Abstract This paper uses secondary data to analyze the credit card industry along five constructs: (1) Competitive analysis: Porter's Five Forces and PEST analysis, (2) monopoly vs. perfect competition, (3) standardization vs. localization, (4) competition vs. collaboration and (5) revolutionary vs. evolutionary change. The author points out that the existing credit card industry is a mature market, but it still has room to grow as more people become familiar with the allied financial services their credit and debitcards can provide. The paper relates that VISA enjoys the most powerful credit/debitcard position in consumer cards especially in business credit cards, with it has extensive and integrated work in payments processing; however, the founders of First Data/Concord EFS were particularly aggressive business people. Many tables and charts.
Table of Contents
Introduction
In Brief
Background
Flies in the First Data Ointment
Objective
Methodology
Structure of the Dissertation
Literature Review
Competitive analysis
Porter's Five Forces
Porter's Five Forces Example
PEST Analysis
Economic Factors
Socio-Cultural Factors
Technological Factors
Literature Review
Monopoly vs. Perfect Competition
Standardization vs. Localization
National Initiatives
Competition vs. Collaboration
Revolutionary vs. Evolutionary Change
Opportunities
Overview of Credit and DebitCard Industries
Top Ten Card Issuers Compared
Bank Card Profitability
Differences between Credit and DebitCards U.S. Payment Cards-in-Force (in millions)
Off-Line Debit History
Top 10 U.S. Issuers by Card Loans
Developed vs. Less Developed Nations' Credit Card Use
VISA Volume
2003 Top 10 Countries
Global Financial Cards in Circulation - 2003
Corporate /Commercial vs. Consumer Use
Analysis of VISA's Strategy
VISA's Strengths
VISA's Weaknesses
VISA's Opportunities
VISA's Threats
STP Strategy (Segmentation, Targeting and Positioning)
Conclusion
Conclusions and Recommendations
From the Paper "From the merchant's point of view, the merger was seen as one that would give them an alternative to VISA and MasterCard. Shortly after the merger, major STAR network contracts with high-profile banks such as Wells Fargo, Wachovia and BankOne were set to expire; this opened the field to some turmoil, in all likelihood, because VISA was already making a play to sign the same institutions for its processing and acceptance capabilities. FirstData/Concord was assumed to have the upper hand, however because analysts thought those two institutions, despite their disparate original sizes, understood contracts of that sort and banks themselves better then VISA. As it turns out, STAR did lose some of its bank contracts, reducing the value of the merger somewhat from the First Data standpoint."
Abstract In the first part of this paper, the writer discusses the rise in credit card use and looks at the reasons behind this increase. The writer then examines how the availability of easy credit caused a fundamental shift in American tastes. The writer also evaluates how these trends could affect a consumer's purchasing power, the credit industry, and even the national economy. The writer concludes that a combination of consumerism, economic need and the easy availability of credit have contributed to the revolving debt figures in the US. Further, the writer argues that as more people become knowledgeable about credit and are turning to debitcards and cash, creditors will have to devise new ways to encourage credit spending.
Outline:
Credit History
Credit Aftermath
Economic Effects
Works Cited
From the Paper "Previous research has suggested that only a small amount of credit-card holding households were responsible for the vast majority of credit card debt. Others have shown that as credit cards became more common forms of payment, average balances increased across the board. The fact that credit cards became more readily available in the early 1990s partly accounts for this phenomenon, and tends to support the latter conclusions. It is far more likely that all people are using credit cards more, rather than merely a fraction of American households."
"Bernthal et al attributes this increase in revolving debt to intense competition among lenders. There was therefore a strong incentive for lenders to extend loans to riskier households. In the 1980s, credit cards were seen as a status symbol, only acquired by those who had disposable income. By 1995, however, the average credit card holder had lower income and was more likely to be single. The average credit card holder was also more likely to rent rather than own their home, worked in a blue collar profession and often carried higher credit card balances."
