maximum refund guarantee, or TaxSlayer will refund the plan fees you paid

IRS inquiry and audit support with select plans

Cons

Experts are only available on Premium and Self-Employed plans

*18% off your federal tax return. Offer is valid on federal tax returns e-filed by April 15, 2024, at 11:59 p.m. ET. Only valid for new or first time TaxSlayer users only. Promotion code must be entered at checkout. Offer is not applicable to state tax returns or additional products. Offer is valid for one-time use only and cannot be combined with any other coupons, promotions, discounts, or offers. Offer is nontransferable, cannot be sold or otherwise bartered, and is not applicable to previous purchases or returns.

TaxSlayer is an IRS-approved tax preparation software that backs its services with several guarantees. Packages are priced based on your tax situation and the level of support you want. That means if you’re a confident filer or have a simple tax situation, you can save some money by skipping features like chat support. As a member of the Free File Alliance, TaxSlayer also offers free tax services to eligible taxpayers in partnership with the IRS.

Standout features: TaxSlayer provides a maximum refund and a 100% accuracy guarantee. You can also file your taxes on the go through the mobile app. Additionally, TaxSlayer offers the option to deduct the cost of its services from your federal refund, which allows you to skip paying when you file.

Best for accuracy guarantee

TaxAct

Cost

Costs may vary depending on the plan selected – click “Learn More” for details

Free version

Mobile app

No, the mobile app was discontinued

Tax expert support

Pros

Up to $100,000 accuracy guarantee, which reimburses you for IRS/state penalty or interest if the TaxAct software causes a calculation error in your return

More affordable than other paid software

Free one-on-one support from real tax experts with all plans

Maximum refund and 100% accuracy guarantee, or TaxAct will refund the plan fees you paid and pay any difference in the refund or tax liability, plus cover any legal or audit costs up to $100,000

Cons

Free plan charges per state return

TaxAct is a good pick for those who have a complicated tax situation and want to prioritize their return’s accuracy. While every provider on this list guarantees 100% accuracy, TaxAct takes it to the next level. If your return isn’t accurate, or you don’t get your maximum refund, the company will refund your software costs and pay any difference in your lower refund or higher tax liability, as well as cover any legal or audit costs up to $100,000. TaxAct is a also member of the Free File Alliance.

Standout features: TaxAct allows you to file online or download tax preparation software to use on your desktop. Plus, you can get help from a tax expert for a flat fee with TaxAct® Xpert Assist — a feature you can add to any of the provider’s plans.

How much does it cost to file taxes?

Different tax filing options have different costs.

Most tax preparation software comes with a free version, along with the option to upgrade to a paid plan. The tax prep services we reviewed either have no cost for free tax filing or charge as low as $11.05 for federal filing plus $4.95 per state. However, the costs can add up fast with the more complex deluxe, premium and self-employed plans — the most expensive is $170 for federal returns, plus $50 per state. If you want to add live tax support, the surcharge can be $35 to $100, plus state fees.

There’s also a DIY service provided by the IRS called IRS Free File where you can file your taxes at no cost. IRS Free File partners with online tax prep companies to help filers do free federal returns. Once you have your tax documents ready, go to IRS.gov and click on “IRS Free File.” From there, you can prepare and file your federal income tax online using either guided tax preparation (which redirects you to an IRS partner site) or Free File Fillable Forms.

If your tax return is more complicated and you don’t want to DIY using online software, you may want to think about hiring an expert like a CPA to file your taxes for you (which of course comes at its own cost). Keep in mind that some tax prep software offers an add-on benefit of live customer support with phone support and even full tax preparation, available for both individual tax filers and business owners. Costs generally range anywhere from $59 to upwards of $230.

Don’t miss: Free vs. paid tax services: When to plan on paying for an upgrade

Simple tax return vs. complex tax return

A simple tax return is the most basic type of tax return you can file, and many tax software programs let you file this return for free. A simple return generally includes W-2 income, limited interest and dividend income (i.e. investment income), standard deductions and unemployment income.

Some free plans also include the earned income tax credit (TurboTax Free Edition*, H&R Block, Cash App Taxes, and TaxAct), child tax credits (TurboTax Free Edition, H&R Block, Cash App and TaxAct) and student loan interest tax deductions (H&R Block, Cash App, TaxAct and TaxSlayer).

* (according to TurboTax, about 37% of taxpayers qualify for this edition and it’s available for Form 1040 + limited credits only)

If your finances are more complicated and you don’t qualify for a simple tax return, you’ll need to file a complex one and most tax software programs will charge you fees to file. Complex tax situations typically include anyone with freelance income (1099 tax forms or Schedule C forms for self-employed filers), small business owners (who would want to deduct business expenses) and landlords (who would want to deduct rental property expenses from their rental income), as well as anyone with investment income, or earnings from investments and stock sales.

The tax program you use will notify you if you can’t file a free simple tax return and instead need to upgrade and pay to file a more complex return. And even if you can file a simple tax return, you may want to pay for the next-tier plan to benefit from more tax deductions.

Should I itemize or take the standard deduction?

When you file your taxes, you can choose to lower your taxable income by either taking the standard deduction or by itemizing deductions.

The standard deduction is a preset amount that depends on your filing status, while itemized deductions are expenses you paid in the prior year that can reduce your taxable income. Itemized deductions may include mortgage interest, real estate taxes, property taxes, disaster losses, state and local income or sales taxes, charitable donations and partial medical and dental expenses, according to the IRS website.

In most cases, higher-income earners who have large, deductible expenses in the year prior will get a lower tax bill from itemizing versus taking the standard deduction. For example, owning rental property comes with tax-deductible perks that may exceed what a filer would otherwise receive through the standard deduction.

FAQs

When are taxes due?

The tax deadline this year is April 15, 2024. Due to state holidays, the deadline is slightly later for residents of Massachusetts and Maine — April 17.

What happens if I miss the tax deadline?

If you miss the April 15 deadline, you still need to file your taxes and should do so as soon as possible. You’ll incur a penalty if you file late and owe taxes, which only gets pricier the longer you wait. You won’t incur a penalty if you don’t owe and instead have a tax refund coming.

Can I pay taxes with a credit card?

You can pay taxes with a credit card, but providers typically charge a processing fee associated with doing so that may outweigh any benefits.

Besides the convenience factor, paying with a credit card allows you to earn cash back or other rewards, meet spending requirements for welcome bonus offers and potentially buy some extra time on tax payments by taking advantage of a 0% APR period. However, the processing fees and potential interest charges for late credit card payments can end up being greater than the value of the rewards.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax software review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best tax software options.

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Our methodology

To determine which tax software offers the best way to file your taxes online in 2024, CNBC Select analyzed over a dozen filing programs. We compared each program on a range of features, including:

Cost

User experience

Expert tax assistance

Accuracy and maximum refund guarantee

Better Business Bureau (BBB) rating

Customer reviews, when available

Cost was one of the most important factors. While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more bang for your buck, the higher a service ranked.

Whether you’re new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user-friendly.

The ability to speak with a tax expert or support representative was a big plus. Four out of five of the best tax software offered some form of support.

And if a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher.

We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints promptly. Customer reviews were also taken into consideration.

After reviewing the above features, we sorted our recommendations by best for user experience, DIY filing, free tax software, most affordable and best accuracy guarantee.

The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don’t charge you until you file, so there’s a chance the fees can change from the time you start your return until you submit it.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

* Cash App Taxes – TurboTax Free Edition: $0 Federal + $0 State + $0 To File offer is available for simple tax returns only with TurboTax Free Edition. A simple tax return is Form 1040 only (without any additional schedules).

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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March 12, 2024
Here’s why Capital One is buying Discover in the biggest proposed merger of 2024

Capital One CEO and Chairman, Richard Fairbank.

Marvin Joseph| The Washington Post | Getty Images

Capital One’s recently announced $35.3 billion acquisition of Discover Financial isn’t just about getting bigger â gaining “scale” in Wall Street-speak â it’s a bid to protect itself against a rising tide of fintech and regulatory threats.

It’s a chess move by one of the savviest long-term thinkers in American finance, Capital One CEO Richard Fairbank. As a co-founder of a top 10 U.S. bank by assets, his tenure is a rarity in a banking world dominated by institutions like JPMorgan Chase that trace their origins to shortly after the signing of the Declaration of Independence.

Fairbank, who became a billionaire by building Capital One into a credit card giant since its 1994 IPO, is betting that buying rival card company Discover will better position the company for global payments’ murky future. The industry is a dynamic web where players of all stripes â from traditional banks to fintech players and tech giants â are all seeking to stake out a corner in a market worth trillions of dollars by eating into incumbents’ share amid the rapid growth of e-commerce and digital payments.

“This deal gives the company a stronger hand to battle other banks, fintechs and big tech companies,” said Sanjay Sakhrani, the veteran KBW retail finance analyst. “The more that they can separate themselves from the pack, the more they can future-proof themselves.”

