TSYS has announced it has collaborated with Pitney Bowes to introduce the TSYS Whitespace Manager, a partner-managed TransPromo solution.

TransPromo is a targeted marketing tool that allows highly relevant promotional content to be embedded within transactional customer communications, such as monthly card statements. TSYS Whitespace Manager, the new partner-managed approach to TransPromo, will allow issuers to take advantage of new revenue streams, cost reductions and minimized complexity.

"With the protections of the Credit Card Act of 2009 in full effect, a nationally representative survey shows a slightly lower level of dissatisfaction among Americans with their credit cards than last year. However, credit cards remain one of the lowest-rated services Consumer Reports has ever analyzed; only 45% of respondents said they were completely or very satisfied with their cards."

According to a new J.D. Power and Associates report, "Overall customer satisfaction with credit cards has rebounded from a three-year low in 2009, but professed loyalty continues to slip as skepticism that card issuers are focused on customers' best interests remains."

"Despite massive efforts by the credit card industry during the past year to educate customers about credit card terms as a part of the CARD Act, customers' grasp of those terms continues to be elusive," said Michael Beird, director of banking services at J.D. Power and Associates.

In a white paper titled "A Just fee or Just a Fee? An Examination of Credit Card Late Fees", the Center for Responsible Lending takes a look at late fee pricing by US credit card issuers.

CRL research reveals that issuers do not price penalty fees for risk. When other factors were controlled for using multiple regressions, any positive relationship between losses and late fees disappeared. The results suggest that, rather than as a means to deter behavior, issuer practices reflect an underlying revenue and pricing philosophy; this philosophy along with issuer type (most notably whether an issuer is a credit union) drive any observed relationship between losses and penalty fee prices."

The Federal Reserve has announced that consumer credit card agreements from more than 300 credit card issuers are now online in a searchable database it has created. According to the Fed, "the agreements contain general credit terms and conditions along with pricing and fee information. The database will help consumers compare credit card agreements and find a card that best suits their personal finance needs." The database will be updated quarterly. READ MORE »

Capital One has launched Venture for Business, a premium rewards credit card offering small business owners double miles on every purchase, the opportunity to earn up to 15,000 bonus miles within the first three months and a flexible redemption process that eliminates the restrictions commonly found in rewards programs. According to Capital One, there are no limits on when, where or how double miles can be earned, no retailer specifications or spending categories, no separate rewards enrollment or re-enrollment requirements, and no limit on the number of miles cardholders can accumulate. READ MORE »

Bradesco and Banco do Brasil have announced signing a Memorandum of Understanding "regarding the launch of a Brazilian brand and integration of part of their credit cards operations." Specifically, they have entered into a non-binding memorandum of understanding for the preparation of a business model, involving:

• The integration of part of their card operations;
• The launch of a Brazilian brand ("Elo") of credit, debit and pre-paid cards for account-holders and non-account-holders;
• The joint creation of new businesses for private label cards (cards offered to non-account-holder clients through partner merchants);
• The creation of a company to sell cards to certain determined groups of non-account-holder clients;
• The transfer of shareholdings retained by both institutions or their subsidiaries in CBSS S.A., for the subsequent creation of a company.

More details in this WSJ.com article and this Reuters story.

American Express has reported financial results for the first quarter 2010. Net income was $885 million, up 103 percent from $437 million a year ago. Worldwide average spending per proprietary basic cards-in-force of $3,012 increased 23% during the quarter or 20% on a constant currency basis. The average merchant discount rate was 2.55% in 1Q‘10 versus 2.51% in 4Q‘09 and 2.56% in 1Q‘09.

“Cardmember spending was up 16 percent, rebounding strongly from the recessionary lows of last year,” said Kenneth I. Chenault, chairman and chief executive officer. “Credit metrics also continued the improvement that began in the second half of 2009.” READ MORE »

In a new report titled "Charting a new course for the credit card industry", Deloitte says that "in the wake of record industry losses, consumer bankruptcies and the recently announced voluntary Code of Conduct for the Credit and Debit Card Industry in Canada, the credit card industry has been transformed from one of the most profitable areas of lending to one of the least." Deloitte says that "two things are clear: issuer strategies need to change and, in many cases, consumers will benefit." READ MORE »

Target Corporation has announced that all new qualified credit card applicants will receive the Target Credit Card, a credit product accepted at all Target stores and Target.com. Effective April 29, 2010, Target will no longer issue the Target Visa Credit Card to new credit card applicants. Existing Target Visa Credit Card holders will not be affected. READ MORE »

Bank of America has reported financial results for the first quarter 2010.

