College Credit: Card Deals Drop Among Issuers, Universities

What's Next In Payments®
10:36 PM EST November 14th, 2012

Credit card issuers are gaining fewer accounts from U.S. colleges.

That was the finding of a new Consumer Financial Protection Bureau (CFPB) report indicating that the number of new accounts opened through colleges, alumni groups and foundations dropped to 43,010; down 7 percent from the previous year.

Some other troubling stats from issuers: the number of agreements between card companies and U.S universities fell 21 percent, to 798, and nationwide payments by issuers to colleges dropped 15 percent to just $62 million.

According to the Chicago Tribune, the source of this downfall is the 2009 Credit Card Accountability Responsibility & Disclosure (CARD) Act, which limits actions issuers can take when encouraging product enrollment. For example, the CARD act disallows giving gifts to encourage students to apply for cards, and requires issuers to annually disclose their agreements.

The Penn State Alumni Association made the largest agreement last year, grabbing $2.7 million from Bank of America. The Alumni Association of the University of Michigan was second, while the University of Southern California was third. FIA Card Services, a BOA subsidiary, came in first among issuers, while U.S. Bank and Capital One finished second and third among issuer payments.

For more on the effect the CARD act has had on college credit cards, and a complete list of the Top 10 agreements, read here.

Comments
Also by This Author
What's Hot
News
Staples Breach Hit 1.16 Million Payment Cards
Loyalty & Rewards
Go, Teller, On The Mountain (Of Stats) That Mobile’s Less Loyal
News
Would You Like Beacons With That?
News
PayPal Here Gets New U.K. Partner
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Alternative Financial Services
What Payments Players Want Under The Tree
News
Staples Breach Hit 1.16 Million Payment Cards
Alternative Financial Services
Bitcoin Tracker | Week 53    
Loyalty & Rewards
Go, Teller, On The Mountain (Of Stats) That Mobile’s Less Loyal
View All Articles ››