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Barclaycard Plans To Share Profits

In the next few weeks, Barclaycard will launch what it says is the first credit card that customers themselves will have a hand in designing — and will share in the profits if it does well.

Called the Barclaycard Ring MasterCard, the bank says cardholders will be able to see the card’s financial profit and loss statements and then, through an online community, influence decisions on how the card can be improved. (You can request an invite to get the credit card now on the Ring card’s website.)

According to its initial terms, the card looks like a winner, if you’re more concerned about low interest rates than rewards.

The credit card terms are pretty simple:

APR 8% variable on purchases, balance transfers and cash advances.
National Average APR 15.00% (source: CreditCards.com)
Fees No annual fee; no balance transfer fees; $1 for cash advances.
Rewards Cardholders will receive a Giveback based on the card’s financial performance.
Verdict This looks like one of the best values in the credit card business today, although you’ll probably need perfect credit to qualify.

In addition to the low rates, there are no over-the-limit fees. The late fee is $25.

Once the card is officially launched, sometime this spring, Barclaycard promises that it will “pull back the curtain” on the product’s profit-and-loss statement and give cardholders a say in building a “better cardholder experience.”

The card’s Giveback program will give customers the “opportunity to shape and share in the product’s financial success.”

Barclaycard says that is not based on the actual profits of the program but instead on a “transparent calculation” that the bank will determine at its sole discretion. However, Barclaycard says this information will be disclosed online.

Customers will have the option of donating their Giveback to a charity.

Using social media, the bank will also provide a forum where customers can exchange ideas, share knowledge and provide direct feedback to Barclaycard to help determine future features of the product.

You’ll also get to vote any time Barclaycard suggests raising fees, changing the annual percentage rate or altering the card’s terms and conditions.

In addition, the bank says it will show how customer’s actions, such as paying on time and going paperless, can influence the card’s success.

Still, if you’re looking for cash back, you’re better off with a cash-back credit card.

But the low APR is a good reason to check out this credit card.

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