Bank of America introduces new business card

Business Wire, May 11, 1995

PHOENIX--(BUSINESS WIRE)--May 11, 1995--Bank of America Thursday announced that it has introduced a new Bank of America Visa Business Card with features and benefits that give companies more financial control over their business, travel and entertainment needs.

"This product re-emphasizes our commitment to the small business market," said Senior Vice President Daniel Stewart, who heads the bank's Business Banking Division. "It tracks employee spending in as much detail as needed. It helps manage cash flow and payables. And it gives small businesses more financial flexibility."

Businesses may apply for the new card by completing a streamlined application available in any BofA branch in Arizona. Small businesses may request company lines of credit from $2,500 to $100,000. Companies applying for credit lines of $25,000 or less will be notified of the credit decision within 48 hours.

The bank also has introduced new relationship pricing on the card. The annual percentage rate varies depending on the number of qualifying business products the company has with Bank of America.

"This is designed to reward companies that utilize other BofA business banking products and services," said Stewart. "The more extensive our relationship with a company, the less this product will cost them."

For example, the rate for companies with two or more qualifying BofA products or services is a variable rate that is set quarterly based on the prime rate as published in the Wall Street Journal plus 6.65 percent.

Companies with one additional BofA product or service receive a rate based on prime plus 8.45 percent and companies with no other qualifying business products are charged based on the prime rate plus 11.15 percent. Qualifying business products include checking or interest checking accounts and business lines of credit or loans.

The new features on the card include redesigned and more flexible billing statements and optional management reports.

The monthly statement has been redesigned to make it easier to read and save businesses time. Companies have a choice of company or cardholder statements. The company statement summarizes activity for all accounts and provides managers with a monthly detail of individual spending. The cardholder statement provides individuals with separate detail of all activity during a billing cycle and allows for individual payment of expenses.

In addition to the monthly statement, companies may receive optional management information reports that enable them to monitor and control various business expenses. The reports range from account recap and vendor analysis to individual activity and airline spending. For example, control accounts on various travel and entertainment expenses enable companies to track those expenditures separately from other expenses.

The annual membership fee for each business card is $25, which includes two standard year-end reports. If a company chooses to receive the optional management reports, the fee per card may range up to $45, depending on the number of cards issued. The minimum monthly payment is 5 percent of the outstanding balance or $50, whichever is greater.

CONTACT: Bank of America

Dave Howell, 602/594-6506

Betty Riess, 415/622-6397