Credit Card Industry

The dominant companies during the marketplace are Visa and MasterCard. They controlled about 77% of the market in calendar 2000. Co branded cards are cards partnered with big corporations. Partners include airlines, hotels, and gasoline retailers.

A relatively new kind of card may be the affinity card. They are a variety of from co branded cards. These affinity cards are marketed to ability shoppers who prefer being known having a particular card partner for instance a sports team or a well-liked social movement.

Another card will be the agent bankcard. In an agent/bank relationship, a smaller bank is issued a card with their bank name listed, but the card is definitely serviced by a larger charge card issuer.

The market has created it simpler for consumers, and particularly consumers to pay monthly bills by offering creative payment options. For example, the marketplace offers electronic bill payments systems. It has been suggested how the key to accomplishment for bank card issuers include continuing to develop technology, spend on advertising, make clients aware in the technological changes, and maintaining a large, aggressive and active sales force.

Infrastructure changes have produced it possible for your market to evolve. For example, the Financial Services Modernization Act repealed a previous federal law that prohibited cross-sector affiliation and investment between banking and securities industries.

Because CCS cards had been affiliated with Visa and MasterCard, it became a global business. Nevertheless, CCS opted to leave the international charge card issuance business.

Another point is globalization. For example, Visa and MasterCard expanded. This techniques U.S. customers can use their cards for the world.

The goals are going to be to reduce write offs resulting from bankruptcy, and specially client bankruptcies.

CCS faces challenges. Consumer bankruptcies affect profitability. CCS was getting challenged to clarify its strategic direction. A single on the key factors involves revisiting the choice about whether to remain a domestic card issuer or an international card issuer. It might be argued that CCS could leverage its brand name to win international customers. The only issue involves CCS' lack of an international commercial banking presence. Another choice involves redoubling its efforts to expand its charge card companies domestically.

Chase Cardmember Services (CCS) contributed to 29% of cash operating earnings, but only 7 percent in the entire J.P. Morgan Chase Company. CCS obtainable Visa and MasterCard solutions including co branded cards. Co branding was an area where CCS excelled.

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