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Credit Cards

Welcome to the News View for "Credit Cards".

Here, on these archive pages, you'll find all of the articles on Payments News for Credit Cards listed in date sequence beginning with the most recent article at the top of the page.

Click here for a complete listing of what's available in the Payments News Archive - organized by both posting date and subject category.

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July 17, 2009

Bank of America Reports Second Quarter 2009 Financial Results

Tags » Bank of America, Card Issuers, Credit Cards, Debit Cards  » Comments (0)

BankofAmerica_logo-140px.jpgBank of America Bank today reported second-quarter 2009 net income of $3.2 billion down slightly from last year's $3.4 billion. The bank's Global Card Services unit had a net loss of $1.6 billion compared to a $582 million of net income in the same quarter last year. Loans outstanding declined 8% to $220 billion. Credit card purchase volume fell dramatically, down 19.5% year/year to $51.9 billion. Debit card purchase volume increased slightly to $55.2 billion.

July 16, 2009

JP Morgan Chase Reports Second Quarter 2009 Financial Results

Tags » Card Issuers, Credit Cards, JP Morgan Chase  » Comments (0)

JPMorganChase_logo-140px.jpgJPMorgan Chase this morning reported second-quarter 2009 net income of $2.7 billion, an increase of 36% compared with net income of $2.0 billion in the second quarter of 2008.

In its credit card business, JP Morgan Chase reported that charge volume declined over 16% year over year to $78.3 billion. End of quarter outstandings declined 4% year over year to $148.4 billion. The managed net charge-off rate for the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the prior quarter. The 30-day managed delinquency rate was 5.86%, up from 3.46% in the prior year and down from 6.16% in the prior quarter, reflecting normal seasonal patterning. The managed net charge-off rate for the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the prior quarter. The 30-day managed delinquency rate was 5.86%, up from 3.46% in the prior year and down from 6.16% in the prior quarter, reflecting normal seasonal patterning.

In terms of outlook for its credit card business, JPM said it expected losses on the Chase portion of its card portfolio could approach 10% next quarter while it expects losses on the WaMu portion of its card portfolio to approach 24% by the end of 2009. The bank said it expects continued pressure on charge volume and outstandings.

A presentation on the quarterly results is available online.

July 15, 2009

US Retailers Press Fight re: Payment Card Interchange Fees

Tags » Card Issuers, Credit Cards, Interchange Fees, Merchants  » Comments (0)

bank-generic_logo-140px.jpgIn an article titled "Retailers Prepare to Fight Credit Card Fees" in Thursday's New York Times, Andrew Martin writes about how merchants in the US are mounting a "fresh offensive" against payment card interchange fees.

Martin reports that the retailers sense that the momentum has shifted in their favor - while the banks and payment card networks are gearing for a "furious battle on Capitol Hill."

Fed Approves Interim Reg Z Changes for Credit Card Issuers

Tags » Credit Cards, Financial Regulators  » Comments (0)

FederalReserve-130px.jpgThe Federal Reserve Board has approved an interim final rule amending Regulation Z (Truth in Lending) to require creditors to increase the amount of notice consumers receive before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect. READ MORE

July 13, 2009

Annual Fees on Credit Cards Are Coming Back

Tags » Card Issuers, Credit Cards  » Comments (0)

annualfees.gifAuriemma Consulting Group says that "reduced revenues will drive credit card issuers to introduce cards with annual fees to consumers in the near future. Cards without annual fees will not feature rewards and will only offer cardholders basic benefits." READ MORE

July 10, 2009

A Market Test for Credit Cards

Tags » Card Issuers, Credit Cards  » Comments (0)

bank-generic_logo-140px.jpgCommenting that "sometimes the answer to a failure of competition is to require more competition", Ian Ayres and Barry Nalebuff have published an op-ed in Forbes titled "A Market Test for Credit Cards" that advocates requiring card issuers putting up account relationships for bid if they choose to change the terms (like interest rate) on the account. Consumers would have an option to move to a new issuer who bid for the relationship - or to stay put with the revised terms.

Senator Dodd Writes Regulators About Credit Card Rate Increases

Tags » Card Issuers, Credit Cards, Financial Regulators  » Comments (0)

dodd.jpgSenator Chris Dodd has sent a letter to to the Chairman of the Federal Reserve and the heads of key regulatory agencies "directing them to write and enforce robust rules to implement new requirements that credit card companies review rate increases on their customers implemented since January 1st of this year."

Dodd reminds the regulators that the recently enacted Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act) includes a provision that will require credit card companies to review every six months any account where the interest rate has been raised since January 1, 2009 and reduce the rate if the customer has become less of a credit risk or the circumstances that warranted the increase are no longer present.

July 09, 2009

TransUnion's Consumer Credit Risk Index Hits Record Level

Tags » Credit Bureaus, Credit Cards, Credit Scores, TransUnion  » Comments (0)

TransUnion_logo-140px.jpgTransUnion has announced that it TransUnion Credit Risk Index, a statistic developed to measure the changes in average consumer credit risk within various geographies, increased 1.98 percent from 124.79 in the fourth quarter of 2008 to 127.26 in the first quarter of 2009. On a year-over-year basis, the Credit Risk Index increased 7.10 percent (from 118.83 in the first quarter of 2008), the largest increase for that time period in this decade. The Credit Risk Index is defined as the weighted average probability of 90-day delinquency or worse among consumers in a given region relative to the nation as a whole. READ MORE

July 07, 2009

US Credit Card Delinquencies Rise to 4.75% of All Accounts in 1Q09

Tags » Card Issuers, Consumer Debt, Credit Card Debt Counseling, Credit Cards  » Comments (0)

bank-generic_logo-140px.jpgThe American Bankers Association’s Consumer Credit Delinquency Bulletin reported today that in the first quarter of 2009 that bank card delinquencies rose 23 basis points to 4.75 percent (s.a.) of all accounts, compared to 4.52 percent in the previous quarter. (The record was 4.81 percent in the second quarter of 2005.) The balances on those delinquent accounts rose dramatically, up 108 basis points to 6.60 percent (n.s.a.) of the value of all outstanding bank card debt, marking a new record. READ MORE

July 02, 2009

A Look at Credit Card Issuers Raising Rates

Tags » Card Issuers, Credit Cards  » Comments (0)

bank-generic_logo-140px.jpgIn an article titled "Credit Card Issuers Raising Rates Ahead of New Law", Nancy Trejos writes for the Washington Post about how some US credit card issuers are raising fees and interest rates ahead of the date when new rules take effect early next year - "much to the irritation of Congress and consumer advocates."

July 01, 2009

Fitch: June US Credit Card Chargeoffs Up 62% vs 2008

Tags » Credit Cards  » Comments (0)

FitchRatings_logo-140px.jpgFitch Ratings reports that credit card chargeoffs in June were 10.44%, 62% higher on a year over year basis. 60+ day delinquencies set yet another record high at 4.45% this month after dropping seven basis points (bps) in May. Given delinquency and bankruptcy trends, Fitch expects chargeoff increases to decelerate in the coming quarter, although actual improvements are not foreseen at this time.

June 29, 2009

Fed Reports Significant Decline in Profitability of Credit Card Issuers

Tags » Card Issuers, Credit Cards, Financial Regulators  » Comments (0)

FedReport.jpgThe Federal Reserve has published its latest annual report on the Profitability of Credit Card Operations of Depository Institutions. Section 8 of the Fair Credit and Charge Card Disclosure Act of 1988 directs the Federal Reserve Board to transmit annually to the Congress a report about the profitability of credit card operations of depository institutions.

From the report: "In 2008, credit card banks with assets in excess of $200 million reported net earnings before taxes of 1.43 percent of outstanding balances adjusted for credit card-backed securitization, down 132 basis points or nearly 48 percent from 2007. The 2008 rate of return is very low by historic standards; well below the average rate of return of 3.03 percent since 1986."

Bankrate's 2009 Credit Card Study

Tags » Card Issuers, Credit Cards  » Comments (1)

bank-generic_logo-140px.jpgBankrate.com has published its annual Credit Card Study with this year's edition focusing on terms and conditions -- the fine print of credit card agreements. The survey looked at two cards from the top 10 issuers, one platinum card and one rewards card. Bankrate found that the terms and conditions varied by issuer, not by the card. Issuers surveyed were: American Express, Bank of America, Capital One, Chase, Citi, Discover, FNB Omaha, USAA Federal Savings, US Bank, and Wells Fargo.

June 27, 2009

New Glenbrook Report: Credit Card Acceptance for B2B Payments

Tags » Commercial Cards, Commercial Payments, Credit Cards, Glenbrook, Payments Views  » Comments (0)

Credit Card Acceptance for B2B Payments-140px.jpgNewly available over on our PaymentsViews.com sister site is a new Glenbrook research brief titled "Credit Card Acceptance for B2B Payments" by Glenbrook's Erin McCune and Carol Coye Benson.

This new research brief is based findings from a series of interviews conducted with business-to-business suppliers about credit card acceptance conducted earlier this year. There's a form in the article for you to request a download of the report.

