Card issuers have hit choppy water this Spring as growth is down and bad debt is up. However a number of new
products have been launched or re-energized this year. Among the largest marketing efforts to "spring forward" are TV
credit cards and baseball credit cards.
First off Thomson Consumer Electronics and MBNA America joined together in late March to issue the 'RCA MasterCard. This card could become the largest cobranded program to be launched this year. Thomson, owner of the 'RCA' brand, has created a 'Rewards Program' that offers cardholders a point for each net dollar charged redeemable for RCA consumer electronics product rebates. Once 2,500 points have been accumulated, the cardholder will be automatically sent a mail-in rebate coupon worth $25. Cardholders may then purchase an RCA product, minimum $100, at any RCA dealer and submit the rebate coupon for payment. Multiple coupons can be redeemed at the same time and the coupons are good for three years. Card pricing is: no annual fee; 5.9% six-month intro rate (applicable to purchases, cash advances and balance transfers) and prime +9.9% long term rate. The program also offers a sign-up bonus, monthly sweepstakes and a partnership with U.S. Satellite Broadcasting. This program offers significant growth potential for MBNA as it taps into RCA's 23 million consumer customer database. The program was kicked-off Easter weekend with a high profile promotion in conjunction with the NCAA Final Four and the college basketball Fan Jam at the RCA Dome in Indianapolis.
First USA and four Major League Baseball teams will issue and market their affinity cards beginning this month. The Oakland Athletics, Seattle Mariners, Florida Marlins and the Philadelphia Phillies will all offer First USA 'Classic', 'Gold' and 'Platinum' cards. The new cards offer no-annual-fee, a five-month 6.9% teaser rate, and a 17.9% long-term rate. First USA did not indicate there would be any unique value-added features, such as rebates or discounts, for each program. Marketing plans call for home game promotions, direct mail, telemarketing and online applications via each team's web site.
Not to be out done, cross-town rival MBNA America also announced this month an exclusive agreement with Major League Baseball to be the "Official Credit Card Issuer of Major League Baseball". MBNA now has the right to use all 30 team logos on its credit cards and in nationwide marketing. MBNA also has the right to use marks and logos from other MLB-related programs including the Cooperstown Collection, Negro Leagues and Major League Baseball events such as the Championship Series, World Series and All-Star Games. MBNA previously had relationships with 17 Major League teams.
Advanta announced this month it is expanding its 'Comcast Rewards VISA Card' to Comcast's 300,000 cable customers in the Philadelphia area. The card was first launched this time last year and offered only to Comcast Cellular customers. In mid-October Advanta beefed up the cobranded program with more merchant participation including incentives for 76ers and Flyers games. Now the program expands further by giving cable customers points for paying their cable bills on time and double points if they pay their cable bills with the 'Comcast Rewards Card'. Advanta indicated the program may be offered nationally to Comcast's 4.3 million customers if the Philadelphia program is successful. The program's pricing is no annual fee with six month 5.9% teaser rate.
East coast grocer Giant Foods re-launched its rebate VISA card this month after a messy divorce with M&T Bank. The 'Giant VISA' rebate program began to unravel last year as M&T incurred significant losses with the program which offered unlimited rebates of 3% on Giant purchases and 1% on other purchases. Cardholders were racking up an average of $8,000 in annual volume, more than twice M&T projections. Although Giant challenged M&T's right to withdraw, the food chain switched the program to Chevy Chase Bank. The M&T program ceased March 28 and cardholders will have to re-apply for the Chevy Chase version. While the new program preserves the basic rebate structure it has been radically modified. The Chevy Chase version limits rebates to $50 per month and $600 annually. Rebates for balance transfers are now excluded. The new interest rate for the standard card is prime +10.9% with a punitive rate of prime +17.8%. Chevy Chase is also charging a $20 late fee, $20 overlimit fee and an uncapped cash advance fee.
