Consumer Payment Card News

Banc One Attacks Convenience Use

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While some major value-added card issuers have imposed annual fees on convenience cardholders Banc One is taking the bold move of cutting rewards earned by convenience users by 66%. Effective Sept 1, Banc One’s ‘TravelPlus VISA’ card will award only one point for every three dollars charged for cardholders who pay their balance in full. Revolving cardholders will continue to earn one point for each dollar charged. Banc One is also modifying its annual fee by basing it on credit line instead of standard vs. gold. Effective Sept 1 cardholders with credit limits under $5K will pay $25 annually while cardholders with lines above $5K will pay $55. Banc One also confirmed yesterday it is hiking the overlimit and late payment fees from $20 to $25 effective August 1. The card currently has a 20 day grace period and employs the ‘two-cycle average daily balance, including new purchases’ method of interest calculation. The ‘TravelPlus VISA’ program enables cardholders to accumulate points towards free flights on all domestic airlines.

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