MasterCard Aims High with Elite Card

  Competition among the major card brands to attract the very wealthy is starting to heat up, with MasterCard Worldwide entering the arena.
  Hoping to compete with American Express Platinum and Visa Signature, MasterCard in early September announced the World Elite card. The platform is designed to address the needs of the more than 11 million consumers with annual household incomes of $250,000 or more, says Wendy Murdock, MasterCard chief product officer.
  The card is supported by travel, merchandise and entertainment rewards. It also offers various travel benefits, including exclusive personalized travel assistance provided by Virtuoso, Murdock says. MasterCard in the coming months will announce the interchange rates to be applied to the card.
  Those rates, which will reflect the product's relatively rich benefits, will take effect in April, Murdock says. Until that time, acquirers will pay issuers existing World MasterCard rates, which are higher than MasterCard's typical card rates. MasterCard plans to support the program with Priceless-themed print and online ads starting in October, Murdock says.
  In conjunction with Master-Card's announcement, Saks Fifth Avenue launched Saks Fifth Avenue World Elite MasterCard. The product, issued by HSBC, is Saks' first co-branded credit card. It also is the first product to take advantage of MasterCard's new World Elite platform, says Murdock.
  The card, which carries no annual fee, was to debut Sept. 13 at select Saks stores. Applications for the card will be available at all Saks stores in October, the specialty retailer says.
  Cardholders who qualify automatically will be enrolled in the SaksFirst loyalty rewards program. Existing Saks cardholders have had to spend $1,000 before qualifying for SaksFirst benefits.
  The retailer's World Elite cardholders will receive reward points worth up to 6% of the purchase amount on purchases at Saks stores and 1% on all other purchases. Accrued points will be converted to Saks electronic gift cards for use in buying merchandise at Saks stores, the retailer says.
  Cardholders also will have exclusive access to the Virtuoso network of more than 6,000 travel consultants, complimentary companion tickets with the purchase of full business class tickets for international travel, tailored excursions on various cruise lines and other perks.
  Other issuers likely will begin offering World Elite cards early next year, and each will set its own pricing and reward policies, Murdock says.
  One industry observer says MasterCard is looking to alter its image. "It's clear that what MasterCard wants to do is change its perception as it goes after a much more upscale customer," says Steven Jacowitz, managing associate at Auriemma Consulting Group. "Saks Fifth Avenue customers are movers and shakers."
  Jacowitz, who previously ran Saks' credit card operations, says cardholders likely will embrace the Elite platform, and both Saks and HSBC will benefit. "There's a captive audience that's already coming in the stores and using the card," he says. "It just broadens the appeal of the card."
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