Bank of America (NYSE: BAC) is revamping its credit card offerings in hopes of drawing new consumers during a time where consumer protection is at the forefront.
At the forefront of this move is Bank of America’s “BankAmericard Basic” Visa card. It aims to end the confusion about credit card rates and fees by offering a standard interest rate for all types of transactions, including balance transfers and cash advances. The interest rate, which is tied to the Prime Rate, will also remain the same over the life of the account. Currently, the interest rates on most cards are variable and are only loosely tied to interest rate indexes such as the prime rate.
Bank of America Global Card Services President, Ric Struthers, said this in a recent new news release, “Today, consumers are telling us more than ever that they need products that offer simple and straightforward solutions,” said Bank of America Global Card Services President Ric Struthers. “For those consumers who just want the basics, our goal is to offer products with features that are predictable, easy to understand and help them manage their finances responsibly.”
The “Basic” Visa card is part of a series of new simplified cards that Bank of America will be launching next month including the “Power Rewards Visa,” the “Cash Rewards Visa,” and a standard Visa card that offers a lower introductory rate. All of the new cards feature Bank of America’s “Total Security Protection” fraud prevention services, online banking access, and have access to Bank of America’s “Add It Up” program.
Struthers continued, “Our intention is to offer customers the product that best meets their individual needs and help them get the most out of their relationship with us,” said Struthers. “We recently introduced our clarity commitment – a one-page summary disclosure — to our mortgage customers. The Basic card is another step in responding to consumers who are looking for greater simplicity in their financial products.”
