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.