The deal, if approved, enables Capital One to leapfrog JPMorgan as the biggest credit card company by loans, and solidifies its position as the third largest by purchase volume. It also adds heft to Capital One’s banking operations with $109 billion in total deposits from Discover’s digital bank and helps the combined entity shave $1.5 billion in expenses by 2027.

‘Holy Grail’

But it’s Discover’s payments network â the “rails” that shuffle digital dollars between consumers and merchants, collecting tolls along the way â that Fairbank repeatedly praised Tuesday when analysts queried him on the strategic merits of the deal. There are only four major card networks: giants Visa and Mastercard, then American Express and finally the smallest of the group, Discover.

Capital One and Discover credit cards arranged in Germantown, New York, US, on Tuesday, Feb. 20, 2024.Â

Angus Mordant | Bloomberg | Getty Images

“That network is a very, very rare asset,” Fairbank said. “We have always had a belief that the Holy Grail is to be able to be an issuer with one’s own network so that one can deal directly with merchants.”

From the time of Capital One’s founding in the late 1980s, Fairbank said, he envisioned creating a global digital payments tech company by owning the payment rails and dealing directly with merchants. In the decades since, Capital One has been ahead of stodgier banks, gaining a reputation in tech circles for being forward-thinking and for its early adoption of cloud computing and agile software development.

But its growth has relied on Visa and Mastercard, which accounted for the vast majority of payment volumes last year, processing nearly $10 trillion in the U.S. between them.

Capital One intends to boost the Discover network, which carried $550 billion in transactions last year, by quickly switching all of its debit volume there, as well as a growing share of its credit card flows over time.

By 2027, the bank expects to add at least $175 billion in payments and 25 million of its cardholders onto the Discover network.

Owning the toll road

The true potential of the Discover deal, though, is what it allows Capital One to do in the future if it owns the toll road, according to analysts.

By creating an end-to-end ecosystem that is more of a closed loop between shoppers and merchants, it could fend off competition from rapidly mutating fintech players like Block and PayPal, as well as buy now, pay later firms like Affirm and Klarna, who have made inroads with both businesses and consumers.

Capital One aims to deepen relationships with merchants by showing them how to boost sales, helping them prevent fraud and providing data insights, Fairbank said Tuesday, all of which makes them harder to dislodge. It can use some of the network fees to create new loyalty plans, like debit rewards programs, or underwrite merchant incentives or experiences, according to analysts.

“Owning a network allows us to deal more directly with merchants rather than a network intermediary,” Fairbank told analysts. “We create more value for merchants, small businesses and consumers and capture the additional economics from vertical integration.”

It’s a capability that technology or fintech companies probably covet. The Discover network alone would be worth up to $6 billion if sold to Alphabet, Apple or Fiserv, Sakhrani wrote Tuesday in a research note.

Will regulators approve?

The Capital One-Discover combination could fortify the company against another potential threat â from Washington.

Proposed legislation from Sen. Dick Durbin, D-Ill., aims to cap the fees charged by Visa and Mastercard, potentially blowing up the economics of credit card rewards programs. If that proposal becomes law, the competitive position of Discover’s network, which is exempt from the limitations, suddenly improves, according toÂ Brian Graham, co-founder of advisory firmÂ Klaros Group. That mirrors what an earlier law known as theÂ Durbin amendment did for debit cards.

Chairman Dick Durbin (D-IL) speaks during a US Senate Judiciary Committee hearing regarding Supreme Court ethics reform, on Capitol Hill in Washington, DC, on May 2, 2023.

Mandel Ngan | AFP | Getty Images

“There are a bunch of things aimed, in one way or another, at the card networks and that ecosystem,” Graham said. “Those pressures might be one of the things that creates an opportunity for Capital One in the future if they have control over this network.”

The biggest question for Capital One, its customers and investors is whether the merger will ultimately be approved by regulators. While Fairbank said he expects the deal to be closed in late 2024 or early 2025, industry experts said it was impossible to know whether it will be blocked by regulators, like a string of high-profile takeovers among banks, airlines and tech companies.

On Tuesday, Democratic Sen. Elizabeth Warren of Massachusetts urged regulators to swiftly block the deal, calling it “dangerous.” Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, said he would be watching the deal to “ensure that this merger doesn’t enrich shareholders and executives at the expense of consumers and small businesses.”

The Discover deal’s survival may hinge on whether it’s seen as boosting an also-ran payments network, or allowing an already-dominant card lender to level up in size â another reason Fairbank may have played up the importance of the network.

“Which thing you are more concerned about will define whether you think this is a good deal or a bad deal from a public policy point of view,” Graham said.

Don’t miss these stories from CNBC PRO:

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February 21, 2024
CNBC’s best 0% APR credit cards of 2024
Credit cards can offer enticing rewards and benefits but often come with a catch: Credit cards usually charge sky-high interest rates compared to other lines of credit. As long as you pay your credit card bill in full each month, this doesn’t matter since you won’t incur interest charges â but that’s not always possible.

Carrying a balance on your card may negate any potential rewards and propel you into a cycle of debt. If you think you’ll need more time to pay off your balance, you might want to consider signing up for a credit card with aÂ no-interest offer.

0% intro APR credit cards offer no interest on new purchases and balance transfers for some time, typically ranging from six to 21 months. CNBC Select rounded up the credit cards with 2024’s best introductory 0% APR periods so you can maximize your savings. Keep in mind that introductory and regular APRs change over time. The offers listed in this article are based on what was available at the time of publication. (Read more about our methodologyÂ below.)

Best 0% APR credit cards of 2024

Citi SimplicityÂ® Card

Wells Fargo ReflectÂ® Card

CitiÂ® Diamond PreferredÂ® Card

U.S. Bank VisaÂ® Platinum Card

Citi Double CashÂ® Card

Amex EveryDayÂ® Credit Card

Capital One SavorOne Cash Rewards Credit Card (see rates and fees)

Chase Freedom Flexâ

Chase Freedom UnlimitedÂ®

American Express Cash MagnetÂ® Card

Blue Cash EverydayÂ® Card from American Express

Wells Fargo Active CashÂ® Card

Citi Custom CashÂ® Card (see rates and fees.)

The Bank of AmericaÂ® Unlimited Cash Rewards Card

Intro 0% APR for 21 months

Citi SimplicityÂ® Card

Citi SimplicityÂ® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR

Balance transfer fee

Introductory fee of 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum).

Foreign transaction fee

Credit needed

Who’s this card for? The Citi SimplicityÂ® Card is a great option for someone looking to consolidate existing credit card debt from other cards. Cardholders have four months to complete balance transfers (longer than the typical 60 to 90 days). The only drawback is that it does not offer cash back or any other type of rewards.

Wells Fargo ReflectÂ® Card

Wells Fargo ReflectÂ® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.

Regular APR

18.24%, 24.74%, or 29.99% Variable APR on purchases and balance transfers

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No annual fee

Long introductory APR period of 21 months on purchases and qualifying balance transfers

Access to Visa SignatureÂ® Concierge

Get up to $600 cell phone protection (subject to a $25 deductible)

Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining

Cons

No rewards

No welcome bonus

3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo ReflectÂ® Card is ideal for someone looking to either pay off large purchases over time or consolidate existing debt. This card doesn’t offer any sort of spending rewards, but it does offer cell phone protection.

CitiÂ® Diamond PreferredÂ® Card

CitiÂ® Diamond PreferredÂ® Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR

Balance transfer fee

5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.

Foreign transaction fee

Credit needed

Pros

No annual fee

Balances can be transferred within 4 months from account opening

One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee

Who’s this card for? The CitiÂ® Diamond PreferredÂ® Card is another great option for financing large purchases or transferring existing credit card debt. Unfortunately, it doesn’t earn rewards.

U.S. Bank VisaÂ® Platinum Card

U.S. Bank VisaÂ® Platinum Card

Rewards

Welcome bonus

Annual fee

Intro APR

0% for the first 21 billing cycles on balance transfers and purchases

Regular APR

18.74% – 29.74% (Variable)

Balance transfer fee

Either 3% of the amount of each transfer or $5 minimum, whichever is greater

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

No annual fee

Cell phone protection plan

Cons

No rewards program

2% to 3% foreign transaction fee

Balances must be transferred within 60 days from account opening

Who’s this card for? The U.S. Bank VisaÂ® Platinum Card is useful for those looking to transfer existing credit card debt or finance new purchases at a great rate. The card doesn’t come with any spending rewards, but it has a solid cell phone coverage benefit and no annual fee.

Intro 0% APR for 18 months on balance transfers

CitiÂ® Double Cash Card

Citi Double CashÂ® Card

Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travelâ portal through 12/31/24

Welcome bonus

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYouÂ® Points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% for the first 18 months on balance transfers; N/A for purchases

Regular APR

Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Foreign transaction fee

Credit needed

See rates and fees. Terms apply.

Who’s this for: The Citi Double CashÂ® Card is aÂ generous cash-back credit cardÂ to use on daily expenses that also comes with a great balance transfer offer. As you spend on the card, you will earn 2% cash back â 1% when you make a purchase and an additional 1% when you pay your credit card bill.

