By Liz Morris

Washington Mutual announced yesterday a trial of “contactless” credit cards that will allow its cardholders to pay for purchases without swiping their cards. The cards will work with both MasterCard’s PayPass and Visa’s payWave technology, both of which allow for quick credit card transaction by tapping or waving the cards at specially-equipped readers.

In addition to speed, the contactless cards are meant to encourage credit card use for smaller purchases. To that end, merchants who accept contactless payments do not request signatures for most purchases under $25. Contactless credit cards still contain the magnetic stripe that allows for traditional card swiping.

Washington Mutual did not offer information on what form the testing would take or how/if/when a decision on a full rollout of contactless cards would occur.

By Justin McHenry

Discover Financial Services yesterday announced the launch of their second credit card targeting the small business market, the Discover Business Miles Card. This new business credit card offers two miles per dollar on purchases of gas and travel (up to the first $5,000 in such purchases), and 1 point per dollar on most other purchases. It does restrict reward points to just .25 points per dollar when cardholders use Discover’s PurchaseChecks and on purchases at certain warehouse clubs. Earned miles can be used toward any travel purchase, using any means of purchasing, thus avoiding blackout dates or the need to use designated travel agents to book flights far in advance.

Discover is making the process easier by simply applying points toward purchases cardholders make with the Business Miles Card instead of having them save up points and then trying to find a free seat. In other words, as a cardholder you would use the Discover Business Miles Card to purchase travel, and then, assuming you have at least 5,000 miles accrued, the purchase could be partially or fully paid with your accrued miles, depending on whether you have enough miles to cover the full amount.

Discover launched its first business credit card last year, the Discover Business Card. That card focused on giving cash back on purchases, with an emphasis on purchases small businesses were more likely to make, such as office supplies and gas. One of the innovations of that card, which is also offered with the Business Miles Card, is the ability to use PurchaseChecks with vendors that do not accept credit cards. From the vendor’s perspective, they are being paid by check; from the business owner’s perspective, they are buying on credit.

By Seth Harbison

Wakefern Food Corporation, which operates ShopRite and PriceRite stores throughout New Jersey, New York, Pennsylvania, Connecticut, and Delaware, this week launched the ShopRite Rite-Rewards MasterCard, as well as private label credit cards for use only at ShopRite and PriceRite stores. In addition to being credit cards, all the cards will double as ShopRite PricePlus membership savings cards, with cardmembers’ PricePlus membership numbers printed on the back. All the cards will be issued by Chase and include Chase’s contactless “blink” technology that allows for purchasing with just a tap of the card on a special reader.

The ShopRite Rite-Rewards MasterCard will offer three points per dollar spent on ShopRite branded products, two points per dollar spent on all other products purchased at ShopRite, and one point per dollar spent anywhere else. Points can be used for ShopRite gift cards, cash, gift cards from other retailers, and other rewards.

By Justin McHenry

Sotheby’s, best known as the auctioneer of many famous and valuable artworks, is preparing to launch two new MasterCard products that will offer cardholders unique art experiences as well as free passes to major art galleries and museums.  Issued by GE Money, the Sotheby’s World Elite MasterCard and Sotheby’s World MasterCard will offer rewards including the opportunity to visit prominent artists in their studios, private showings at art museums and Sotheby’s Diamonds trunk shows, the ability to convert points into philanthropic donations to arts organizations and other “experiential” rewards such as renting a French villa or playing golf with a PGA professional. In addition, cardholders can get free admissions for up to four visitors at major museums including the Whitney Museum of American Art, the San Francisco Museum of Modern Art, Walker Art Center and many more throughout the country.

MasterCard has recently upgraded its World and World Elite cards to make them even more appealing to high-income cardholders, with the strategy of making “experiences” as appealing as merchandise, if not more so.  While the World MasterCard will be open for applications by anyone, the World Elite MasterCard will be by invitation only.

A Web site has been created for the Sotheby’s credit card at http://www.sothebysmastercard.com, but the cards themselves are not yet available. However, Sotheby’s did promise a spring launch, so it shouldn’t be long.

