• Scope of Report

The Products

• Cards Used for Business Purposes
• Benefits and Drawbacks by Card Type
• Purchasing Cards
• Corporate Cards
• Business Cards
• New Commercial Payment Options Reshape Market

The Market

• Market to Approach $1.5 Trillion in 2009
• Corporate Card Volume Climbs, But Market Share Dips
• Figure 1-1: Share of U.S. Commercial Card Market by Category, 2000 vs. 2004 (percent)
• Over 48 Million Cards in Circulation
• Commercial Card Market Drivers Different from Those for Consumer Cards
• More Companies Mandate Commercial Card Use
• T&E Market Nearing Saturation

The Marketers

• Visa Takes the Lead
• Leaders in Commercial Bankcards
• Competitive Overview
• Visa and MasterCard Face New Amex Challenge
• Competition Shifts from Fortune 500 to Small Business
• Mergers and Alliances Continue to Reshape Competitive Landscape

The Corporate Card Consumer

• 13 Million Business Card Users
• Table 1-1: Usage Rates for Selected Credit Card Classifications: Have or Use, Used in Last Year, and Used in Last Month, 2004 (U.S. adults)
• Diners Club Breaks Gender and Racial Pattern
• Northeast Is American Express Stronghold
• Skews by Educational Attainment and Individual Income

Looking Ahead

• Trends and Opportunities

Chapter 2: The Products
Product Definitions

• Cards Used for Business Purposes
• Three Major Categories
• Purchasing Cards
• Corporate Cards
• Business Cards
• Cards Carry Distinct Benefits, Drawbacks
• Purchasing Cards
• Corporate Cards
• Business Cards
• New Commercial Payment Options Reshape Market

Commercial Cards: Behind the Scenes

• Card Associations Wield Power
• Issuing Banks, Acquirers, and Payment Processors
• Data Capture and Reporting
• Leading Payment Processors and Merchant Acquirers

Lawsuits and the Regulatory Environment

• Effects of Visa/MasterCard Antitrust Suits
• Interchange Battles and Corporate Cards
• Card Associations and Currency Conversion Deception
• Effects of the Sarbanes-Oxley Act
• Electronic Fraud and Security
• Fighting Phishing

Chapter 3: The Market
Market Size and Growth

• Transaction Volume Hits $495 Billion in 2004
• Table 3-1: U.S. Market for Commercial Credit Cards by Category, 2000-2004 (in billions of dollars)
• Figure 3-1: U.S. Market for Commercial Credit Cards, 2000-2004 (in billions of dollars)
• Corporate Cards Overtaken by Purchasing Cards
• Corporate Card Volume Climbs, But Market Share Dips
• Figure 3-2: Share of U.S. Commercial Card Market by Category, 2000 vs. 2004 (percent)
• Over 48 Million Cards in Circulation
• Table 3-2: Estimated Number of Commercial Cards in Circulation by Type, 2004 (in millions)
• Purchasing Card Benchmark Survey

Factors to Market Growth

• Commercial Card Market Drivers Different from Those for Consumer Cards
• More Companies Mandate Commercial Card Use
• T&E Market Nearing Saturation
• Meeting Management on the Rise
• Push for Small Businesses Pays Off
• Electronic Payments Become the Norm
• Weaning B2B Away from Checks and Cash
• Comfort with P-Card Spurs More and Larger Transactions
• Technology Drives New Growth
• Sarbanes-Oxley Drives New Commercial Card Use
• Merchant Acceptance and Data Reporting Much Improved
• SmartPay Maintains Growth on All Fronts

Projected Market Growth

• Market to Approach $1.5 Trillion in 2009
• Table 3-3: Projected U.S. Market for Commercial Credit Cards by Category, 2004-2009 (in billions of dollars)
• Figure 3-3: Projected U.S. Market for Commercial Credit Cards, 2004-2009 (in billions of dollars)

Chapter 4: The Marketers
Marketer and Brand Shares

• Visa Takes the Lead
• Table 4-1a: Leading Commercial Card Issuers: Estimated Number of Cards, Charge Volume, and Market Share, 2001 (number and dollars)
• Table 4-1b: Leading Commercial Card Issuers: Estimated Number of Cards, Charge Volume, and Market Share, 2004 (number and dollars)
• Leaders in Commercial Bankcards
• Table 4-2a: Leading Commercial Bankcard Issuers, 2001 (number and percent)
• Table 4-2b: Leading Commercial Bankcard Issuers, 2004 (number and percent)
• Bankcard Issuers Not the Only Players
• Five Leading Private-Label Fleet Card Issuers
• Citi Commerce Conquers Oil Cards

