Credit Card Product Update - 2016 Year in Review

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The Credit Card Product Update slide deck examines new product releases from 11 credit card carriers in the Credit Card Monitor coverage group over the course of 2016. Inside, we highlight basic fee information, rewards criteria and specific standout features unique to each card and include a chart showing what firms feature which digital payment services for their product offerings.

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Credit Card Product Update - 2016 Year in Review

  1. 1. Credit Card Product Update 2016 Year in Review Meredith Barthold
  2. 2. Table of Contents ▪ Background ▪ New Credit Cards ▪ Digital Payment Services ▪ Removed Cards ▪ Service Overview and Contact Information
  3. 3. Background
  4. 4. Background ▪ This slide deck examines new product releases from 11 credit card carriers in the Credit Card Monitor coverage group over the course of 2016 ▪ We highlight basic fee information, rewards criteria and specific standout features unique to each card and include a chart showing what firms feature which digital payment services for their product offerings
  5. 5. Firms Covered ▪ American Express ▪ Bank of America ▪ Barclaycard US ▪ Capital One ▪ Chase ▪ Citicards ▪ Discover ▪ PNC ▪ U.S. Bank ▪ USAA ▪ Wells Fargo
  6. 6. New Credit Cards
  7. 7. Credit Card Product Releases ▪ Firms within the coverage group launched a total of 19 new cards in 2016 that are currently promoted online -Two are re-releases, two were previously issued by American Express and six were previously offered on different networks  Three were previously on the MasterCard network  Two were previously on the Visa network  One was previously on the American Express network -All cards in this slide deck have a focus on rewards, with each credit card product released in 2016 providing users the ability to earn points, miles and cash back
  8. 8. Bank of America Allegiant World MasterCard ▪ 3 points per $1 on Allegiant purchases ▪ 2 points per $1 on qualifying dining purchases ▪ 1 point per $1 on all other purchases ▪ 0% APR on balance transfers for 12 months ▪ 13.24% - 23.24% purchase and balance transfer APR thereafter ▪ $59 annual fee ▪ 15,000 bonus points after spending $1,000 in first 90 days ▪ Standout feature: accelerated Allegiant and dining earnings ▪ Introduced: September 2016; rates and fees as of December 2016
  9. 9. Bank of America Asiana Visa Signature Card ▪ 3 miles per $1 on Asiana Airlines purchases ▪ 2 miles per $1 on gas and groceries ▪ 1 mile per $1 on all other purchases ▪ 12.49% - 19.49% purchase and balance transfer APR ▪ $99 annual fee ▪ No foreign transaction fees ▪ 30,000 bonus miles after spending $3,000 in first 90 days ▪ 10,000 Bonus Miles Certificate awarded annually ▪ $100 annual rebate on Asiana Airlines ticket purchases ▪ Standout feature: accelerated Asiana Airlines earnings and yearly bonuses ▪ Re-issued as a Visa Signature product: September 2016; rates and fees as of December 2016
  10. 10. Barclaycard US JetBlue World MasterCard ▪ 3 points per $1 on JetBlue purchases ▪ 2 points per $1 at restaurants and grocery stores ▪ 1 point per $1 on all other purchases ▪ 0% APR on balance transfers for 12 months ▪ 12.24%, 20.24% or 25.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ 5,000 bonus points after spending $1,000 in first 90 days ▪ Standout feature: accelerated JetBlue and restaurant and grocery store earnings ▪ Introduced: April 2016 (previously available from American Express); rates and fees as of December 2016
  11. 11. Capital One Venture Rewards Card ▪ 2 miles per $1 on all purchases ▪ 13.24%, 18.24% or 23.24% purchase and balance transfer APR ▪ $59 annual fee (waived for first year) ▪ No foreign transaction fees ▪ 40,000 bonus miles after spending $3,000 in first three months ▪ Standout feature: no foreign transaction fees ▪ Re-issued as a World Elite MasterCard product: December 2016; rates and fees as of December 2016
  12. 12. Capital One Quicksilver Rewards Card ▪ 1.5% cash back on all purchases ▪ 0% APR on purchases and balance transfers for 9 months ▪ 13.24%, 18.24% or 23.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ No foreign transaction fees ▪ $100 cashback bonus after spending $500 in first three months ▪ Standout feature: no foreign transaction fees ▪ Re-issued as a World Elite MasterCard product: December 2016; rates and fees as of December 2016
  13. 13. Chase AARP Credit Card from Chase ▪ 3% cash back at restaurants and gas stations ▪ 1% cash back on all other purchases ▪ 0% APR on purchases and balance transfers for 12 months ▪ 16.49% - 23.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ $100 cashback bonus after spending $500 in first three months ▪ Standout feature: restaurant and gas station earnings ▪ Introduced: April 2016; rates and fees as of December 2016
