Credit Card

3. What are the consequences of Capital One’s IT strategy for expansion into different segments of the credit card industry, and into other industry’s?

MasterCard Incorporated is one of the world’s premier credit card processing and money transfer companies in the world. It is the second major payment company in the United States. They focus on making payment transactions safer and beneficial to the society while delivering value through their innovation and execution. MasterCard has three main competitors, Visa at the very top, American Express, and Discover. Visa Inc. has the largest market share of 13.7 percent in the United States with revenue of $12,702 million in 2014. In the same financial year, MasterCard Inc. has recorded total revenue of only $9,473 million and 7.3 percent of total market shares. MasterCard’s SWOT analysis revealed its strength of being the world’s second

It adds value to the business i.e. it enhances the business operations which would inturn have a positive impact on the business

They are interested in the company’s ability to pay obligations when they become due, especially during the operating cycle.

What are the consequences of an information-based strategy for expansion into different segments of the credit card industry and into other industries?

U.S. consumers remain addicted to credit. Consumer debt continues to rise to record levels and a significant number of households have lost control of their finances. Credit cards can be a useful financial tool when used appropriately. However, research clearly indicates that consumers are not using credit cards wisely and consumers do not understand the terms and conditions of the credit card contract. Adding to this public dilemma, the practices of numerous credit card issuers have been described as predatory. The Credit CARD Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, is the first major reform of the credit card industry since the Truth in Lending Act of 1968. The Credit CARD Act of

They carry the receivables (cash flow issues due to long payment terms of customers; actually a 90 days credit)

Credit allows consumers to finance transactions without having to pay the full cost of the merchandise at the time of the purchase. A common form of consumer credit is a credit card account issued by a financial institution. Merchants may also provide financing for products which they sell. Banks may directly finance purchases through loans and mortgages. Consumers imperatively rely on credit, so it is necessary that credit laws help protect the consumer. I will discuss some of the major credit laws that impact the consumer, examine whether these laws are working, and talk about possible changes that might be needed to make sure the consumer is rightly protected.

Data is an important component used by all technology and businesses to gain insights and refine their marketing techniques to improve customer experience. Through the use of data analysis companies can capture a large amount of data, and retrieve information regarding the company’s trends. In Richard’s case using data analytics allows him to gain better insights on customer behaviors, in which he was able to determine which factors influence a user to purchase the eReader early. These factors will allow the team to develop new business models and improve their marketing strategies to capture these individuals (“Big Data Analytics”, 2017). For example, if most of the early users are from California, it would be beneficial to promote the eReader

Importance: Usually it gives an idea about company’s capability to pay liabilities with its asset.

Card bank account information is stored in a number of formats. Account numbers – formally the Primary Account Number (PAN) – are often stamped or imprinted on the card, and a magnetic streak on the back contains the data in machine readable format. Fields can vary, but the most common include:

In response to the 2007-2008 financial crisis, the United States government was charged with reforming many financial systems. One area of concern was credit cards. Namely, many Americans faced financial troubles with credit debt and other credit card related issues. In 2009, Congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act). The goal of the Credit CARD Act was to protect consumers from dubious credit card issuers. The legislation enacted intends to make the credit card system more transparent and supervised in addition to certain consumer protections. The Credit CARD Act was a major shift in the way credit card issuers were allowed to operate, and most—if not all—credit card issuing

“Interpreting even the most ordinary junk mail solicitation for a credit card requires an understanding among other things of the postal system, folded paper envelopes, advertising and direct mailing, promised inducements, the modern bank and credit card system, modern application forms, store credit card transactions, monthly statements, internal record keeping, check payments, and competition among various credit providers” (Bazerman 1997).

The quality and service experience the Discover provided is stability to effectively communicate with their customers. The most two important to things to stay competitive in the credit card industry is having the first new innovative ideal with in a business. Discover has recent introduce a new credit card called the Discover IT. A business should consist of using teamwork to build and creative environment where all members can be able to contribute their knowledge, skills and experience to solve problems with a company. Discover like to use there employee which are also there customer for feedback, so Discover know want the consumer want in a credit card The other most important critical for this company to stay competitive is always staying on top of new technology. Using soft skills with a company such as Adaptability to change Often time’s businesses tend to have growth, emerge and even globalize into large organization or use advance technology. Every individual must have the ability to change at Discover. Adaptability to change is life skill we encounter every day. It took a team of people at the Discover to come up with an innovative project. They had to understanding the process behind the idea of new card and also be able change from based on supply and demand with a company. Discover is just a Finance institution,

Credit card companies prey on naïve students to maximize their own profit. According to the documentary Maxed Out (2006), credit card companies prey on uneducated adults who more than likely not pay their bill on time. This guarantees them max profit whether it is paid by consumer or companies that buy debt.