While the number of new card offers has tapered off somewhat there are a number of new bank credit card deals now ready to capture your Christmas spirit on plastic.
Here's a rundown on the three most significant launches this Autumn.
The nation's credit card low-price leader, Wachovia of
Atlanta, kicked off a new VISA card in partnership with BMG
Entertainment that combines a below average interest rate with a
hassle-free rewards program. The no-annual-fee BMG VISA features a
7.9% six-month promo rate, and a prime +7.9% long term rate.
Cardholders receive points based on charge volume with accumulated
points tallied with each month's statement. Points may be redeemed
for a wide range of BMG products, from CDs to international trips
to music award shows. For more information call 1-888-BMG-VISA or
visit them on the Web at http://www.bmgvisa.com
First USA rolled down Rodeo Drive this month with a new VISA
card as part of Rodeo Drive's 25th anniversary celebration. The new
Rodeo Drive VISA Card is being issued in partnership with the Rodeo
Drive Committee and represents the second destination card to be
issued by First USA. First USA announced this summer the Branson,
Missouri destination VISA card. The Rodeo Drive VISA enhancements
include complimentary two-hour valet parking on Rodeo Drive and
special offers from Cartier, Christian Dior, Cole Haan, Fred Hayman
Beverly Hills, Gianfranco Ferre, Jessica McClintock and Sulka. Card
pricing is First USA's standard 5.9% promo/13.99% fixed long-term
APR, with no annual fee. First USA will also offer the card in
three varieties: classic, gold and platinum. The program will
generate proceeds, based on transactions, for the Entertainment
Industry Foundation/Permanent Charities. For more information call
1-800-451-2491.
Pittsburgh-based PNC Bank unveiled a new VISA card offering
cardholders a 2% rebate on purchases at participating shopping
malls and a 1% rebate on all
other purchases. The new Mall V.I.P. VISA card will issue the
rebates monthly in the form of Mall V.I.P. Dollars, good at any
VISA-accepting mall merchant. PNC will cap annual rebates at $500.
The no-annual-fee card carries a six-month 6.9% intro rate, a
long-term rate of LIBOR +10.43% on purchases and LIBOR +15.77% for
cash advances. More than 350 malls will
launch the card this month with an additional 150 malls joining by
year's end representing 70% of mall retail space nationwide.
Applications are only available at participating shopping malls
nationwide.
The most direct assault on American Express cards will get
underway this month as MasterCard rolls out its World MasterCard.
No pre-set spending limit, flexible, frequent traveler benefits and
concierge-level service have long been the hallmarks of American
Express charge cards. MasterCard's new product combines no pre-set
spending limit with an option to revolve a designated portion of
the charges each month. The new
card also features a travel rewards program that permits
cardholders to earn free travel on any domestic or international
carrier without regard to blackout periods.
World cardholders will also access to MasterCard's 24-hour Global
Service and a special concierge program providing a wide range of
services including travel and dining reservations. Household and
Bank of America will be among the first to offer the new card.
Chase has joined the Platinum card war to compete with MBNA,
First USA, Banc One and Citibank. The Chase Platinum Visa and
MasterCard features credit lines up to $100,000, automatic
enrollment in Chase's Flight Rewards program and $1 million in
travel accident insurance. Chase Platinum has no annual fee, and
an introductory fixed rated of 5.9% for nine months on purchases
and balance transfers. After the intro period the rate for
relationship customers is prime +6.4% for balances under $2500 or
prime + 4.4% for balances over $2500. Other cardholders will pay
prime +7.4% and prime + 5.4%, respectively.
First USA and Ticketmaster Group rolled out the
Ticketmaster Platinum MasterCard offering five Ticketmaster Reward
Points for every dollar spent at Ticketmaster and one point for
each dollar spent elsewhere. Points are redeemable towards
Ticketmaster gift certificates, event tickets, merchandise and
fantasy entertainment experiences. First USA is offering a
five-month intro APR of 5.9% followed by a 14.99% fixed APR. For
more information call 1-800-451-2491.
MBNA's year old Elton John AIDS Foundation VISA was beefed up
with the addition of an airline miles program and a new Platinum
Plus version. The mileage program is the generic variety offering
travel on most domestic carriers without regard to blackout
periods. MBNA's platinum version of the AIDS VISA features
no-annual-fee, credit lines to $100,000, year-end summary of
charges and $1 million of common carrier travel accident insurance.
During the past twelve months the card has generated $40,000 for
the Foundation. For more information call 1-800-52-ELTON.
The 'Consumer Credit Reporting Reform Act of 1996 went into effect this month. The revised law takes aim at inaccurate consumer information by requiring credit bureaus to respond within 30 days to consumer complaints and by giving consumers the right to sue both the credit reporting firm and the credit provider over false information. The law also seeks to eliminate obsolete information by defining the seven-year reporting rule on bad debts. Under the new law employers will now have to get written permission from current and prospective employees before obtaining their files. A broader discussion of the new law, prepared by noted consumer advocate Gerri Detweiler, is available exclusively via CardTrak Online (cardtrak.com).
It took two and one half years but the U.S. Postal Service
finally did it. As of this month all 32,000 U.S. post offices have
credit/debit card terminals. Consumer acceptance has been strong as
the Postal Service logged 27.2 million credit card transactions and
2.6 million debit card transactions during the year ending Sept.
30. Dollar volume for the period was $1.1 billion credit
transactions and $143 million debit transactions. Business
acceptance was initially too strong as businesses sought to charge
bulk mail and meter settings to maximize returns on card rewards
programs. The Postal Service now excludes bulk mail, meter settings
and money order purchases from credit card transactions. However
the USPS says it will now accept debit cards for such transactions.
GE launched a new corporate credit card rewards program this
month that rewards business travelers for smarter spending. Unlike
other rewards programs based
solely on charge volume the new GE Capital Gains program awards
bonus airline points for making-lower cost flight connections,
using preferred rental car
vendors, staying at preferred hotels and otherwise sticking to
corporate travel policy. The program has two
components: an airline points program for high-volume travelers and
a core program for all travelers. The airline points program
rewards cardholders with one point for dollar spent within policy,
and awards bonus points for cost-savings actions. The core program
rewards employees who travel less frequently by enabling them to
earn valuable coupons and upgrade vouchers for cost-savings actions
such as staying at a preferred hotel for a negotiated rate.
