Visa says U.S. spending on cards up despite drop in jobless aid
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.