Business Notes Credit Cards

Does America need a new credit card? Sears thinks so. The nation's largest retailer will soon test-market its Discover credit card, which will compete against American Express and Visa. Sears will try out its orange-and-black piece of plastic this fall in Atlanta. The card will be accepted by Denny's restaurants, Hospital Corp. of America, American Airlines and Budget Rent a Car, as well as Sears stores. Holiday Inns is reportedly expected to sign on too.

Cardholders will soon be able to use the Discover card to withdraw cash from company-owned automated tellers at store outlets. Sears also plans to give its customers access to their money through bank cash-dispenser machines all over the U.S.

Chairman Edward Telling predicts that middle-class Americans, especially the 60 million Sears credit-card holders, will be attracted by his company's respected and familiar name. Said Telling at last week's annual meeting: "We aren't concentrating at either end of the economic ladder. Our success lies down the middle, as it always has."