Intro 0% APR for 15 months

Amex EveryDayÂ® Credit Card

Amex EveryDayÂ® Credit Card

Rewards

2X Membership RewardsÂ® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X), 1X Membership RewardsÂ® points per dollar spent on all other purchases

Welcome bonus

Earn 10,000 Membership RewardsÂ® points after you make $2,000 in purchases in your first 6 months of card membership

Annual fee

Intro APR

0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers

Regular APR

18.24%Â toÂ 29.24% variable

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No annual fee

Competitive intro period on purchases

20% extra point bonus when you make 20 or more purchases in a billing period

Cons

2.7% foreign transaction fee

Who’s this card for? The Amex EveryDayÂ® Credit Card is for someone interested in earning transferrable travel rewards, as well as having an interest-free financing option. As you spend on the card, you’ll earn 2X Membership RewardsÂ® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X) and 1X Membership Rewards points per dollar spent on all other purchases.

In addition, you can earn a simple welcome bonus of 10,000 Membership Rewards points after you use your new card to make $2,000 in qualifying purchases in your first six months of card membership.

Capital One SavorOne Rewards Credit Card

Capital One SavorOne Cash Rewards Credit Card

Rewards

Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024, 8% cash back on Capital One Entertainment purchases, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel; Terms apply, 3% cash backÂ on dining and at grocery stores (excluding superstores like WalmartÂ® and TargetÂ®), 3% cash backÂ on popular streaming services and entertainment, and 1% cash back on all other purchases

Welcome bonus

Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening

Annual fee

Intro APR

0% intro APR on purchases and balance transfers for 15 months

Regular APR

19.99% – 29.99% variableÂ

Balance transfer fee

3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time

Foreign transaction fee

Credit needed

Pros

3% cash back on dining and entertainment purchases

Ability to redeem rewards at any amount, unlike some other cards with $25 minimums

Competitive special financing offer on both new purchases and balance transfers

No fee charged on purchases made outside the U.S.

Cons

3% balance transfer fee on the amounts transferred within the first 15 months

Who’s this card for? The Capital One SavorOne Cash Rewards Credit Card is a great pick for tiered cashback rewards and interest-free purchases.

The rewards rates are as follows:

10% cash back on Uber and Uber Eats

5% on hotels and rental cars booked through Capital One Travel

3% on dining and entertainment

3% on eligible streaming services

3% at grocery stores (excluding superstores like WalmartÂ® and TargetÂ®)

1% on all other purchases

Perks include a complimentary Uber One membership through Nov. 14, 2024 and access to presale and VIP tickets for concerts, sports games and exclusive events throughÂ Capital One Entertainment. In addition, you can earn an easy one-time cash bonus of $200 by spending $500 on purchases within the first three months from account opening.

Chase Freedom Flexâ

Chase Freedom Flexâ

Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate RewardsÂ®,Â 3% on drugstore purchases and on dining (including takeout and eligible delivery services),Â 1% cash back on all other purchases

Welcome bonus

Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% cash back on combined gas station and grocery store purchases (excluding Target and Walmart) on up to $12,000 spent in the first year.

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of eitherÂ $5Â orÂ 3%Â of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, eitherÂ $5Â orÂ 5%Â of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Member FDIC. Terms apply. Information about the Chase Freedom Flexâ has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.

Who’s this card for? The Chase Freedom Flexâ is a terrific option for someone looking for a card with rotating spending categories, as well as interest-free financing.

Cardholders earn up to 5% cash back on travel purchases through Chase Ultimate RewardsÂ® and 3% on drugstore purchases and dining. However, the real value of this card is spending withinÂ Chase’s quarterly 5% cash-back categories, so if you regularly spend in different categories, this card may be a good fit.

As a bonus, new cardholders can currently $200 cash back after spending $500 on purchases in the first three months from account opening.

Chase Freedom UnlimitedÂ®

Chase Freedom UnlimitedÂ®

Rewards

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Ultimate RewardsÂ®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate RewardsÂ®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back!

Annual fee

Intro APR

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

Balance transfer fee

Intro fee of eitherÂ $5Â orÂ 3%Â of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, eitherÂ $5Â orÂ 5%Â of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Member FDIC. Terms apply.

Who’s this card for? The Chase Freedom UnlimitedÂ® is another great cashback card with interest-free features and is similar to the Freedom Flex card above.

However, the main difference is that this card doesn’t offer the rotating cash-back categories. Instead, you’ll earn 5% cash back on travel purchased through Chase Ultimate RewardsÂ®, 3% on drugstore purchases and on dining and a flat 1.5% on all other purchases.

The card also has a slightly different welcome bonus: Earn unlimited matched cash back. At the end of your first year, Chase will automatically match all the cash back you earned.

American Express Cash MagnetÂ® Card

American Express Cash MagnetÂ® Card

Rewards

Unlimited 1.5% cash back on all purchases

Welcome bonus

Earn a $200 statement credit after spending $2,000 in purchases within your first 6 months of card membership.

Annual fee

Intro APR

0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers

Regular APR

Balance transfer fee

Foreign transaction fee

Credit needed

Pros

No annual fee

0% intro APR offer

Cons

2.7% fee on purchases outside the U.S.

Cash back comes in the form of a statement credit (with a minimum redemption of $25)

Who’s this card for? The American Express Cash MagnetÂ® Card is a solid cashback card for someone looking for simplicity, as well as a 0% intro APR period.

As you spend on the card, you’ll earn 1.5% cash back on all purchases. New cardholders also have the opportunity to earn a $200 bonus after spending $2,000 in purchases within the first six months of card membership.

Blue Cash EverydayÂ® Card from American Express

Blue Cash EverydayÂ® Card from American Express

Rewards

3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%, 3% cash back at U.S. gas stations, up to $6,000 per year, then 1%, 3% cash back on U.S. online retail purchases, on up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits or at Amazon.com checkout.

Welcome bonus

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

Annual fee

Intro APR

0% intro APR for 15 months on purchases and balance transfers, from the date of account opening

Regular APR

Balance transfer fee

EitherÂ $5Â orÂ 3%Â of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

3% cash back at U.S. supermarkets (up to $6,000 a year, then 1%)

3% cash back at U.S. gas stations, (up to $6,000 per year, then 1%)

Amex Offers, which provide statement credits or opportunity to earn more rewards at select merchants

Cons

2.7% fee on purchases made abroad

Not great for people who donât regularly go grocery shopping

Estimated rewards earned after 1 year: $547

Estimated rewards earned after 5 years: $1,935

Rewards totals incorporate the points earned from the welcome bonus

Who’s this card for? Depending on your spending habits, it might make more sense to get the Blue Cash EverydayÂ® Card from American Express. The Blue Cash Everyday Card is similar to the Cash Magnet Card above, with the main difference being the earning rates.

As you spend on the card, you’ll earn as follows:

3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)

3% at U.S. gas stations (up to $6,000 per year in purchases, then 1%)

3% on U.S. online retail purchases (up to $6,000 per year, then 1%)

1% on all other purchases

The welcome bonus for the Blue Cash EverydayÂ® Card from American Express offers a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months.

Wells Fargo Active CashÂ® Card

Wells Fargo Active CashÂ® Card

Rewards

Unlimited 2% cash rewards on purchases

Welcome bonus

Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual fee

Intro APR

0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate

Regular APR

20.24%, 25.24%, or 29.99% variable APR on purchases and balance transfers

Balance transfer fee

3% intro for 120 days from account opening then BT fee of up to 5%, min: $5

Foreign transaction fee

Credit needed

See rates and fees, terms apply.

Pros

Unlimited cash rewards

$200 cash rewards welcome bonus

No annual fee

Introductory APR period for first 15 months

Access to Visa SignatureÂ® Concierge

Get up to $600 cell phone protection (subject to a $25 deductible)

Cons

3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo Active CashÂ® Card is a great choice for earning cash rewards on your everyday purchases, as well as interest-free financing.

As you spend on the card, you will earn 2% cash rewards on all eligible purchases. The card also comes with a $200 cash rewards bonus after you spend $500 in the first three months.

Bank of AmericaÂ® Unlimited Cash Rewards Credit Card

Bank of AmericaÂ® Unlimited Cash Rewards credit card

Rewards

Unlimited 1.5% cash back on all purchases, but you earn 25%-75% more cash back on every purchase if you’re a Preferred Rewards member

Welcome bonus

$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.

Annual fee

Intro APR

Introductory 0% APR for your first 18 billing cycles on purchases and balance transfers made within 60 days of account opening.

Regular APR

Balance transfer fee

3%Â of the amount of each transaction

Foreign transaction fee

Credit needed

Pros

No annual fee

Unlimited cash-back

$200 online cash rewards bonus

Cons

3% foreign transaction fee

Can’t receive a greater cash-back rate unless you’re a Preferred Rewards member

Estimated rewards earned after 1 year: $532

Estimated rewards earned after 5 years:Â $1,860

Rewards totals incorporate the cash-back earned from the welcome bonus and 1.5% back

Who’s this card for? The Bank of AmericaÂ® Unlimited Cash Rewards Credit Card is another solid option for someone looking for simple cash-back options as well as favorable financing options.

