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Here’s when millions of Americans will get stimulus checks

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Stimulus Day — not to mention St. Patrick — is a reason many will raise a glass on Wednesday.

A third coronavirus stimulus check should officially land in millions of Americans’ bank accounts on Wednesday morning, banking industry groups say.

That’s the so-called settlement date for the first wave of “tens of millions” of $1,400 payments that the Internal Revenue Service began distributing last week, according to the National Automated Clearing House Association, also known as Nacha.

The IRS has not publicly said exactly how many checks have gone out, but the Independent Community Bankers of America told financial institutions to expect about 90 million direct deposits worth a total of $242 billion on Wednesday, The Washington Post reported.

The IRS has also mailed another 150,000 checks with a payment date of March 19, the trade group reportedly said.

The tax agency hasn’t detailed the timeline for distributing the rest of the checks, but President Biden said Monday that his administration would reach the milestone of delivering 100 million payments “over the next 10 days.”

President Joe Biden speaks during a roundtable meeting with Americans who will benefit from the COVID-19 pandemic relief checks that are a part of the American Rescue Plan.
President Joe Biden speaks during a roundtable meeting with Americans who will benefit from the COVID-19 pandemic relief checks that are a part of the American Rescue Plan.
Samuel Corum/Getty Images

While the feds trumpeted the start of the so-called economic impact payments on Friday, many Americans wondered why they had to wait several days for the money to arrive.

The answer lies in the machinery of the financial system. The IRS sent the payments through the Automated Clearing House system, an electronic network that’s used to process financial transactions.

Each deposit in the first wave had a settlement date of March 17, meaning that’s when the money would actually move from the IRS’ coffers to banks, who then make it available to their eligible customers, according to Nacha, which manages the ACH system in the US.

To get more specific, Nacha said the payments will be settled at 8:30 a.m. Eastern time Wednesday, “exactly as instructed by the IRS.”

“This is literally the moment in time when the money will be transferred from the government to banks’ and credit unions’ settlement accounts at the Federal Reserve,” Nacha said in a statement.

Banks and credit unions are then required to make the money available to account holders by 9 a.m. local time, according to the group.

Some financial institutions such as the banking startup Chime made the funds available early. The IRS also said some people would see the money in their accounts as provisional or pending payments before Wednesday.

Megabanks such as JPMorgan Chase and Wells Fargo, however, told customers that the checks wouldn’t be available until Wednesday at the earliest, leading to some online criticism that they were sitting on the money.

Congress passed a $1.9 trillion COVID-related stimulus package on March 10, 2021.
Congress passed a $1.9 trillion COVID-related stimulus package on March 10, 2021.
Chip Somodevilla/Getty Images

But industry groups said banks did not actually have any of the money before the official payment date.

“Until that time, the funds remain with the government,” the American Bankers Association and eight other trade groups said in a statement. “While the IRS could have chosen to send the funds via Same Day ACH or provided for an earlier effective date, it chose not to do so.”

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Glasses retailer Warby Parker eyeing IPO as soon as this year

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Hipster glasses retailer Warby Parker is eyeing an initial public offering.

The 11-year-old business, which started out as an e-tailer before rolling out some 130 stores across the US, is considering an IPO as early as this year, Bloomberg reported on Wednesday.

The New York-based company has amassed a huge customer following by offering less expensive prescription glasses. Warby Parker raised $120 million in its most recent funding round giving it a $3 billion valuation, according to the report.

“We’ve always explored various financing opportunities in both the debt and equity markets,” the company said in a statement. “To date, we have successfully and deliberately raised money within the private market on favorable terms and have plenty of cash on our balance sheet. We’ll continue to make strategic decisions in line with our commitment to sustainable growth.”

Founded by college buddies Dave Gilboa and Neil Blumenthal, who met at the Wharton School at the University of Pennsylvania, Warby Parker has attracted some large investors including the mutual fund company, T. Rowe Price.

It turned it first profit in 2018, Gilboa told The New York Times at the time.

Warby Parker co-founder Neil Blumenthal
Warby Parker co-founder Neil Blumenthal
Brian Ach/Getty Images

Customers can get prescriptions through their apps on their smartphones and use cameras to pick out frames. The company also has an optical lab in Sloatsburg, NY where it produces lenses.

