Simplicity: What Makes a Credit Card Simple?

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When we set out to develop the Barclaycard Ring Lab MasterCard, we started looking at every aspect of the credit card product. We asked our customer service employees what they had the most difficulty explaining to customers. We analyzed all of our customer complaints (and, just for the record, we log a complaint even if you just sound upset). If we thought something was at all complex, we tried to remove it from the product. Our focus is less on revenue and more on simplicity. For example, there is an industry interest charge called “residual finance charges on purchases.” It would take the rest of this blog to explain what that is, which is why it’s not a part of this product. Not having it saves some of you money, and now no one has to worry about it.

We are taking the same approach with the rest of the card features by going with one low rate for all transaction types and we are keeping the fees to a minimum in an effort to eliminate customer questions like:

• “When exactly is my promotional rate over?”
• “How much is my balance transfer fee?”
• “Is my promotional rate on purchases or just balance transfers?”
• “What happens to my APR if I am late?”
• “What is my APR if I take a cash advance?

Now, you don’t have to think about any of that. Subject to changes based on community feedback, it’s just a simple low rate. No balance transfer fees. No annual fee. You don’t have to worry about your credit card APR anymore.

We do have some other fees, but we aren’t trying to take advantage of you with them. I do want to explain our late payment fee—as part of the Credit CARD Act (CCA), the Federal Reserve did exhaustive research to determine what a fair late fee is. Per CCA, we are allowed to charge a late fee up to a maximum of $35. But the situation that has to occur for us to charge that amount is complicated to explain. So, we’re not charging it. Our maximum late fee is $25. We hope that eases your stress a little.

So, the Barclaycard Ring Lab MasterCard is what we came up with, but we are by no means done. Please register for the Barclaycard Ring MasterCard (click on the “Request an invite” button) and tell us how else we can make the product easier to understand and use.