June 24, 2009

A Look at American Express

Tags » American Express, Card Issuers, Credit Cards  » Comments (0)

Amex_logo-140px.jpgToday's Heard on the Street column by Peter Eavis in the Wall St. Journal takes a look at American Express. Eavis writes: "The dilemma for AmEx is deciding how big its pure credit-card book, as opposed to classic charge cards, should be."

June 23, 2009

Wacky Ways to Destroy Your Credit Card

Tags » Credit Cards  » Comments (0)

CuttingUpCards-140px.jpgABC News Business reported Scott Mayerowitz takes a look at the many ways frustrated consumers are dealing with their credit cards - and destroying them!

For even more fun, search YouTube using the keyword plastectomy.

A Look at Credit Cards Issued by Credit Unions

Tags » Card Issuers, Credit Cards, Credit Unions  » Comments (0)

bank-generic_logo-140px.jpgIn an op-ed piece in today's New York Times titled "A Fairer Credit Card? Priceless", Ryan Bubb and Alex Kaufman write about the credit cards issued by credit unions and how those credit cards "largely conform to the new rules already, while profitably maintaining the basic features that users know and love. ... Credit union cards actually offer lower annual fees and longer grace periods than regular cards."

June 21, 2009

A Disturbing Look at Credit Scores

Tags » Credit Bureaus, Credit Cards, Credit Scores  » Comments (0)

worried man at desk-140px.jpgIn an article titled "Credit Score Shell Game", Nancy Trejos writes in Sunday's Washington Post about consumer frustrations with credit scores - how their credit scores are falling as a result of arbitrary credit line reductions or account closures by issuers. And, to add frustration, Trejos finds that "people who try to take matters in hand and pay to find out their credit scores discover that it can be difficult to learn the score that lenders actually use to evaluate them."

June 18, 2009

A Look at Small Business Credit - The Squeeze Is On!

Tags » Card Issuers, Commercial Cards, Credit Cards  » Comments (0)

worried man at desk-140px.jpgIn an article titled "Cutting Off Mom & Pop Credit", Andrew Martin writes for the New York Times about how a "crackdown on credit limits by card companies is squeezing the nation’s 27 million small businesses, exacerbating the problems brought on by a stagnant economy."

See this earlier post about the drastic action that Advanta had to take against its small business borrowers.

A Look at Potential Regulatory Impacts on Special Purpose Banks

Tags » Banking Industry, Card Issuers, Credit Cards, Merchants  » Comments (0)

bank-generic_logo-140px.jpgIn an article titled "Reg Plan Could Force GE, Retailers to Divest Banks" in today's American Banker, Maria Aspan writes that the Obama administration proposals for financial industry regulatory reform could result in certain kinds of special purpose banks, such as retailer-owned credit card banks, being eliminated.

As part of her reporting this story, Aspan spoke to a number of industry participants who "stressed that it remained early to understand the proposed reforms' full implications. But they agreed that, if the proposals are enacted as written, the days when retailers could issue their own credit cards would end — forcing the few remaining players to sell or close down their lending arms."

Discover Reports Second Quarter 2009 Results

Tags » Card Issuers, Credit Cards, Discover  » Comments (0)

Discover_logo-140px.jpgDiscover Financial Services has reported results for its second quarter ending May 31, 2009. According to Discover, US sales volume decreased 4% versus the second quarter of 2008, reflecting lower gas prices and a general decline in consumer spending. Managed loans ended the quarter at $51 billion, essentially unchanged from the prior quarter and up 7% from the prior year. The managed net charge-off rate increased to 7.79% for the second quarter of 2009, up 131 basis points and 280 basis points from the prior quarter and the prior year, respectively. The managed net charge-off rate for the third quarter of 2009 is expected to be between 8.5% and 9%.

“While the rise in unemployment continued to have a significant impact on our financial results, I am pleased with our strong relative performance in both credit management and sales volumes,” said David Nelms, chairman and chief executive officer of Discover Financial Services. “We continue to focus on reducing expenses and maintaining a strong capital position as we manage through these challenging times.”

June 15, 2009

US Credit Card Issuers Settle for Reduced Balances

Tags » Card Issuers, Credit Cards  » Comments (1)

In an article titled "Credit Bailout: Issuers Slashing Card Balances", David Streitfeld writes for the New York Times about how some credit card issuers are "settling delinquent accounts for substantially less than the amount owed."

June 08, 2009

1Q09 Credit Card Delinquency Rates Up 11 Percent over 2008

Tags » Card Issuers, Consumer Debt, Credit Cards, TransUnion  » Comments (0)

TransUnion.com has released the results of its analysis of trends in the credit card lending industry for the first quarter of 2009 based upon approximately 27 million anonymous, individual credit files - providing a real-life perspective on how U.S. consumers are managing their credit health.

