Meanwhile, officials from Chase Credit Cards announced the end of some niche affinity cards, including the Starbucks Duetto Card. Bank officials told reporters that the Starbucks card and other affinity products failed to generate significant revenue for the company, while costing more to operate than Chase's own credit card products.
In years past, an affinity credit card dropped by one lender would often be picked up by another, especially airline cards and products sponsored by colleges or professional associations. However, new credit card regulations make it difficult for lenders to sell credit card portfolios as active accounts. Experts predict that the accounts sold by Chase and Citi may end up as unsecured loans, leaving cardholders with no ability to make new purchases.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.