Verizon Announces Verizon Visa Card for Wireless Customers

Ever since Apple announced that it would be launching a credit card of its own, there has been a slew of brands introducing their own credit, debit, and savings products — including some seemingly left-field choices. The latest in the line-up is the U.S. wireless company Verizon, who has just unveiled the upcoming Verizon Visa Card. Launching on June 26th, this new card will be accepted everywhere Visa is but will offer perks solely directed at Verizon wireless users.

In addition to offering 2% back on Verizon purchases, the Verizon Visa Card will also give customers 4% back on grocery and gas, 3% back on dining, and 1% back on everything else. However, instead of earning cash back, cardholders will accrue Verizon Dollars. These can then be redeemed to pay for Verizon service or used in-store toward the purchase of devices and accessories.

Interestingly, while Verizon previously offered AutoPay discounts to customers who paid via bank account or debit card, the Verizon Visa Card will be the first credit card eligible for this discount. As a result, cardholders who enroll in AutoPay can save up to $10 a month for each line of service on their account. Meanwhile the card will carry no annual fee and give new cardholders up to $100 in bill credit over the course of the first 24 months (amounting to a $4.17 credit per month).

Understandably, the Verizon Visa Card will only be available to current Verizon wireless customers. More specifically, applicants must be an Account Owner or an Account Manager with fewer than 10 phone lines. Additionally, Verizon prepaid wireless customers are also not eligible.

While Verizon’s move into the world of credit cards is intriguing, they’re actually not the first domestic wireless carrier to expand into financial services. For example, T-Mobile formally launched its T-Mobile Money account last year. The checking offering not only provides customers with free access to more than 55,000 ATMs but also allows them to earn up to 4% APY on their balances up to $3,000 (although they must deposit at least $200 a month to unlock this interest rate). Elsewhere, AT&T offers a co-branded card with Citi.

As for whether or not the Verizon Visa Card is a competitive option, the answer is somewhat complicated. On the one hand, the category multiplier offers are in line with or slightly better than other no annual fee cards. Additionally, the ability to use the credit card for AutoPay and the associated discount may be attractive to some customers along with the $100 in credits. Of course, for some, the Verizon Dollars payout method may be a dealbreaker. That said, as far as currencies go, Verizon Dollars do have a fairly practical purpose. Therefore, Verizon customers looking to earn a kickback on their bill and perhaps subsidize their next phone purchase with rewards might consider the Verizon Visa Card when it’s released on June 26th.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt Extends Rent Day Promotion for Black Friday and Beyond

In October, the unique Bilt Mastercard unveiled its inaugural Rent Day promotion, which included the opportunity for cardholders to earn double rewards and nearly all of their purchases on the first of the month. That deal returned in November alongside the addition of a United Airlines status match offer and more. Now, just in time for Black Friday, Small Business Saturday, and Cyber Monday, Bilt is extended December's Rent Day...

Venmo App Adds Charitable Giving Interface

Although Thanksgiving and retail holidays such as Black Friday, Small Business Saturday, and Cyber Monday may be on the minds of many people, a popular peer-to-peer payment app is looking ahead to Giving Tuesday. This week, Venmo announced the rollout of a new interface that will make it easier for users to discover and donate to various charities. The feature is now live in the latest version of the Venmo...

American Express Introduces New Credit Card Approval Process

For some consumers, applying for a new credit card can be anxiety-inducing as there's a chance that they could not only be declined for the product but also have their credit impacted by the credit inquiry. To give these applicants better peace of mind, American Express is rolling out a new approval process. Amex has announced a new pilot program for its U.S. Personal Cards (meaning non-business cards) that will allow...