As you spend on the card, you will earn 1.5% cash back on all purchases. Additionally, you can earn a $200 online cash rewards bonus after spending $1,000 in purchases in the first 90 days from account opening.

How to get the most benefit from 0% APR cards

A 0% APR card is most beneficial when you understand the terms of the offer and set up a plan to pay off your debt. Here’s what to keep in mind if you’re considering a 0% intro APR credit card for your wallet.

Read the fine print

Make sure you familiarize yourself with any fine print associated with the 0% APR offer, such as the expiration date, timeline for completing a balance transfer, any balance transfer fees and the interest rate once the intro period ends.

Create a repayment plan

You’ll need to come up with a plan to pay off credit card debt. The amount you need to pay each month to have a zero balance at the end of the intro period depends on the length of the intro period.

For example, if you have a $4,500 balance on the Chase Freedom Flex, which offers an intro APR period of no interest for the first 15 months on balance transfers and purchases (after, 20.49% – 29.24% variable APR), you’ll need to pay $300 each month to pay off your old balance before the intro period ends.

But if you have the U.S. Bank VisaÂ® Platinum Card, with 0% intro APR for 18 months on balance transfers (then 18.74% – 29.74% variable APR), the monthly payment decreases to $250. Balance transfers must be completed within 4 months of account opening.

Pay off your balance in full

It’s very important to pay off any transferred debt or lingering new purchase balances before the intro 0% APR period ends. If you don’t, expect to be hit with the regular purchase APR. And if you have a store card, you could be hit with a bill for all the interest you accrued since the date you made your purchase or transfer (known as deferred interest). None of the cards on this list charge cardholders deferred interest.

Learn more: 5 things to do once your balance transfer is complete.

Best ways to use a 0% APR credit card

Credit cards that offer no interest on purchases and/or balance transfers are a great asset for consumers looking to save on interest charges when they carry a balance month-to-month. The best way to use a 0% APR card depends on your individual situation, but typically falls into one of three ways:

If you plan on making large purchases, such as a new iPhone or workout equipment, and need more time to pay them off, a 0% APR card can help you pay over time with no interest charges.

If you have debt on a high-interest card, completing a balance transfer to a card with no interest for up to 20 months can help you pay it off faster and cheaper.

If you fall into both categories, a card with no interest on new purchases and balance transfers can help you pay off large expenses and old debt at the same time.

Remember that you’ll need to make minimum payments on your balance and pay it off in full before the intro period ends to avoid interest.

Learn more: How 0% APR cards work andÂ how to complete a balance transfer

How to compare 0% APR and low-interest cards

If you’re not sure whether a 0% APR card or a low-interest credit card is the right choice, ask yourself the following questions.

Are you carrying debt from a high interest credit card? Then you should consider a balance transfer credit card with up to 20 months of no interest.

Do you plan on making a large purchase? A 0% APR card can provide you with a lengthy intro period that allows you to pay off debt for over a year with no interest.

Do you carry a balance month to month? A low interest credit card offers a relatively consistent APR every month, compared to 0% APR cards that typically charge high-interest rates after the intro period ends.

After you determined which credit card you want to apply for, compare cards by these key factors:

Length of intro APR period: Cards can have intro periods anywhere from three months to 20 months. Many popular rewards cards offer no interest for 15 months, and non-rewards cards can have 18- and 21-month intro 0% APR periods. For new purchases or lingering debt, the longer the better, but if you’re completing a balance transfer, consider the cost of any balance transfer fees before applying.

Regular APR: Credit cards offering intro 0% APRs tend to have higher regular APRs than low-interest cards. Consider the regular APR before settling on a card if you think you may carry a balance once the intro 0% APR period ends.

Balance transfer fee: Many balance transfer cards charge a fee per transfer. This fee can be outweighed by the amount you save in interest, but make sure to do the math. If you want to avoid fees, check out the best no-fee balance transfer credit cards.

Annual fee: Most 0% APR cards and low interest cards have no annual fee, but some may. Make sure to review the annual fees associated with the cards.

Rewards and added perks: The best 0% APR cards also offer cash back, points and miles, in addition to added perks, such as purchase protection and exclusive entertainment access. While these are nice benefits, paying off debt should be your primary goal.

Find the best credit card for you by reviewing offers in ourÂ credit card marketplaceÂ or get personalized offers viaÂ CardMatchâ¢.

FAQs

How do 0% APR credit cards work?

A 0% APR credit card offers no interest for a set amount of time, usually 12 to 20 months. During the intro 0% APR period, you won’t be charged interest on new purchases or balance transfers. These cards can help you consolidate credit card debt with a balance transfer, pay for new purchases over time without incurring interest charges or both.

Balance transfer credit cards may set a limit on the amount of debt you can transfer, which is often less than your overall credit limit. Plus you may be charged a balance transfer fee, typically 3% per transfer.

What credit score is required for 0% APR credit cards?

Most 0% APR credit cards are reserved for consumers with good (670-739) or excellent (740 and greater) credit. If your credit score is fair (580 to 669) or poor (below 580) you may have trouble qualifying for a 0% APR card.

How does your credit score affect your interest rate?

In general, the lower your credit score, the higher your interest rate will be. It’s important to have a good credit score for a variety of reasons: It affects your ability to get certain types of loans and/or credit cards, the size of those loans and the interest rate on your card and/or loan.

A 0% APR credit card can help you avoid interest charges for a certain period. Using the extra cash you save not paying interest can help you pay down your debt faster, lower your credit utilization and increase your credit score.

When should I avoid a 0% APR credit card?

A no-interest credit card is a great tool for financing new purchases, but you need to be careful how you use one. If you have a history of overspending, you may be tempted to spend more on a 0% APR card since you have upwards of a year to pay off your entire balance without interest, compared to a regular card that requires you to pay your balance in full each billing cycle to avoid interest charges.

How do I avoid interest on a credit card?

The simplest way to avoid interest charges on a credit card is to pay your balance in full by the due date. However, there’s an exception with 0% APR cards. During the length of the intro period, you are only required to make the minimum payments on your balance, and you won’t be charged interest on new purchases and/or balance transfers. Once the intro period ends, any lingering balances or new purchases and transfers will incur the regular APR.

Do 0% APR credit cards hurt your credit?

When you apply for a credit card (including a 0% APR card), you’ll have a hard credit pull on your credit report, which typically comes with a dip of a few points in your credit score. However, this dip is temporary and you’re credit score should rise in a few months.

However, if you use a large amount of your credit line on your card for either purchases or a balance transfer, your credit utilization ratio could rise and cause a more significant drop in your credit score. Experts generally recommend keeping your credit utilization ratio below 30% of your total credit line. For example, if you had a $10,000 credit limit you’d want to keep your monthly spending under $3,000 to keep your credit utilization low.

Are there any 0% APR credit cards for 21 months?

There are a few credit cards that offer 0% APR on new purchases and balance transfers for up to 21 months.

The Citi SimplicityÂ® Card offers 0% intro APR for 21 months on balance transfers from the date of first transfer and 0% intro APR for 12 months on purchases from the date of account opening (after, 19.24% – 29.99%Â variable APR; balance transfers must be completed within four months of account opening).

The Wells Fargo ReflectÂ® Card offers 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (18.24%, 24.74%, 29.99% variable APR afterward). Balance transfers made within 120 days from account opening qualify for the intro rate, BT fee of 5%, min $5.

The CitiÂ® Diamond PreferredÂ® Card offers 0% intro APR for 21 months on balance transfers and 0% intro APR for 12 months on purchases (variable APR is 18.24% – 28.99% after; balance transfers must be completed within four months of account opening).

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. SeeÂ our methodologyÂ for more information on how we choose the best 0% APR credit cards.

Subscribe to the CNBC Select Newsletter!

Money matters âÂ so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.Â Sign up here.

Our methodology

To determine which 0% APR credit cards will put the most money back in your pocket,Â CNBC SelectÂ evaluated hundreds of the most popular credit cards offered by major banks, financial companies and credit unions that allow anyone to join. We compared each card on a range of features, including cash-back rewards, annual fees, welcome bonuses, introductory and standard APRs, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem rewards.

Catch up on CNBC Select’s in-depth coverage ofÂ credit cards,Â bankingÂ andÂ money, and follow us onÂ TikTok,Â Facebook,Â InstagramÂ andÂ TwitterÂ to stay up to date.

Information about the Bank of AmericaÂ® Unlimited Cash Rewards Card, Amex EveryDayÂ® Credit Card, American Express Cash MagnetÂ® Card has been collected independently by Select and has not been reviewed or provided by the issuers of the cards prior to publication.

For rates and fees of the Amex EveryDayÂ® Credit Card, click here.

For rates and fees of the American Express Cash MagnetÂ® Card, click here.

For rates and fees of the Blue Cash EverydayÂ® Card from American Express, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staffâs alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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February 20, 2024
Capital One acquiring Discover Financial Services, report says

Sopa Images | Lightrocket | Getty Images

Capital One Financial is set to acquire Discover Financial Services, according to a report from The Wall Street Journal. The deal could be announced Tuesday, the outlet said, citing sources.

