Whether it’s Doublemint® Gum or Double Jeopardy® or double coupons, Americans have long had a love affair with doubles, and Capital One℠ is capitalizing on that love with its current “Double Miles Challenge.”

According to the Capital One website, until May 1st or until the company gives away one billion miles, consumers who open a new Capital One Venture Card can double last year’s miles when they provide a summary of 2011 dollars spent on a competing travel rewards card. The Double Miles Challenge is valid up to $50,000, making it possible for an individual to rack up 100,000 miles.

Travel rewards competing cards accepted for this offer include all major credit cards (American Express®, Discover®, MasterCard®, and Visa®). However, Capital One does have some exclusions; travel rewards on small business or corporate cards, debit cards, prepaid cards and the like are not eligible.

In order to complete eligibility for up to 100,000 bonus miles, new card holders must spend $1,000 within three months of opening their account.

What’s 100,000 Venture miles worth? That’s approximately $1,000 toward travel expenses, including planes, rental cars, and hotels, and Capital One guarantees there are no blackout dates when it comes to using your miles.

A deal like this is worth checking out. Ivan Daniel of DailyMarkets.com, as quoted in the Capital One press release, said, “This 100,000 miles giveaway is the biggest credit card signing bonus so far this year, so it is definitely a deal you don’t want to miss.”

Not only does the Venture Card have an unbelievable introductory offer with its Double Miles Challenge, when it comes to travel rewards cards, it’s recognized as one of the top cards available. This recognition has been bestowed by industry respected publications including MONEY® Magazine, BusinessInsider, NerdWallet and Cardratings.com, and it comes because of the easy to understand and easy to take advantage of policies of the card. It’s a card that’s worth using on everyday purchases.

With the Venture Card, consumers earn double mileage point on every purchase, every day. Points earned never expire, can be used for free flights on any airline, and are never subject to blackout dates. Additionally, when travel is purchased with the Venture card, whether it’s a flight, a rental car, or a hotel, consumers can easily redeem their travel miles before, during, or after the purchase by going online or making a phone call to Capital One. The cost of the purchase is refunded on the customer’s next billing statement.

If you’re shopping for a better deal than your current rewards miles credit card, then Capital One is looking for you! Be sure to sign up before May 1 to take advantage of the incredible Capital One’s Double Miles Challenge!

As the primaries continue to roll along and the Republican candidates daily hit yet another venue along the campaign trail in their search to rack up delegates, it might be easy to overlook a potentially significant component in elections from here on out: the use of “mobile wallet” technology for campaign contributions.

During the Florida primary, Mitt Romney’s campaign quietly began testing the Square®, a portable credit card reader only an inch tall that is compatible with Android® phones, iPhones®, and iPads®. Accessing the consumer’s existing accounts, the Square runs donation payments through a credit card or bank account and deposits the donation in the established campaign fund. At roughly the same time as the Romney campaign’s beta test, Obama’s campaign used the media to announce that Square credit card readers and mobile devices will be issued to campaign personnel across the nation.

Eight months from now, after all the presidential debates are over and the polls are closed, it will be of interest to listen to the news analysts’ evaluation of mobile technology’s affect on this year’s campaign and what they anticipate the future role of devices such as the Square to be.

Looking ahead, the stage is set, the timing is perfect, and the potential is great that mobile wallets will forever change not only the way in which contributions are received, but also the total amount of contributions candidates collect.

It is just recently that we have made advances in cellular technology that puts smartphones in the hands of huge numbers of people. Because of the convenience, ease of use, and affordability of iPhones, Androids, and even iPads, more people than ever are connecting to the internet through mobile devices. Users are familiar with various mobile apps available, are accustomed to shopping internet sites while on their mobile unit, and, with growing frequency, regularly use their mobile phones to conduct their banking. The transition to making a political donation using a mobile wallet application and equipment like the Square will be an easy one for users already accustomed to similar activities on their smartphones.

