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HSBC is selling a card business for an 8.75% premium. It may be time for Citi to cut its price on a similar portfolio.
August 10 -
As potential buyers kick the tires of a few big credit card portfolios on the block, the issuers' private-label card operations for the first time in years could be an advantage, instead of a drag, thanks to changes in the economy and in industry regulations.
July 13 -
Macy's Inc.'s decision to shift its cobranded credit cards to American Express Co. from Visa Inc. underscores the increasing competition among card networks and Amex's growth ambitions.
April 5
You can leave home without your American Express card now if you are heading to Neiman Marcus.
Reversing its longtime policy of accepting only American Express Co. cards and its own private-label card at its stores, Neiman Marcus Inc. said Thursday it will also start accepting cards backed by Visa Inc. and MasterCard Inc.
The Dallas-based retailer, which for several years has accepted Visa and MasterCard for online purchases only, will begin accepting those card brands inside its 41 stores beginning Nov. 1, according to a press release.
"We listened to our customers and heard that they wanted more flexibility in their payment choices," Karen Katz, Neiman Marcus president and chief executive officer, said in the release.
Other factors likely also influenced Neiman Marcus, including the fact that its private-label credit card portfolio is changing hands, says Brian Riley, senior research director with TowerGroup.
"There are new priorities coming to bear on the portfolio," he says.
HSBC Bank USA for several years has owned the Neiman Marcus credit card receivables portfolio, but Capital One Financial Corp. in August
The portfolio includes the Neiman Marcus card receivables along with those of upscale department store rival Saks Inc.'s Saks Fifth Ave. The deal is set to close in the second quarter of 2012.
Neiman Marcus executives were not immediately available for comment.
The retailer's decision removes some of the exclusivity enjoyed by American Express, which serves mostly the wealthy consumers likely to shop at stores like Neiman Marcus. But the New York-based credit card company has recently won other deals that are likely to cushion the blow and prevent it from losing much share of department store card transactions.
Macy's Inc. in March 2010 said
The Neiman Marcus deal to expand credit card acceptance underscores merchants' pressure to squeeze profits out of their credit card operations in a tough economy, Riley says.
"Neiman Marcus has had some financial ups and downs, and surely they are pushing to make sure they're getting the best deals they can get from the card brands," Riley says.