It will be an all-stock deal and Capital One, which already uses Visa and Mastercard networks, plans to keep the Discover brand, the Wall Street Journal said.

The news comes on the back of a Bloomberg News report on Monday that Capital One was considering an acquisition.

CNBC has reached out for comment from both Capital One and Discover.

The merger of the two companies, who are among the largest credit card issuers in the U.S., would expand Capital One’s credit-card offerings. The company bought digital concierge service Velocity Black, a premium credit card and luxury market platform, in June of last year.

Shares of Discover are down 1.7% lower for the year, putting the company at a $27.63 billion market cap. Capital One has a market cap of $52.2 billion and shares of the company are up 4.6% in 2024.

The Capital One-Discover merger would be one of the largest deals announced so far this year. Synopsys announced a deal to buy Ansys for $35 billion in January and Diamondback Energy‘s $26 billion deal to buy privately held oil and gas producer Endeavor Energy was announced on Feb. 12.

Read the full story here: Capital One is buying Discover Financial, sources say

This is breaking news. Please check back for updates.

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February 19, 2024
United States acts as top cop — setting the crypto standards for the world

A flag outside the U.S. Securities and Exchange Commission headquarters in Washington, Feb. 23, 2022.

Al Drago | Bloomberg | Getty Images

Regulators around the world from Europe to Asia ramped up efforts to bring about formal laws for digital currencies in 2023 — but it was the U.S. that took some of the harshest legal actions against major players in the industry.

In a year that saw crypto heavyweight Binance ordered to pay more than $4 billion to U.S. authorities and its former CEO’s guilty plea, along with high-profile lawsuits against five crypto companies by the Securities and Exchange Commission, regulators overseas have been equally busy both adopting new legislation — and pushing for more — to rein in the sector’s bad actors.

Here’s the state of play globally for crypto regulation and enforcement in 2023 — and a look at what to expect in 2024.

U.S. tops the list globally for enforcement

The U.S. has proven to be one of the most active enforcers of penalties and legal action against crypto companies this year, as authorities looked to counter bad practices in the industry following the collapse of Sam Bankman-Fried’s crypto empire — including his FTX exchange and sister firm Alameda Research.

“To be clear, in some cases — like FTX — enforcement was necessary,” said Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section. “But U.S. enforcement actions against market participants that are more focused on compliance are questionable and the result of the U.S. ‘regulation by enforcement’ approach.”

While many regions have passed laws with potentially tough penalties, the U.S. is still the only country that has actively taken action against large-scale crypto companies and projects. Thus far, the U.S. has led that campaign against crypto firms by enforcement and has, by far, been the most punishing of regulators when it comes to penalties and fines.

“Other countries have a comprehensive regulatory framework in place. We don’t,” Mariotti told CNBC. “As a result, issues that should be determined by legislation or regulation are instead litigated.”

Indeed, in the absence of hard-and-fast rules from Capitol Hill, the SEC, the Commodity Futures Trading Commission, the Department of Justice, and Treasury’s Financial Crimes Enforcement Network (FinCen), have worked in parallel to police the space, in a sort of patch-quilt version of regulation-by-enforcement.

Richard Levin, a partner at Nelson Mullins Riley & Scarborough who has represented clients before the SEC, CFTC, and Congress, tells CNBC that these agencies have been some of the most active enforcers around the world concerning the regulation of digital assets and cryptocurrencies.

“These agencies have provided guidance to the industry on how digital assets and cryptocurrencies must be offered and sold, traded, and held by custodians,” said Levin, who has been involved in the fintech sector for 30 years.

“However, much of their work has involved providing guidance to the industry through enforcement actions,” continued Levin.

Since 2019, Justice’s Market Integrity and Major Frauds Unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors worldwide.

In its annual report summing up enforcement actions, the CFTC noted that nearly half of all cases in 2023 involved conduct related to digital asset commodities. Meanwhile, the SEC highlighted that 2023 was notable for its enforcement of “crypto-related misconduct, including fraud schemes, unregistered crypto assets and platforms, and illegal celebrity touting.” Since 2014, the SEC has brought more than 200 actions related to crypto asset and cyber enforcement.

The most stringent cases played out in the first half of the year when the SEC accused Binance and Coinbase of engaging in illegal securities dealing in a pair of lawsuits.

Most notably, the SEC alleges that at least 13 crypto assets available to Coinbase customers — including Solana’s sol, Cardano’s ada, and Protocol Labs’ filecoin — should be considered securities, meaning they’d need to be subject to strict transparency and disclosure requirements.

In Binance’s case, the SEC went a step further. In addition to securities law violations, the company and its co-founder and CEO Changpeng Zhao were also accused of commingling customer assets with company funds.

Concerning criminal enforcement, Damian Williams, the U.S. attorney for the Southern District of New York, has been leading some of Justice’s highest-profile crypto prosecutions, including the monthlong trial of Bankman-Fried, the disgraced FTX founder. In November, a jury found the former FTX chief executive guilty of all seven criminal counts against him following a few hours of deliberation.

But crypto companies have begun to push back, with some threatening to decamp from the U.S. entirely should this dynamic of policing by enforcement continue.

Coinbase CEO Brian Armstrong condemned the SEC’s actions against the exchange and suggested the company may be forced to move its headquarters overseas. Armstrong later walked back the threat of relocating abroad, but Coinbase and other major crypto firms have still begun to invest more heavily in their international operations.

Crypto market participants nevertheless hope that the spate of legal challenges brought to crypto companies in 2023 will bring clarity in the form of new regulations.

“Clearer regulatory frameworks and stance from regulators globally have provided a sense of legitimacy and security, encouraging more widespread participation in the bitcoin market,” Alyse Killeen, managing partner of Stillmark Capital, told CNBC.

The crypto industry saw the most legislative progress on crypto laws in the U.S. this year, with one of the competing digital asset bills making it past multiple House committees for the first time.

Even as U.S. lawmakers take steps toward crypto legislation, there remains no law in the U.S. tailored specifically for the industry. Nelson Mullins Riley & Scarborough’s Levin tells CNBC it’s unlikely that we’ll see much progress in a presidential election year and with a divided federal government.

He argues that even without rules on crypto from lawmakers, routine complaints that U.S. regulators are not providing guidance to the industry are without merit.

According to Levin, “The SEC, the CFTC and FinCEN routinely provide informal guidance on the regulation of digital assets and cryptocurrencies.”

“The SEC even went so far as to provide a framework for the analysis of digital assets and cryptocurrencies. The SEC also created a fake digital asset (Hosey Coin) that gave advice to the FinTech community on how not to launch a digital asset,” Levin added.

“Some members of the industry forget the SEC is relying on laws that were written when American football players wore leather helmets, and the SEC must apply those laws to the FinTech industry,” he said.

Despite crypto’s recent fading buzz, Killeen of Stillmark Capital doesn’t expect regulators to become fatigued by crypto in 2024. In the same time year that two of crypto’s leading figures were sent to jail, shares of Coinbase — and prices of digital currencies like bitcoin and ether — have rallied sharply.

Since the start of this year, Coinbase’s stock price has surged more than 400%. Bitcoin and ether, meanwhile, have both roughly doubled in price. That’s as investors anticipate that approval for a bitcoin exchange-traded fund by the SEC may be around the corner.

Europe

The European Union looks set to apply its Markets in Crypto-Assets legislation, which is aimed at taming the “Wild West” of the crypto industry, in full force starting next year.

The law, initially proposed in 2019 as a response to Meta’s digital currency project Diem, formerly known as Libra, aimed to clean up fraud, money laundering and other illicit financing in the crypto space, and stamp out the sector’s bad actors more broadly.

Read more about tech and crypto from CNBC Pro

It also sought to tackle a perceived threat from so-called stablecoins, or blockchain-based tokens that serve as a representation of government money but are backed by private companies. Stablecoins are effectively digital currencies that are pegged to the value of fiat currencies like the dollar.

While tether and Circle’s USDC aren’t perceived as “systemic” assets capable of disrupting financial stability, a private stablecoin from a massive company like Meta, Visa or Mastercard could pose a bigger threat and potentially undermine sovereign currencies, in several EU central bankers’ eyes.

The U.S.’s dominant role in global finance and its focus on consumer protection plays a crucial role in its leading position in crypto regulation enforcement. However, the landscape is evolving, and other jurisdictions are steadily enhancing their regulatory and enforcement frameworks in crypto.

Braden Perry

Former federal enforcement attorney and current partner at

Part of the EU’s framework for crypto is aimed at tackling threats — particularly that of the euro being undermined — by making it impossible for issuers to mint stablecoins backed by currencies other than the euro, like the U.S. dollar, once they meet the threshold of more than 1 million transactions per day.

Meanwhile, the European Union is moving towards a unified regulatory framework for cryptocurrencies with its Markets in Crypto-Assets Regulation (MiCA).

