Consumer Payment Card News


Banc One rolled out a new credit card yesterday for auto dealerships and other auto service providers to offer customers special financing for car repairs and accessories. ‘CarCareONE’ offers instant credit for qualified customers and offers a discounted merchant processing rate compared to other general purpose credit cards. The ‘CarCareONE’ credit card features a 90- day, same-as-cash program on purchases over $150, a 25-day grace period on purchases under $150 and no annual fee. The card also includes a free emergency roadside assistance program providing free jump starts, towing, tire change, fluid replacement, and lock- out service. Banc One introduced the card at the NADA convention in New Orleans Monday.

CarCareONE, a new credit card that allows auto dealerships and other auto service providers the ability to provide customers with promotional financing for car repairs and accessories, was introduced by Bank One at the National Automobile Dealers Association national convention in New Orleans.

“We are thrilled to offer one of the first credit cards tailored specifically for auto service needs,” said John Abadie, chief executive officer and president of Banc One Credit Company. “We have established relationships with a significant number of auto dealers in the nation as one of the nation’s largest auto lenders. In addition, our expertise as one of the largest credit card providers allowed us to create this innovative product for the automotive industry.”

CarCareONE(SM) provides Cardmembers with financial alternatives for unexpected auto repairs, routine maintenance, new tires or batteries and other major auto repairs. Applications for the card will be available at participating dealers, and credit approval is quickly processed on-site for customer convenience. The card also extends Cardmembers’ purchasing power, allowing them to reserve major credit cards for other expenses.

CarCareONE(SM) is designed specifically to help new car dealers, tire dealers and other auto service providers increase their sales of parts, accessories, service, body work and ancillary products.

The card offers auto merchants several benefits

— A discount merchant processing rate lower than typical costs for processing major credit card sales

— Merchant name recognition, with the merchant’s name embossed on the card

— Larger average ticket size because consumers can finance purchases

— Opportunity to generate repeat business and build customer loyalty

— Instant credit for qualified customers * avoided risk of offering “house account” credit

The card features a 90-day, same-as-cash program on purchases over $150, a 25-day grace billing period on all purchases under $150, free emergency roadside assistance, nationwide acceptance, no annual fee and optional credit insurance. No interest or fees are accumulated unless payment is extended after 90 days. Minimum monthly payments are $10 or 5% of the outstanding balance, whichever is greater.

In addition, the CarCareONE(SM) free 24-hour emergency roadside assistance program gives Cardmembers added security on the road by offering free jump start, towing, tire change, fluid replacement and lock-out service.

Merchants who sign up for the CarCareONE(SM) Credit Card Program benefit from Terminal Automated Processing, a fast credit processing system that links them directly and provides answers in seconds. All transactions are processed through the electronic terminal, which eliminates application paperwork. When a sale is processed, the funds are deposited into the merchant’s bank account within 48 hours after processing. Merchants also have the option to authorize other credit card sales through the CarCareONE(SM) electronic terminal.

Bank One manages the entire process, including ordering, stocking and mailing applications, disclosures and credit cards; providing monthly billing statements to customers; processing all applications; distributing credit cards; and handling customer inquiries and collections.

Auto dealerships and merchants can sign up for the CarCareONE(SM) Credit Card Program by calling 800/244-7354.

The program is a joint initiative of Banc One Credit Company (BOCC), the fifth largest indirect lender in the nation and a division of Bank One, NA, and credit card issuer First USA, a subsidiary of BANC ONE CORPORATION. BANC ONE CORPORATION is one of the largest bank holding companies in the United States. It is also the third largest credit card company, providing Visa, MasterCard and private label credit cards, with $40.8 billion in credit card loans outstanding and 40.5 million Cardmembers.

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