Discover Card is offering one of the most compelling promotions we’ve seen recently, offering a $20 Discover gift card whenever you use your Discover Card to make $200 in purchases at participating malls.
The promotion runs from November 1 through December 31. The offer is compelling not only for the reward itself—an up-to-10% bonus based on your purchases—but also for the fact that you can do it up to 5 times ($1000 in spending equals $100 in gift cards), and the redemption is easy. You just take your receipts to the mall’s customer service kiosk (or Discover kiosk in some malls), and they hand you the gift card.
The promotion is also fairly wide-ranging, with over 160 malls participating, although some states have many more options than others, and 11 states have none at all.
October 19th, 2007
Continental Airlines, GM Launch First World MasterCards for Business
By Liz Morris
Continental Airlines and General Motors, in conjunction with Chase Card Services, launched new World MasterCard business credit cards yesterday. They are the first business credit cards to have the high-end “World” designation, which in general promises more perks for cardholders.
The Continental Airlines World MasterCard for Business offers double Continental OnePass® miles for ticket purchases made directly from Continental Airlines, as well as double miles on dining, gas and office supply store purchases. It also offers one OnePass mile per dollar on all other card purchases. There’s no limit to the number of OnePass miles a cardholder can earn, and the miles never expire.
The GM Business Card World MasterCard offers three percent back on gas purchases, dining, office supply stores and for GM dealers parts and service. It also offers a full one percent back on all other card purchases. These earnings can be applied towards the purchase or lease of more than 80 eligible GM vehicles, and the earnings can be used with most other GM incentives. Perhaps even more enticing for potential cardholders is the fact that there is no limit on the number of points that can be earned and no limit on how many can be redeemed toward an eligible GM vehicle. There’s also no annual fee.
In addition, both of these new business credit cards offer World MasterCard perks similar to those offered to consumers who carry World cards, including travel and concierge services, and no preset spending limits.
October 18th, 2007
Back to the Future as BankAmericard Launches
By Justin McHenry
Bank of America is resurrecting the name of the original revolving credit card, BankAmericard, and giving it a contemporary spin with some enticing features, including no cap on rewards earnings and no spending limits.
The BankAmericard Rewards Visa will have an interesting rewards formula as well. Similar to tie-ins Bank of America is using on other products, the company will offer greater rewards to cardholders who also have other Bank of America accounts such as checking, savings, CDs, and loans. These multiple account holders will earn 1.25 points per dollar spent and also earn an extra .25 points per dollar on past purchases for each year that they continue to hold multiple accounts. In essence, loyal Bank of America cardholders can earn 1.5 points per dollar, while those holding the BankAmericard without other B of A accounts will get just one point per dollar. Points will be good toward standard rewards of merchandise, gift cards, travel or cash back.
While Bank of America is “re-launching” the BankAmericard, in truth they are simply rebranding to a past name that some may have nostalgia for. Launched originally in 1958, BankAmericard is considered to have been the first revolving credit card. BankAmericard later morphed into the network known today as Visa.
October 10th, 2007
American Express and Discover Top J.D. Power List for Credit Card Customer Satisfaction
By Justin McHenry
American Express and Discover are the best among major credit card issuers for customer satisfaction, according to new survey results released by research and rankings firm J.D. Power and Associates. The survey compared the top ten issuers on factors including benefits and features, rewards, billing and payment process, fees and rates, and problem resolution.
The survey, conducted this summer and based on responses from more than 7,800 credit card users, had American Express ranked first with a score of 735 on a 1,000-point scale, with Discover a close second at 728 points. American Express performed particularly well in benefits/features and problem resolution, while Discover’s customers gave them high marks for rewards and billing/payment.
American Express and Discover also performed significantly better than their main rivals in the credit card industry. Third place Citi scored just 652 points. HSBC performed the worst of the ten issuers included in the survey, scoring 571.
