Bad Times for Elite Credit Cards
With consumer spending at record lows and fewer credit card purchases during the 2009 recession according to the Federal Reserve, elite credit cards are feeling the pinch. Several premium credit cards that have been offering exclusive benefits to cardholders were born during the economic boom and have been struggling ever since. Social lending organizations have been trying to find unique ways to position their credit card programs ahead of the competition, but are still having trouble attracting and retaining cardholders.
Here’s a close look at some of the elite credit card programs that are struggling — or dying — during these turbulent economic times:
Ill: Visa Black Card from Barclays
The Visa Black card was originally pitched as an exclusive credit card with many similar benefits to the Amex Black. While the Visa Black was significantly different than Amex Black, it was still designed for elite cardholders who met certain income criteria. Cardholders pay an annual fee of $495, have access to a luxury concierge service 24 hours per day and earn rewards points for their purchases. Still, this program has fizzled since its launch, failing to offer truly exclusive and elite benefits for its cardholders.
Terminal: The Stratus Rewards Visa White Card
The Stratus Rewards Visa White Card was designed to compete with the Amex Black — after all it is white — boasting more travel features and other perks than Amex. However, this card simply didn’t get much traction or interest from consumers, and failed as a social lending program for avid travelers and VIP shoppers. Today, Stratus’s relationship with US Bank has expired and they’re negotiating with other issuers.
Passed: Sotheby’s World Elite MasterCard
The Sotheby’s World Elite MasterCard was among the most attractive exclusive cards available, and was “specifically tailored for those who earn over $250,000 per year and have over $2 million in investable assets.” This card offered complimentary admission to museums,and VIP services including concierge travel services abroad and access to airport lounges. The card ceased to exist as of September 2008 in the midst of the tumultuous economy.
From the Visa Black Card to Sotheby’s World Elite MasterCard, elite credit cards are struggling to stay afloat during the drop in credit card spending in recent years. Many cards are simply disappearing since consumers are no longer interested in the VIP services and exclusive benefits. Issuers may need to find new ways to attract cardholders and roll out programs that offer a wider range of perks and benefits.