Abstract The paper offers a case study of ERG Smart Cards, a company offering the means for widespread use of smart cards. The paper explains that this is a system allowing for monetary value to be loaded onto "smart cards" with embedded microprocessors for recording transactions and calculating changes in value. The paper relates that this sort of technology has been in development for a decade or so and has been pursued by a number of companies, some in association with ERG, some acquired by ERG, and some concentrating on different aspects of the market than ERG.
From the Paper "ERG Smart Cards is a company offering the means for widespread use of smart cards, a system allowing for monetary value loaded onto "smart cards" with embedded microprocessors for recording transactions and calculating changes in value. This sort of technology has been in development for a decade or so and has been pursued by a number of companies, some in association with ERG, some acquired by ERG and some concentrating on different aspects of the market than ERG. ERG today is in a strong position for the future but is also faced with a reduced stock price because of problems with its association with Motorola, once a linchpin for the company and now a drain on the stock price. CEO Fogarty has to determine whether to continue to pursue the company strategy of concentrating on large-scale projects or chase smaller tenders."
Abstract Six page paper exploring the recent and out of control trend of college students getting themselves deep into debt by getting easy credit cards at school.
Abstract This paper offers a brief business plan for a small sports autograph and card shop, including an a website for selling the same merchandise and providing information about the sports collectibles market.
From the Paper "This business will operate a retail store selling sports autographs memorabilia and trading cards. In addition the company will have an online Web site for selling the same merchandise and for providing information about the sports collectibles market..."
Tags: small business plan, sports autograph & card shop, marketing plan
Abstract This paper provides an overview of electronic payment methods and outlines the relative advantages of electronic payment methods both for customer service and increased profitability. The main features of electronic payment cards, which include credit cards, virtual credit cards, debitcards, and charge cards, are described, and the main characteristics of successful e-payment methods are outlined. The recent successes of PayPal and VeriSign are outlined, and the author's personal interest in the subject is discussed.
Outline
Electronic Payment Methods
Main Features of Electronic Payment Methods
Electronic Payment Methods, PayPal and VeriSign
Personal Interest in Electronic Payment Methods
Additional Information on Electronic Payment Methods
From the Paper "Successful e-payment methods share a number of characteristics. These are: independence, interoperability and portability, security, anonymity, divisibility, ease of use, and transaction fees. Independence refers to the ability of e-commerce methods to operate without installing specialized software. Those e-commerce methods that do not require specialized hardware or software are more likely to be successful. Interoperability and portability refers to the ability of forms of e-commerce to interlink with other enterprise applications and systems. Security is an important consideration that encompasses the safety of the transfer and the chance of the transfer being intercepted. Anonymity is a characteristic of cash payments, where payment cannot be traced back to the buyer."
Abstract The development of cards which can access different monetary services electronically has been the major boost to electronic commerce. Many computer users today are accessing commercial enterprises on the Internet, but millions more have indulged in a different form of electronic commerce simply by using their ATM card, debitcard, or credit card in the course of daily business. The dissemination of such cards has been part of a long-term and evolving marketing strategy on the part of banks and other financial institutions to change the way people do business both with their banks and with retailers of various sorts.
From the Paper "NEW WAYS TO PAY
INTRODUCTION
The development of cards which can access different monetary services electronically has been the major boost to electronic commerce. Many computer users today are accessing commercial enterprises on the Internet, but millions more have indulged in a different form of electronic commerce simply by using their ATM card, debit card, or credit card in the course of daily business. The dissemination of such cards has been part of a long-term and evolving marketing strategy on the part of banks and other financial institutions to change the way people do business both with their banks and with retailers of various sorts. Some believe this could one day lead to a cashless society where all commerce is conducted through the use of plastic cards with ..."
Abstract This paper discusses the various payment methods across the United States. These payment methods consist of paper currency, checks, traveler's checks, debitcards, credit cards and newer payment methods. The newer payment methods are typified by PayPal which is clearly becoming a widely used and accepted form of payment beyond its original use related solely to eBay purchases.