The complete rankings, including scores:
1. American Express 735
2. Discover 728
3. Citi Cards 652
4. Chase 651
5. US Bank 646
6. WaMu (Washington Mutual) 638
7. Wells Fargo 636
8. Capital One 617
9. Bank of America 607
10. HSBC 571
October 10th, 2007
La Quinta Hotels Launches New Rewards Credit Card
By Seth Harbison
Hotel chain La Quinta Inns & Suites has teamed up with Chase to offer a new La Quinta Visa Rewards Card, which will offer points toward La Quinta hotel stays via La Quinta’s frequent guest program.
The La Quinta Visa Rewards card offers five points per dollar in purchases at La Quinta hotels and one point per dollar on all other purchases. In addition, new cardholders get 6,000 bonus points after using the card for the first time, which is equivalent to a free night at many La Quinta properties. In addition to using points toward La Quinta hotel stays, cardholders can also use points toward airline travel and stays at LXR Luxury Resorts & Hotels.
You can apply for the La Quinta Visa Rewards Card at http://www.lq.com/chase.
October 4th, 2007
Expedia and Citi Team Up for New Travel Credit Card
By Liz Morris
Travel reservations Web site Expedia.com and Citi announced last week the launch of the Citi PremierPass / Expedia.com World MasterCard. The new card extends the relationship between Citi and Expedia, a relationship that began last year when Expedia started offering Citi’s ThankYou reward points to its customers.
The new Expedia credit card offers cardholders the ability to earn points for all purchases, as well as additional points for purchases on Expedia and additional points tied to miles flown on the flights booked via Expedia.
There are two cards being offered, one a no-annual-fee card and one an “Elite” card charging a $75 fee. The no-annual-fee card offers up to three points for every dollar spent on Expedia transactions, with two points awarded for eligible travel purchased on Expedia.com and one additional point for hotel, air plus hotel, cruises or activities over $50 booked at Expedia.com. In addition, one point is earned for every three miles flown on any airline, and one point is earned for every dollar spent on all other purchases. The Elite version offers these same rewards, but ups the ante by offering one point for every mile flown on any airline ticket purchase, and double points on purchases at supermarkets, drug stores, gas stations and parking.
ThankYou points can then be redeemed for future travel awards as well as gift cards or merchandise.
October 4th, 2007
JetBlue Airways to Only Accept Credit or Debit Cards In-Flight
By Liz Morris
JetBlue Airways announced Monday that soon cash will no longer be king on board its flights—in fact, cash won’t even be accepted. Starting November 1, only credit cards and debit cards will be accepted aboard JetBlue flights.
“The hunt for stray dollars and cents is over for our customers,” said Brett Muney, Manager, Product Development for JetBlue Airways.
The move will also mean flight attendants will no longer have to deal with cash or worry about making change for passengers. Obviously, however, some customers who were perfectly content to use cash will be forced to bring a card along and use it if they need drinks or make other purchases during a flight.
JetBlue flight attendants will use handheld credit card readers to charge passengers’ in-flight purchases.
October 4th, 2007
Credit Card Rates Up, Even After Fed Rate Cut
While the recent cut in interest rates was reason for applause in the financial markets, it was just a finger in the dike in the credit card arena, according to the latest Credit Card Monitor rate survey by IndexCreditCards.com. Average credit card rates have increased in recent months, and the half-point Federal Reserve interest rate cut was more than offset by significant repricing from many credit card issuers.
The average rate for non-reward consumer credit cards has increased to 14.41%, up from 14.21% in July. For credit cards offering reward programs, the average rate jumped to 15.85% from 15.58%. (Those with the very best credit saw more modest increases, with average non-reward card rates increasing to 11.07% from 11.02% and reward card rates increasing to 13.36% from 13.14%.)
“In a time of uncertainty, credit card companies are tightening their belts,” says Justin McHenry, Research Director for IndexCreditCards.com. “Several issuers have stated they are preparing for greater credit card defaults in the near future, and it’s likely that the rate increases are a hedge against that.