By Seth Harbison

Coca-Cola Bottling Company United, one of the largest bottlers in the Coca-Cola distribution network, announced last week its intention to roll out Coke vending machines that accept credit cards for payment, including MasterCard’s “contactless” PayPass credit cards. Based in Birmingham, Alabama, Coca-Cola United will offer the new machines in multiple southern markets, including Coke’s home market of Atlanta.

In the past year a number of beverage bottlers have equipped their vending machines with credit card readers, and in each case have reported that sales in those vending machines have increased significantly.

By Seth Harbison

Discover Card officially announced the launch of its WNBA affinity credit cards last week, with cards related to all 13 Women’s National Basketball Association teams and a WNBA league card. Discover cardholders, whether holders of the WNBA-themed cards or any other Discover credit card, get access to the Discover Card Fan Lounge at WNBA arenas, where they have the chance to meet WNBA players and get other VIP-type extras. The new WNBA Discover cards are part of the multi-year agreement signed last year making Discover Card the official credit card of the WNBA.

While the WNBA cards offer specific WNBA benefits, they are otherwise comparable to the Discover More card, which offers the up-to-1% Cashback Bonus that Discover is known for, as well as 5% cash back in certain “Get More” categories that change roughly every three months. A 0% offer on new purchases and balance transfers also applies to the WNBA card.

WNBA fans can apply for the WNBA Discover Card at http://www.discovercard.com/wnbacards/.

By Justin McHenry

Discover this week re-branded their three main credit card offers to consumers, although only one card seems to have actually changed anything other than its name. The standard Discover Platinum Card will now be called the Discover More Card. The Discover Gas Card becomes the Discover Open Road Card. And the Miles Card by Discover becomes the Miles by Discover Card.

Only the Miles by Discover Card seems to have actuallly made a change to its actual offering, with double miles for travel and restaurant purchases, and travel credit starting at 5,000 miles accrued.  The card will also let cardholders book their own travel by whatever means they prefer—many similar travel cards require you to go through a travel agent, who often will charge you a fee for their service.

The Discover More Card is a name change that makes sense, as Discover has been trying to emphasize its “Get More” program, which offers a 5% Cashback Bonus on certain purchase categories, with those categories changing each quarter. (For example, the card will often offer 5% rebates on back-to-school purchases at office supply stores during the Fall quarter.)

The change from the Discover Gas Card to the Discover Open Road Card is a little tougher to understand, as gas credit cards have been popular and removing “gas” from the card name makes it less apparent what the card might offer.  From Discover’s perspective, however, they must want to emphasize that special 5% rebates are available not just on gas purchases but also for auto maintenance bills charged to Discover.

Discover has been busy lately, with the new Motiva Card that offers interest rebates to on-time payers, the re-branding of its existing cards, and an impending spinoff from Morgan Stanley that will result in Discover being a public company in its own right.

By Justin McHenry

If you haven’t yet filed your taxes, United Airlines and Chase are offering you two frequent flyer miles per dollar when you pay the IRS with your United Mileage Plus Visa. Whether you consider that a good deal or not will depend on how much those miles are worth to you.  Here’s why:

As IndexCreditCards.com noted last year at tax time, when you pay your taxes with a credit card, you are charged a 2.49% fee.  For example, if you have a $1,000 tax bill, you’ll have to pay $24.90 in fees.  Using this same example, the United Mileage Plus Visa would give you 2,000 miles for that same $1,000 transaction. In effect, you’d pay $24.90 to buy 2,000 frequent flyer miles in this example.

Is that worth it? Depends on how you use your miles.  But it shows that, in general, paying your income taxes with a credit card is not a smart idea.

By Seth Harbison

The Society for the Propagation of the Faith and Washington Mutual teamed up this week to launch the World Missions Visa Card, which will benefit Catholic Church missions throughout the world.

World Missions Visa cardholders will have 1% of their card purchases donated to the Society for the Propogation of the Faith. According to a press release, the Society supports the Catholic Church’s “pastoral and evangelizing mission in more than 120 countries throughout Asia, Africa, the Pacific Islands and Latin America, including support for educational and healthcare efforts. Just $10 generated from this program can buy clothing for 10 Catholic school children in the Sudan for a year; $4 buys enough food for one week for a kindergarten program in the Missions where children learn the basics and discover, through the service of local Sisters, the love of Jesus.”

According to Washington Mutual, over one million Catholics will receive an offer for the card by mail.