This is HUGE, and campaign staff are obviously wanting to capitalize. An individual’s willingness to contribute to any endeavor is highly affected by personal involvement. While individuals may believe strongly in a particular political platform or lean toward supporting a political candidate, most are not very likely to actually make a contribution to a campaign if contacted via snail mail or even email and asked to make a donation. Personally, a computerized phone call will never inspire me to act, and even a person working the phones in campaign headquarters might not talk me into contributing.

However, the potential for collecting campaign donations from people who haven’t before donated increases dramatically when a campaign chairman on the precinct or caucus level can ask for a face-to-face contribution. Not only is it more difficult to say no to someone you know or recognize, there is the added benefit of being able to take advantage of the immediate situation and atmosphere. If I’m in a political meeting with the needs of the party or the campaign foremost in my mind, the ability to immediately make a donation will be so much more reliable than my good intentions to take care of making a contribution when I get home.

Another advantage to use of the Square or similar technology is that it is psychologically much easier for people to purchase something with a credit card than it is to pay for it with cold, hard cash or even a check. It is also easier for most people to spend more on an item when that item is paid for with a credit card than it is for a person to part with hard earned dollars. It doesn’t take a rocket scientist to figure out that ability to accept credit card donations on a local level creates tremendous opportunity for local leaders to raise quite a lot of money for the national campaign.

The potential for face to face contact with people willing to make small donations could have an amazing effect on fund raising efforts in all future political campaigns. Any campaign manager worth his salt understands that those small contributions multiplied are way more foundational than the donations received as part of a $1500 a plate dinners.

Just like radio, when elections results were first reported by an independent operator in 1916, and later television, with the first presidential primary debate between Adali Stevenson and Estes Kefauver airing in 1956, forever changed the face of presidential elections, so mobile wallet technology will as well.

There are some things a consumer will want to watch as he or she makes a contribution.

• If you aren’t acquainted by the campaign staffer who has approached you for a donation, check their credentials. They should also be able to provide phone information for the campaign headquarters in your area. Don’t be afraid to call!
• Both campaigns are accepting donations using all 4 major credit cards: VISA®, MasterCard®, American Express®, and Discover®.
• The Federal Election Commission requires all contributions to a political candidate for president be in compliance with federal regulations. This means the individual making a contribution will be asked for his or her name, complete address including zip code, occupation, and employer. This should be part of the smart phone application being used by a legitimate political candidate staffer.
• The mobile device’s screen will display where the contribution is being deposited when it displays the contribution confirmation.

2012 National Election campaigns have added yet another meaning to the phrase, “It’s hip to be Square.”

According to a press release on the Capital One℠ website, having proven outstanding customer service, Capital One’s Retail Banking, U.S. Credit Card, and Small Business Credit Card Centers have all recently been honored with J.D. Power and Associates® Call Center Certification.

In today’s competitive market, this recognition is a testament to the commitment Capital One has made to its customers. “Earning J.D. Power certification across our Bank and Card businesses is reflective of our intense focus on the customer experience and it is reaffirming to know that we are living up to the high standard set by J.D. Power,” said Katherine Busser, EVP of Capital One Bank Operations. “That we received all of these certifications within a short amount of time of one another demonstrates our commitment to ensuring the highest customer satisfaction and continuous improvement.”

Achieving JD Power and Associates Call Center Certification is a rigorous task that involves both customer feedback and detailed on-site evaluative visits. To receive the recognition, performance is measured against a national standard, and call centers must score high in 118 different categories. Evaluation covers such areas as concern for the customer, courtesy, knowledge, information provided, and time taken to resolve problems. Marks received must place the call center in the top 20 percent before being awarded certification.

Capital One’s certification is a distinguishing mark that indicates the call centers for Retail Banking, US Credit Cards, and Small Business Credit Cards consistently provide high levels of customer satisfaction, are professionally managed, and have effective, reliable processes.