This year, the three main political institutions of the EU-approved MiCA, paving the way for the regulation to become law. MiCA came into force in June 2023, but it’s not expected to apply fully until December 2024.

Companies are already getting ready to take advantage of the new rules, with Coinbase submitting an application for a universal MiCA license in Ireland. If and when it is approved, this would allow Coinbase to “passport” its services into other countries like Germany, France, Italy, and the Netherlands.

Braden Perry, former federal enforcement attorney and current partner at law firm Kennyhertz Perry, said that while the U.S. remains a top enforcer for the crypto industry, its perception as a regulator “may be diminishing,” as other jurisdictions have stepped in with clearer rules.

“This perception stems from the proactive measures taken by U.S. regulatory bodies like the SEC, CFTC, and IRS, especially in addressing fraud and security issues in the crypto market. High-profile legal actions in the U.S. further cement its image as a strict enforcer,” he said.

“However, other regions, including Singapore, Dubai, Hong Kong, and the European Union, are also developing robust regulatory frameworks,” Perry added. “While these regions may not be as visible in international media for enforcement actions, they possess significant and sometimes stringent regulatory mechanisms.”

But while the broader EU has been racing to implement new crypto laws, individual European countries haven’t been resting on their laurels.

France has been tempting crypto companies and traders alike to its shores with the promise of tax cuts on crypto profits and a smoother registration process for digital asset firms.

Starting from Jan 1, 2024, France’s Financial Markets Authority, or AMF, is set to amend its registration requirements for crypto firms to better align with MiCA, according to an August statement from the regulator.

At the same time, French authorities have kept a skeptical eye on fraudulent activity among various crypto players. In September, French regulators added 22 fraudulent websites — including some that market trading in crypto and crypto-linked derivatives — to a blacklist of unauthorized foreign exchange providers.

In Germany, meanwhile, the financial regulator Bafin has said it wants to accelerate its approach to licensing crypto custody services, as part of a broader effort to instill trust and transparency in the crypto market.

The U.K., a non-member of the EU, passed a law in June that gives regulators the ability to oversee stablecoins. But there are no concrete rules for crypto just yet.

The U.K.’s Treasury department released its response to a consultation on new crypto rules earlier this year, confirming that it plans to bring a range of crypto activities, including crypto custody and lending, within existing laws governing financial services firms in the country.

Asia

Earlier this year, the Monetary Authority of Singapore, which is recognized for clear fintech and crypto regulations that do not rely heavily on enforcement actions, finalized rules for stablecoins, making it one of the world’s first jurisdictions to do so.

Singapore was notably bruised by the collapse of TerraUSD, a controversial algorithmic stablecoin, in 2022, as well as the fall of Three Arrows Capital, or 3AC. Both Terra Labs, the company behind Terra, and 3AC were headquartered in Singapore.

Singapore’s new framework requires stablecoin issuers to back them with low-risk and highly-liquid assets, which must equal or exceed the value of tokens in circulation at all times, return the par value of the digital currency to holders within five business days of a redemption request, and disclose audit results of reserves to users.

Hong Kong, meanwhile, is undergoing a public consultation on stablecoins and seeks to introduce regulation next year.

The region has been increasingly warming to crypto assets, despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021.

The Hong Kong Securities and Futures Commission, or SFC, launched a registration regime for digital asset businesses earlier this year, with clear regulations for crypto exchanges and funds.

So far, only two firms, OSL Digital and Hash Blockchain, have been handed licenses.

The Middle East and Africa

The United Arab Emirates has emerged as a popular base for the fintech sector more broadly, given its lack of personal income tax, flexible visa policies, and competitive incentives for international businesses and workers.

In 2022, in a bid to lead the virtual assets sector in the Middle East and Africa, Dubai — the UAE’s most populous city — launched VARA, or the Virtual Asset Regulatory Authority.

“Dubai and the UAE have created favorable conditions for cryptocurrency businesses, offering specific zones and guidelines for crypto trading,” said Perry.

Blockchain analytics firm Chainalysis notes that regulators in the UAE were early to cryptocurrency, with Dubai leading the charge when it launched a blockchain strategy in 2016.

“Since then, UAE regulators have remained at the forefront of the industry,” according to a Chainalysis report.

Two years later, in 2018, Abu Dhabi Global Market created the world’s first regulatory framework for cryptocurrency to foster innovation while safeguarding consumers.

Earlier this year, the UAE passed further crypto regulations at the federal level to make it easier for regulators like VARA to police the sector and run economic-free zones.

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December 31, 2023
Just in time for the holidays: Amazon Prime Visa offering $200 gift card welcome bonus
Both new and existing Prime Visa cardholders are in for an extra treat as they work their way through their holiday shopping list this year.

If you’re interested in signing up for this Amazon credit card, you’ll immediately earn a welcome bonus of a $200 Amazon gift card upon approval from now through Dec. 4, 2023. This is double the $100 Amazon gift card the Prime Visa typically offers new cardholders, so if you’ve been toying with the idea of getting this card, now’s the time to move.

Prime Visa

Rewards

Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership, unlimited 2% back at gas stations, restaurants and on local transit and commuting (including rideshare), 10% back or more on a rotating selection of products and categories at Amazon.com, unlimited 1% back on all other purchases

Welcome bonus

Get a $200 Amazon Gift Card instantly upon approval exclusively for Prime members

Annual fee

$0 (but Prime membership is required)

Intro APR

Regular APR

Balance transfer fee

Either $5 or 4% of the amount of each transfer, whichever is greater.

Foreign transaction fee

Credit needed

Both new and existing cardholders can take advantage of a limited-time offer of 10% cash back on eligible gift purchases. The selection of eligible gift purchases spans multiple shopping categories, so you have a ton of choices to shop and save on.

On top of that, if you have an eligible Prime membership and either a Prime Visa or another eligible Prime card, you can now earn an extra 1% cash back on orders if you choose the No-Rush Shipping option at checkout. Since cardholders with an eligible Prime membership already earn 5% back on their Amazon purchases, this brings the total rewards potential to up to 6% cash back on your orders. This offer is valid from now through Dec. 28, 2023.

CNBC Select highlights what you need to know about the offer, details about the Amazon credit card and which purchases qualify for 10% back in rewards.

Amazon Prime Visa Card elevated welcome offer and bonus rewards

Now through Dec. 4, new Prime Visa applicants will receive a $200 Amazon gift card immediately upon approval with no minimum spending requirement. The gift card will be automatically loaded onto your Amazon account so you can use it immediately.

Prime Visa cardholders need to have an Amazon Prime account to qualify for the card, although you can still get an Amazon credit card without a Prime membership. However, non-Prime members will earn less cash back on their Amazon and Whole Foods purchases instead of the 5% enjoyed by Prime members.

Read more: How to get an Amazon Prime membership for free

But it doesn’t stop there. Cardholders can also take advantage of 10% back when purchasing items from a variety of categories, including Amazon devices, home, kitchen, electronics, furniture and more. For example, you can get 10% cash back on select Ring Video Doorbell Pro 2, Kindle e-readers, TVs and more. You can find all eligible products here but note that the 10% cash back deal expires at different times for different products.

Plus, Prime Visa and Amazon Visa cardholders can now take advantage of My Chase Plan®. My Chase Plan® is a digital feature from Chase that allows eligible cardholders to pay off a purchase (of at least $100) in fixed monthly installments over a period of time. You won’t be charged interest on the monthly amount and My Chase Plan can only be used on purchases of at least $100.

Amazon Visa and Prime Visa cardholders can now use this feature by selecting a recent transaction (remember, it needs to be at least $100) and choosing a repayment timeframe and monthly amount that works best for them.

Other great credit cards to earn rewards on Amazon purchases

The Platinum Card® from American Express

On the American Express secure site

Rewards

Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases

Welcome bonus

Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.

Annual fee

Intro APR

Regular APR

Balance transfer fee

Foreign transaction fee

Credit Needed

Wells Fargo Reflect® Card

On Wells Fargo secure site

Rewards

Welcome bonus

Annual fee

Intro APR

0% intro APR for 21 months from account opening on purchases and qualifying balance transfers.

Regular APR

18.24%, 24.74%, or 29.99% Variable APR on purchases and balance transfers

Balance transfer fee

Balance transfers fee of 5%, min $5.

Foreign transaction fee

Credit needed

Citi Double Cash® Card

Rewards

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24

Welcome bonus

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Annual fee

Intro APR

0% for the first 18 months on balance transfers; N/A for purchases

Regular APR

Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Foreign transaction fee

Credit needed

Subscribe to the CNBC Select Newsletter!

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Bottom line

If you haven’t already started thinking about holiday shopping, Amazon’s Prime Visa welcome offer might inspire you to sign up and start working your way through your list. And if the online retailer isn’t your cup of tea, don’t forget that there are plenty of 0% APR cards, travel cards, and rewards cards that help you make the most from every swipe.

Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

For rates and fees of the Platinum Card from American Express, click here.

