Credit card issuers have been using the Internet to acquire new card customers, but they might be wiser to focus on building transaction volumes, according to analyst Kenneth A. Posner.

The Morgan Stanley Dean Witter & Co. principal contends that the Internet's chief value to card companies is in potentially higher interchange income, from the fees that card-issuing banks earn when consumers make purchases. In "The Internet Credit Card Report: A Primer on the Industry and Its Role in E-Commerce," released last month, Mr. Posner predicted that an impending surge in on-line commerce could increase interchange growth from 11% a year to 15%.

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