• Double Miles on up to $3,000 in travel and restaurant purchases each year
  • 1 Mile for every $1 on all your other purchases
  • Unlimited Miles that never expire
  • No Annual Fee

  • Cash Rewards for your good credit management!
  • Unlimited cash rewards
  • No Annual Fee
  • $0 Fraud Liability Guarantee

  • No Annual Fee
  • Online Account Access
  • Online Bill Payment

 

Who Offers Reward Credit Cards

There are a few different kinds of organizations that offer credit cards are offered by several different types of organizations. This article helps you understand how credit cards are offered.

Single Issuer Cards

A majority of credit cards are bank-issued. Of these, two of the major cards do their own issuing. Discover Bank is the issuer of most Discover Cards, while American Express is the issuer of American Express cards. VISA and MasterCard—the other two of the top cards—are issued by multiple banks and financial institutions around the world.

Most VISA and MasterCard credit cards issued in the United States come from the following four institutions:

  • Bank of America Corporation  Formed by the purchase of BankAmerica Corp. by NationsBank Corp. in 1997, Bank of America Corp. then went on to acquire both FleetBoston Financial and National Processing Company in 2004. In 2006, Bank of America Corp. added MBNA to its holdings, but has been terminating the affinity cards (see below) which MBNA essentially originated and for which it was known.
  • Capital One Financial Corp A name you may recognize from their advertising for “choose your own terms” cards, Capital One Financial Corp. emerged from Capital One’s acquisition of several banks in 1988, at which point it became Capital Bank One. It has made a name for itself by accommodating high risk customers with credit cards.
  • Citigroup, Inc. The merger of Citicorp and Travelers Group formed Citigroup, Inc. Citi Cards, one of the divisions of Citigroup’s Global Consumer Group (GCG), issues more credit cards than any other organization worldwide.
  • JPMorgan Chase Formed by the Chase Manhattan Corporation’s acquisition of JP Morgan & Co. in 2000, JPMorgan Chase built on JP Morgan & Co.’s history as one among the oldest and largest banking institutions in the United States. The 2004 merger with Bank One continued to build up the company, which issues credit cards using the name Chase.

Merrill Lynch, HSBC, and Fidelity Instruments also offer cards that are worth investigating.

Co-Branding

When two different organizations, one a credit card company and the other in most cases a merchant, join together to offer a credit card together in order to aid both, we have an example of multiple sponsor co-branding. This is not to be confused with the relationship between a card and the bank the offers it, like the Chase VISA or the Merrill Cash Back VISA.

Here are some examples of co-branded cards available in July, 2008:

  • True Earnings from Costco and American Express
  • Disney Rewards Visa Card from Chase
  • Bass Pro Shops Outdoor Rewards Platinum Plus Visa Card
  • Starwood Preferred Guest Credit Card from American Express
  • NASCAR RacePoints Platinum Plus Visa Card
  • NFL Extra Points Platinum Plus Visa
  • Alaska Airlines Visa Signature Credit Card

Co-branded cards can be used wherever the card type (VISA, for example) is accepted: it is not limited to use at the merchant who sponsors it. It is seen as a way to help increase customer loyalty, and benefits merchants who do not have to create their own card or worry about the processing phase of the purchase. Each organization hopes to gain from the customer’s loyalty to the other,

Affinity Cards

A different kind of partnership is the affinity card. It brings together a bank or credit card company with an institution with a membership that, it is felt, might be interested in a branded card that features their affiliation and that supports the institution. The bank or credit card company supplies the cards and the processing, while the institution provides an endorsement and a mailing list. In return, the institution receives a small percentage of every transaction on every affinity card, and cardholders may receive rewards as well. The card holders’ loyalty to the institution is, thus, transferred to the financial institution and card.

The affinity card originated with MBNA prior to its acquisition by Bank of America. It focused on non-profits, charities, university alumni associations, and professional groups. It is claimed that most affinity cards are either Visa or MasterCard. It’s important to know that these donations may go to the same institutions that you would write a check to, but they cannot be credited as charitable contributions for the sake of your taxes, for example. In addition, less control over the use of the money is available with this method of donation. Nevertheless, it is a way to give on a more regular basis.