Joining the bandwagon of big banks offering credit cards with
cashback, Bank of America (BofA) has launched the
BankAmericard Cash Rewards Visa card that gives escalating cash
rewards for different types of shopping.
Customers with the BankAmericard Cash Rewards Visa card earn cash
on all purchases, and the percentage increases depending on what
they are buying – the highest reward being for petrol at 3% of the
price.
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For grocery store purchases, the reward is 2%
of the price and for most other spending the reward is 1%
of the cash back. The higher percentages come with a limit, though,
applying only to the first $1,500 in petrol and grocery purchases
every three months.
A similar card – 123 cashback credit card – has recently been
launched by Santander that offers users monthly cashback on their
shopping between 1% and 3%. Another offer is
Capital One’s 1% immediate cash-back card in the US that allows
customers to earn 50% of the total card spend after a year.
Susan Faulkner, BofA consumer banking products
executive, said the tiered rewards have been designed to reflect
customer behaviour, and about one-third of all the credit card
transactions handled by BofA are for petrol or groceries.
An additional benefit of the new card is that
customers who use the account for at least $100 in purchases in the
first two months receive an extra $50. Those who have their rewards
deposited into a BofA current or savings account will receive a10%
bonus.
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By GlobalDataThe card’s introductory interest rate is 0% for the first 12
months, after which the interest switches to a variable rate –
between 12.99% and 20.99% – based on the prime rate and depending
on credit status. Late payments can trigger an interest rate of up
to 29.99%. Cash advances are charged at 24.99%.
BofA is also offering a MasterCard with a similar tiered rewards
structure. There is no cap on the purchases categories for the
business card, but there are no bonuses for depositing rewards into
savings or current accounts either.