“Capital One made a commitment several years ago to transform our customer experience, and these certifications are milestones that demonstrate our progress even as we continue to raise our game,” said Heather Cox, EVP of Capital One Card Operations. “Our customer satisfaction scores have been consistently rising across the board at Capital One, and our associates are working tirelessly to deliver exceptional service to our customers.”

Good news and perhaps a bit of a surprise came in the announcement that USAA® took top honors in Customer Experience. In a press release posted on its website,United Services Automobile Association (USAA) announced results of an independent survey conducted by Forrester® Research, Inc. placing USAA at the top of the class of 160 brands in 13 different industries.

In a day when the economy is struggling and anyone associated with the banking industry is regarded with suspicion and perhaps dislike, a financial services leader, USAA, broke the 4-year long string of retailers snaring the top spot.

According to USAA’s web site, the Forrester’s Customer Experience Index showed USAA “had the highest scores among all other brands in each of the three industry sectors in which it was evaluated: banking, credit cards and insurance.” On a scale of 100, USAA’s banking services were rated an impressive 89 while the industry’s average was 70. Repeating this type of performance, USAA’s credit card services were rated 84 in comparison to the industry average of 67. USAA’s insurance arm scored 83 with the industry average hitting the 70 mark.

Back in 1922, USAA was originally founded by a group of 25 US Army officers and was born of their inability to purchase auto insurance. The group of officers, classed as “high risk” by standard insurance companies, determined to insure each other’s vehicles and formed what has grown to be one of the nation’s most respected companies. USAA joins companies like Google™, Dreamworks®, Edward Jones®, and REI® in the top 20 of FORTUNE’s “100 Best Companies to Work For®,” and that’s the second year in a row USAA’s earned that honor. Consumer Reports National Research Center also recently recognized USAA’s brokerage services as gaining highest honors in customer satisfaction.

Today, USAA offers a full-range of financial services to it more than 8 million members, who are all members of the military or military families. A few of the products and services offered to members include banking services such as checking, savings, CD’s, and auto, home, or personal loans; insurance for auto, home, or life; investment services such as mutual funds, brokerage, or managed portfolios; and retirement services such as IRAs or annuities. The USAA website is jam-packed with interactive tools to help members manage their banking or investments and plan for the future. Members have access to tools in helping them find a new home or the best deal on new car. Several rewards programs are offered through USAA that include extra points on credit cards or additional discounts at the car dealership.

The company’s mission statement indicates the goal of USAA is “to facilitate the financial security of its members, associates, and their families through provision of a full range of highly competitive financial products and services.” Forrester Research’s report certainly attests to the fact that USAA has done well at holding true to its mission and to the values of service, loyalty, honesty and integrity on which the company was founded.

Our first reaction to the announcement that Suze Orman and MasterCard® had created a new credit card was definitely cynical. We thought “Here’s another example of a well-known personal finance expert, who supposedly is all about helping people get out of debt and increase their financial standings, taking advantage of devoted followers just to add to her own coffers.”

After investigating The Approved Card® by Suze Orman, we had to admit my initial reaction was wrong. The Approved Card is not a credit card at all, but is a prepaid card that works wherever debit MasterCard is accepted. That means people who enroll for The Approved Card cannot create more debt simply through its use as you can only spend the amount of money the card is loaded with.

There are several options on loading the approved card. First, the card allows the consumer to set up direct deposit to load the card. The service is free. An added benefit is that with every direct deposit, the consumer gets 30 days of free ATM services at over 35,000 AllPoint ATM’s throughout the US. Second, you can load the card by transferring funds from a bank, and again the service is free and earns the cardholder the same free ATM services. Third, although the benefits of either direct deposit or bank transfer don’t apply, a cardholder can add cash through any MoneyGram Express Payment or Western Union location.

