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From the January 2004 Issue of CardTrak® |
Of the 25 major credit cards introduced in the USA during 2003 six came from Bank One. The issuer also claimed four of the top ten spots with new innovative products. Juniper Bank also deserves honorable mention with five new card products last year. American Express made it into the top ten with its new "Blue Cash" card and Discover ranked #4 with its high value "Miles Card." This year's top new card is the Bank One Starbucks "Duetto VISA" followed by the MBNA/Providian "eBay MasterCard." Here is a rundown on each new program for 2003.
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| 1. Bank One Starbucks Duetto VISA |
A multi-functional credit card was launched by Starbucks and Bank One that combines a re-loadable stored value card with a general purpose credit card. The new "Starbucks Card Duetto VISA" offers cardholders the ability to earn one percent back in "Duetto Dollars" that are automatically loaded on their "Starbucks Card Account" after each billing cycle. "Duetto Dollars can then be used to purchase Starbucks items including beverages, food and store merchandise. Cardholders also receive a one-time pre-load of $10 to their "Starbucks Card Account" after their first "Duetto Card VISA" purchase. Additionally, cardholders earn three percent in "Duetto Dollars" with each automatic reload of the "Starbucks Card Account" using the "VISA Account" of the "Duetto Card." The auto-reload feature allows cardholders to automatically load cash value from their "VISA Account" to their "Starbucks Card Account" whenever they like.
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| 2. MBNA/Providian eBay MasterCard |
eBay teamed with two banks to issue its new rewards MasterCard to as many customers as possible. MBNA will issue the new card to consumers with solid credit scores, while Providian will issue the new card to consumers with iffy credit scores. However, if your credit score is below 600, forget it. The new "eBay Anything Points MasterCard" will offer cardholders points on all purchases. Each point will have an eBay currency value of $0.01. The eBay currency can be spent on virtually anything for sale on the eBay site. Cardholders must be enrolled in the "Anything Points" program to begin spending points earned from the MasterCard. Members' points are accumulated in their PayPal accounts. The points can then be used to purchase items from any eBay seller accepting PayPal for payment. In addition, the points can be applied towards eBay selling fees. Sellers will also be able to award points to their buyers on eBay. Participating companies of the "Anything Points" program can give points as rewards for purchases, incentives for new customer sign-ups, or in exchange for points accrued in their own loyalty programs.
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| 3. American Express Blue Cash |
The success of the American Express "Cash Rebate Card" was extended to its
"Blue" smart card product. The new "Blue Cash Card" in the USA will offer a
cash rebate of up to 5%. The annual cash reward for purchases is up to 3%.
There is an additional rebate of up to 2% for purchases in months in which
the account carries a balance. An account is eligible for a rebate applied
to a maximum of $50,000 of eligible annual spending. The card carries no
annual fee, 0% intro APR on purchases for the first six months; thereafter
a variable APR of either 9.24%, 11.24%, or 14.24%.
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| 4. Chase PerfectCard VISA/MasterCard |
Chase introduced the "PerfectCard VISA and MasterCard" offering bonus rebates on all gasoline purchases as well as a rebate for all card purchases. The new card offers a 6% rebate on all gasoline purchases for the first 90 days. Thereafter, cardholders receive a 3% rebate on all gasoline purchases, regardless of the brand. The card also offers a 1% rebate on all other purchases. There is no annual fee for the first year. The $19 annual fee is waived thereafter if the cardholder makes at least nine purchases in the prior year. Chase is also offering a 0% interest rate on balance transfers for the first nine months. However, Chase charges a 3% balance transfer fee with a $50 maximum. The card carries a prime +9.74% APR for some low-risk customers, but most customers will pay a prime +11.74% or prime +14.99% rate. Higher risk consumers may pay prime +19.99%.
