When its comes to records, the credit card industry is poised to hit them all. Credit Card adoption this past year hit a record and credit card interest rates are predicted to hit a four decade high in 2023. Some retail-brand credit card rates have already surpassed 30% while an average interest rate of 20.5% is predicted in 2023. This is good news for lenders and painful for consumers facing higher borrowing costs. If the US slips into a recession, rising interest rates would cause additional hardship for card customers. Although interest rates have been rising, credit card delinquencies have remained low because the job market has remained strong, but the latest industry surveys show that consumers are struggling to pay their bills. If the economy continues to slow down and the job market soften we will see higher default rates. Banks have already had time to mitigate these risks and they are better capitalized than in past downturns, so at the end of the day, business owners and consumers are the only ones hurt by this 40 year high-interest rate record.
As the economy continues to slow down and businesses continue to struggle to keep their costs down, new payment solutions have emerged this past year. We can help you learn more about new payment processing options that can help you eliminate all your credit card processing fees and help your business grow in these times of uncertainty. Contact us today!