Bank of America Corp. has introduced a rewards card named for the first bank-issued credit card, the BankAmericard, which debuted nearly half a century ago.
The Charlotte banking company said Tuesday it would offer extra rewards on the BankAmericard Rewards Visa card to customers who have other B of A products or services.
Ric Struthers, B of A's North America card services executive, said in an interview that in the next 12 months the company would introduce other products using the BankAmericard brand.
Nearly 50% of U.S. households have at least one account with B of A, he said, and the company is using the extra rewards to entice more to buy its products.
B of A revived the BankAmericard name to emphasize the rewards program, Mr. Struthers said. "The BankAmericard came out and really revolutionized the way people think of paying … . As we look at the BankAmericard that we're introducing today, we think about it the same way."
Cardholders who have noncard products with B of A are to get 1.25 point for each dollar spent on the card. Those who keep the noncard relationship for a year also get an extra 25% added to their points. All other cardholders get only one point per dollar spent on the card. Points can be redeemed for travel, merchandise, cash, gift cards, or charitable donations. B of A charges no annual fee and sets no limit on points. Mr. Struthers said cardholders can also convert their rewards into funds in B of A savings or brokerage accounts.
The original BankAmericard was introduced in 1958 and tested in Fresno, Calif. In the succeeding decade, Bank of America, then based in San Francisco, licensed the product on its BankAmericard network to banks across the United States. Banks in other countries also used the BankAmericard network but gave the card other names. B of A relinquished control of the BankAmericard program in 1970 to banks that issued cards on the network, and seven years later Visa U.S.A. Inc. and Visa International were created from that consortium.
Mr. Struthers left the door open for future BankAmericard products bearing the logo of Visa's chief rival, MasterCard Inc. "Initially, it's on Visa, but I never say 'never'," he said. He gave the same reply when asked whether the BankAmericard could eventually run on a proprietary B of A network.
(Ken Lewis, B of A's chief executive, publicly suggested last year that the company could create its own card network.)