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| 5. Discover Gasoline & Miles Cards |
Discover launched two new reward cards into the marketplace during 2003. The new "Gasoline Card" earns cardholders up to a 5% "Cashback Bonus" award on their gas purchases and up to 1% on their other purchases. Then, cardholders have the opportunity to increase their entire award, up to 10%, by exchanging their award for certificates from 25 "Cashback Bonus Partners." The "Gasoline Card" is the first card to be launched in the new series of "Discover Platinum Cashback Bonus Plus Cards," offering rewards up to 10%. The new "Miles Card" awards cardholders one mile for every dollar they spend. This new product allows cardholders to redeem their miles for travel on any major domestic airline with no restrictive blackout dates. In addition to redeeming miles for travel, redemption begins with as little as 2,500 miles for other reward options including hotel stays, car rentals, vacation packages, brand-name merchandise, and gift certificates as well as cash rewards.
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| 6. Bank One Avon VISA |
Bank One also launched last year the "Avon Platinum VISA" that rewards both cardholders as well as Avon representatives. The new card offers cardholders a full one percent back on card purchases and offers Avon representatives the opportunity to earn $25 for each approved account they generate after a new cardholder makes a purchase. After their first VISA purchase, cardholders also receive Avon's "Anew RetroActive," one of Avon's most popular skincare products, worth $25. Every time cardholders accumulate 2,500 points, they will receive a $25 "AVON BEAUTY Rewards" certificate on their billing statement that can be redeemed for Avon products.
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| 7. Providian Real Rewards VISA |
Providian launched a new VISA card that rewards cardholders for carrying a balance, paying on-time, and enables its customers to use points to lower their interest rate. The new "Providian Real Rewards VISA" also offers a free personal online spending profile that shows the cardholder's "FICO" score. Under the "Real Rewards" program, cardholders earn one point for each $1 in purchase volume, 10 points for every $100 in revolving balances per billing cycle, and 500 points for paying on timer for six consecutive billing cycles. The points have an estimated redemption value of one cent each. The card carries no annual fee and a prime +9.74% APR with a 13.99% floor rate.
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| 8. Bank One Sharebuilder VISA |
The first online brokerage to offer a VISA card with cash rewards that are deposited directly into customers' accounts for automatic reinvestment was launched last year. ShareBuilder Securities Corporation and Bank One teamed to launch the "ShareBuilder Platinum VISA" which offers one point for every dollar of credit card purchases. Once the cardholder earns 2,500 points, a $25 deposit will be swept into a ShareBuilder brokerage account. Cardholders can earn a maximum of 60,000 points per year. Unredeemed points expire after 24 months. In addition to the cash rebate benefits of the new card, ShareBuilder's "Investor Rewards" program provides customers with additional incentives such as cash back promotions, commission rebates from Costco ShareBuilder, and mileage rewards on Alaska Airlines. A 12-month 0% APR is offered on purchases and balance transfers. Thereafter, the rate is Prime +4.65%, Prime +6.65%, or Prime +10.65% based on credit score. There is no annual fee.
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| 9. Bank One Disney VISA |
Disney, Bank One and VISA teamed to develop and introduce the "Disney VISA Credit Card from Bank One." The card's key feature is its "Disney Dream Reward Dollars" program. Cardholders earn 1% of their purchase volume back in "Disney Dollars," which can be redeemed with as little as 20 "Disney Dollars." Rewards can be redeemed toward merchandise, theme park tickets, or hotel rooms at Disney facilities. Cardholders are also entitled to take advantage of upcoming special offers such as three free movies plus a Disney backpack when enrolling in the Disney Movie Club with Disney's VISA card and a $100 per night discount at Disney's Animal Kingdom Lodge from April 27th through July 3rd. The card carries no annual fee, and variable APRs, ranging from prime + 6.90% to prime +10.90%.
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| 10. Providian Democratic Party VISA |
Democratic National Committee launched its own affinity credit card in 2003 with the help of Providian Financial. The new "Democratic Party Platinum VISA" card gives individuals the option of designating their earned rebates as donations to the DNC, or they can earn accelerated rewards for making a donation to the Committee. Cardholders will also be able to choose from a number of patriotic card designs, including: an American flag with a superimposed DNC logo, the Democratic Party donkey mascot, and an image of the U.S. Constitution. Pricing and rebate details were not publicly disclosed.