“From July of 2006 to July of 2007 we saw very little movement in credit card interest rates, then suddenly almost every major issuer started tinkering with their offers—usually to the upside.”
Business credit card rates are climbing in step with consumer credit card rates. The average non-reward business credit card rate jumped to 12.61%, up from 12.27% in July. The average rate for business credit cards with rewards increased only slightly, to 14.25% from 14.22%.
One unexpected bright spot in the survey was student credit cards, whose rates actually decreased. The average student credit card rate is now 16.49%, down from 16.64%. “Student cards were one of the few products to be left untouched recently, so the Fed’s rate cut actually made a difference here,” says McHenry.
Financial institutions represented in the survey include Advanta, American Express, Bank of America, Capital One, Chase, Citi, Discover, National City, Pulaski Bank, U.S. Bank, Washington Mutual, Wells Fargo and more.
September 24th, 2007
RevolutionCard Aims to Shake Up Credit Card Industry
By Justin McHenry
RevolutionCard, a new credit card that aims to cut credit card fees and increase card security, launched today. Backed by a gaggle of financial and technology heavyweights, including America Online founder Steve Case at the helm of its parent company, the RevolutionCard comes with no name or account number listed on the outside of the card, instead using a PIN code system to verify a cardholder’s identity. It also offers merchants a much lower interchange fee—the fee merchants pay to banks and credit card processors for accepting credit cards—which might be the key to its success in the marketplace.
The RevolutionCard is one of the products from Revolution, LLC, the company formed by Steve Case. In addition to Case, investors include former AOLer Ted Leonsis, former United States Treasury Secretary Larry Summers, former Charles Schwab CEO David Pottruck, and former MasterCard International President and CEO Russell Hogg. It is also partnering with traditional credit card issuers including Citi and CompuCredit to issue its cards.
According to an article in USA Today, the card can already be accepted at 100,000 merchants, and will ramp up to levels equal to MasterCard and Visa over the next three years.
While the RevolutionCard’s security features may entice some, its ultimate success may be predicated on how hard it is pushed by merchants—and it may be promoted very highly. Revolution claims that traditional credit card purchases cost merchants 1.9% of a purchase, while RevolutionCard transactions will cost just 0.5%. With many merchants either grumbling or outright suing credit card companies over the size of these fees, it’s likely that many will embrace the RevolutionCard. Despite Revolution’s claims that merchants will pass these savings on to consumers, that of course remains to be seen.
More information on RevolutionCard and an online application can be found at revolutioncard.com.
September 24th, 2007
Chase Freedom Card Relaunches with More Flexible Rewards Formula
By Justin McHenry
Last year Chase launched its Freedom Card with much fanfare, touting the ability to easily move between cash back rebates and reward points programs, as well as offering 3% back/3 points per dollar on gas, supermarket and fast food purchases. Chase has now announced “the next generation” of Chase Freedom, with a more flexible rewards formula that offers 3% back on your three biggest spending categories each month. By doing so, Chase eliminates a cardholders’ need to remember which categories pay greater rewards while simultaneously increasing the likelihood of the card being used.
Chase Freedom cardholders will now earn the 3% back/triple points in whichever three categories they do the most spending in. The 3% adjustment is made automatically, and the 3% rebate categories can change each month. The 15 categories of spending established for the rebates include: gas stations/convenience stores; grocery stores; department stores; drug stores; fast food and quick service restaurants; movie theaters; movie rentals; dry cleaners; health clubs & gym memberships; beauty salons and spas; pet supply stores and veterinarians; mass transit and local commuter expenses; telecommunications; utilities; and cable/satellite TV and Internet bills.
One other perk of the Freedom Card that has not changed is of interest to those who choose the cash back option. For every $200 earned in cash rebates, Chase tacks on another $50 free.
