First USA Sporting a New Line for the Summer

True to form, First USA Inc. has announced a new line of cobranded and affinity cards and a national sponsorship for the summer.

The Dallas-based credit card giant has jumped into credit card partnership territory with both feet, industry consultants say, and the new product and sponsorship announcements are evidence of its commitment.

Last week, First USA Bank said it will introduce Six Flags Theme Parks Inc. and U.S. Soccer MasterCards, and sponsor USA Tennis.

"This is not very different from our strategy of the last four or five years," said James W. Stewart 3d, executive vice president of partnership marketing.

"We've been aggressive in seeking new partnership opportunities," he added. "This is a continuation ... Partnership accounts are becoming a larger part of our business."

Michael Auriemma, president of Auriemma Consulting Group Inc., Westbury, N.Y., said that First USA has adopted a more aggressive stance on cobranding.

"It appears to have taken root," he said. "They feel confident about it and they continue to come out with programs - nothing blockbuster - but a lot of very good small to midsize programs."

First USA Inc., with 14 million credit cards and $18.3 billion in receivables, is the nation's fourth-largest Visa and MasterCard issuer.

James L. Accomando, president of Accomando Consulting Inc. in Fairfield, Conn., said First USA is modeling its partnership strategy on MBNA's. "They can handle smaller programs because of economy of scale," he said.

Frank Caruana, director of marketing systems for Danielian Consulting Group, Scottsdale, Ariz., said First USA is moving away from its low-pricing strategy.

"They are trying to diversify," he said. "When the pricing game runs out on them, they want to make sure that they are not stuck with nothing."

The Six Flags MasterCard will offer cardholders rebates for the theme park and toward car rentals at Thrifty and stays at Best Western Hotels. Cardholders will get six points for every dollar they charge at the amusement parks, and one point for every other dollar charged.

Additionally, the card offers a 10% discount on all merchandise and food in the park, and cardholders will receive a free Dining a la Card membership, which gives them 20% meal discounts at participating restaurants.

First USA estimates that Six Flags, based in Parsippany, N.J., attracts 26 million visitors a year to its theme parks.

The card, which has no annual fee, has a 5.9% introductory rate that converts to a 16.9% fixed rate after six months.

The U.S. Soccer MasterCard, also a no-fee card, caters to the 3,000,000 members of the U.S. Soccer Federation. The affinity card has a 6.9% introductory annual percentage rate for five months, which jumps to 15.9% fixed. A portion of card proceeds will support the federation, which promotes youth and amateur soccer.

In a deal whose price was not announced, First USA will also sponsor USA Tennis, the umbrella designation for the United States Tennis Association teams participating in international competitions - the Olympics, Fed, and Davis Cup.

First USA introduced its USTA Visa card in 1992.

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