Credit card predictions for 2013: more e-payments, big bonuses
About this time last year, I shared聽credit card predictions for 2012. I鈥檒l do the same for 2013, but first, let鈥檚 take a look at how my 2012 predictions played out:
1. More sign-up bonuses聽鈥� with more spending required.聽This has clearly been the case with cards like聽British Airways Visa Signature Card聽offering 100,000 miles and the聽Ink Bold Business Card聽offering 50,000 Ultimate Rewards points. As predicted, these product have large minimum spending requirements to earn the entire bonus.
2. More non-mileage perks.聽We have seen this happening on many cards. For example, in April theAmerican Airlines card from Citi聽began offering first checked bag fee waivers, priority boarding, discounts on in-flight purchases, and a 10 percent discount on award bookings.
3. Fewer foreign transaction fees.聽This is happening, but slowly. Chase recently dropped these fees on its聽Southwest Airlines credit cards. Nevertheless, I am disappointed more聽credit card聽issuers aren鈥檛 following suit.
4. The return of zero-percent balance transfers with no fees.聽Here, my predictions flopped. Thankfully, Chase continues to offer zero-percent balance transfers with no fees on its聽Slate card. But overall, we didn鈥檛 see a major comeback.
5. More attempts to lower credit card merchant fees 鈥� and kill rewards.聽Frankly, making this prediction was like speculating the sun will rise tomorrow. Merchants will try everything possible to cut their swipe fees. In 2012, a multi-billion-dollar legal settlement over credit card swipe fees was proposed, but this agreement is聽far from a done deal.
So where are we going in 2013?
I鈥檒l give myself a 3.5 out of 5 for 2012. Let鈥檚 take a look at 2013:
1. Electronic payments.聽Credit card issuers will try to tie their cards to smartphone applications to make it easier for cardholders to use their phones for聽payments.
2. EMV smart chips everywhere.聽Right now, there are only a few聽credit cards聽that are compatible with a new system that is common overseas. (See聽Why Your Credit Card Might Not Work in Europe.) I think that鈥檚聽about to change as banks roll out this system in larger numbers in 2013.
3. Big bonuses, but big hoops to jump through.聽I don鈥檛 think large sign-up bonuses are going away, but I believe credit card issuers will try to make sure you are using your card every day to qualify. Look for banks to give out bonuses in several stages based on spending or renewing your credit card.
4. Major changes to loyalty programs.聽Some of the major airlines are about to shake up their frequent flier programs, and this will have a dramatic effect on how we earn credit card rewards. Look for airline rewards to be more valuable to frequent fliers with elite status, and less valuable to infrequent travelers.
5. No change in interest rates.聽The prime rate has been steady for years, and there has been very little change in the terms of promotional balance transfer offers over the last year. Expect more of the same this year.
Jason Steele is a writer for聽, a consumer/personal finance TV news feature that airs in about 80 cities as well as around the Web. This column first appeared in Money Talks News.
