NEW YORK—Macy’s has announced an increase in the interest rate on its credit card to 34.49%, which appears to be a record high, according to a new report.
Macy’s joins a group of other retailers now offering APRs over 30% on their store cards, including Petco, Good Sam, Michaels, and Exxon Mobil, Payments Journal said.
Store-only cards charge an average interest rate of 30.24%, according to figures compiled by Bankrate, the publication stated. By comparison, the average credit card interest rate is 21.19%.
Two ‘Basic Factors’
“Two basic factors are causing rates to reach new heights,” according to Payments Journal. “In addition to the Federal Reserve keeping interest rates high, retailers are seeking out sources of revenue to compensate for the Consumer Financial Protection Bureau’s push to lower late fees.”