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| 1. MBNA Vegas.com VISA |
The new "VEGAS.COM Platinum Plus Reward VISA" from MBNA offers cardholders the opportunity to earn a round of golf at the Bali Hai Golf Club, a dinner buffet at the Bellagio, seats for Siegfried & Roy, or front-of-the-line admission to the Coyote Ugly Club. Cardholders earn a VEGAS.com point for each dollar spent, anywhere. A 1,000 point bonus is also awarded on first use of the card. Points have a redemption value of one cent each. For example, the mid-week dinner buffet at the Bellagio is $24.95 or 2,495 points, and seats for Siegfried & Roy go for $113.00 or 11,300 points. The card carries no annual fee and a 10.99% fixed APR. There is a 6-month promotional interest rate of 2.99% for checks and balance transfers. However, the card will not reward cardholders for casino spending nor will it have ATM and cash access privileges.
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| 2. Best Western MasterCard |
Juniper Bank has rolled-out the "Best Western MasterCard," targeted at "Gold Crown Club International" members. The card enables cardholders to earn one reward point for every three dollars spent at a Best Western, and one reward point for every five dollars spent elsewhere. New cardholders will also earn a 1,200-point bonus upon their first use of the "Best Western MasterCard" and up to 800 points for balance transfers. Points can be redeemed for free stays and awards from other retailers. The new card has no annual fee and a 0% intro rate on balance transfers for 6 months, and a 9.9% variable on-going APR.
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| 3. Shell MasterCard |
The new "Shell MasterCard from Citi" offers new cardholders receive a 10% rebate on each Shell gasoline purchase made within the first 60 days of the card's activation. Thereafter the rebate reverts to a 5% rebate on Shell gasoline purchases and 1% on all other retail purchases wherever the card is used. All rebates are applied as credits toward future Shell gasoline purchases. The card has no annual fee for the first year. And the $20.00 annual fee is waived after that, provided the cardholder makes 9 Shell gasoline purchases per year. Citi is charging a prime +9.99% interest rate on purchases. Balance transfers are 0% for the first six months followed by the prime +9.99% APR.
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| 4. AirTran VISA |
AirTran Airways and Juniper Bank took-off with a new "AirTran A-Plus Platinum VISA." The revamped frequent traveler program now offers "Elite" status to customers flying ten roundtrips in 90 days or 25 roundtrips in one year in coach. "Elite" flyers receive free upgrades, dedicated check-in and security entrances. An upgrade to business class for a one-way flight can be earned after two roundtrip flights in coach and 1 1/2 in business class. In the near future, cardholders of the "AirTran Airways A-Plus VISA" will have the opportunity to earn bonus credits through special offers. In 20032, AirTran Airways and Juniper Bank partnered to issue a "Platinum VISA" card. The new "AirTran A-Plus Platinum VISA" includes AirTran's frequent flier program which offers free round-trip air travel with only 12 credits or 12,000 points. VISA cardholders earn one point for each dollar spent on regular purchases, and two points per dollar spent on AirTran Airways ticket purchases. Cardholders can also earn additional points by transferring balances from other credit cards at the rate of one point per dollar transferred (up to 3,000 points or three credits). The new "AirTran A-Plus Platinum VISA" features a six-month 3.9% intro APR on purchases and balance transfers. The go-to rate is 14.99%. The card also carries an annual fee of $39.00. Upon activation, new cardholders receive four credits. Customers can earn a free round-trip ticket or four Business Class upgrades on AirTran Airways for 12 credits, or a free round-trip ticket on any one of 14 other airlines to destinations not served by AirTran Airways for 24 credits.