While Warby Parker is not the least expensive option, it beats Costco in a recent comparison with Costco charging as little a $126 for a pair of prescription glasses compared with Warby Parker’s least expensive pair at $95.

“As consumer walk into a LensCrafters or Sunglass Hut, they see 50 different brands of glasses but don’t realize that all those brands are owned by the same company that owns the store that they’re standing in, that probably owns the vision insurance plan they’r using to pay for those glasses,” Gilboa said in a recent CNBC interview.

“And so, it’s no surprise that a lot of those glasses are marked up 10 to 20 times what they cost to manufacture,” he said.

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Dogecoin hits new high boosted by DogeDay hashtags

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Dogecoin prices hit an all-time high on Tuesday, with a market capitalization above $50 billion, after social media fans used hashtags to fuel a rally in the meme-based cryptocurrency.

An 8,000 percent price surge this year has seen Dogecoin, which was launched as a satirical critique of 2013′s cryptocurrency frenzy, overtake more widely-used cryptocurrencies like Tether to become the fifth-largest coin.

While Dogecoin, whose logo features a Shiba Inu dog at the center of the meme, a represents only a fraction of bitcoin’s $1 trillion value, it can be traded on crypto exchanges and more popular mainstream trading apps.

“The Doge rally represents an interesting convergence,” said Diana Biggs, CEO of crypto start-up Valour, after Dogecoin’s price soared by more than five-fold in the last week to a record 42 cents, according to CoinMarketCap.

“A meme coin created as a joke for early crypto adopters whose community found that kind of thing to be fun, with now a new generation of retail investors for whom memes are a native language,” Biggs added.

Dogecoin fans used the hashtags #DogeDay and #DogeDay420 to post memes, messages and videos on Twitter, Reddit and TikTok, referring to the informal April 20 holiday to celebrate cannabis which is marked by smoke-ins and street parties.

“GIMME THAT DOGECOIN LAMBO!!! #DogeDay” one tweeted, referring to the Lamborghini car popular in crypto culture.

Dogecoin’s rise has come amid a surge in online trading of stocks and crypto by retail investors, stuck at home with extra cash because of the COVID-19 pandemic. It has not coincided with a growth in usage of the coin for payments or in commerce.

The same trend has spurred a boom in usage of online trading apps like Robinhood, and also fueled the social-media driven rally in GameStop stock that pitted retail investors against hedge funds earlier this year.

“It’s an extension of the same phenomenon that has led Tesla stock to be valued well beyond fundamentals and more recently to the GME (GameStop) short squeeze,” said Ajit Tripathi, head of institutional business at decentralised finance startup Aave.

Like other cryptocurrencies, Dogecoin’s price is heavily influenced by social media users including Tesla chief Elon Musk, whose tweets on the cryptocurrency in February sent its price soaring over 60 percent.

“If this goes as planned and everybody including Mr. Musk go ahead and just pour money into Doge on April 20th all at once Doge will reach prices that originally were not even conceptual,” a TikTok user said in a video promoting the coin.



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Amazon is opening a beauty salon in London

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Amazon is opening a hair salon in London — its latest odd lurch into new businesses as the pandemic continues to fuel the e-commerce giant’s torrid growth.

The Amazon Salon, unveiled in a Tuesday blog post, will occupy a two-story, 1,500-square-foot space in Spitalfields, a trendy neighborhood in East London that is also home to Amazon’s UK headquarters, which houses about 5,000 employees.

Indeed, the new salon, which will be open seven days a week, initially will only cater to Amazon workers. Members of the public will be able to make bookings in “the coming weeks” by calling, emailing or visiting the salon, the company says.

“This will be an experiential venue where we showcase new products and technology,” Amazon said in a blog post on Tuesday, adding that there are no plans to open other salons.

That will include making Amazon’s Fire tablets available at each station, allowing customers to use augmented reality technology to see what they look like as a platinum blonde, brunette or with highlights, the company said.

The salon is located at Amazon’s UK headquarters, which houses about 5,000 employees.
The salon is located at Amazon’s UK headquarters, which houses about 5,000 employees.
Amazon

The salon will also test new “point-and-learn” technology, where customers can point at a product they are interested in on a display shelf and the relevant information, including brand videos and educational content, will appear on a display screen.

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