EMVCo Secure Remote Commerce (SRC)
- Date:December 02, 2019
- Author(s):
- Kyle Marchini
- Krista Tedder
- Report Details: 4 pages, 2 graphics
- Research Topic(s):
- Fraud Management
- Fraud & Security
- PAID CONTENT
Overview
U.S. digital-only challenger banks have long touted low fees as their primary benefit. No monthly account charges and free ATM transactions help position the mobile apps as consumer-friendly alternatives to giant banks. Several of these neobanks have recently rolled out new features targeted squarely at the 59% of Americans who say they live from paycheck to paycheck.
Chime and Varo Bank have both introduced features that will give customers early access to paycheck direct deposits. The two-day advance is often enough flexibility to enable customers to pay bills that otherwise may have been late due to cash flow issues, and helps them avoid high fees and interest charges from payday loan providers. Challenger bank newcomer N26, from Germany, has also announced a similar offering for its customers.
Chime and Varo have also introduced an overdraft feature that automatically covers customers for up to $100 in shortages per pay period. A monthly direct deposit of at least $500 is required to qualify for the protection, and payments covered are automatically deducted from customers’ next direct deposit.
Learn More About This Report & Javelin
Related content
Deepfake Fraud Alert: How FinCEN’s Guidance Affects Banks
Even though deepfake-related fraud suspicious activity reports are on the rise, many financial institutions do not have a deepfake detection solution. FinCEN’s recent alert notes t...
2025 Fraud Management Trends
Innovation is the name of the game in 2025. Though the financial services industry is always working to develop the latest and greatest technology for fraud detection and preventio...
Identity Verification Demystified: Share More, Secure More
Going too far to protect identity has put the financial services industry at increased risk. Reluctance to share critical signals across disparate platforms and sectors has pigeon-...
Make informed decisions in a digital financial world