GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Another credit card for porn! Diners Club!!

bugout · 04-27-2004, 12:33 AM

I like how they refer to it as a travel and entertainment card

Diners Club to Expand Its Network

Alliance With MasterCard
To Boost Number of Places
Where the Card Is Welcome
By JANE J. KIM
DOW JONES NEWSWIRES
April 27, 2004; Page D2

NEW YORK -- Consumers who use Diners Club, a high-end charge card known for its flexible rewards program, soon will be able to rack up more points by taking advantage of a greatly expanded merchant network.

Diners Club, a unit of Citigroup Inc., said a planned alliance with MasterCard International would allow cards issued by the Diners Club North America business to carry the MasterCard brand and be accepted at all merchant locations world-wide that accept MasterCard credit cards. In addition, Diners Club cards issued by Diners Club International franchises around the world would carry the MasterCard identifier on the back of the card, indicating acceptance at merchants in the U.S. and Canada that accept MasterCard credit cards.

The alliance would nearly triple the number of places where card members could use the Diners Club card, which is accepted at about 8.4 million merchants. MasterCard is accepted at more than 22 million merchants world-wide. The partnership is an extension of MasterCard's relationship with Citigroup, one of the largest issuers of MasterCard products, including American Airlines' AAdvantage card.

Cardholders have abandoned Diners Club in droves in the past decade as the number of merchants who accepted the card declined. Still, a core group remained because the card allowed them to exchange Diners Club rewards points for miles with any major U.S. airline, something you can't do with American Express Co.'s credit card. Now that Diners Club will be accepted in even more places than American Express, thanks to the new partnership with MasterCard, Diners Club could see a large number of miles-seeking people push its card back up to the top of their wallets.

Diners Club noted that there are currently no changes to the Diners Club products or programs.

The move is a "huge boost" for Diners Club, since it takes a brand with a limited distribution network and more of a private-label status and gives it a national-brand status, said Robert Hammer, an industry consultant in Thousand Oaks, Calif.

For MasterCard, the partnership will give the company an opportunity not only to pick up Diners Club's volume but also the chance to "siphon off the volume that would have gone to cards where Diners was not accepted," such as American Express and Visa, said Robert McKinley, chief executive of CardWeb.com.

The Diners Club card also could attract more businesses and frequent travelers. The Diners Club program is widely viewed as one of the more flexible rewards programs because of its partnerships with more than 20 major airlines, including AMR Corp.'s American, UAL Corp.'s United and Delta Air Lines. (In contrast, American and United don't participate in American Express's Membership Rewards program.) In addition, the card also has a longer grace period than most so-called charge cards, giving individuals and small businesses two billing cycles to pay off their balances.

"You've got a formidable product that could put some heat on American Express," Mr. McKinley said. Indeed, the move could possibly be seen as a defensive measure, after American Express announced a co-branding deal with credit-card giant MBNA Corp. in January, since there was a sense that other issuers were considering adding American Express cards to their portfolio, he added.

Although the Diners Club card will be accepted at more places, it could remain largely a "travel and entertainment card" used primarily by business travelers because of its $95 annual fee, especially as more firms roll out low- or no-fee rewards programs, said Randy Petersen of InsideFlyer magazine.

Given Citigroup's deep pockets, the company is sure to make a big marketing splash behind the new product and could launch new variations of the Diners Club product, ranging from an entry-level version to a premium card, Mr. McKinley added. In fact, consumers might be more open to the idea of a charge card amid the hassles and increasing fees of owning a credit card.

"It's good news for MasterCard in the market-share wars...and reaffirms their new leading position," said Stu Feldstein, president of SMR Research Corp., a financial-services market research firm in Hackettstown, N.J. At the end of 2003, MasterCard's share of the number of accounts of general-purpose cards was 43.7% compared with Visa's 41.4%, while its share of the dollar amount of receivables was 43.8%, slightly above Visa's 43.1%, according to SMR's research. With 42.6% of card transactions, however, Visa still leads over MasterCard's 33.8% share.

