Looks like one bank took notice of consumers’ frustration with high fees and minimal transparency— Barclay’s new Barclaycard Ring Mastercard promises to fix both. Customers will be eligible for profits through the card’s Giveback program, which works similar to how a credit union pays dividends to its members, said Jared Young, senior director of consumer markets at Barclaycard US.
How much consumers initially receive will depend on how often they use the card and refer new customers, Young added.
Of course this policy could change—if that’s what the cardholders want.
As an added bonus, Barclaycard plans to roll out an online community, where savvy consumers can sound off on features and have a say in the card’s changing policies.
The card also carries no promotional rates—Barclays claim these force banks to charge customers more down the line—though it will have a variable APR of 8 per cent.
The card also will limit annoying fees. Late fees are capped at $25, cash advance fees are $1 per transaction, and foreign transactions charge only a fraction (1 per cent) of the purchase.
For more information on Barclaycard, view its terms and conditions here.
The card comes out this spring, but you can request an invite here.