In its Global Card Services unit, the bank reported "net income of $952 million as credit costs declined, reflecting continued improvement in the U.S. economy. Net revenue declined 9 percent to $6.8 billion due to lower net interest income from the decline in average loans and lower fee income resulting from the implementation of the CARD Act. Provision for credit losses decreased $4.7 billion to $3.5 billion from a year ago as lower delinquencies and lower expected losses from the improved economic outlook drove reserve reductions during the quarter."

Debit card purchase volume was $56.1 billion, up 10% over 1Q09. Credit card volume was $48.7 billion, up 1% over 1Q09.

JP Morgan Chase has reported financial results for the first quarter 2010. For its Card Services unit, Chase report a net loss of $303MM compared with a net loss of $547MM in 1Q09. The net charge-off rate (excluding the WaMu portfolio) increased to 10.54% in 1Q10 vs. 6.86% in 1Q09 and 8.64% in 4Q09 and nnd-of-period loan outstandings (excluding the WaMu portfolio) were $132.1 billion, down 12% YoY and 8% QoQ. Card sales volume (excluding the WaMu portfolio) was up 7% YoY to $66.9 billion.

Chase Paymentech merchant processing volume was $108 billion on 4.7 billion total transactions processed.

In an article titled "A Less-Noticed Challenge in the CARD Act", Maria Aspan writes for the American Banker about a provision included in CARD Act that recently took effect requiring credit card issuers to "refer cardholders to federally sanctioned counseling agencies." Aspan writes that "now that issuers have to comply, many are doing what they can to avoid creating the impression of favoritism."

The UK Cards Association, representing the credit card industry in the UK, has announced a joint commitment with the UK Department for Business, Innovation & Skills (BIS) as a result of its consultation “Review of the Regulation of Credit and Store Cards”. According to the association, "the credit card companies are committed to supporting developments which are demonstrably in customers’ interests – making sure that customers are in control of their own finances." READ MORE »

The Federal Reserve Board has proposed a rule amending Regulation Z (Truth in Lending) to "protect credit card users from unreasonable late payment and other penalty fees and to require credit card issuers to reconsider increases in interest rates."

"This proposal addresses two key costs of using a credit card--fees and interest rates," said Federal Reserve Governor Elizabeth A. Duke. "The rule would prevent credit card issuers from charging large penalty fees for small missteps by consumers and would require issuers to reevaluate rate increases imposed since the beginning of last year." READ MORE »

On Monday, February 22, 2010 several new rules take effect regarding how credit cards are issued and how cardholders are treated by issuers. Here's a roundup of articles from across the country about the new rules:

• NPR: What You Need To Know About New Credit Card Rules
• Los Angeles Times: Building credit when you're young is getting tougher
• MiamiHerald.com: These new regulations help, but don't let down your guard
• FT.com: New rules hit US credit card issuers
• WSJ.com: It's a New Day for Credit Cards
• Washington Post: Michelle Singletary: Beware of the loopholes in the new credit card law
• Cleveland Plain-Dealer: How we pay with plastic will change Monday with new credit card rules
• The Best Life (usnews.com): 4 Tips About New Credit Card Rules
• NYPOST.com: New credit card rules set to bow
• The Denver Post: Credit-card reforms take effect Monday

In an article titled "Banks Focus on People Who Can Pay More for Credit Cards", Eric Dash reports for the New York Times on how US credit card issuers are focusing on heavy "transactors" - "the moneyed users of rewards programs who spend big and pay their bills on time." Dash sees issuers charging higher fees for new rewards programs targeting these users - as issuers emphasize a focus on spending vs. lending.

In an article titled "A Card Fee Still Hides in the Luggage", Ron Lieber writes for the New York Times how the Credit Card Accountability, Responsibility and Disclosure Act that is now US law does not address currency conversion fees charged on transactions outside the US. He fears that because "the banks stand to lose a lot of revenue" because of the new law that "they’ll want to make it up somewhere, so they may feel emboldened to raise the currency conversion fees further."

In an article titled "A New Day Dawns for Credit Card Lending" in Monday's American Banker, Maria Aspan writes about the new world of credit card issuing in the United States - post the February 22 implementation date of the Credit Card Accountability, Responsibility and Disclosure Act. She notes that "issuers go from complaining to complying with new law" and talks to executives of Bank of American, Discover and Capital One.