Information about Amazon credit cards has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication; if you purchase something through Select links, we may earn a commission.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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November 24, 2023
Video: Opinion | Your Rewards Card Is Actually Bad for You, and for Everyone Else

This is a story about you and your favorite credit card, the one that earns you points. You use your card for everything. You pay off your balance every month. And you watch with glee as your rewards grow and grow and grow. And when it’s time to cash in, you announce that you’re going to get a family gift. And each member will get one vote. And then your daughter argues that the family needs another iPad. And your son has fallen in love with the ugliest garden gnome that you’ve ever seen. And so to break up the skirmish, you decide that you’ll be getting the frying pan. Because what brings the family together more than food? Marty is the answer. But let’s keep him out of this. And when they complain and say, “But that’s not what I wanted,” you look them in the eye and say, “This was never about you.” “It’s about us, all of us.” And then two weeks later your frying pan arrives. And you can’t help but smile because you kind of did get this for yourself, though you’ll never admit it. And you’re looking at the frying pan. And it’s staring at you and you at it and it at you and you at it. And you just have this split second where you think to yourself: Who actually paid for this? Who pays for all of this? Well, if you love your rewards card, then you’re probably not going to like the answer. Because you try to be a good person, you shop locally. And each week you buy, let’s say, $100 in groceries from MJ. When you swipe your card, that $100 doesn’t go straight to MJ. Instead, store owners are charged a series of fees, the largest of which is called the swipe fee. It’s set by the card network, usually Visa or Mastercard. And your bank uses it to pay for your rewards. The swipe fee is usually between 1.5 percent and 3.5 percent of your total. The more premium your credit card, the more that MJ is charged. Now, that might not sound like much. But it can add up. For small businesses like MJ’s, swipe fees can be one of their biggest expenses. And small stores like hers get charged higher rates than big-box competitors. In order to cope, store owners like MJ raised their prices. That means that all of us are paying more. But only those who have special cards are getting rewards. And here’s the catch: The wealthiest Americans tend to have the best cards that give them the most rewards, while poorer Americans are more likely to pay in cash or debit with no rewards or benefits. So what we really have is a system that forces everyone to pay higher prices in order to subsidize rewards that primarily go to the wealthy. So this rewards card, it’s really a screw-over-poor- people card. Every time you use it, you’re contributing to inequality, helping to drive up prices and further squeeze the most cash-strapped Americans, all so that you can get that free frying pan. You’re probably not benefiting from rewards as much as you thought. In 2020, the Federal Reserve found that the average American at every income level loses more to swipe fee price hikes than they earn in rewards. And of course, the poorest Americans are still getting handed the worst deal. On average, they pay five times more in price mark-ups than they’ll ever receive in rewards. Why are we stuck in this system? Why are swipe fees in the U.S. nine times higher than they are in Europe? Why do we have to pay so much just to pay? Well, it’s largely thanks to two companies, Visa and Mastercard. This system is their core business. It’s what they do for a living. And, sure, they’re providing a service and deserve to earn a profit. But these two companies control over 80 percent of the credit card market. With scant competition, Visa and Mastercard have faced little pressure to rein in swipe fees. The truth is for the vast majority of Americans, the best deal might not come in the form of a new piece of plastic but instead a new piece of legislation. That’s because Congress has the power to regulate swipe fees. In fact, in 2010, they did just that for debit cards. Remember the swipe fee on that $100 grocery purchase? If you paid with a debit card, it would have only cost MJ 26 cents. Dick Durbin, the senator who helped crack down on swipe fees for debit cards, has authored a bipartisan bill that would use competition to drive down credit card swipe fees. But the banks and credit card companies are, of course, pushing back. Right now, there are two things that you can do. First, call your senator and encourage them to support this bill. You can go to this website to find their number. Second, if you’re shopping at a small business that you want to support, remember that how you pay can make a difference. Using your debit card can save small businesses a lot in swipe fees. But the best solution might be elsewhere in your wallet. Increasingly, small businesses are offering discounts for cash payers. Avoiding this predatory system can be a win for both of you. And if those rewards are just too good to say goodbye to, well, then at least don’t go around telling people that you’ve never taken a handout, because you have. And the working class is paying for it. [MUSIC PLAYING]

James Robinson and Emily Holzknecht

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November 21, 2023
Mastercard doubles down on effort to detect and tackle crypto fraud with AI tie-up

BARCELONA, SPAIN – MARCH 01: A view of the MasterCard company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain. (Photo by Joan Cros Garcia/Corbis via Getty Images)

Joan Cros Garcia – Corbis | Corbis News | Getty Images

Mastercard is doubling down on its efforts to detect and prevent fraud that’s routed through cryptocurrency exchanges.

The company told CNBC exclusively that it’s partnered with Feedzai, a regulatory technology platform that aims to combat money laundering and financial scams online using artificial intelligence.

Through the partnership, Feedzai will integrate directly with Mastercard’s CipherTrace Armada platform, which is used to help banks monitor transactions from over 6,000 crypto exchanges for fraud, money laundering and other suspicious activity.

CipherTrace Armada will be embedded directly in Feedzai’s technology, rather than accessed through an API, or application programming interface, with Feedzai “inhaling” the data to enable real-time alerts about suspicious crypto transactions.

“This will increase fraud detection by protecting unwary consumers, but will also detect potential money laundering activity and mule accounts,” Feedzai CEO and co-founder Nuno Sebastio told CNBC. Mule accounts are accounts of users that fraudsters exploit to launder their ill-gotten funds.

An estimated 40% of scam transactions exit directly from a bank account to a crypto exchange today, according to Feedzai data.

The tie-up will also give Mastercard access to Feedzai’s artificial intelligence smarts. Feedzai says its software can identify and block suspicious transactions in a matter of nanoseconds — but also recognize transactions that are legitimate.

Feedzai’s RiskOps platform analyzes transactions worth over $1.7 trillion annually. Co-headquartered in Coimbra, in Portugal, and San Mateo, California, in Silicon Valley, the firm holds close to 100 patents and secures an average of 10 patents per year to safeguard its technology.

“Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognised and regulated entities within the crypto space and omitting the rest,” Sebastio said.

Crypto entering the mainstream?

The move marks a push from Mastercard into the market for legitimizing crypto as a mainstream financial asset that can be subjected to the same rules and compliance frameworks as traditional assets.

Banks and other large financial institutions have shown increased interest in experimenting with crypto in their products and services. But the next step, deploying commercially available crypto products as part of their core offerings, has proven more elusive.

Banks have been wary of digital assets’ lack of comprehensive regulations and applications in fraud and scams.

Last year, the amount of theft and scams led to a global increase of 79% in crypto-related losses from the previous year, according to data from blockchain analysis firm Chainalysis. Illicit addresses received $14 billion in 2022 year-over-year, almost twice what they received in 2020.

Mastercard’s vast network is used by banking institutions worldwide to process and monetize payments.

The company competes with fellow payments giant Visa, which is also in the business of supporting card payments, among other fintech services.

In the U.K., banks have shown hesitation when it comes to being associated with crypto. Several larger lenders have halted transactions with crypto exchanges on their networks, citing the risk of fraud.

Top banks including JPMorgan, NatWest, and HSBC have restricted or blocked crypto transactions. This led to criticisms from Coinbase CEO Brian Armstrong, who said the development jarred with the U.K.’s ambition to become a global “Web3” hub.

Ajay Bhalla, president of cyber and intelligence solutions for Mastercard, told CNBC that the “interconnectedness of life today and increasing digital penetration of finance has brought risk as well as opportunity.”

“Our latest data shows fraud on transactions where people are buying crypto is 5 times higher than regular fiat transactions,” Bhalla said via email, adding that, with Mastercard’s new tie-up with Feedzai, financial institutions will “be able to tell good transactions from bad.”

The partnership builds on Mastercard’s deal to acquire U.S. blockchain sleutching firm CipherTrace. Mastercard bought CipherTrace in 2021, and the following year launched its first product using the firm’s technology, called CryptoSecure, to analyze and block transactions from fraud-prone crypto exchanges.

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November 19, 2023
Southeast Asia moves closer to economic unity with new regional payments system

Indonesian President Joko Widodo makes a speech during the Association of Southeast Asian Nations (ASEAN) Foreign Minister’s Meeting in Jakarta, Indonesia on July 14, 2023.

Murat Gok | Anadolu Agency | Getty Images

A new regional cross-border payment system recently implemented by Southeast Asian nations could deepen financial integration among participants, bringing the ASEAN bloc closer to its goal of economic cohesion.

The program, which allows residents to pay for goods and services in local currencies using a QR code, is now active in Indonesia, Malaysia, Thailand and Singapore. The Philippines is expected to join soon.

That’s according to each country’s respective central bank.

The move comes after the five Southeast Asian countries signed an official agreement late last year. At the recent ASEAN summit in May, leaders also reiterated their commitment to the project, pledging to work on a road map to expand regional payment links to all ten ASEAN members.

The scheme is aimed at supporting and facilitating cross-border trade settlements, investment, remittance and other economic activities with the goal of implementing an inclusive financial ecosystem around Southeast Asia.

Analysts say retail industries will particularly benefit amid an expected rise in consumer spending, which could in turn strengthen tourism.

