ISA, MasterCard, and Discover, all posted gains in U.S. credit card market share during the third quarter at the expense of American Express. Card activity at AmEx, the king of business cards, has slowed in the wake of a sluggish economy, to an annual growth rate of 7%, compared to the industry average of nearly 14%. In total 3Q/02 U.S. volume, which include credit cards and off-line debit cards, MasterCard stole market share from both VISA and American Express. American Express gave up 50 basis points in credit card share and 40 basis points in total market share between the second and third quarter. MasterCard picked up 60% of the AmEx loss in the credit card market and all of the AmEx loss in total third quarter volume. In credit + debit volume, MasterCard was the only network to post a gain in overall share. In total 3Q/02 volume, Discover was flat and VISA gave up 16 basis points.
MARKET SHARE SNAPSHOT (Based on Purchase + Cash Advance $Volume) CREDIT CARD SHARE CREDIT + DEBIT SHARE 2Q/02 3Q/02 2Q/02 3Q/02 VISA 42.8% 42.9% 51.6% 51.5% MasterCard 34.2% 34.5% 31.3% 31.7% American Exp 16.4% 15.9% 12.2% 11.8% Discover 6.6% 6.7% 4.9% 4.9% Source: CardData (www.carddata.com)