From the Paper "Payment methods have evolved over time with and at the same pace as advances in technology. While physical currency is under no threat of disappearing in the near to mid-term, the changing buy and consumption habits of the United States' consumers is moving in tandem with evolving payment methods in a manner that makes physical currency seem less relevant. Some researchers describe this dynamic in the following manner: "All consumption activity has increasingly become technologically mediated over the past few decades. The shopping experience has been transformed by its technological infrastructure" (Lally, 2002, p.117). Increasingly, this technological mediation in the consumption experience is currency and payment related. No longer is cash considered king and many of the once cutting edge payment methods available to consumers are now considered quaint or archaic."
Abstract This paper explains the credit card segment of the financial services industry. The author focuses on the Chase Card member Services (CCS). The paper discusses the problem of growth in a saturated market.
From the Paper "In January of ..., Chase Card member Services faced some difficult challenges. The credit card was being saturated. Other companies were regrowing, but CCS was not in spite of the fact that all the players in the industry faced the same challenges. CCS had a competitive advantage based on its size. Yet, CCS faced strategic challenges including finding a way to convince customers that their credit card services were superior. The credit card ..."
Tags: case study, chase, citibank, JP Morgan, financial services industry, credit card, debit, card, co branding, competition, interest fees, technology
Abstract For many, automated teller machines (ATMs) are simply a way of life. There were introduced nearly 20 years ago and today, many bank customers never go into a branch after opening their account. But today's ATM cards can also be used to make purchases at retail outlets and even on the World Wide Web, another innovation which was not envisioned 20 years ago. The videophone has become video conferencing, and cameras which use film may be made obsolete by cameras which use a floppy disk for recording images. Electronic pagers, once the purview of doctors and others who needed to be notified in case of emergencies, have now become commonplace and are used to summon diners to their table.
From the Paper "Introduction
For many, automated teller machines (ATMs) are simply a way of life. There were introduced nearly 20 years ago and today, many bank customers never go into a branch after opening their account. But today's ATM cards can also be used to make purchases at retail outlets and even on the World Wide Web, another innovation which was not envisioned 20 years ago. The videophone has become video conferencing, and cameras which use film may be made obsolete by cameras which use a floppy disk for recording images. Electronic pagers, once the purview of doctors and others who needed to be notified in case of emergencies, have now become commonplace and are used to summon diners to their table. This research examines each of these technologies and considers how the impact of technology extends beyond its stated use."
Abstract This paper explains that, while there are some consumers who remain loyal to checks for security reasons and the comfort of seeing things in print, more and more customers are enjoying electronic payments; therefore, electronic transactions are transforming the banking industry. The author points out that, in addition to electronic payments being convenient, they are less expensive for the consumer, particularly through the use of online bill payment, and offer opportunities for rewards for using credit and debitcards. The paper states that, in other countries, banks have been able to make checks all but obsolete by charging considerably more for check transactions than for other forms of payment. The paper includes several long quotations.
Table of Contents
Introduction
Electronic Payments vs. Traditional Checks
The Advantages of Electronic Transactions for Banks
Conclusion
From the Paper "Although the Banking System is moving toward becoming paperless, American's still write more checks per person than any other industrialized nation. An article entitled "Why do we Use so many checks" asserts that in the year 2000 49.6 billion checks were written and were valued at $47.7 trillion. The author explains that unlike other countries the United States experienced an increase in check writing during the 1990's which has contributed to the continued use of checks. As was previously mentioned in this discussion, the number of checks that are now being used has begun to decrease, but it is still a significant amount. "
Abstract The paper explains that a video card (also referred to as a graphics card) is an essential part of computer hardware. The paper relates that without these cards, monitors would not display the pixels in a format the human eye could understand. The paper discusses the evolution of the graphics card from simple chips that displayed nothing more than text, to the graphic wonders that can create any detail today. The paper predicts that they will continue to add vivid color, striking details and complex capabilities for computer users far into the future.
