Consumer Payment Card News

Basic Card

The impact of the new credit card rules became clear this week as Bank of America announced plans to launch a new credit card next month with a core interest rate of prime +14%, compared to the prime +10% APR that dominated the market for the past decade. The new “BankAmericard Basic Visa” is being promoted as a card with simplified rates and terms. Indeed the APR is the same for purchases, balance transfers and cash advances. BofA’s current cards charge an APR as high as 24.44% for cash advances. The over-limit fee is gone and the late payment fee is $39, regardless of the amount past due. BofA says the new card will also feature an easy-to-understand, single-page disclosure. The new “Basic” card is one of four new cards in a simplified suite of cards offered under the BankAmericard brand. Other cards in the suite include: “BankAmericard Power Rewards Visa”; “BankAmericard Cash Rewards Visa”; and “BankAmericard Visa.” All four cards will also offer up to 20% cash back on purchases through the “Add It Up” program. The new card will be available in October. For more information visit: www.bankofamerica.com/learn

Click here to apply for a Bank of America credit card.

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