AT&T; May Offer MasterCard and Visa

NEW YORK —  American Telephone & Telegraph Co. is expected to offer MasterCard and Visa credit cards this month in a bid to boost revenues from consumers, industry analysts said Wednesday.

The long-distance telephone giant has been studying such a move for some time.

Analysts said AT&T; will probably offer the cards to most of the 40 million holders of its phone credit cards. Spokesman Walter Murphy declined to specify AT&T;’s plans for charge cards. Last year the company confirmed that it was studying such a move.

“We’ve looked at ways to advance the AT&T; card (as a product),” Murphy said Wednesday, adding that the company has hired three senior executives in the credit card industry to work in its consumer financial services unit.

AT&T;’s large call-card customer base, combined with its billing and computer capabilities, would give the company significant advantages if it decided to issue regular cards for additional revenue, industry analysts said.

The cards would be good for purchases at stores, restaurants, hotels and other retail locations, unlike the phone cards, which are good only for long-distance calling.

AT&T;’s entry into consumer credit cards would have far-reaching consequences for the competitive credit card business.

“AT&T; is the world’s largest transaction-processing company today,” said Prudential-Bache Securities analyst Charles Nichols.

Analysts said AT&T; has contracted with Total Systems Services, a unit of Synovus Financial Corp., as its initial data processor. Synovus, formerly known as CB&T; Bancshares, is a Columbus, Ga., bank. The phone company plans to attract customers by waiving annual card fees in the first year and charging interest rates of 14% to 15%, well below prevailing rates, industry sources said.

“It doesn’t take much to throw a little insert into someone’s phone bill (to offer them a new card),” Nichols said. “They will make it as easy as possible.”