Competitive Situation

• Competitive Overview
• Change in Competitive Terms for SmartPay
• Visa and MasterCard Face New Amex Challenge
• Competition Shifts from Fortune 500 to Small Business
• Mergers and Alliances Continue to Reshape Competitive Landscape
• Cobranded Cards Draw Multiple Issuers
• Lawsuits Lead to Interchange Shifts
• Specialized Tools Tailored to Different Business Types
• Globalization
• Rewards a Major Factor
• Issuers Compete to Negotiate Best Savings
• Competitive Focus: Fleet Cards

Marketing and New Product Trends

• Cross-Pollination Between Markets
• New and Enhanced Cards for Every Purpose
• Prepaid Options
• Payroll Cards
• One-Cards
• Smart Cards
• New Tools Driving Program Adoption, Growth
• New Features for Small Business
• Improving Rewards and Rebates
• Fleet Cards Turn a Corner

Advertising Expenditures and Trends

• Top Card Brands Spend $900 Million in 2003
• Bankcard Issuers Ride Coattails
• Same Taglines, New Tactics

Chapter 5: Competitor Profiles
Competitor Profile: Advanta Corp.

• Small Business Specialist Sixth Largest in Commercial Bankcards
• Simple Card Lineup for Businesses
• Advanta Hires Trump’s First “Apprentice”

Competitor Profile: American Express

• Losing Share to Visa
• New Strategies for a Commercial Card Giant
• Closed-Loop System Gives Greater Control
• New Business Card Introductions
• New Corporate Card Products and Features
• Purchasing Card Program
• Electronic Reporting Options
• Amex Lends a Hand to Delta

Competitor Profile: Bank of America

• Fifth-Place Commercial Bankcard Issuer
• A Comprehensive Family of Cards
• Line of Small Business Cards Expanded
• Extensive Lineup of Electronic Tools

Competitor Profile: Citibank

• The Second-Largest Commercial Bankcard Issuer
• Citibank Extends Its Global Reach
• Citibank Commercial Card Products
• Citibank Small Business Cards

Competitor Profile: Diners Club

• The “First and Preferred” Charge Card
• A Dramatic Change in Acceptance
• Diners Club Targets Frequent Business Travelers and Affluent Individuals
• Plush Enhancement Options
• Strong Software and Back-End Tools

Competitor Profile: GE Capital Financial, Inc.

• The Seventh-Largest Commercial Bankcard Issuer
• The Core Family of Corporate Cards
• A Unique Rewards Program
• Custom Electronic Tools

Competitor Profile: MasterCard

• The Second-Largest Card Association
• Card Lineup Offers Extensive Slate of Perks
• New Focus on Small Businesses
• MasterCard Business Savings, Bonuses
• Innovative Electronic Solutions

Competitor Profile: U.S. Bank

• U.S. Bank Leads in Commercial Card Market
• Acquisitions an Ongoing Strategy
• U.S. Bank Lands Homeland Security Account
• A Standard Array of Cards
• PowerTrack Service Forges Ahead
• U.S. Bank’s Software and Electronic Services

Competitor Profile: Visa

• The Largest Bankcard Association
• Competition Heats Up…Potentially
• Visa Cards Offer Standard Features
• Visa Also Offers Electronic Purchasing
• E-Commerce the Big Arena
• Visa Commerce Gets New Marketing Push

Competitor Profile: Wright Express

• Unchallenged Leader in Fleet Cards
• Marketer of Diverse Fleet Products
• Unmatched Acceptance for WEX Cards
• FleetPro Leads Charge into Distributor Market

Chapter 6: The Corporate Card Consumer
Introduction

• Simmons Market Research Bureau Data
• Card and Cardholder Classifications
• 13 Million Business Card Users
• Table 6-1: Usage Rates for Selected Credit Card Classifications: Have or Use, Used in Last Year, and Used in Last Month, 2004 (U.S. adults)
• Table 6-2: Total Number of Users for Selected Credit Card Classifications: Have or Use, Used in Last Year, and Used in Last Month, 2004 (in millions of U.S. adults)

