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January 2002
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(1/31/02)
Cruise Card
MasterCard has teamed up with Travelocity.com to offer a free 'MasterCard Gift Card' in return for booking a cruise. Travelocity.com is also offering cash-back on top of the MasterCard incentive. Consumers who book a qualifying cruise by February 28 will receive up to $150 back from Travelocity.com.
-READ MORE |
(1/31/02)
Sinking Profits
While some credit card issuers have racked up record profits this year due to the cuts in interest rates, a few issuers are experiencing their worst year ever. American Express and CompuCredit are the latest victims, following others such as Providian and NextCard. The American Express charge/credit card division this week reported fourth quarter net income of $170 million, a 64% decline from the fourth quarter of 2000.
-READ MORE |
(1/25/02)
Building America
The National Association of Cities has launched an awesome Web site and a
co-branded MasterCard corporate card geared specifically toward municipal
governments. The corporate card was introduced in conjunction with the launch
of the NAC ‘Building America’ program which promotes more than 10,000 U.S.
cities, towns and villages through a central Web site.
-READ MORE |
(1/25/02)
Debit Mileage
Debit card users can start racking up air miles on the nation's largest
airline and also take a stab at winning one million miles. Citibank, American
Airlines, and MasterCard have teamed to launch the 'Citibank AAdvantage Debit
Card' this week.
-READ MORE |
(1/24/02)
REI VISA
The best place to buy outdoor stuff has just sweetened up its offerings
with a new rewards VISA card. Washington state-based Recreational Equipment and U.S.
Bank launched the 'REI Classic VISA' and 'REI VISA Gold' cards this week. REI
is a major online and brick-and-mortar retailer of gear and clothing for
outdoor activities such as hiking, camping, climbing, skiing, paddling and
bicycling.
-READ MORE |
(1/22/02)
Do Not Call
The government wants to help consumers stop the barrage of unwanted calls,
including phone solicitations for extra services offered by credit card
issuers. The Federal Trade Commission has proposed to establish a national "Do
Not Call" registry which will make it illegal for telemarketers to call
consumers who place their phone number on the national registry.
-READ MORE |
(1/18/02)
Card Beams
In the not too distant future, consumers will be able to purchase fast food
via beams of infrared light. There are about 150 million portable devices
capable of infrared messaging in use around the world. Personal Digital
Assistants (PDAs), such as Palm units, are the most popular handheld infrared
devices used by Americans.
-READ MORE |
(1/17/02)
Speedy Checkout
The days of standing in a long checkout line may soon end as new gizmos hit
the market this week for retail merchants. The new handlheld, wireless devices
enable store associates to tally customers' purchases while they are standing
in line, thus speeding up the time spent to complete the transaction at the
credit card terminal.
-READ MORE |
(1/16/02)
Credit-ED
With college seniors now carrying 3.9 credit cards representing total debt of
$4,134, some students are apparently flunking personal debt management.
Citibank says a recent survey it conducted showed that although the
majority of respondents understand the importance of establishing a good credit history in
college and beyond, and are aware of what a credit report is, only 26% have
actually seen their own report.
-READ MORE |
(1/15/02)
Card Mail
Anthrax fears did not slow down the volume of credit card mail solicitations
as card issuers dumped an all-time monthly record of card offers in the mail
during October. Approximately 477 million solicitations for credit cards were
sent to U.S. households during October, up sharply from September's total of
394 million solicitations and August's 405 million level.
-READ MORE |
(1/11/02)
CIBC - AmEx Cards
Canadians now have the option of getting a VISA and/or an American Express card from the same bank. CIBC, the largest issuer of VISA cards in Canada, announced this week it will issue a suite of American Express credit cards that will include the country's first nationally available smart card. CIBC will issue the line of AmEx card products under the name 'entourage'.
-READ MORE |
(1/11/02)
Debt Rebound
The payoff in credit card debt that occurred during October, in the wake of 9/11 attacks, was short-lived as consumers have since returned to more normal credit patterns. During November, Americans piled on more than $5 billion in revolving credit, mostly credit card debt.
-READ MORE |
(1/10/02)
I-Cards Fade
Credit card marketing on the Internet has collapsed over the past six months as five major players have either totally pulled banner ads or dramatically curtailed online marketing. This week Providian, the most active online marketer of credit cards, has pulled the plug on all online marketing activities for its Getsmart VISA and its new smart VISA.
-READ MORE |
(1/8/02)
Hot Java Card
Retail coffee specialist Starbucks hit the jackpot with its new gift card,
issuing more than 2.3 million cards between the holidays. Starbucks also
reported that despite the lousy economy, its holiday sales were up 22%, as
consumers continue to shell out $3 or more for a cup of fancy Joe.
-READ MORE |
(1/3/02)
Record Profits
Thanks to a significant drop in funding costs and a rise in fee income, it
looks like 2001 will be a banner year for the credit card industry. As a
matter
of fact, the return-on-assets, or pre-tax profits of the industry may reach
4.0%, the highest level since 1989.
-READ MORE |
(1/3/02)
Holiday Volume
While the final tally is still underway, it looks like a last minute rally by
shoppers saved the otherwise dismal 2001 holiday shopping season. American
consumers charged about $122.1 billion between Thanksgiving and Christmas to
their credit cards, a slight increase over the projected $121.4 billion in
credit card volume.
-READ MORE |
