Linda Punch

After several years of rising pay, card execs are beginning to see drastic drops in compensation as the sluggish economy takes its toll on share prices and bottom lines.

The outlook wasn't exactly cheery for American Express Co.'s card-issuing unit, Travel Related Services, as it started 2002. The weak economy and ongoing concerns about terrorism prompted many businesses to curtail traveling, striking at the very core of AmEx's profitability-travel and entertainment. And growing unemployment bode ill for credit quality.

Despite a struggling economy and terrorism-spawned uncertainty, 2002 proved to be a watershed year for MasterCard International. The association finally achieved its long-time goal of surpassing Visa-at least in two categories.

As the explosive growth of electronic commerce continues, the card industry is struggling to get a handle on online card fraud. What's at stake? The $45.6 billion online retail market.

Supporters of bankruptcy reform just can't seem to catch a break. In December 2000, a bill that had been in the works since 1997 died when then-President Clinton refused to sign it.

The credit profile of the older debtor is changing as Baby Boomers begin to reach retirement age. How will issuers and their collectors fare with this new breed of cardholder?