04-27-2004, 12:33 AM
bugout Confirmed User Join Date: Jun 2002 Location: NY-Rio de Janeiro Posts: 540	Another credit card for porn! Diners Club!! I like how they refer to it as a travel and entertainment card Diners Club to Expand Its Network Alliance With MasterCard To Boost Number of Places Where the Card Is Welcome By JANE J. KIM DOW JONES NEWSWIRES April 27, 2004; Page D2 NEW YORK -- Consumers who use Diners Club, a high-end charge card known for its flexible rewards program, soon will be able to rack up more points by taking advantage of a greatly expanded merchant network. Diners Club, a unit of Citigroup Inc., said a planned alliance with MasterCard International would allow cards issued by the Diners Club North America business to carry the MasterCard brand and be accepted at all merchant locations world-wide that accept MasterCard credit cards. In addition, Diners Club cards issued by Diners Club International franchises around the world would carry the MasterCard identifier on the back of the card, indicating acceptance at merchants in the U.S. and Canada that accept MasterCard credit cards. The alliance would nearly triple the number of places where card members could use the Diners Club card, which is accepted at about 8.4 million merchants. MasterCard is accepted at more than 22 million merchants world-wide. The partnership is an extension of MasterCard's relationship with Citigroup, one of the largest issuers of MasterCard products, including American Airlines' AAdvantage card. Cardholders have abandoned Diners Club in droves in the past decade as the number of merchants who accepted the card declined. Still, a core group remained because the card allowed them to exchange Diners Club rewards points for miles with any major U.S. airline, something you can't do with American Express Co.'s credit card. Now that Diners Club will be accepted in even more places than American Express, thanks to the new partnership with MasterCard, Diners Club could see a large number of miles-seeking people push its card back up to the top of their wallets. Diners Club noted that there are currently no changes to the Diners Club products or programs. The move is a "huge boost" for Diners Club, since it takes a brand with a limited distribution network and more of a private-label status and gives it a national-brand status, said Robert Hammer, an industry consultant in Thousand Oaks, Calif. For MasterCard, the partnership will give the company an opportunity not only to pick up Diners Club's volume but also the chance to "siphon off the volume that would have gone to cards where Diners was not accepted," such as American Express and Visa, said Robert McKinley, chief executive of CardWeb.com. The Diners Club card also could attract more businesses and frequent travelers. The Diners Club program is widely viewed as one of the more flexible rewards programs because of its partnerships with more than 20 major airlines, including AMR Corp.'s American, UAL Corp.'s United and Delta Air Lines. (In contrast, American and United don't participate in American Express's Membership Rewards program.) In addition, the card also has a longer grace period than most so-called charge cards, giving individuals and small businesses two billing cycles to pay off their balances. "You've got a formidable product that could put some heat on American Express," Mr. McKinley said. Indeed, the move could possibly be seen as a defensive measure, after American Express announced a co-branding deal with credit-card giant MBNA Corp. in January, since there was a sense that other issuers were considering adding American Express cards to their portfolio, he added. Although the Diners Club card will be accepted at more places, it could remain largely a "travel and entertainment card" used primarily by business travelers because of its $95 annual fee, especially as more firms roll out low- or no-fee rewards programs, said Randy Petersen of InsideFlyer magazine. Given Citigroup's deep pockets, the company is sure to make a big marketing splash behind the new product and could launch new variations of the Diners Club product, ranging from an entry-level version to a premium card, Mr. McKinley added. In fact, consumers might be more open to the idea of a charge card amid the hassles and increasing fees of owning a credit card. "It's good news for MasterCard in the market-share wars...and reaffirms their new leading position," said Stu Feldstein, president of SMR Research Corp., a financial-services market research firm in Hackettstown, N.J. At the end of 2003, MasterCard's share of the number of accounts of general-purpose cards was 43.7% compared with Visa's 41.4%, while its share of the dollar amount of receivables was 43.8%, slightly above Visa's 43.1%, according to SMR's research. With 42.6% of card transactions, however, Visa still leads over MasterCard's 33.8% share.