GASBATES
From the July 2004 Issue of CardTrak®
Besides economizing on your automobile use, there is another to combat the rising cost of filling up your beast: credit cards with gas! You can knock off as much as 10% on a fill-up with some of these cards and a few even offer a rebate regardless of the brand.

This month we ranked the 14 nationally available gasoline-related credit cards in the country. Assuming a typical consumer charges $5,000 per year in non-gas purchases, carries a revolving average balance of $2500, and buys 600 gallons of gasoline per year at $2.00 per gallon (15,000 miles/25 miles per gallon), and qualified for the issuer's best pricing, here is how the cards stack up in overall cost. Unfortunately the Gulf MasterCard was not included as Juniper Bank did not have the card ready at press time.

1. AAA Diamond Advantage VISA (MBNA): $87.50
2. Diamond Preferred Rewards MasterCard (Citibank): $146.00
3. Platinum Gas Card (Discover): $162.75
4. Phillips 66 Conoco Union 76 MasterCard (Citibank): $170.00
5. BP Gasoline VISA (Bank One): $182.75 per year
6. Dividend Platinum Select MasterCard (Citibank): $187.75
7. Blue Cash (American Express): $193.75
8. Platinum Business MasterCard with Rewards (Advanta): $205.00
9. Marathon Platinum MasterCard (Chase): $229.75
10. Speedway SuperAmerica MasterCard (Chase): $243.75
11. Shell MasterCard (Citibank): $246.00
12. PerfectCard (Chase): $248.50
13. ExxonMobil MasterCard (Citibank): $270.00
14. Citgo Preferred Platinum VISA (Citibank): $300.25

