Question
Now with Bank of America purchasing MBNA for 35 billion, I wonder what will happen with their credit cards... As it is, the Amtrak Mastercard has loost much of its luster with the December decision to terminate transfer into United's program, and now with the foreign exchange fee raised on MBNA cards, it seems like their products are no longer all that desirable.
What do you think is next?
Answer
I think one of the first things to go away is the Fidelity cards. Fidelity cards have better rebate programs than most other cards. Since BOA has their own investment service, I don't see any reason for BOA to keep this benefit. Maybe they will change the cards so that the rebates to go to BOA's investment service, but not at 1.5-2% cash rebate.
For that matter, any other cards associated with investment service will probably go away.
travellot
Answer
I think one of the first things to go away is the Fidelity cards. Fidelity cards have better rebate programs than most other cards. Since BOA has their own investment service, I don't see any reason for BOA to keep this benefit. Maybe they will change the cards so that the rebates to go to BOA's investment service, but not at 1.5-2% cash rebate.
For that matter, any other cards associated with investment service will probably go away.
travellot
It will really depend on how BOA acquires MBNA. There is also the Merrill Lynch line of cards too that must be considered. While it is certainly possible, I highly doubt that BOA will terminate those programs. American Express offers a join Fidelity Card even though American Express has its own investment banking business. Additionally, it seems to me that there are quite a number of cardmembers in the Merrill Lynch cards, so terminating those programs will hurt BOA's bottom line. Then again, it is still too early to tell what will exactly happen. T&C, Fees, etc will probably be consolidated into either MBNA or BOA.
Answer
Fidelity, Merrill Lynch, American Express are just a small part of the picture. This article...
http://money.cnn.com/2005/06/30/news/fortune500/boa/
...points out that MBNA issues cards for about 350 financial institutions, and has marketing agreements with "5,000 professional organizations, universities, sports teams and other financial institutions".
Some of these will regard BoA as a competitor, but who are they going to use to operate their card programs if they cannot, or choose not, to do it themselves? My initial thought is that American Express could benefit. In February they announced they would spin off American Express Financial Advisors, which means they look less like a competitor to Merrill Lynch et.al.
dennis
Answer
Article on Yahoo said BofA believe's they could lose up to 7% of current MBNA business because of conflicts with BofA.
Jeff
Answer
BoA just keeps gobbling them up. I had a Fleet, BOA, and 2 MBNA Cards and it looks like now I will have all BoA Cards. IMO BoA is terrible for nickle and diming you every chance they get.
-UFFA
Answer
Since all Bank of America card charge the ripoff 3% fee for foreign currency conversioin, I would expect the MBNA 1% deal to go away. Hopefully this will not happen until after my trip to Eastern Europe August - September. Else, I use all cash from the ATM machines, or maybe a Captial One card, if they haven't converted to the 3% fee yet.
I do hope this ripoff 3% fee becomes widely understood. Perhaps if it makes a significant dent in card usage, it will get the atttention of the greedy banks, who might conclude that the profits lost from no business internationally exceed the profits gained by trying to rip us off with the fee.
Answer
Since all Bank of America card charge the ripoff 3% fee for foreign currency conversioin, I would expect the MBNA 1% deal to go away. Hopefully this will not happen until after my trip to Eastern Europe August - September. Else, I use all cash from the ATM machines, or maybe a Captial One card, if they haven't converted to the 3% fee yet.
I do hope this ripoff 3% fee becomes widely understood. Perhaps if it makes a significant dent in card usage, it will get the atttention of the greedy banks, who might conclude that the profits lost from no business internationally exceed the profits gained by trying to rip us off with the fee.
The MBNA 1% fee has already gone away -- except for AAA-affinity cards and a few others. I am switching my business to a credit union card. I am also looking into an HSBC card -- not sure what fees (if any) they charge).