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Bank of America Corp. announced today it will begin issuing cards on American Express Co.'s U.S. merchant network and also confirmed that an existing issuing relationship between AmEx and MBNA Corp., which BofA is acquiring for $35 billion, will continue. In a separate announcement, third-party credit card account processor TSYS …
Read More »Citi Will Begin Issuing Credit Cards on AmEx’s Network By Month’s End
In a move that has been expected for more than a year, Citigroup Inc.'s Citibank unit announced today it will begin issuing cards on the American Express Co. network by the end of the month. The full offering, which includes five cards with varying benefits, will be available by mid-January. …
Read More »First Data Ponders Options for Its Shrinking Card-Issuing Business
In a move that could lead First Data Corp. to sell its shrinking card-issuing operation, the Denver-based processor announced today it has hired investment banker Morgan Stanley to investigate options for the unit. The card-issuing business, one of three principal processing operations at First Data, has been rocked in recent …
Read More »Wachovia Cuts MBNA Ties As MBNA Shareholders OK BofA Deal
Wachovia Corp. has announced it is re-entering the credit card business and will end a relationship with MBNA Corp. under which MBNA has issued cards for Wachovia since 2002. The news comes on the same day that MBNA shareholders voted overwhelmingly to approve a $35 billion acquisition of the monoline …
Read More »MasterCard Reports Debit Increase Nearly Triple That of Credit
Reflecting a recent trend in card-based payments, signature-debit card dollar volume on MasterCard International's U.S. network grew at double-digit rates in the first nine months of the year, far outstripping growth in credit card transactions. MasterCard reported today that its signature, or offline, debit cards in the U.S. accounted for …
Read More »Chase Brings Contactless Payments to the Northeast Corridor
JPMorgan Chase & Co. is extending its rollout of contactless payment technology to the populous northeast corridor of the country. Its Chase Bank U.S.A. N.A. said today it will begin sending new cards equipped with chips and tiny radio transmitters to some 2.9 million cardholders this week. In addition, about …
Read More »Volume Grows for AmEx, As Does Dependence on Acquiring
U.S. transaction volume for American Express Co. grew nearly 19% in the third quarter, to $89 billion, over the year-ago period, the New York-based travel-and-entertainment company reported. Its U.S. card base increased 10%, to 42 million, of which 31.9 million are so-called basic cards. The U.S. accounts for nearly three-quarters …
Read More »Survey: Popularity Propels Gift Cards into Consumer Mainstream
Some 59% of adults, or an estimated 131 million people?either bought or received a gift card over the year from August 2004 to August 2005, a study released today reveals. In part, this has meant that the electronic stored value cards are gaining popularity as gifts for a more diverse …
Read More »Study: Signature Debit Fraud Runs 15 Times Higher Than on PIN Debit
Financial institutions lost an estimated $546 million to debit card fraud in 2004, with fraud rates running much higher on signature-based cards than on cards secured with PINs, according to study released this week. Banks lost $345 million in fraud committed on ATMs, while fraud on signature-debit cards cost them …
Read More »Metris Will Issue Credit Cards on Discover’s Network by Year’s End
Metris Cos. Inc. announced today it will begin issuing cards on Discover Financial Services LLC.'s acceptance network by the end of the year. Metris, the nation's 11th-largest issuer of bank cards, said it will issue a new credit card under the Discover banner through its Direct Merchants Credit Card Bank …
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