So a good friend of mine, who operates one of the largest adult websites in the world, let’s call him Joe the website owner, tells me that starting just about 30 days ago, he is seeing about 10% of his attempted re-bills declined by the credit card company. This mean about 10% of his customers, which number in the millions, and would be a good sample of the general economy, don’t have $25 available on their credit card for a charge to go through. This is not even a monthly charge but an one a year, renewal fee.
Kind of a scary stat, don’t you think?
One of the moves banks have taken as part of the credit crisis is to reduce credit lines on people’s credit cards, without notice, so someone with a $5,000 credit line who owed say $3K, got his credit line reduced to $3K and then has no credit left.
Generally if Joe the webmaster can’t get a 10% of his renewal transactions approved, what does that say for the state of the overall economy and consumers ability to spend?