1. AAA Diamond Advantage VISA (MBNA)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: 5% rebate on any brand of gas that is purchased at the pump; also earns 1 point for each dollar spent; 2% discount on select AAA travel purchases.
REDEMPTION: gas rebates are automatically applied to the account; upon earning 5,000 points a $50 gift certificate for AAA services is issued.
INTEREST RATE: 7.9% to 10.99% depending on credit score
ANNUAL FEE: none
2. Diamond Preferred Rewards MasterCard (Citibank)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: 5 reward points for every dollar spent at supermarkets, drug stores, and gas stations; 1 point for every dollar on all other purchases; (earn up to 75,000 points can be earned during any calendar year.)
REDEMPTION: points redeemable for a wide range of merchandise, travel, and card-related awards; points have an average value of 1 cent each.
INTEREST RATE: 10.24%
ANNUAL FEE: none
3. Platinum Gas Card (Discover)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: up to 10% on gas purchases using the "Cashback Bonus Award" or up to 5% using the "Cashback Award"; up to 2% on all other purchases using the "Cashback Bonus Award" or up to 1% using the "Cashback Award."
REDEMPTION: rebates redeemed as cash rebates or as certificates from "Cashback Bonus" partners.
INTEREST RATE: 13.99% to 15.99% depending on credit score
ANNUAL FEE: none
4. Phillips 66 Conoco Union 76 MasterCard (Citibank)
BRAND REQUIRED: Phillips 66, Conoco, Union 76
PROMOTION: none
ONGOING FEATURE: 3% on fuel purchases and 1% on all other purchases
REDEMPTION: rebate is automatically credited to the billing statement
INTEREST RATE: 10.24% to 14.24%
ANNUAL FEE: none
5. BP Gasoline VISA (Bank One)
BRAND REQUIRED: BP or Amoco
PROMOTION: 6% on fuel purchases and 2% on all other purchases for the first two billing cycles
ONGOING FEATURE: 3% on fuel purchases and 1% on all other purchases after the promotion
REDEMPTION: accumulate $20 in rewards and receive a $20 BP Cash! card
INTEREST RATE: 0% for 12 months; 10.99% thereafter
ANNUAL FEE: none
6. Dividend Platinum Select MasterCard (Citibank)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: 5% cash rebate on gas station, supermarket and drugstore purchases and a 1% rebate on all other purchases (up to $300 a year).
REDEMPTION: rebates automatically credited to the account
INTEREST RATE: 9.99%
ANNUAL FEE: none
7. Blue Cash (American Express)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: up to 3% cash rebate on purchases at stand-alone U.S. supermarkets, gas stations, drugstores, and home improvement stores; and up to 1.5% on all other purchases; additional rebate of up to 2% in months in that a balance is carried; cash rewards are limited to $50,000 of annual eligible spending.
REDEMPTION: rebates credited to the account annually
INTEREST RATE: 0% for the first 6-15 months depending on credit score; 8.99% to 13.99% thereafter depending on credit score.
ANNUAL FEE: none
8. Platinum Business MasterCard with Rewards (Advanta)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: up to a 3% rebate on any brand of gas purchased and 1% for all other purchases.
REDEMPTION: rebates automatically credited to the account
INTEREST RATE: 10.24%
ANNUAL FEE: $35.00
9. Marathon Platinum MasterCard (Chase)
BRAND REQUIRED: Marathon
PROMOTION: 10% rebate on all Marathon purchases for the first 60 days of opening an account
ONGOING FEATURE: 5% on fuel purchases and 1% on all other purchases after the promotion
REDEMPTION: rebates automatically credited toward future Marathon purchases
INTEREST RATE: 13.99% to 18.99% depending on credit score
ANNUAL FEE: none for the first year. $20 annual fee thereafter that is waived if at least nine purchase transactions were made in the prior year at Marathon retail locations.
10. Speedway SuperAmerica MasterCard (Chase)
BRAND REQUIRED: Speedway, SuperAmerica, Rich Oil,
PROMOTION: 8% rebate on all purchases made at Speedway, SuperAmerica, Rich Oil, and Smokes For Less locations for the first 60 days
ONGOING FEATURE: 4% on fuel purchases and 1% on all other purchases
REDEMPTION: rebate is automatically credited to the billing statement monthly
INTEREST RATE: 13.99% to 18.99%
ANNUAL FEE: No annual fee first year. Thereafter, the $20 annual fee will be waived if at least nine purchase transactions were made in the prior year at Speedway retail locations.
11. Shell MasterCard (Citibank)
BRAND REQUIRED: Shell
PROMOTION: none
ONGOING FEATURE: 5% rebate on gas purchases and 1% rebate on general purchases
REDEMPTION: credited to card statement monthly
INTEREST RATE: 14.24%
ANNUAL FEE: $20.00; waived for the first year and for subsequent years in which 9 or more Shell Gasoline purchases are made with the card
12. PerfectCard (Chase)
BRAND REQUIRED: none
PROMOTION: 6% rebate on all gas purchases at any station for the first 90 days
ONGOING FEATURE: 3% rebate on all gas purchases after the first 90 days, 1% rebate for all other purchases
REDEMPTION: rebates automatically credited toward future purchases
INTEREST RATE: 13.74% to 18.99% depending on credit score
ANNUAL FEE: none for the first year. $19 thereafter, but waived if 9 purchases are made in the prior year.
13. ExxonMobil MasterCard (Citibank)
BRAND REQUIRED: Exxon or Mobil
PROMOTION: The "Sizzlin' Summer" promotion offers a $20 rebate through the end of September for new cardholders.
ONGOING FEATURE: 3% on fuel purchases and 1% on all other purchases
REDEMPTION: rebate is automatically credited to the billing statement
INTEREST RATE: 14.24% to 18.24%
ANNUAL FEE: none
14. Citgo Preferred Platinum VISA (Citibank)
BRAND REQUIRED: none
PROMOTION: none
ONGOING FEATURE: 1% on all purchases, capped a $40 per month
REDEMPTION: rebates redeemed as statement credits posted against new purchases.
INTEREST RATE: 14.49%
ANNUAL FEE: none
CARD COMMITTMENT
A new cardholder behavior study by VISA has found that credit card commitment is relatively low with less than one fourth of consumers committed to an individual credit card. However, among the segment of committed cardholders, usage is on average eight times higher than among uncommitted users. The VISA study revealed that cards with rewards features have significantly higher commitment, but the presence of a smart chip appears to impact card commitment negatively. VISA found that cardholder rewards are strongly associated with commitment, especially co-band reward cards. VISA also discovered that commitment increases with the length of time a card is owned; commitment to a card rises significantly if the owner has other accounts with the issuer, unless the other account is another credit card; and, the presence of the cardholder's photograph has a positive impact on commitment. The study also found that waiving late fees has no impact on commitment; in general there does not appear to be a difference in commitment between cards with higher and lower APRs; and commitment rises with increasing credit limits.
AMERIDEBT BANKRUPTCY
Debt counselor, AmeriDebt, has filed for Chapter 11 bankruptcy protection. AmeriDebt announced in November it had stopped enrolling new consumer clients. The agency suspended all television, radio and Internet outreach aimed at attracting new consumer clients. AmeriDebt says payments made by consumers are processed through a separate trust account that will not be affected by this filing, and both past and future payments will continue to be disbursed to creditors on a timely basis. In November, the Federal Trade Commission filed a lawsuit against MD-based AmeriDebt, DebtWorks, and its founders, for misrepresentation of their non-profit status and for deceptive business practices. The FTC charged that the credit-counseling service is setup to make money for affiliated for-profit companies and individuals, rather than operating for charitable purposes. The FTC also alleges that the defendants charged an up-front fee to consumers enrolling in a debt management plan, despite claims to the contrary in their advertising. The FTC also reached a settlement with Ballenger Group in November for its role in the AmeriDebt operation. Ballenger acted as the servicer for AmeriDebt's DMPs since the beginning of this year.
CROSS COUNTRY LAWSUITS
The Pennsylvania Attorney General has filed a civil lawsuit against DE-based Cross Country Bank and PA-based Applied Card Systems. This is the seventh lawsuit filed by a state Attorney General. Cross Country currently faces lawsuits in New York, Texas, West Virginia, Minnesota, Wisconsin and New Hampshire over its credit card program. Pennsylvania claims that hundreds of consumers with impaired credit were targeted for pre-approved credit cards that were deceptively marketed. Cross Country and ACS are also accused of improperly disclosing charges and fees, and engaging in abusive and illegal debt collection tactics when cardholders defaulted on their accounts. Pennsylvania says its investigation involved complaints from more than 400 consumers throughout Pennsylvania. The lawsuit asks the court to require the defendants to pay restitution to cardholders; pay civil penalties of $1,000 per violation, and $3,000 for each violation involving a consumer age 60 or older; forfeit their right to conduct business in the state until all restitution and fines are paid; and, disgorge all profits derived from the alleged illegal business practices.