HSBC And Capital One: The Credit Card Transition

HSBC And Capital One: The Credit Card Transition

Posted on June 5, 2012 by Amy in Capital One, Credit Card Network, Credit Card News, HSBC, Issuers

HSBC is now officially out of the credit card market in the U.S., with Capital One taking over all of the issuer’s cards and customers.

In 2011 HSBC sold its U.S. credit card portfolio – which included Direct Merchants, Household Bank, Orchard Bank and most HSBC store-branded cards.

The lucky bid went to financial giant Capital One, and now the transition for cardholders has begun.
So what does this mean for people who have credit cards previously issued by HSBC?
For the moment the Capital One website states that the main changes are in administration, so people should still be able to use their credit cards despite having an HSBC or other logo on them.

Cardholders can also continue to make repayments and access account information as usual, though gradually there will be a transition over to Capital One.

Eventually everything relating to the account, including credit history, will be transferred to Capital One but for now the official line is that “you may receive communications under the Capital One name and the HSBC name as we work through the transition.”


Changing Cards

When credit card issuers undergo major changes like this one, many people take the opportunity to review their credit card choices.

Comparing a current HSBC card with other options may help people find an even better card, but switching may be complicated by the issuer transition.

Capital One, for example, is not currently able to let HSBC cardholders switch to other Capital One cards. No balance transfers will be allowed between these two issuers or any other affiliates either.

But delays could also occur if you decide to transfer a balance from your HSBC card to another issuer.

With the transition in full swing and thousands of accounts moving from HSBC to Capital One, it could take longer to approve a transfer request.
If you do want to switch, then keep making at least minimum repayments on your current card until the new issuer has informed you that the balance has been transferred.

While credit card issuer shuffles like this can be confusing for customers, Capital One is committed to making the process as easy as possible.

So if you do have any questions or concerns, be sure to pick up the phone and dial one of the support numbers on your statement to get relevant and up-to-date information on how your account may or may not be affected.