After learning that Orman’s Approved Card wasn’t a credit card, our initial cynicism was toned down, but after researching the fees associated with the card, we actually began to be impressed by the structure of the program (Yes, actually a program that Orman is calling “People First”) of which the card is part. Rather than some complicated fee structure or percentage of transaction amount, the card carries with it a flat fee of $3.00 per card issued and a $3.00 a month fee regardless of the number of transactions – or the number of cards in use. With one direct deposit or balance transfer from your bank, you can avoid any withdrawal, balance inquiry, or even withdrawal declined fees at approved ATMs. It’s about the simplest, straightforward, affordable fee structure you could ask for.

From here, Orman’s Approved Card just seems to get better. There’s a text tool that the consumer can configure to send balance, transaction, and deposit information to his or her cell phone. The same information can be sent to your email. Orman has set up what she calls “The Approved Dashboard,” which, besides displaying loads, expenditures and balances, allows the consumer to easily track spending trends, upcoming bills, and the like. Also, Approved Card holders will have access to periodic emails and/or videos with financial advice from Orman.

There’s an option of adding up to 3 additional cards to the Approved Card account. This makes a convenient way to get money to a child away at college or to teach children older than 13 how to use money responsibly. The account allows you to load money to the additional cards. The same text message or email notification of transactions is available for each additional card, and each additional card also gets its own Approved Dashboard.

Additionally, The Approved Card allows for up to 6 Emergency Funds or Goal Funds, allowing the cardholder to earmark money for savings. Money in an emergency or goal fund is not available for spending unless it is transferred out of the savings portion of the card.

As part of the “People First” program, Orman has included several other features with the card that one might not normally expect from a bank card. Two of those features are actually services that usually involve a monthly premium elsewhere. The Approved Card member receives free identity protection monitoring services from Trusted ID®. Also, for the first year of enrollment, the cardholder has unlimited access to credit scores, credit reports, and credit monitoring through TransUnion®.

In short, The Approved Card by Suze Orman offers a viable and extremely affordable way for a consumer to

• Gain a better understanding, and therefore, greater control, over his or her spending habits,
• Teach his or her children fiscal responsibility,
• Put aside money for a rainy day,
• Have access to tools and information allowing him or her to learn more about managing finances, and
• Be secure in the knowledge his or her identity is safe.

American Express Canada was honored with the 2011 Service Quality Award of Excellence for its customer service call centres, according to a recent press release on the American Express Canada website. The award recognizes the highest level of customer satisfaction among credit card companies not only in Canada, but in all of North America.

The Service Quality Award of Excellence is an annual award presented by Service Quality Measurement, “an industry-focused research firm that tracks, benchmarks and recognizes over 450 leading North American call centres.” Based on on over one million surveys of customers who have contacted a call centre, American Express Canada’s receipt of the award is a benchmark achievement.

“We’re honoured to be recognized by our own customers for providing outstanding value and service,” says Andrew Carlton, General Manager and Vice President, World Service at American Express Canada

American Express Canada states it has offered exceptional customer service for 158 years. Like the rest of the American Express group, American Express Canada embraces the “Relationship Care℠” program.

This unique approach to customer service recognizes it’s the customer’s voice which is important in determining offerings and services of the company. American Express trains its call centre personnel in how to listen to the customer and provide support that is focused on the individual consumer. This means customer service calls are unique and do not follow a set script nor are customer care professionals limited in the amount of time they can spend on a cardholder phone call. When an American Express cardholder phones in, the customer care professional is not only committed to helping the individual with his or her question, but also goes the extra mile to explain benefits that the American Express card has which fit into the lifestyle of that particular customer.

American Express is so committed to connecting with cardholders through its Relationship Care and its “Recommend to a Friend” programs that American Express employees are able to earn percentage of pay incentives based on the satisfaction of cardholders who call in. “Every time a customer calls us, we view it as an opportunity to deepen our relationship with them,” says Carlton.

It’s not surprising that American Express Canada has earned the 2011 Service Quality Award of Excellence. This is another plaque on the wall of recognition for outstanding performance in customer service. The American Express company in North America has been recognized as a top recipient of customer satisfaction awards by JD Power and Associates for five consecutive years and Forrester Research has also rated American Express highest on its Customer Experience Index for credit card providers.