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| 5. Frontier MasterCard |
Frontier Airlines launched a suite of co-branded MasterCards offering free travel for as little as 15,000 miles. The "Frontier MasterCard" comes in two different flavors and four card designs. The no annual fee "Frontier Platinum MasterCard" enables cardholders to earn one mile for every $2 of credit card purchases. Platinum cardholders may also earn one mile per $1 in transferred balances requested in the first 30 days of account opening, up to a maximum of $5,000. The "Frontier WorldCard MasterCard," which carries a $49 annual fee, offers one mile for every dollar spent on all credit card purchases, two miles for every dollar spent on air travel with Frontier Airlines, and a 7,500 mile bonus with the first card purchase. Both cards offer a six-month 0% interest rate on balance transfers and an on-going APR of prime +9.74% with a 13.99% minimum. The four card designs offered include Frontier's signature wolf, rabbit, lynx or fox. The new "Frontier MasterCards" are being issued with Juniper Bank.
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| 6. Fifth Third Business Card |
Fifth Third Bank has expanded its rewards program to business cards. The new "Business Travel Rewards MasterCard" enables the primary cardholder to earn up to 100,000 points annually. Business cardholders earn one point for each $1 in net purchases. Points can be redeemed for free airline tickets, discounted hotel rooms, or cash-back. Redemption opportunities starting at 10,000 points. The cash-back feature offers a $100.00 check for 10,000 points. The introductory interest rate for purchases on the new MasterCard is fixed at zero percent for the first four billing cycles, then goes to Prime + 7.99%. The card also carries a $50 annual fee. Fifth Third launched reward programs for its credit card and debit cards in 2002. Under the debit card rewards program, cardholders earn one point for every $2 in purchases.
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| 7. Twins VISA |
Bank One has launched the first rewards program enabling cardholders an opportunity to receive free baseball tickets and merchandise. The new rewards program gives cardholders three choices when they spend $2,500 with their "Minnesota Twins VISA card: two lower-level reserved tickets to any regular-season Twins home game; three upper-level club tickets to any regular-season home game; or $40 of merchandise at Twins Pro Shops. Generally, sports credit card programs do not include rewards programs. In most cases, customers receive a premium gift such as a cap, athletic bag or other team item when they apply for the card. Bank One says often, a customer applies for the card to receive the gift, but then never uses the card.
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| 8. MYPoints MasterCard |
Citibank and MyPoints.com have teamed to launch a new co-branded, rewards MasterCard. The new "Citi MyPoints Rewards Platinum Select MasterCard" will be marketed to ten million members of MyPoints "True Opt-in" database. Besides earning points for every purchase made on the card, cardholders can also accumulate additional points when shopping online at MyPoints.com, visiting affiliated Web sites, reading emails and filling out surveys. Under the program cardholders earn one point for every $2 spent, both online and offline. The maximum number of points cardholders can earn is 15,000 per credit card account, per calendar year.
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| 9. Hulk MasterCard |
Universal and Chase teamed to introduce the collectible "Universal Entertainment MasterCard Hulk Limited Edition from Chase." The new card is made of signature green plastic and will be available through June 2003 to new cardholders, as well as existing cardholders of the "Universal Entertainment MasterCard from Chase." Six months ago, Chase and Universal teamed to launch a co-branded MasterCard. Under the joint program, cardholders earn one point per dollar on all everyday purchases, and two points per dollar spent at select Universal Parks & Resorts retail locations. Points can be redeemed for movie and concert tickets, DVDs, CDs, advance movie screenings, and cardholders will have the opportunity to redeem reward points for unique Hollywood experiences, including tickets to celebrity events, spending a day on a television or movie set, backstage concert passes, and walking the red carpet at a movie premiere.
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| 10. Y-ME CARD |
A new credit card designed to raise money for the Y-ME National Breast Cancer Organization was launched in 2003 by Bano One. The "Y-ME Platinum VISA" card will generate contributions based on the cardholder charge volume. The card will be offered with an initial rate of 8.9% and no annual fee.
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| 11. Caesars MasterCard |
A new MasterCard has been launched that offers casino comp dollars as a cardholder reward. The new "Caesars Entertainment MasterCard," issued for Park Place Entertainment by Juniper Bank, offers cardholders a one percent "comp dollar" credit for all purchase transactions, plus 10 bonus "comp dollars" the first time the card is used. The "comp dollars" earned with the new card can be used to pay for hotel rooms, dining, show tickets, spa services, golf tee times and other amenities at 15 domestic casino resorts. Park Place operates Bally's, Caesars, Flamingo, Grand Casinos and Paris resort casinos in the USA. Through the gaming resort company's existing "Connection Card" loyalty program, guests earn a bank of comp dollars that can be spent like cash in its casino resorts. Members earn rewards through slot machine and table game play, as well as through hotel cash folio charges. "Connection Card" members who use their "Caesars MasterCard" to pay for a hotel stay at a participating property will receive the one percent credit in "comp dollars," in addition to the three percent hotel rewards benefit the "Connection Card" program currently offers. The "Caesars MasterCard" carries a six-month 0% intro on balance transfers and a variable 12.99% APR thereafter. Park Place Entertainment Corporation is changing its name next month to Caesars Entertainment.
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| 12. VW VISA |
The new "Volkswagen Platinum VISA Card with Rewards" is a product of a relationship between Volkswagen of America and Bank One. The new card offers points for every purchase, double points for Volkswagen purchases, and an instant credit feature. Under the program, cardholders earn two points for every dollar spent on qualified Volkswagen purchases and one point for every dollar spent on other purchases. Points may be used toward the purchase or lease of a new Volkswagen or the purchase of a previously owned Volkswagen. Points can also be redeemed for Volkswagen service or maintenance, parts, Volkswagen "DriverGear," extended service or warranty contracts, or for goods and services from more than 100 partners. A minimum of 2,500 points are required to make a redemption. The card carries no annual fee, a six-month 0% intro rate, and a prime +6.99% on-going APR.
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| 13. SmartOne Platinum Edition VISA |
Another U.S. issuer has jumped on the smart card bandwagon with the introduction of the "smartOne Platinum Edition VISA" card. Like other smart card programs, First National Bank of Omaha is offering applicants a free smart card reader with its new card. The "smartOne" program includes "smart Access" and "VISA smart Space." The "smart Access" feature allows the cardholder to set a private, 4-digit Passcode which can only be accessed by the chip on the "smartOne VISA." The Passcode can be used to provide secure access to First National Online. With "VISA smart Space," cardholders will have access to a special collection of travel packages, promotions and shopping offers. The deals are only available to cardholders that have their smart card reader and reader software installed. First National Bank of Omaha is offering a fixed 1.9% APR for the first 6 billing cycles, followed by an 11.99% APR. The rate is adjusted monthly and is based on the highest one-month London Interbank Offered Rate each month as quoted in the Wall Street Journal. Rates for risky cardholders can be as higher as 23.99%.
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| 14. HSN VISA |
TV shopping network HSN is launched a rewards bank credit card with Providian. The new "HSN Rewards Card" will enable its users to earn points for dollars spent, which they can use towards the purchase of HSN merchandise. Customers will also receive $10 toward a future HSN purchase the first time they use the card. HSN generated worldwide consolidated sales of close to $2 billion in 2002, reaches more households worldwide than any other TV shopping network and is the 4th largest cable television network in the USA.
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| 15. Tesoro MasterCard |
Tesoro Petroleum dropped its proprietary gas card and switched to a MasterCard issued by Juniper Bank. The new "Tesoro Platinum MasterCard" rewards cardholders with a Tesoro gift card each time they accumulate $20 in rebates. Under the program, cardholders earn a 3% rebate on purchases at Tesoro branded locations, and a 1% rebate on all other purchases. During the first two months after an account is opened, cardholders will earn double rebates for every purchase. The no-fee card also features a 0% introductory rate on balance transfers for 6 months and a 12.99% variable go-to APR. Juniper has already started issuing the new MasterCard to current, creditworthy, gas cardholders and will now accept applications from the general public.
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