Goldman Sachs is launching a General Motors cobranded card, replacing the Capital One Financial-issued card and bringing in ideas and technology similar to that of Goldman's Apple Card.
My GM Rewards Card, Goldman's second consumer credit card, follows the same digital-centric path Goldman and Mastercard developed for Apple, but this time customers apply directly through Goldman's Marcus app.
The new GM card allows users to generate unlimited virtual account numbers, enabling them to use a different account number for every purchase, the companies said Monday during a press conference. This allows users to keep their main account number secure, while using the virtual accounts to track purchases.
"You can reset virtual account numbers any time," said John Lazzati, Goldman Sachs’ managing director of consumer cards.
My GM Rewards Card also offers access to rewards through multiple channels or apps, which Lazzati said was a first for GM's rewards program.
The move coincides with the 30th anniversary of GM's relationship with Mastercard, John Levitsky, a Mastercard executive vice president, noted during the conference. In 1992, GM rolled out its
Customers apply for the GM card through the Marcus app by providing basic information through a quick approval process involving a “soft” credit check that doesn’t affect their credit score. If approved, they can begin using the card immediately for purchases and to redeem points and at GM dealerships, Lazzati said. Customers will also receive a plastic version of the card in the mail.
The new GM card, which replaces the BuyPower GM rewards card issued by Capital One, has no annual fee and generates 7 points for every $1 spent with GM and 4 points with all other merchants. Users can redeem points through GM for cars, parts, service, accessories and gift cards connected to its 4,000 U.S. dealerships.
About three million customers using GM’s existing cobranded card through Capital One will be migrated to the new card beginning next month, GM executives said.
For new customers, the card will have a 0% interest rate for the first nine months, then it will convert to a variable rate beginning at 14.00%, Lazzati said.
The newest version of GM’s credit card incorporates a rewards program with 6 million members, Julie Heisel, director of GM Rewards and GM Card, said during the press conference. The GM Card has three tiers — silver, gold and platinum — that kick in with higher card usage or status. Gold and platinum customers will receive a $100 annual statement credit toward a fuel or utility bill for charging electric vehicles, the companies said.
Applicants that have purchased GM vehicles at any time in the past 30 years will receive higher-tier status when they enroll or are converted to the new card, GM said.
