
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, October 11, 1995                   TAG: 9510110073
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium

BELL ATLANTIC MIXES PHONE, CREDIT CARD

Bell Atlantic is making it possible for customers to make a phone call or buy a telephone with the same credit card. The company said Tuesday it's teaming up with First Omni Bank, the credit card subsidiary of First Maryland Bancorp, to offer a Visa card that will also carry the Bell Atlantic brand.

Philadelphia-based Bell Atlantic Corp., parent of Bell Atlantic-Virginia, hopes the card will help build customer satisfaction and keep customers loyal, said Bruce S. Gordon, Bell Atlantic's group president of consumer and small business. The card had been in the planning stage for some time, but the company was waiting until the Bell Atlantic brand name was well established before announcing it, he said.

The card also is intended to attract new customers to Bell Atlantic, Gordon said. The company has other new products to build customer loyalty in the works, he said.

Because of the deregulation of the telecommunication industry, Bell Atlantic and other regional phone companies face new competition for their local phone business from cable television and long-distance telephone companies and other potential providers. But Gordon said the card is not related to deregulation.

The Bell Atlantic Visa card will offer cash back, which must be applied toward a customer's telephone bill. The card will have no annual fee and no cap on the amount of cash reward for its use. The initial interest rate of 7.9 percent jumps to the prime rate plus 8.9 percent after six months.

The "rewards" or rebates include 1 percent for all purchases made on the card and 3 percent for phone calls made on the Bell Atlantic IQ calling card. Additionally, customers will get a 2 percent rebate on the Bell Atlantic portion of their local phone bill. As the rebates accumulate, First Omni will issue them in $20 increments in checks made out to Bell Atlantic, which can be applied to the cardholder's phone bill.

An average residential customer is expected to get $40 to $60 back in a year, said Marianne Berry, Bell Atlantic's vice president for credit card services. Information about the rebates will be reported on a customer's monthly credit card bill.

Next week, First Omni will mail out pre-approved applications to 3 million customers in Bell Atlantic's seven-state service area. The card is the first co-sponsored card for the bank. Bank official Charles Schmidt said he expected the card will result in significant account growth and put First Omni "on the map."

by CNB