“If there’s one constant throughout the history of our company, it’s our focus on service,” says Carlton. “It is our top priority to make each customer experience personal, and it’s our Customer Care Professionals that deliver on this promise.”

Credit card fraud perpetrated upon US Credit Card holders stands at 47% of the world’s credit and debit card fraud according to the highly respected Nilson Report. That high statistic translates into a mind-boggling 3.56 billion dollars of fraud losses in the United States last year.

Why, in one of the world’s leading industrial countries, is this loss so great? And what can American cardholders do to protect themselves?

The amount of fraud loss in the US is not directly proportional to the amount of credit card spending; although we are definitely a nation of consumers, we only generate 27% of purchases and cash.

Nilson Report Publisher, David Robertson, states there are two reasons card fraud is so high in the United States. “U.S. banks have been slow to adopt newer technologies such as EMV chip cards, and issuers are reluctant to decline card authorization from merchants because they don’t want to alienate their cardholder.”

EMV technology is widely used in Europe and other parts of the world and provides more protection to the card holder. Cards with EMV technology have a chip embedded that is essentially a microprocessor, a small type of computer. These chips can store more information that the magnetic strip on the back of cards issued by US banks and they also have stronger security.

Cards with magnetic strips can easily be skimmed with a handheld, portable device as was done in the recently discovered NYC restaurants credit card fraud ring. The stolen information can then be placed on another magnetic strip to create a fraudulent card. With a using the EMV chip, built in cryptographic algorithms that change with each use are present so it is not possible to skim the card and use the information gleaned for online purchases. EMV cards also have built in data authentication that prevents fraudulent card replication. The EMV chip has PIN capability so if the card leaves the customer’s hand, gets lost, or gets stolen, the card cannot be used.

Banks in the US have obviously been slow to move toward EMV technology. Speculators assume the reasons why US banks have dragged their feet could involve the expense of the change both for the card issuers and also for the retailers accepting credit cards as current card readers would all have to be replaced. However, some speculation has also pointed in the same direction as Robertson’s second assertion, that card issuers are hesitant to alienate their customers.

Driven by the need or desire to satisfy stock holders and increase the profit margin and very aware of America’s free market system allowing competition, card issuers seek to keep their customers happy so the customer will continue to use that issuer’s credit card. The Nilson Report states that the average American carries at least 4 credit cards. This means that not only if a card issuer tightens up on purchase approvals, but also if the card issuer moves to a new technology and retailers are slow to upgrade their equipment, cardholders may too readily resort to using a competitor’s card because it is more convenient even if it is also more at risk for potential fraud.

As consumers, we can help bring about change to a more secure technology if we voice our opinions both to our card issuers and to the merchants with whom we regularly do business. Let your credit card issuer know that you support being on the cutting edge with a move to EMV technology. LIkewise, communicate with store owners or managers that you would support a changeover to equipment allowing use of EMV chip cards. Both want your business, and if enough people voice their opinions, change will happen.

In the meantime, consumers can take steps to protect themselves from credit card fraud by doing the following:

• Keep a hard copy of all credit card information.
• Use credit cards, not cash or debit cards.
• Limit the number of credit cards you carry.
• Use only one credit card for making online purchases.
• When making purchases with a credit card, never let the card leave your sight.
• Inspect ATM’s, gas pumps, and other machines designed to scan your card before completing a transaction.

Discover® Card’s recent move to eliminate randomly assigned special security numbers to facilitate online purchases without use of actual account numbers may leave some Discover cardmembers questioning potential vulnerability in online credit card purchases.

Although the Secure Online Account Numbers program was set to discontinue on Sept. 8, 2011, it will not end abruptly. As of Sept. 8, Discover cardholders will no longer be able to create new virtual account numbers. However, Discover Card’s website explains that long-time Secure Online Account Numbers users will be able to continue to use already created numbers until the expiration date displayed on their Discover Card. The already existing virtual numbers will be able to be used both for new purchases as well as established automatic payments. Cardmembers are advised to contact merchants receiving automatic payments once the card’s expiration is reached or in case of Secure Online Account Number deactivation for any other reason.