  14. 14. Chase Chase Freedom Unlimited Card ▪ 1.5% cash back on all purchases ▪ 0% APR on purchases and balance transfers for 15 months ▪ 14.24%, 19.24% or 23.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ $150 cashback bonus after spending $500 in the first three months ▪ $25 cashback bonus after adding an authorized user and making a purchase in the first three months ▪ Standout feature: 1.5% cash back on all purchases ▪ Introduced: April 2016; rates and fees as of December 2016
  15. 15. Chase Chase Sapphire Reserve Card ▪ 3 points per $1 on travel and dining ▪ 1 point per $1 on all other purchases ▪ 16.24% - 23.24% purchase and balance transfer APR ▪ $450 annual fee ▪ 100,000 bonus points after spending $4,000 in first three months ▪ $300 annual travel credit ▪ No foreign transaction fees ▪ Standout feature: 100,000 bonus point initial spend offer ▪ Introduced: August 2016; rates and fees as of December 2016
  16. 16. Citicards Costco Anywhere Visa Card by Citi ▪ 4% cash back on gas and Costco gas (up to $7,000/year; then 1%) ▪ 3% cash back on travel and at restaurants ▪ 2% cash back at Costco ▪ 1% cash back on all other purchases ▪ 0% APR on purchases for seven months ▪ 15.49% purchase and balance transfer APR thereafter ▪ No annual fee (with paid Costco membership) ▪ Standout feature: 4% cash back on gas ▪ Introduced: June 2016 (previously available from American Express); rates and fees as of December 2016
  17. 17. Citicards AT&T Access Card ▪ 2 points per $1 online at retail and travel websites ▪ 2 points per $1 on products and services purchased directly from AT&T ▪ 1 point per $1 on all other purchases ▪ 14.24% - 23.24% purchase and balance transfer APR ▪ No annual fee ▪ 10,000 bonus points after spending $1,000 in first three months ▪ Standout feature: accelerated earnings at AT&T and on online retail and travel purchases ▪ Re-issued: September 2016 (reported as removed in March 2016); rates and fees as of December 2016
  18. 18. Discover Discover it Chrome Card ▪ 2% cash back on gas and at restaurants (up to $1,000/quarter) ▪ 1% cash back on all other purchases ▪ 0% APR on purchases and balance transfers for 14 months ▪ 11.24% - 23.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ Cash back earned through the first year is doubled ▪ Standout feature: cash back earned through the first year is doubled ▪ Re-released: January 2016; rates and fees as of December 2016
  19. 19. Discover Discover it for Students Card ▪ 5% cash back on rotating quarterly categories (up to $1,500) ▪ 1% cash back on all other purchases ▪ 0% APR on purchases for six months ▪ 10.99% APR on balance transfers for six months ▪ 13.24% - 22.24% purchase and balance transfer APR thereafter ▪ No annual fee ▪ $20 cash back each school year with a GPA of 3.0 or higher for up to five years ▪ Cash back earned through the first year is doubled ▪ Standout feature: cashback rewards for good grades ▪ Introduced: January 2016; rates and fees as of December 2016
  20. 20. PNC Bank PNC Premier Traveler Visa Signature ▪ 2 miles per $1 on all purchases ▪ 0% APR on balance transfers for 12 months ▪ 16.49% purchase and balance transfer APR thereafter ▪ $85 annual fee (waived for first year) ▪ No foreign transaction fees ▪ 30,000 bonus miles after spending $3,000 in first three months ▪ Standout feature: no foreign transaction fees ▪ Introduced: May 2016; rates and fees as of December 2016
  21. 21. U.S. Bank Cash 365 American Express Card ▪ 1.5% cash back on all purchases ▪ 0% APR on balance transfers for 12 months ▪ 13.49% - 23.49% purchase and balance transfer APR thereafter ▪ No annual fee ▪ $100 customer relationship bonus to card holders with existing U.S. Bank relationships who spend $500 in first 90 days ▪ Standout feature: 1.5% cash back on all purchases ▪ Introduced: June 2016; rates and fees as of December 2016
  22. 22. U.S. Bank Club Carlson Rewards Visa Card ▪ 3 points per $1 at Carlson Rezidor hotels ▪ 1 point per $1 on all other purchases ▪ 23.49% purchase and balance transfer APR ▪ No annual fee ▪ 30,000 Bonus Gold Points after spending $1,000 in first 90 days ▪ One free night stay after spending $10,000 each year ▪ Standout feature: accelerated earnings at Carlson Rezidor hotels ▪ Introduced: November 2016; rates and fees as of December 2016
  23. 23. U.S. Bank FlexPerks Gold American Express Card ▪ 3 points per $1 at restaurants ▪ 2 points per $1 at gas stations and airlines ▪ 1 point per $1 on all other purchases ▪ 14.49% - 24.49% purchase and balance transfer APR ▪ $85 annual fee ▪ No foreign transaction fees ▪ 30,000 bonus points after spending $2,000 in first four months ▪ Statement credit reimbursement for TSA PreCheck or Global Entry programs ▪ Standout feature: accelerated earnings at restaurants, gas stations and airlines ▪ Introduced: June 2016; rates and fees as of December 2016
