First Credit

Visa Black Card: Not Your Father's Credit Card

Exclusivity sells, and the marketing team behind Barclays Bank's new Black Card is hoping that the lure of exclusivity will push their new entrant to popularity. The premise behind the card is not new; in fact, comparisons to the “other” black card from American Express are unavoidable. Consumers who are seeking a new credit card may be wondering how the Visa Black Card will fit into their current financial planning.

Exclusivity

The major selling point of the Visa Black Card is that it is in very limited circulation. Roughly 1% of Americans are expected to qualify for the card, and the requirements include a reasonably high income and excellent credit rating. The target market is consumers who are spending more than $50,000 per year with the card. These requirements will automatically limit distribution of the card.

A second factor in the exclusivity is the material of the card itself. Disdaining regular plastic, the designers of Barclaycard have built the card from carbon. It is unlikely that customers will see this from other cards in the near future. The color and the composition of the card will make it instantly recognizable, and this cachet will be attractive to some customers.

Rewards

Perhaps the best feature of the card is the access that all users will get to concierge services. Available 24 hours per day and seven days per week, the dedicated service very nearly acts as a personal travel assistant. Whether a customer is in need of urgent travel arrangements, concert tickets, or a reservation at an exclusive restaurant, the helpful staff is always on standby to support. Outside of the normal travel and business planning, the team can help in locating special gifts, services, and even research tasks. Current reviews of this service are universally positive.

Other rewards for the Black Card include 1% cash back on purchases, access to airport lounges, redemption of frequent flier miles without blackout dates, and luxury gifts to cardholders.

Finally, Visa Black Card has learned one valuable lesson from American Express, and offers increased travel protections. The card carries insurance for rental cars, trip cancellation/delay insurance, and more.

Negatives

No card is perfect, and the Visa Black Card has its faults. First, the annual fee may put off some potential customers. At $495 per year, the fee is rather high. However, offsetting the costs of the fee against the benefits offered shows that this may be reasonable. The savings on rental car insurances alone can be considerable for frequent travelers, and a heavy user of the concierge services will find sufficient value to cover the annual fee.

Second, bear in mind that the airport lounge access is limited to only four visits per year for cardholders. Heavy travelers who are very interested in this feature may be better served by another card.

For comparison shoppers, the Visa Black Card will visually be compared to the American Express Centurion card, but from a performance standpoint is much closer to the American Express Platinum. The AMEX has a $450 annual fee, with many of the same features. Review both cards with respect to your spending patterns, travel habits, and financial needs. See the Visa Black Card specs below.