Credit

As preparations unfold for the U.S. payment system to convert to smart cards, merchants across the country would prefer to see a clearer process established to reach that goal.

Last year JPMorgan Chase & Co took New York resident Shady Gergis to court over a few thousand dollars in allegedly unpaid credit card debt.

Targeting Sri Lanka’s business frequent flyers, HSBC Corp. has launched a premium credit card in that country that includes a variety of travel discounts, the issuer announced Jan. 26.

In what could be worrying news for card issuers in Australia, new survey data suggest about 32% of the country’s households last year fell behind financially, which affected their credit card use.

Australia’s hotel industry association is warning consumers of a new credit card scam targeting major hotel chains operating in the country.

Alliance Data Systems Corp. has renewed its agreement to provide private-label credit card services to retailer Reeds Jewelers, the private-label processor announced Jan. 26.

Earlier this month, Citi announced the expansion of its popular "thankyou" program with a new Facebook app. If the number of likes (185,000 and counting) on Citi's page is any indication, it appears Citi has found a compelling way to engage its youngest and most fickle customers in the place they spend most of their digital time.

Discover Financial Services is bracing for a joint enforcement action from the Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau over the marketing of its credit card payment protection products, the company disclosed in a regulatory filing Jan. 26.

For credit card issuers, determining what on their websites frustrates consumers and what magic combination of factors lead prospects to successfully apply online is a complex science.

Credit card issuers quietly are testing a variety of new fees to help make up for other fee income wiped out last year when the Credit Card Accountability, Responsibility and Disclosure Act went into effect, one analyst contends.

Eyeing the growing Asian online retail market, Hong Kong-based online and mobile-payment services provider AsiaPay Ltd. has launched a debit-based payment service for the Asia Pacific region.

The rebound of credit card lending is having nasty side effects for Capital One Financial Corp. and American Express Co., which increasingly are spending more to compete for the most creditworthy customers.

Fifth Third Bancorp plans to stay the course in its decision to be deliberate in how it deals with reductions in debit card interchange revenue stemming from a rate reduction that took effect last fall under a mandate from the Durbin amendment to the Dodd-Frank Act.

Releases of allowances for bad credit card loans continued to plump banks' bottom lines in recent earnings reports, but loss rates look set to bounce off record lows in the first quarter.

Credit cardholders in the United Arab Emirates may be in for some summer cheer as the country’s central bank may cap annual interest rates and fees.

The trend of higher cardholder spending continued for American Express Co., allowing the New York-based card company’s U.S. Card Services unit to report a 3.9% rise in fourth quarter net income, to $727 million from $700 million a year earlier, the card brand reported Jan. 19.

Growth in loans, strong purchase volumes and stable margins helped Capital One Financial Corp.’s Credit Card unit to generate 2% fourth quarter revenue growth, to $2.59 billion from $2.54 billion during the same period in 2010. The unit’s profit, however, dropped 39.8%, to $353 million from $586 million.

New debit card interchange rules unfolded during the last quarter of a year already plagued by a sluggish economy, making it difficult for Bank of America Corp.’s Card Services unit to deliver positive fourth-quarter earnings.

BancorpSouth Inc. in Tupelo, Miss., has selected Total System Services Inc. to process its debit card and consumer and commercial credit cards.

Reductions in income caused by a debit card interchange rate reduction and reduced credit card interest income spurred Bank of America Corp.’s Card Services unit on Jan. 19 to report a 24.3% drop in fourth quarter net revenue, to $4.06 billion from $5.36 billion during the same period last year. Net income also dropped, by 20.9%, to $1.02 billion from $1.29 billion.