  24. 24. USAA Cash Rewards Visa Signature ▪ 1.25% cash back on all purchases ▪ 10.15% - 26.15% purchase and balance transfer APR ▪ No annual fee ▪ No foreign transaction fees ▪ Standout feature: no foreign transaction fees ▪ Re-issued as a Visa Signature product: February 2016; rates and fees as of December 2016
  25. 25. USAA Preferred Cash Rewards Visa Signature ▪ 1.5% cash back on all purchases ▪ 12.15% - 26.15% purchase and balance transfer APR ▪ No annual fee ▪ No foreign transaction fees ▪ Standout feature: 1.5% cash back on all purchases ▪ Re-issued as a Visa Signature product: February 2016; rates and fees as of December 2016
  26. 26. USAA Rewards Visa Signature ▪ 1 point per $1 on all purchases ▪ 10.15% - 26.15% purchase and balance transfer APR ▪ No annual fee ▪ No foreign transaction fees ▪ 2,500 bonus points after first purchase ▪ Standout feature: no foreign transaction fees ▪ Re-issued as a Visa Signature product: February 2016; rates and fees as of December 2016
  27. 27. Wells Fargo Wells Fargo Cash Wise Visa Card ▪ 1.5% cash back on all purchases ▪ 0% APR on purchases and balance transfers for 15 months ▪ 13.49% - 25.49% purchase and balance transfer APR thereafter ▪ No annual fee ▪ $150 cashback bonus after spending $1,000 in first three months ▪ 1.8% cash back on purchases made with Android Pay or Apple Pay in first 12 months ▪ Standout feature: accelerated earnings from purchases made with digital wallets for first year ▪ Introduced: June 2016; rates and fees as of December 2016
  28. 28. Wells Fargo Wells Fargo Propel American Express Card ▪ 3 points per $1 at gas stations ▪ 2 points per $1 at restaurants ▪ 1 point per $1 on all other purchases ▪ 0% APR on purchases and balance transfers for 15 months ▪ 13.49% - 25.49% purchase and balance transfer APR thereafter ▪ No annual fee ▪ 10% point bonus each year with a Wells Fargo checking or savings account ▪ Standout feature: accelerated earnings at gas stations and restaurants ▪ Introduced: December 2015; rates and fees as of December 2016
  29. 29. Digital Payment Services
  30. 30. Noteworthy Changes ▪ Android Pay – Chase cards compatible as of September 2016 ▪ Apple Pay – No changes ▪ Samsung Pay – USAA cards compatible as of November 2016; Capital One cards compatible as of December 2016
  31. 31. New Digital Payment Services ▪ Chase Pay (originally announced in October 2015) – Starting in November 2016, Chase customers can download and pay with the new, standalone Chase Pay app ▪ Microsoft Wallet (originally announced in August 2016) – Bank of America, PNC Bank and U.S. Bank cards are currently compatible ▪ Walmart Pay (originally announced in July 2016) – Available with Discover cards starting in August 2016 ▪ Wells Fargo Wallet (originally announced in May 2016) –Starting in August 2016, customers with the Wells Fargo mobile app for Android devices can use this service
  32. 32. Mobile Wallet Summary Firm Android Pay Apple Pay Microsoft Wallet Samsung Pay American Express   No  Bank of America     Barclaycard US No  No No Capital One Coming Soon  No  Chase   Coming Soon  Citicards   No  Discover   No  PNC     U.S. Bank     USAA   No  Wells Fargo   No 
  33. 33. Removed Cards
  34. 34. Removed Cards Summary Firm Cards Bank of America Alaska Airlines Preferred Visa Card Asiana American Express Card AAA Rewards Credit Card Barclaycard US Barclaycard Arrival World MasterCard Barclaycard Rewards Card Barclaycard Ring MasterCard Barnes & Noble MasterCard L.L. Bean Visa Card RCI Elite Rewards MasterCard Williams-Sonoma Visa Signature Capital One PlayStation Card Sony Card
  35. 35. Removed Cards Summary Firm Cards Citicards AT&T Access More Card U.S. Bank LifeMiles Visa Card LifeMiles Visa Signature Card USAA Cash Rewards Visa Card Classic Platinum MasterCard Rate Advantage Platinum MasterCard USAA Rewards Visa Card Wells Fargo Cash Back Visa Card Cash Back Visa Signature Card Propel World American Express Card
  36. 36. Service Overview and Contact Information
  37. 37. Credit Card Monitor ▪ Credit Card Monitor (CCM) was launched in 2001 and focuses on the online user experience that leading credit card issuers provide card holders and prospects ▪ Using actual accounts, CCM gives a firsthand look at current online capabilities, including client account information, transaction resources, interactive tools, customer service and account documents ▪ CCM follows the card products and services offered by competitors across the credit card industry, providing an up-close view of what other firms are doing to attract new clients
  38. 38. Contact Us Meredith Barthold Senior Research Associate – Banking and Credit Cards (646) 929-5151 mbarthold@corporateinsight.com

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