Credit Cards 2001

CardTrak has just issued its annual summary of the credit card market in 2001. The most significant trend of this past year: the rapid growth of smart cards. These cards contain an imbedded chip that adds a new dimension to the services that can be obtained with the cards. The number of smart credit cards in the USA has tripled during 2001, from slightly less than 5 million to nearly 15 million cards. As one example, by the end of the year, Target had issued more than 1.4 million of its smart Visa cards "to the upper tier of its Guest Card store cards." Initially, cardholders will be able to download special offers from Target's Web site. It may even consider partnerships with outside companies.

Citibank began offering its new smart card in the fall. It provides instant approval online and zero percent APR for balance transfers. An electronic wallet provided to cardholders enables them to use their passwords to complete online shopping forms automatically. Cardholders can also download coupons, special offers and even coupons from the customers' favorite stores. They can also obtain airline tickets for express check-ins at certain airports. In addition to the basic smart card, Citi has issued Citi.you, a card that is available only by invitation and an annual fee of $85. In return, Citi provides an awards program.

At the end of last year, CUNA Network Services began to offer and support the SchlumbergerSentinel payment card, IT, to the more than 10,000 credit unions in the USA. Credit union members who have computers and use the card can plug into a standard port on their computers, thus eliminating the need for a card reader. The migration to smart cards has led Datacard Group to develop new software for banks that issue Visa cards and want to make smart cards available to their customers.