The Federal Reserve Board has announced the launch of "a new interactive website to help consumers better understand the new credit card protections that will take effect on February 22. These rules ban several harmful practices and require greater transparency in the disclosure of the terms and conditions of credit card accounts."

The site summarizes the main provisions of the rules and explains how they will affect credit card users. Two interactive features will allow consumers to learn more about the terms and fees of credit card offers and about the new features of their monthly statements. READ MORE »

In an article titled "Credit Cards and Reluctant Regulators", Gretchen Morgenson writes for the New York Times about the upcoming changes in the credit card rules going into effect next month. Earlier last week, the Federal Reserve published its final changes to the rules affecting credit cards - and launched a new web page for consumers outlining the changes.

In her article, Morgenson expresses her frustration that new fees are already beginning to be implemented - for example, charging consumers a $1 monthly fee to receive credit card statements by mail. Say writes "Proof, yet again, that if you close the door, they will come in through the window. And if you close the window, they blow through the door."

In an article titled "Assessing the Damage Caused by Card Rewards", Ron Lieber writes for the New York Times about whether his aggressive pursuit of credit card rewards made him a selfish consumer - noting that merchants are paying much of the costs of those rewards and that stores presumably have to build in higher prices to afford them.

So, he "tried to figure out what would happen if we did just pay cash, or if there’s a better course of action for people who spend in a self-interested fashion but still have a conscience."

In her "Color of Money" personal finance column in today's Washington Post, Michelle Singletary writes about 2010 being the "Year of Consumer Power" - reflecting on the legislative (The Credit Card Accountability, Responsibility and Disclosure Act of 2009) and regulatory (overdraft fees) changes that are scheduled to take place as 2010 plays out.

In an article titled "Credit-card firms rush to get users on variable rates before rules changes" in the Denver Post, David Migoya writes about how some credit card issuers are "changing user terms — particularly interest rates — in part to bypass restrictive federal rules set to take effect in February."

Citing recent research by the Center for Responsible Lending, Migoya notes that "the most prevalent move is flipping consumers from fixed-rate cards to a variable rate tied to an already-low — but likely to increase — prime rate, the interest rate banks charge their best customers."

In a post titled "New Credit Card Tricks, Traps, and 79.9% APRs" on the Credit Slips blog, Adam Levitin says that "the card industry is at it again, devising new tricks and traps to disguise the cost of its products and avoid price competition."

Discover Financial Services has reported financial results for its fiscal fourth quarter ending Nov. 30, 2009. For the quarter, Discover noted that Discover Card sales volume declined 1% from the prior year to $22 billion, managed loans remained at approximately $51 billion, and he fourth-quarter managed net charge-off rate rose to 8.43% and the over 30 days delinquency rate rose to 5.31%.

“Discover's results this quarter reflect stronger than expected credit performance and our on-going investments to strengthen the Discover franchise,” said David Nelms, Discover’s chairman and chief executive officer. “We were very pleased with the stability of our sales volume, our expanded merchant acceptance and the continued growth of our direct-to-consumer banking business.”

This is one of those year-end stories that you'd prefer to ignore - I know, trust me.

In an article titled "Credit-Card Mail May Be Boring, But Ignoring It Could Cost You" in Wednesday's Wall St. Journal, Karen Blumenthal writes to remind us all to read all "those disclosure letters that banks and credit-card companies are sending you in coming months—or at least try really hard."

What could be more fun, right? Bluementhal's article provides a great set of tips about what to look for in the fine print, how to respond, etc. Too bad we have to keep our hands in our pockets the whole time! Happy holidays! ;-)

In an article titled "Credit-Card Issuers Under Pressure", Aparajita Saha-Bubna writes for the Wall St. Journal about the recently reported credit losses from major credit card issuers.

comScore has released its Online Credit Card Report: 2009 Edition providing an a view of the online credit card industry with a particular focus on how the economic environment, government regulation and industry response have affected consumer behavior and confidence. According to comScore, "the report revealed that more than two-thirds of consumers have responded to changes in their credit card terms and conditions by reducing spending behavior, terminating the account or switching brands." READ MORE »

The Center for Responsible Lending says that "credit card companies are busy crafting new tricks and traps to bypass both Federal Reserve Board rules and new federal law set to take full effect in late February 2010" in a new research report titled: "Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate". READ MORE »