Sam’s Club Taking Visa Credit Card Payments from February

Sam's Club SignAn announcement has been made by Wal-Mart Stores Inc. and credit card payment giant Visa confirming that Sam’s Club will accepting Visa credit card payments starting from the beginning of February. Sam’s Club, which is the eighth largest retailer in the United States is part of Wal-Mart Inc. and has more than 650 clubs across America and Puerto Rico. The announcement about the agreement was made by Wal-Mart and Visa last week and everything is set for Sam’s Club to start taking Visa credit card payments from 1st February 2016.

Although Sam’s Club does already accept Visa credit cards at its gas stations in America as well as online, its clubs currently only take payment via Visa debit card or prepayment cards, which is something that limits customers who want to use credit products. In addition to its plans to now accept Visa credit card payments at its clubs it has also been announced that consumers will be able to benefit from using Visa Checkout online with Sam’s Club.

Giving consumers more choice

The move to start accepting Visa credit card payments will enable consumers who are shopping at Sam’s Club locations to benefit from greater ease and convenience when it comes to making payments. An executive from the company, Tracey Brown, stated that Sam’s Club was eager to do more to benefit members, which included providing them with more options when it came to payment methods that would be accepted.

Brown added that the company also wanted to enhance the value of being a member, and this was one of the ways in which it hoped to achieve this goal. She stated that by enabling members to use Visa credit cards from February the company was able to provide them with more choice, more ways to shop, and a greater level of convenience.

An executive from credit card payment company Visa also spoke about the agreement with Sam’s Club. Ramon Martin, who is the senior vice president for merchant solutions at Visa said that the service provider was delighted to be entering into the agreement with Sam’s Club. He added that Visa was keen to ensure that payments were speedy, secure and simple for all cardholders whether they were shopping via the internet or in person. Visa, which is a global service provider, now operates in more than two hundred countries and territories around the world.


Thousands of Bad Credit Loan Lenders Flee the UK Market

United Kingdom FlagSince Apr. 2014, the Financial Conduct Authority (FCA) in the United Kingdom has been instituting tough new regulations and enhanced oversight of the consumer credit market, which includes payday loan lenders. When the FCA took over regulations last year, it handed out temporary licenses to 50,000 such firms, and now it’s seeking applications for full-time licenses.

The result has been thousands of consumer credit agencies, including those same payday loan lenders, exiting the British market as they will be burdened with greater rules and regulations.

According to the London Telegraph, more than 5,000 private firms have refrained from applying for a full license. In fact, many of them have already closed their doors prior to applying for a license.

Many of the enterprises to have not submitted an application include bad credit loan lenders, debt management firms, log book lenders, credit brokerages and credit repair services.

Approximately 17,000 consumer credit establishments were required to file an application by Apr. 1 of this year. However, precisely 5,172 did not submit an application, which means they’d be shut down. Moreover, just under 7,000 unlicensed credit companies applied to enter this sector of the British economy.

Although roughly 12,000 businesses have been given approvals from the FCA, 97 percent of them were given just limited authorization. This means the financial aspect is not a major portion of the overall business. It could reportedly consist of car dealerships with financing options or dentists providing payment plans.

For the payday loan lenders that have filed a license application, it’s believed they will wait as long as a year before being given the OK from the FCA.

Prior to the entire process, the FCA had predicted that there would be a 99 percent decline in this area of the economy. Indeed, since the FCA imposed an interest rate cap, the payday loan volume has dropped 70 percent, notes the Consumer Finance Association (CFA), an industry organization representing payday loan lenders.

One City Council Entering Payday Loan Industry

In order to combat the rise of bad credit loan websites, Sheffield’s city council is offering loans online of its own. The local officials will be providing loans to the city’s poorest residents, in a program that would be worth £20 million ($31.1 million). This would serve as an alternative to the likes of Provident Financial and Wonga.

Called Sheffield Money, the new financial services entity will be supported by city council and regulated by the FCA. It pledges to give loans from its website in just 15 minutes. It’ll also maintain a city center money store where people can apply for loans. There’s a phone application service, too, for customers who can’t visit in person.

Sheffield Money will have interest rates starting from 49.9 percent to as much as 89.9 percent, far lower than the average 272 percent 12-month loan.

“Payday and doorstep lenders have been ripping off and exploiting some of the most vulnerable people in our city, preying on their need for available credit and charging extortionate interest rates. Sheffield needs to be able to offer these people a fairer option which will stop them being forced to go to these notorious lenders


Should Tesla Worry About its Red State Ban?

Tesla Model S At The Geneva Motor ShowTesla Motors the manufacturer of electric cars and electric vehicles has been banned from selling directly to the costumers or opening up a showroom in any of the red states. However they can have stores, galleries, superchargers and service centers in these states. The Governor announced that Tesla Motors is allowed to only sell through various other automobile dealerships. It cannot sell its products through business to costumer channel but rather through large dealerships, for example you can visit a Tesla Mall in New Jersey, but you cannot order or take a test drive according to the law.

The buyer in these states can purchase through; the purchased item then gets delivered to the address of the customer’s choosing. The main reason for this restriction is that Tesla Motors would become a direct threat to the car dealership model. In car dealership process cars are sold at the retail level by local distribution channels consisting of various small businesses. The republicans consider it a direct threat to these small businesses.

The most recent ban was imposed by the State of Michigan, which according to some reports was a huge favor to General Motor’s, a strong rival of Tesla Motors. According to a spokesperson, Charles Cyrill if the retails are owned by the industry or firm itself then the costumers will lose all bargaining power.

Ohio state has also recently passed a bill but it is in favor of Tesla Motors allowing the company to sell its cars directly; however the bill is yet to be signed. Steve Chapman further says that it is not just a problem in one or two states, it has become a problem for the whole Country now and the competition is being crushed by using the power of money.

The company has a network of 60 different locations in 23 states across America but now some of them cannot sell directly. This in general has started to affect Tesla’s profit margin along with its market expansion in the Red States.

The company has been posting huge revenues since 2009. In 2009 its sales revenue was $111.94 Million, in 2010 it made $116.74 Million, in 2011 it made $204.24 Million; whereas in 2012 its revenue rose to $413.26 Million and then in 2013 it crossed $2.01 Billion. The financial reports indicate Tesla’s steady and positive progress, thanks to company’s able leadership, but if the ban continues and more states join in then it will surely impact Tesla’s overall sales and the company’s markets has a possibility of taking a huge hit.

This scenario however is dependent on a few factors, which include emergence of a strong competitor in the electric vehicles category, which will bring down the prices of the vehicles and eliminate Tesla’s monopoly; this factor will come into play in the long run. Currently the company enjoys high consumer demand that allows it to make more by supplying fewer units; however with more than one competitor the company will be forced to bring down prices and that will have an impact on its overall sales. The second factor, as mentioned before, is the joining in of more states.

Should Tesla worry about Red States? The answer is simple; in the long-run yes!