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Telecommunications industry

East Coast Companies Unite in Credit Card Business: Chase and Bell Atlantic Launch Co-Branded Cards

Strategic Insights

— 2 min read

Chase Manhattan Corp. and Bell Atlantic Corp. have joined forces in the credit card industry, offering co-branded MasterCards and Visa cards to Bell Atlantic's residential phone customers. Under this new partnership, cardholders will earn "cash back" toward their local phone bills, a unique feature that sets these cards apart from other credit cards. The partnership combines the strengths of both companies, leveraging their shared geographic footprint and customer base to deliver a more comprehensive credit card experience.

Key Takeaways:

  • The Chase/Bell Atlantic co-branded credit cards will offer 1% cash back on purchases, 2% on residential phone services, and 3% on calling card calls.
  • The cards will have no annual fee and an introductory 6.9% interest rate for the first nine months, which will then jump to the prime lending rate plus 9.4% or 7.4% for balances above $2,500.
  • The partnership aims to leverage Bell Atlantic's expanding customer base and Chase's expertise in the credit card industry to deliver a more rewarding credit card experience.
  • Bell Atlantic expects the co-branded credit cards to reinforce its brand presence with customers and encourage loyalty in the face of increased competition in the local phone market.
  • The Chase/Bell Atlantic cards will be reissued to approximately 500,000 existing customers who hold Bell Atlantic Visa cards through First Omni Bank by April 1.
  • Kathleen Mink, marketing manager for Bell Atlantic credit card services, noted that every time a cardholder uses their Bell Atlantic credit card, it serves as a "brand impression," making them more likely to stay with the company.

Statistics:

  • 500,000: The number of accounts Chase bought from Bell Atlantic in August, with a majority expected to be reissued by April 1.
  • 1%: The cash back rate for purchases on the Chase/Bell Atlantic cards.
  • 2%: The cash back rate for residential phone services on the Chase/Bell Atlantic cards.
  • 3%: The cash back rate for calling card calls on the Chase/Bell Atlantic cards.
  • 6.9%: The introductory interest rate for the first nine months on the Chase/Bell Atlantic cards.
  • 8.5%: The current prime lending rate, plus 9.4%, that will apply to balances under $2,500 after the introductory period.
  • 7.4%: The rate that will apply to balances above $2,500 after the introductory period.
  • April 1: The expected date by which 500,000 existing customers will have their Visa cards reissued by Chase.

Sources:

  • Paul Kaiser, vice president of cardmember services relationship management for Chase Manhattan Corp.
  • Kathleen Mink, marketing manager for Bell Atlantic credit card services
  • "Bell Atlantic and Chase Manhattan have nice synergies. Both fall within the same geographic footprint." (Paul Kaiser, quoted in the article)
  • "Every time the customer uses their Bell Atlantic credit card and pulls it out of their wallet, it's what I call a brand impression. They will be more inclined to stay with us." (Kathleen Mink, quoted in the article)
  • Bell Atlantic Corp. and Chase Manhattan Corp. press release (no date provided)

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