Regional connectivity is considered crucial to reduce the region’s reliance on external currencies like the U.S. dollar for cross-border transactions, particularly among businesses. The greenback’s strength in recent years has resulted in weaker ASEAN currencies, which hurts those economies since the majority of the bloc’s members are net energy and food importers.

“The system will forgo the U.S. dollar or the Chinese renminbi as intermediary,” said Nico Han, a Southeast Asia analyst at Diplomat Risk Intelligence, the consulting and analysis division of current affairs magazine The Diplomat.

A unified cross-border digital payment system will “foster a sense of regionalism and ASEAN-centrality in managing international affairs,” he added. “This move becomes even more crucial in light of escalating tensions among major global powers.”

How it works

By connecting QR code payment systems, funds can be sent from one digital wallet to another.

These digital wallets effectively act as bank accounts but they can also be linked to accounts with formal financial institutions.

For instance, Malaysian tourists in Singapore can make a payment with Malaysian ringgit funds in their Malaysian digital wallet when making a transaction. Or, a Malaysian worker in Singapore can send Singapore dollar funds in a Singaporean digital wallet to a recipient’s wallet in Malaysia.

Fees and exchange rates will be determined by mutual agreement between the central banks themselves.

For now, a region-wide system like this doesn’t exist in other parts of the world but down the road, the Bank of International Settlements, based in Switzerland, hopes to connect retail payment systems across the world using QR codes and mobile phone numbers.

“The ASEAN central banks’ effort is innovative and novel,” said Satoru Yamadera, advisor at the Asian Development Bank’s Economic Research and Development Impact Department.

“In other regions like Europe, retail payment connection via credit and debit cards is more popular while China is well-known for advanced QR code payment, but they are not connected like the ASEAN QR codes,” he continued.

Economic benefits

QR payments don’t impose fees on cardholders and merchants. They also boast of better conversion rates than those set by private payment processors like Visa or American Express.

Micro enterprises as well as small- and medium-sized businesses, or SMBs will emerge as winners from regional payment connectivity, experts say. According to the Asian Development Bank, such companies account for over 90% of businesses in Southeast Asia.

“SMBs can avoid the expenses associated with maintaining a physical point-of-sale system or paying interchange fees to card companies,” explained Han from Diplomat Risk Intelligence.

Marginalized individuals from low-income backgrounds also stand to benefit. As the payment system works via digital wallets and doesn’t require a traditional bank account, it can be used by the unbanked population.

“The system has the potential to improve financial literacy and wellbeing for the underbanked population,” Han noted.

ASEAN’s new system will also enable merchants and consumers to build a robust payment history, and provide valuable data for credit scoring, said Nicholas Lee, lead Asia tech analyst at Global Counsel, a public policy advisory firm.

“That’s particularly advantageous for unbanked and underbanked segments of the population, who traditionally lack access to such credit assessment data.”

Moreover, “increased non-cash transactions would allow policymakers to capture transaction data and trade flow more effectively, assuming these data are accessible,” said Lee.

“This, in turn, could lead to better economic forecasting and policymaking.”

Currency pressure ahead

While strengthening payment connectivity within the region has the potential to reduce payment friction and accelerate digital transition, it could inadvertently put pressure on certain currencies, particularly the Singapore dollar.

“The potential scenario of the [Singapore dollar] emerging as a de facto reserve currency within the region poses a challenge that ASEAN states will need to confront,” said Lee.

“With the [Singapore dollar’s] strength and stability, both international and regional businesses may opt to hold more of their working capital in [Singapore dollars], relying on the new payment network for efficient currency conversion,” he explained.

If that happens, it could weaken the purchasing power of other currencies in the region and result in higher imported inflation if central banks don’t intervene.

In such a scenario, authorities may feel the need to impose capital restrictions in order to protect their respective currencies, which could undermine the very purpose of establishing a regional payment network.

Regulations pose another challenge.

Central banks will have to address security and fraud issues, plus undertake the task of educating the public to embrace the new payment system, said Han.

“These factors can collectively contribute to a time-consuming process,” he warned.

This kind of coordinated action will require strong political will from regional leaders and it remains to be seen if ASEAN members can come together to successfully implement such an ambitious venture.

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July 30, 2023
Stocks making the biggest midday moves: Microsoft, Alphabet, Boeing and more

A GE AC4400CW diesel-electric locomotive in Union Pacific livery is seen near Union Station in Los Angeles, California, September 15, 2022.

Bing Guan | Reuters

Here are the stocks making headlines on Wednesday, July 26.

Microsoft — The Xbox owner saw its shares slide 4% after issuing quarterly revenue guidance that fell short of analysts’ expectations. The soft revenue outlook was partly due to weakness in the segment that contains Windows software. Microsoft did report earnings and revenue that beat Street estimates for the calendar second quarter, however.

Alphabet — Shares of the Google parent rose more than 6% after Alphabet beat analysts’ revenue and profit in the second quarter. The parent company of YouTube reported $1.44 in earnings per share on $74.6 billion of revenue. Analysts surveyed by Refinitiv were expecting $1.34 per share on $72.82 billion of revenue.

Boeing — The aerospace company’s shares jumped almost 6% and hit a new 52-week high after its second-quarter earnings announcement. Boeing’s revenue of $19.75 billion topped analysts’ estimates of $18.45 billion, according to Refinitiv. The company also reported an 82-cent-loss per share, while Refinitiv analysts had estimated a loss of 88 cents per share.

WW International — Shares of the weight loss company soared more than 18% after an upgrade to overweight from Morgan Stanley. The bank highlighted WW International’s recent acquisition of Sequence, which analyst Lauren Schenk said will aid growth by providing exposure to weight loss drugs.

Texas Instruments — Shares dropped 5% as investors focused on the company’s guidance for the current quarter. Texas Instruments said to expect between $1.68 and $1.92 in earnings per share in the current quarter, meaning much of the range was below the $1.91 estimate of analysts polled by FactSet. Meanwhile, the company guided revenue to between $4.36 billion and $4.74 billion against a FactSet consensus estimate of $4.59 billion. However, the company’s second quarter results exceeded analysts’ expectations.

Visa — The credit card stock slipped more than 1% despite Visa beating estimates for its fiscal third quarter. The company reported $2.16 in adjusted earnings per share on $8.12 billion of revenue. Analysts surveyed by Refinitiv were looking for $2.12 in earnings per share on $8.06 billion of revenue. The company did report that payments volume growth was slowing slightly.

Chubb — Shares of the insurance company jumped more than 5% after a stronger-than-expected second-quarter report. The company posted $4.92 in adjusted earnings per share, above the $4.41 expected by analysts, according to Refinitiv. The net premiums written for property and casualty lines came in at $10.68 billion, above estimates of $10.64 billion.

Spotify — The music streaming company’s shares gained 3.2% Wednesday. Shares closed 14% lower Tuesday after Spotify’s second-quarter results missed analysts’ expectations. Deutsche Bank wrote in a Wednesday note that the post-earnings selloff created an attractive entry point for investors.

PacWest – Shares of the community bank surged more than 27% afterit agreed to be acquired by Banc of California in all-stock deal, which includes $400 million in equity from Warburg Pincus and Centerbridge. The combined holding company will operate under the Banc of California name. Shares of Banc of California rose less than 1%.

Union Pacific – The railroad operator saw its shares jump 10% after it named Jim Vena its new CEO. The announcement overshadowed its second-quarter results, which missed estimates. The Omaha-based company reported $2.54 in adjusted earnings per share on $5.96 billion of revenue. Analysts surveyed by Refinitiv had penciled in $2.75 per share and $6.12 billion. Union Pacific blamed softening consumer markets, inflation, a one-time labor expense and increased workforce levels but said resource levels were more aligned with demand to finish the quarter.

Robert Half — Shares of the staffing consulting firm tumbled more than 5% after Robert Half reported disappointing second-quarter results. The firm reported $1.00 in earnings per share on $1.64 billion of revenue. Analysts surveyed by Refinitiv were expecting $1.14 per share and $1.69 billion of revenue.

General Dynamics — The defense contractor climbed 3% after General Dynamics reported better-than-expected second-quarter results. The company logged $2.70 in earnings per share on $10.15 billion of revenue. Analysts surveyed by Refinitiv had estimated $2.56 in earnings per share on $9.46 billion of revenue.

CoStar Group — Shares of the commercial real estate company slid 7.4% after reporting lighter-than-expected revenue for the second quarter, and softer guidance for the third quarter. CoStar said it generated $605.9 million in revenue during the second quarter and expected between $622 and $627 million in the third. Analysts estimated $607.3 million and $623.4 million for those respective periods, according to FactSet’s StreetAccount.

KeyCorp — Shares of the Cleveland-based regional bank jumped more than 7%. Regional bank stocks moved broadly higher after the deal between Banc of California and PacWest.

— CNBC’s Hakyung Kim, Brian Evans, Yun Li, Tanaya Macheel, Alex Harring and Samantha Subin contributed reporting.

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July 26, 2023