Exxon, GE unit to launch cobranded MasterCard.

In perhaps a hint of deals to come, GE Capital Consumer Card Co. has expanded its existing proprietary card relationship with Exxon Co. USA and will issue a general-purpose, cobranded credit card.

Last year, the Cincinnatibased bank owned by General Electric Co. bought Exxon's private label credit card program.

The GE unit also runs other large private label programs for Macy's and Montgomery Ward, among other retailers, which eventually could make lucrative cobranded partners.

"It's a real advantage for us to capitalize on our partnerships and expand those," said Daniel DeMeo, marketing manager for the bank. "Simply said, it's a great opportunity for us."

"This is the beginning," said David Robertson, president of the Nilson Report, a newsletter based in Oxnard, Calif. "There are a number of programs GE is likely to launch."

The new Exxon MasterCard from the GE bank comes with no annual fee, and an introductory 9.9% interest rate. After five months, the rate becomes prime plus 10.9%, or 18.65%.

Cardholders can earn a 3% rebate on purchases from all participating Exxon-branded stations. Also, cardholders get 1% back from purchases made at other retailers that accept MasterCard.

There is no limit to the rebate, which will be applied on cardholder statements good toward future purchases of Exxon products and services.

Officials from both companies pointed to the unlimited rebate structure as a factor that will differentiate Exxon's program from the likes of Shell-Chemical, BP Oil-Bank One, and others.

"It's one of the most exciting features of the program," said Mr. DeMeo.

"We don't care how much you use the card at the station and elsewhere," said Kate Corrigan, an Exxon spokeswoman. "There's no limit to the rebate you can earn."

The oil giant estimates that most consumers who use the card to buy Exxon gas will receive a rebate of five to 10 cents a gallon.

Mr. DeMeo pointed out that Exxon MasterCard offers a number of unique enhancements. Cardholders will have free access to a nationwide travel information and reservation center, a 5% refund on hotel/motel, airline, rental car, rail travel, and cruise reservations arranged through the travel center, as well as emergency roadside dispatch service, emergency roadside assistance, emergency travel cash and airline tickets, and $100,000 in accident insurance.

The MasterCard affiliation broadens consumers' payment options, while the rebate structure brings the nation's sixthlargest petroleum retailer into direct competition with five others offering rebate cards.

In another move to expand payment options, Exxon joined NationsBank's Start card program in July. Each time a Start Visa cardholder makes a purchase at Exxon, 2% of the amount is deposited into-an FDIC-insured escrow account. When the balance reaches $100, it can be withdrawn in cash or deposited into a long-term savings plan.

Interestingly, GE Capital has decided not to market the Exxon MasterCard to active users of the Exxon proprietary card, which has nearly seven million cardholders. Instead, it will target several million nonactive users with preapproved offers in the mail next month.

In addition, applications will be available at 9,400 Exxon stations in 36 states and the District of Columbia beginning next month.

Exxon will support the launch of its MasterCard with "appropriate" advertising, the spokeswoman said, including radio and television spots.

Exxon alluded to the coming cobranded card on Aug. 9 when it announced that it was charging the same price for cash and credit. Since that time, Exxon has been running advertisements to entice consumers to sign up for the proprietary card by getting free merchandise at the store. The company said it will continue to offer and promote its original Exxon Card.

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