Over a decade ago, Discover’s launch of Secure Online Account Numbers came on the heels of a similar program created by American Express®. These two card issuers were soon joined by other major credit card companies, including Citi® Card and MBNA with virtual numbers to protect consumers using the internet to make purchases or payments.

When the Secure Online Account Numbers program first began, Discover promoted its use by stating it was more secure because merchants never had access to a cardmember’s real account information. Prior to making a purchase online, a cardmember simply had to login to Discovers’s website, or use an application downloaded onto their desktop and request a temporary number. Cardmembers even had the option of requesting merchant specific numbers. With Secure Online Account Numbers, Discover Card holders could have peace of mind knowing that their account information never traveled over the internet nor was it stored on any merchant’s computer, network, or server.

Nearly weekly, the news media reports information breaches containing personal identity information, including financial information. These breaches reach every sector of the business world from retailers to financial institutions to insurance companies to hospitals and other medical facilities to city offices and state agencies to universities and public schools. The breaches are attributed to everything from accidentally making sensitive files accessible to loss or theft of computers housing account information to employee information theft to skimming devices to hackers. In the light of reports of consumer fraud, how can Discover Card discontinue its Secure Online Account Numbers program?

According to the Discover Card website, “Since Secure Online Account Numbers launched over a decade ago, we’ve continued to add layers of fraud detection and prevention, authentication and ID verification to protect your account information.

“We have made the decision to discontinue Secure Online Account Numbers as of Sept. 8, 2011 because the above comprehensive security measures help protect your card from unauthorized use online, offline, anytime, anywhere.”

In the last decade, great advances have been made in online protection, one of which is relied on by Discover Card, 128 bit Secure Socket Layer (SSL) encryption. This level of encryption is nearly impossible to break as all the secure information contained in your card is broken into tiny bits, encoded, and sent over the internet.

Additional layers of protection used not only by Discover Card but also by American Express, MasterCard®, VISA® and most other major credit cards can include the Customer Identification (CID) code on the back of the card, allowing online merchants to verify you actually physically have possession of the credit card being used, address verification, which checks to see the address given matches the address on your credit card account, and possibly password protection. Discover Card, like most other major credit card issuers, protects their cardholders with zero percent liability on fraudulent purchases.

Protecting account holders from identity theft or credit card fraud is a priority at Discover Card. The website offers other safety tips as listed below.

• Sign the back of your credit card – it is easier for a thief to create a fake ID than it is to forge a signature.
• Sign up for free fraud alerts – delivered via phone, email, or text message.
• Enroll in Discover’s Identity Theft Protection Program – a paid service.
• Check your Discover Card Statements regularly.
• Never give out your user ID or password for your online Discover account access.
• Change your online account password regularly.

To further protect cardmembers, Discover Card has beefed up security on its website by the following:

• Multiple layers of firewall.
• System Monitoring that includes real-time intrusion detection devices throughout the website.
• Enhanced individual account security accomplished through user id, password, and security questions asked upon login and periodically during user sessions.

In its commitment to customer satisfaction, Discover encourages cardmembers with further questions about the discontinuance of the Secure Online Account Numbers program to call 1-800-DISCOVER (347-2683) to speak with an account specialist.

JD Powers and Associates, a highly respected global marketing information services with a solid reputation for over 40 years of business, released results of its 2011 US Credit Card Satisfaction Study℠ showing that American Express® ranks highest of the top 10 US credit cards when it comes to customer satisfaction. American Express has taken top honors all five years the survey has been conducted.

Conducted in May and June 2011, and with over 8,700 responses from credit card customers, the survey ranks the top 10 US credit cards in six key areas.

