Consumer Payment Card News

Card Wars

The battle between and over the online credit card marketing channel continues to build. After acquiring Nationwide Card Services in December, Bankrate announced a deal last week to acquire the one-full-time employee Web site of for $32 million in cash, plus $10 million in earn-outs. Bankrate previously acquired Memphis-based NCS for $26.4 million in cash with a $7.0 million earn-out. The online credit card market collapsed this year in the wake of the U.S. consumer credit crisis which has produced tighter overall underwriting, reducing revenues by 30% or more for many online credit card marketing sites this year. Bankrate’s NCS runs a network of over 500 affiliate Web sites to market consumer and business credit cards, including and Bankrate is headed by Thomas Evans, formerly with Official Payments and GeoCities. Austin, TX-based is headed by the former Bankrate CEO Elisabeth DeMarse. pulled the plug on its planned $100 million+ IPO in June citing unfavorable public market conditions. In 2007,, an Austin Ventures company, generated $63.3 million in revenues and produced a $3.5 million profit.

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