Credit cards may never be the same again as a revolutionary new card - fundamentally different from any of the thousands of its predecessors, and designed for extensive use in an internet-driven world - hits the US market.
The new RevolutionCard comes with no annual fee; a credit limit based on the individual's rating; the ability to transfer up to $15,000 of funds onto the card from the cardholder's bank account via the internet; free online payments and increased protection against identity theft; plus the interest rate that will be paid on any outstanding balance will be tied to the cardholder's personal credit rating. And in a further radical move the card will carry no account number or cardholder name, cutting down the potential for unauthorised use as the only way to effect any transactions will be by PIN.
As well as being beneficial to consumers the card is designed to boost retailers' profits as the merchant transaction fees will considerably undercut the current rates. The card is launched with a 0.5% sales transaction rate, much lower than the 1.9% average rate charged by other card issuers in the US market, and simply on that feature alone will be extremely attractive to merchants. Using the card online is even easier; the transaction will take 10 seconds or less to complete and there is no fee. This compares very favourably to normal credit card deals on transfers where the rates vary between 2% and 8%, which in the US generates up to $56 billion in charges for the card issuers.
Whether the card will ultimately prove successful and subsequently make the leap across the Atlantic to the UK remains to be seen, but it seems to have a lot going for it; especially as it is tailored towards the ever-growing army of internet shoppers and online bankers. However, much will depend on the uptake of the card in the US and its ability to fulfil the promises in the marketing.
The card also promises to change the way we compare credit cards when looking for a new deal. Traditionally, criteria such as interest charged on transfer balance fees, overall interest rates and loyalty benefits would have been the main factors to consider; however this card is so radically different from all existing UK credit cards that any attempt at direct comparison would be meaningless. What is certain is that ticks all the boxes for the online community with the added benefit of anonymity on the card, making it a secure prospect for all those who would use it.