Nationally, the bankcard delinquency rate (the ratio of bankcard borrowers 90 days or more delinquent on one or more of their bankcards) increased to 1.32 percent in the first quarter of 2009, up 9.1 percent over the previous quarter. Year over year, bankcard delinquencies increased 11 percent from 1.19 to 1.32 percent. READ MORE

US Credit Card Issuers Adapting to New Card Law

Tags » Capital One, Card Issuers, Credit Cards, Financial Regulators  » Comments (0)

In an article titled "Capital One Looks to Adapt to Credit Card Laws", Thomas Heath writes for the Washington Post about Capital One's plans to "reinvent itself for a new age of regulation."

June 05, 2009

Payment Card Industry Responds to HR 2695 re Interchange Fees

Tags » Credit Cards, Financial Regulators, Interchange Fees  » Comments (0)

As noted earlier, yesterday Congressmen John Conyers, Jr. and Bill Schuster re-introduced the Credit Card Fair Fee Act. The card industry has responded to this new legislative initiative directed at interchange fees.

MasterCard said in a press release that the legislation would take away the fundamental protections that US anti-trust laws provide consumers which "would result in less credit availability, along with higher prices and reduced benefits when Americans choose to use their credit or debit cards. Antitrust laws are designed to protect competition and consumers, but this bill would have the opposite effect."

In another press release, the Electronic Payments Coalition said that it "strongly opposes" the legislation - calling it "an attempt by giant retailers to make consumers pay for one of their business expenses - the cost of accepting credit and debit. It's simple: merchants do not want to pay their fair share to accept debit and credit cards, and they want consumers to foot the bill."

Credit Card Fair Fee Act HR 2695 Reintroduced in US House

Tags » Credit Cards, Financial Regulators, Interchange Fees  » Comments (0)

US-CapitolBuilding.jpg
Photo: euthman
Yesterday, Congressman Bill Shuster (R-PA) joined House Judiciary Committee Chairman John Conyers, Jr. (D-Mich.) in introducing HR 2695, the “Credit Card Fair Fee Act of 2009.” According to them, "this legislation would allow merchants to collectively negotiate with banks for the cost of certain credit card fees, and ultimately reduce the costs of everyday goods for consumers." READ MORE

Fresh Air: Complete Disclosure On Credit Card Reform

Tags » Credit Cards, Financial Regulators  » Comments (0)

logo_npr_125.gif
On yesterday's NPR program "Fresh Air", Georgetown law professor Adam Levitin spoke on the subject of credit card reform.

June 04, 2009

Chase Launches New Ultimate Rewards Program

Tags » Card Issuers, Card Reward Programs, Chase Card Services, Credit Cards  » Comments (1)

chase_logo.jpg
Chase Card Services has announced the launch of a new rewards program called Ultimate Rewards that is available on Chase Freedom and the new Chase Sapphire credit cards. According to Chase, "Ultimate Rewards enriches the rewards experience with millions of redemption options that customers can use today. Cardmembers can view rewards activity, earn bonus points for shopping, redeem points, book entire travel itineraries, and search for and reserve a restaurant through a single, comprehensive Web site that provides maximum simplicity and ease of navigation." READ MORE

June 03, 2009

The Way We Pay 2009 - UK Cash & Cash Machines

Tags » APACS, Credit Cards, Debit Cards, UK  » Comments (0)

1741532398_8e41c727c8_m_d.jpg
Photo: AustinEvan
The Payments Council in the UK has announced the publication of The Way We Pay 2009: UK Cash & Cash Machines, providing the latest data on how UK consumers are obtaining and using cash and how this is forecast to change 2008 cash and cash machine data shows:

71% of all cash acquired by consumers came from cash machines

2.9 billion cash machine withdrawals were made last year - equivalent to 91 withdrawals per second

Cash payment volumes are forecast to fall by 27% over the next 10 years

If current trends persist, next year for the first time debit card spending will overtake cash spending by value in the UK. READ MORE

June 02, 2009

Capital One Introduces Card Lab Connect for Nonprofits

Tags » Affinity Cards, Capital One, Card Issuers, Credit Cards  » Comments (0)

Capital One has launched Card Lab Connect, a credit card affinity program that Capital One says helps nonprofits expand their giving channels while providing their supporters with a convenient and meaningful way to donate to charity programs. Unlike most affinity card programs which generally cater to larger, national organizations, Capital One Card Lab Connect is available for nonprofits of all sizes. READ MORE

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