Printer Friendly

U.S. BANK TO ISSUE U S WEST VISA CARD WITH CALLING CARD FEATURESz

 PORTLAND, Ore., and PHOENIX, April 14 /PRNewswire/ -- U.S. Bancorp (NASDAQ: USBC) and its subsidiary, U.S. Bank, National Association (U.S. Bank) and U S WEST (NYSE: USW) today announced their agreement to combine U S WEST's telephone Calling Card features with a U.S. Bank- owned Visa credit card, representing the first such co-branded affiliation in the western United States.
 This arrangement allows U S WEST to offer its residential and business customers the purchasing power of a Gold, classic or business Visa card with the convenience of a calling card, and provides U.S. Bank with an opportunity to reach nine million U S WEST households, and eventually 850,000 businesses, in 14 Western states with the Visa card.
 "We are using Visa because it has the broadest acceptance of all credit cards. This offers a real advantage to U S WEST customers," said Richard Eichhorn, president of U.S. Bancorp's National Products Group.
 The new co-branded Visa card from U.S. Bank is available to qualified U S WEST residential customers on May 10 with no annual fee, and to business customers initially in Oregon and Washington starting in mid-June, with a $45 annual fee.
 The variable annual interest rate on the Gold card is prime plus 9.9 percent for purchases (currently 15.9 percent). The rate on the classic card is prime plus 10.9 percent for purchases (currently 16.9 percent). For both cards, the cash advance rate is prime plus 8.9 percent (currently 14.9 percent).
 Cardholders will receive a rebate of up to 1 percent of card purchases, and up to 2 percent on U S WEST Calling Card calls. The maximum annual rebate is $500.
 Other features include a 25-day, interest-free grace period on purchases when monthly balances are paid in full, a pre-approved line of credit, credit card loss protection and car rental/travel insurance.
 "We're pleased to offer the card to our residential customers because it's really a natural enhancement to our existing Calling Card, which our customers have liked and used for quite some time," said Jane Evans, vice president and general manager of U S WEST's residential division. "This is a way of adding value to our Calling Card business, so this new offering really builds on that."
 According to Evans, the U S WEST Visa card will be easy to use for telephone calls, with no special access codes required. Customers simply dial the same way they do with their U S WEST Calling Card today.
 Unlike other telephone affinity cards, the U S WEST Visa card awards cardholders with rebate points on all credit card purchases and U S WEST Calling Card calls, not just discounts on long distance calls.
 The U S WEST Visa business card is the first credit card with calling card features to allow small business owners to carry over monthly Visa debt. It will be marketed initially in Oregon and Washington, with plans to eventually expand throughout the 14-state region.
 U S WEST and U.S. Bank will jointly market and promote the consumer and business Visa card products provided by U.S. Bank. Customers seeking more information can call U.S. Bank at 800-872-2699. Applications are available only through U.S. Bank.
 "Our relationship with U S WEST is mutually advantageous because our two companies have similar objectives. Each is looking for ways to increase its customer base and to add value to its customer relationships. U.S. Bank has designed this program specifically to meet the business needs of U S WEST," said Eichhorn.
 "U.S. Bank is aggressively growing its national products base, particularly in the credit card arena, where we have the infrastructure already in place to service national accounts," he added.
 Eighteen American Automobile Association clubs; the National Ski Association; several university alumni associations, including Stanford and the universities of Arizona, Oregon and Washington; and Thousand Trails are some of the approximately 45 affinity organizations offering credit cards to 5.1 million households nationwide through U.S. Bank.
 Growth projections for the U S WEST Visa products are estimated at more than one million new accounts within five years -- doubling U.S. Bank's current one million credit card accounts, according to Eichhorn.
 In addition, up to 100 new jobs will be created over the next few years at U.S. Bank's state-of-the-art processing center to service the new U S WEST Visa accounts. The credit card processing center, located in Beaverton, Ore., is designed to respond to customer needs quickly.
 "We look to expand this type of business, and Visa has been an excellent partner for us," stated Eichhorn. The agreement represents the first co-branded Visa product with a 'Baby Bell' telephone company, according to Eichhorn.
 U S WEST owns U S WEST Communications and other companies involved in communications, marketing services and financial services. The company's largest subsidiary, U S WEST Communications, provides communications services to 25 million customers in 14 Western states.
 U S WEST also owns companies involved in regional, national and international markets. Its businesses include directory publishing, cellular mobile communications and paging, personal communications networks, business communications systems sales and service, cable television, communications software and financial services. In 1992, U S WEST reported revenues of $10.3 billion.
 U.S. Bancorp is the largest bank holding company headquartered in the Northwest, with assets of $20.7 billion as of Dec. 31, 1992. U.S. Bancorp is one of the nation's 35 largest bank holding companies, and has ranked among the top tier of these companies in performance and capital strength for the last several years.
 -0- 4/14/93
 /CONTACT: Mary Ruble of U.S. Bank Public Relations, 503-275-6200; or Bill Ewer of U S WEST Public Relations, 602-351-6068/
 (USBC USW)


CO: U.S. Bancorp; U S WEST ST: Oregon, Arizona IN: FIN TLS SU: PDT

SW -- SE002 -- 5695 04/14/93 12:01 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 14, 1993
Words:988
Previous Article:FIRST MIDWEST BANCORP REPORTS INCREASED FIRST QUARTER EARNINGS
Next Article:MAZDA AWARDS 26 SUMMER SCHOLARSHIPS TO HIGH SCHOOL STUDENTS; NEARLY 200 SCHOLARSHIPS AWARDED IN 10 YEARS OF THE PROGRAM
Topics:


Related Articles
VISAPHONE SERVICE THROUGH SPRINT AVAILABLE IN KOREA
VISA AND PEOPLE'S BANK SADDLE UP WITH NATION'S LARGEST EQUESTRIAN SUPPLIER
BELLSOUTH AND THE PRUDENTIAL BANK ANNOUNCE TELEPHONE CALLING CARD/VISA CARD
CONSUMERS EARN FREE TOYS AND CLOTHES WITH NEW CREDIT CARD FROM TOYS"R"US
FIRST BANK SYSTEM EXTENDS CORPORATE CARD SERVICES THROUGH ALLIANCE WITH ROYAL BANK OF CANADA
AMERICAN EXPRESS ISSUES STATEMENT IN RESPONSE TO MASTERCARD 'POLICY DECISION' TO PROHIBIT U.S. BANKS
First Transaction With New Chip Card Takes Place in New York
U.S. Bank Awarded World's Largest Purchasing Card Account
U.S. Bank Kroger Visa Card Named One of the Best Rebate Cards by Kiplinger's Personal Finance Magazine.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters