Visa Says U.S. Spending on Cards Up Despite Drop in Jobless Aid
Visa Says U.S. Spending on Cards Up Despite Drop in Jobless Aid
(Bloomberg) -- Visa Inc. said overall spending on its cards by U.S. consumers climbed in July and August even after elevated unemployment benefits expired.
The spending on debit cards rose 26% in July and 24% in August compared with the same periods a year ago, the world’s largest payments network said Tuesday in a filing. Those increases offset an 8% decline in spending on credit cards during both months.
U.S. lawmakers remain deadlocked over extending $600 in additional weekly unemployment benefits, a program that ended in July. That assistance had helped millions of households.
Cross-border volume has declined 31% so far in Visa’s fiscal fourth quarter, which ends Sept. 30. Overseas spending by cardholders is more profitable for Visa than domestic transactions.
“While many countries had positive year-over-year domestic spending growth, only a few have seen cross-border travel-related spending improve as the majority of borders remain closed,” Visa said in the filing.
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