Outline:
Abstract
Evolution of the Graphics Card Future of the Graphics Card
From the Paper "Graphics cards are essential to the computing we know today. From PDAs to laptops, the graphics card allows the user to play games, create graphics and complex mapping, and even view the world one pixel at a time through programs such as GoogleEarth. Graphics cards have evolved from simple MDAs that only displayed text to complex cards that can render ever more complicated and detailed graphic images. In the future, computer users can expect graphics that are even more detailed, faster memory and interfaces that reduce rendering time, and even better 3D graphics that will allow them to become "part" of the screen."
Abstract The paper ascertains the attitudes of students relative to credit cards, examining their attitudes towards their perceived convenience, risk and the extra cost of potential transactions. The analysis includes both the students' and their families' income, the frequency of parents' fights over money and credit cards, specifically, and the number of credit cards carried. The paper discusses the conclusions from this research, that shows the marketing of credit cards for college students, both to their parents and to the students themselves, is extremely effective. The paper explains that credit card companies are successfully imparting the messages of control, ego gratification and the rationalization of emergencies.
Outline:
Executive Summary
Research Issue
Methodology
Analysis of Results
Conclusions/Recommendations
Limitations
Appendices
From the Paper "Fifty students were given the printed questionnaire and assured complete anonymity and privacy, and also were left alone in classrooms after sessions were over to complete the survey. A $3 Starbucks Card was offered to the first ten students to complete the survey, so that motivation to quickly finish the research instrument would be assured. Graduate-level students were asked to complete the survey during an evening course break. "The sampling focused primarily on business students, with an even mix of women and men in the samples to rule out gender bias in the analysis of the results, a research design advocated by Hair, J.F., Anderson, R.E., Tatham, R.L., & Black, W.C. (1995) in their book."
Abstract While credit cards give the consumer many advantages, this paper takes a look at how credit cards have pushed the margin on high interest rates, at hidden fees and negative marketing strategies which have put society into debt.
Table of Contents
I. Introduction
A. Americans in credit card debt.
II. Origin of credit cards A. Dates
B. Statistics
C. Relevant background
III. High Interest rates
A. Interest rates in recent years
B. Usury Laws
C. Who sets these laws?
IV. High Hidden Fees
A. The inflating Interest Rate Game
B. The Grace Period
C. Extra Fees
V. Negative Marketing Strategies
A. What to do first, if you have a complaint
B. Government agencies to contact
C. Can the company get penalties?
VI. Laws and Legislation regarding high interest rates, hidden fees and negative marketing strategies.
A. Truth in Lending Act
B.Governing finance charges
C.EFT Act
VII. CONCLUSION
From the Paper "Credit cards have become a symbol of the American way of life. Until recently Americans were enjoying a period of wealth and freedom never before experienced in history. They were in a mood to buy, and buy they did. Many turned to credit cards to make the purchases that they desired. Some commodities, such as rental cars cannot be obtained with out plunking down a credit card. While credit cards give the consumer many advantages, credit cards have pushed the margin on high interest rates, hidden fees and negative marketing strategies, putting society in to debt."
Tags: interest, consumer, dept, economy, loan, social
Abstract This paper points out the numerous opportunities for fraud that would be created if the U.S. government were to mandate the use of identity cards. The paper explains that, while the idea of issuing identity cards came about as a response to the events of 9/11, the ease and ability of creating false identity cards, as evidenced by the number of 9/11 hijackers who held false passports, could actually work against the purpose of identity cards, which is to help keep out potential terrorists.
From the Paper "Since the attacks by al-Qaeda on the United States on September 11, 2001, both citizens of and officials of our government have considered what we can do to reduce the chance that al-Qaeda could launch another successful attack. We now see long lines at airports as luggage and carry-ons are more thoroughly checked, and travelers are required to show identification multiple times before boarding planes and other public transportation systems (La Londe, 2002). However, because each state sets its own standards for issuance of major methods of identification such as driver's licenses, some have argued that the United States should issue federally controlled identity cards. In this way we could standardize the documentation required, and have more confidence that they were accurate indications of who the person is."