• Interaction
• Credit Card Terms
• Billing and Payment Process
• Rewards
• Benefits and Services
• Problem Resolution

Results are tabulated on a 1,000 point scale and indicate that overall customer satisfaction with credit card companies is up 17 points from 2010 to 731. The JD Power study indicates increased customer satisfaction was recorded with both customers who typically pay off their credit card balances each month as well as those who take advantage of the revolving credit and maintain an ongoing balance.

The survey showed gains in all six areas measured, but the increase in customer satisfaction in problem resolution was most notable. Customers reported fewer problems in 2011 (down 3%), faster resolution of any problems reported, and fewer contacts with the credit card company in order to resolve the problems.

Although many factors could contribute to the increase in overall customer satisfaction, the JD Power’s survey press release speculates one possibility is there has been a decline in credit card interest rate increases over the last year. In addition, there has been a corresponding decrease in the reports of credit card dissatisfaction based on increased interest rates.

Another factor boosting 2011 credit card ratings is an apparent attempt by credit card issuers to communicate more clearly with their customers. The number of people indicating they understand their credit card terms is up 3% from last year.

“It appears that credit card companies are doing a better job of communicating with customers, which may be an effect of the CARD Act,” said Michael Beird, director of banking services at JD Power and Associates. “This improved communication is key to ensuring that customers fully understand their credit card terms—particularly benefits and fees—which helps reduce the number of problems reported and improves the overall experience.”

It seems significant that on a 5 star ranking system, the only two cards to achieve a 5 star overall satisfaction ranking were American Express and Discover Card. The rest of the playing field ranked average (3 stars) or below on overall satisfaction. American Express scored 786 on the 1,000 point scale, up 17 from last year, and Discover Card was a close second, scoring 779. The next closest card scored 40 points lower.

American Express consistently outranks competitors especially in areas of benefits and services, credit card terms, and rewards. JD Powers and Associates notes the increase in overall customer satisfaction with all cards, credit card companies appear to be making efforts to level the playing field. Striving to level the playing field is definitely tied to the increased competition to gain new cardholders that JD Powers also noted for 2011, making it more important for consumers to educate themselves on credit card terms and services and to evaluate their personal needs before shopping for a new credit card.

Click here for the full results of the survey.

In a recent press release, Capital One™ announced the acquisition of HSBC’s US credit card branch. Announcement of the $2.6 billion purchase, completion of which is anticipated in the second quarter of 2012, immediately caused over a 2% jump in Capital One stocks.

HSBC, which bills itself as “The world’s local bank,” is headquartered in London, UK, and is the second largest banking and financial services group in the world, according to Forbes. The transaction, once completed, will position Capital One among the leading credit card service providers in the nation. According to the press release, “The acquisition includes ongoing private label and co-branded partnerships as well as infrastructure and capabilities that significantly enhance Capital One’s partnership platform for future growth.”

With an eye toward the future, Capital One is projecting significant returns for investors, up to approximately 25 %, as early as 2013 and is anticipating an earn back period of only four years after the completion of the acquisition. In addition, the expansion of Capital One’s credit card franchise will enhance the long-term generation of capital for investors.

On HSBC’s part, the move signals confidence in Capital One’s experience and ability in the credit card business as the completion of the transaction is nearly a year away. In the meanwhile, HSBC is assuring current card holders that they need anticipate no immediate changes to the credit card programs already in place. HSBC has stated that all HSBC card holders should be able to use their credit cards like normal. Capital One has made similar assurances that there are no changes scheduled for the near future and cardholders should expect to use their credit cards like they always have.

Looking forward to a smooth transition that benefits all parties involved, including American consumers who take advantage of Capital One’s or HSBC’s credit card services, Capital One will be offering employment positions to all HSBC’s personnel currently working for the branches involved in the Capital One acquisition.

Capital One Chairman and CEO, Richard D. Fairbank, stated, “We are very excited to work with our new retail and co-branded partners, as well as the HSBC associates who are joining Capital One. Together, we look forward to providing exceptional value and service to our new customers.”