Travel Reward Credit Card
Bank of America offers first American Express card
By Jonathan Stempel
NEW YORK, June 28 (Reuters) - Bank of America Corp. (BAC.N: Quote, Profile, Research), the No. 1 U.S. credit card issuer, said it will begin issuing its first American Express-branded card on Friday.
The clear plastic card will be offered on Bank of America's Web site under a joint venture that the No. 2 U.S. bank and American Express Co. (AXP.N: Quote, Profile, Research), the credit card and travel services company, announced in December.
Card users will be eligible for Bank of America's rewards programs. Their cards will carry no annual fees, offer one reward point per dollar of retail purchases, and offer double reward points for travel and dining until 2007. Cardholders may also choose to carry revolving balances each month.
Bruce Hammonds, the bank's card services president, said Bank of America plans later this year to introduce a range of premium cards for its customers' exclusive use on American Express' network.
Hammonds was chief executive of MBNA Corp., the largest independent U.S. credit card issuer, before Bank of America acquired it six months ago for $34.2 billion.
Charlotte, North Carolina-based Bank of America will be responsible for billing, customer service and charge authorizations, and own customer loans and receivables.
New York-based American Express will process transactions on its global merchant network, as part of its strategy of opening the network to third-party issuers.
In announcing the joint venture, American Express said it would dismiss Bank of America as a defendant in its antitrust lawsuit against Visa International Inc., MasterCard Inc. (MA.N: Quote, Profile, Research) and some large U.S. banks.
A 2004 U.S. Supreme Court decision allowed American Express to offer cards through banks that previously stuck with Visa and MasterCard.
Other large card issuers include Citigroup Inc. (C.N: Quote, Profile, Research), JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research), Morgan Stanley's (MS.N: Quote, Profile, Research) Discover, and Capital One Financial Corp. (COF.N: Quote, Profile, Research).
© Reuters 2006. All Rights Reserved.
posted by News at 3:41 AM
By Jonathan Stempel
NEW YORK, June 28 (Reuters) - Bank of America Corp. (BAC.N: Quote, Profile, Research), the No. 1 U.S. credit card issuer, said it will begin issuing its first American Express-branded card on Friday.
The clear plastic card will be offered on Bank of America's Web site under a joint venture that the No. 2 U.S. bank and American Express Co. (AXP.N: Quote, Profile, Research), the credit card and travel services company, announced in December.
Card users will be eligible for Bank of America's rewards programs. Their cards will carry no annual fees, offer one reward point per dollar of retail purchases, and offer double reward points for travel and dining until 2007. Cardholders may also choose to carry revolving balances each month.
Bruce Hammonds, the bank's card services president, said Bank of America plans later this year to introduce a range of premium cards for its customers' exclusive use on American Express' network.
Hammonds was chief executive of MBNA Corp., the largest independent U.S. credit card issuer, before Bank of America acquired it six months ago for $34.2 billion.
Charlotte, North Carolina-based Bank of America will be responsible for billing, customer service and charge authorizations, and own customer loans and receivables.
New York-based American Express will process transactions on its global merchant network, as part of its strategy of opening the network to third-party issuers.
In announcing the joint venture, American Express said it would dismiss Bank of America as a defendant in its antitrust lawsuit against Visa International Inc., MasterCard Inc. (MA.N: Quote, Profile, Research) and some large U.S. banks.
A 2004 U.S. Supreme Court decision allowed American Express to offer cards through banks that previously stuck with Visa and MasterCard.
Other large card issuers include Citigroup Inc. (C.N: Quote, Profile, Research), JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research), Morgan Stanley's (MS.N: Quote, Profile, Research) Discover, and Capital One Financial Corp. (COF.N: Quote, Profile, Research).
© Reuters 2006. All Rights Reserved.
posted by News at 3:41 AM
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