Consumer Focus: Personal Demographics

• 35-44 Is Top Age Bracket
• Diners Club Breaks Gender and Racial Pattern
• Northeast Is American Express Stronghold
• Skews by Educational Attainment and Individual Income
• Table 6-3a: Indices for Use of Selected Credit Card Classifications in Last Year: By Adult Age Bracket, 2004 (U.S. adults)
• Table 6-3b: Indices for Use of Selected Credit Card Classifications in Last Year: By Adult Age Bracket, 2004 (U.S. adults)
• Table 6-4: Total Number of Users in Last Year for Use of Selected Credit Card Classifications: By Gender, 2004 (in thousands of U.S. adults)
• Table 6-5: Indices for Use of Selected Credit Card Classifications in Last Year: By Gender, 2004 (U.S. adults)
• Table 6-6: Total Number of Users in Last Year for Selected Credit Card Classifications: Non-Hispanic Whites vs. Minorities, 2004 (in thousands of U.S. adults)
• Table 6-7: Indices for Use of Selected Credit Card Classifications in Last Year: By Race/Ethnicity, 2004 (U.S. adults)
• Table 6-8a: Indices for Use of Selected Credit Card Classifications in Last Year: By Region, 2004 (U.S. adults)
• Table 6-8b: Indices for Use of Selected Credit Card Classifications in Last Year: By Region, 2004 (U.S. adults)
• Table 6-9: Indices for Use of Selected Credit Card Classifications in Last Year: By Highest Level of Educational Attainment, 2004 (U.S. adults)
• Table 6-10a: Indices for Use of Selected Credit Card Classifications in Last Year: By Individual Income Bracket (in Thousands), 2004 (U.S. adults)
• Table 6-10b: Indices for Use of Selected Credit Card Classifications in Last Year: By Individual Income Bracket (in Thousands), 2004 (U.S. adults)

Consumer Focus: Professional Demographics

• Visa, MasterCard Cater to Self-Employed
• American Express Business Leads Within Private Companies
• Business Card Use and Length of Service
• Self-Employed Over Twice as Likely to Use Business Cards
• Smaller-Company Skew for MasterCard
• 1.5 Million Wholesale/Retail Employees Are Active Card Users
• Business Cards and Business Purchasing Involvement
• Travel Is Top Purchase Among Business Cardholders
• Table 6-11: Indices for Use of Selected Credit Card Classifications in Last Year: By Type of Job, 2004 (U.S. adults)
• Table 6-12: Indices for Use of Selected Credit Card Classifications in Last Year: By Executive/Managerial Job Title, 2004 (U.S. adults)
• Table 6-13: Total Number of Users in Last Year for Selected Credit Card Classifications: By Type of Employer, 2004 (in thousands of U.S. adults)
• Table 6-14: Indices for Use of Selected Credit Card Classifications in Last Year: By Type of Employer, 2004 (U.S. adults)
• Table 6-15: Indices for Use of Selected Credit Card Classifications in Last Year: By Length of Service with Company/Employer, 2004 (U.S. adults)
• Table 6-16: Total Number of Users in Last Year for Selected Credit Card Classifications: By Nature of Self-Employment, 2004 (in thousands of U.S. adults)
• Table 6-17: Indices for Use of Selected Credit Card Classifications in Last Year: By Nature of Self-Employment, 2004 (U.S. adults)
• Table 6-18: Total Number of Users in Last Year for Selected Credit Card Classifications: By Company Size, 2004 (in thousands of U.S. adults)
• Table 6-19: Indices for Use of Selected Credit Card Classifications in Last Year: By Company Size, 2004 (U.S. adults)
• Table 6-20: Total Number of Business Card Users in Last Year: By Industry in Which Employed, 2004 (in thousands of U.S. adults)
• Table 6-21: Indices for Use Business Cards in Last Year: By Industry in Which Employed, 2004 (U.S. adults)
• Table 6-22: Indices for Use of Selected Credit Card Classifications in Last Year: By Nature of Business Purchase Involvement, 2004 (U.S. adults)
• Table 6-23: Total Number of Business Card Users in Last Year: By Nature of Product or Service Business Purchase, 2004 (in thousands of U.S. adults)
• Table 6-24: Indices for Use of Business Cards in Last Year: By Nature of Product or Service Business Purchase, 2004 (U.S. adults)

Chapter 7: Looking Ahead
Trends and Opportunities

• Pushing for Mandatory Use
• New Challenges, Opportunities in Corporate Cards
• Small Business Is Booming
• Challenges for Small Issuers Ahead
• Rewards Programs Transform

Appendix: Addresses of Bankcard Associations and
Selected Commercial Card Issuers