Bank lavishes perks on new credit card

Offering targets clients with highest net worth

Bank of America Corp. today is rolling out a credit card that will give its most affluent clients perks such as free access to airport luxury lounges, winter excursions with an Olympic skier, and cooking classes with a master chef.

The bank's new Accolades American Express card is one of several that banks, which before 2004 were mostly limited to issuing Visa and MasterCard plastic, are creating in the wake of a regulatory decision that obliterated the card companies' ability to prevent banks from doing business with their competitors, a specialist said.

As a result, Bank of America can now do business with American Express without interference from its rivals, opening the door for it to offer cards to affluent clients who may have shunned other offerings.

"After 2004, banks had more choice in terms of the types of cards they could issue to their customers, and one of the kinds of cards they've been interested in are American Express cards," said Gwenn Bezard , research director at Aite Group , a banking consulting firm in Boston. "If you're high net-worth and a high spender, you will be better off using an American Express product because of the value of what's out there."

That's because American Express charges merchants nearly 2.6 percent in fees for every dollar of transactions done with its cards, compared with less than 2 percent on average for Visa and MasterCard, Bezard said.

That adds up to extra revenue that American Express uses to fund perks that appeal to its wealthy cardholders, the same approach Bank of America is taking with its new card.

"This is just an opportunity for us to leverage the great capabilities of our credit card business to offer something for our most affluent clients," said John Bahnken , president of the bank's Global Wealth & Investment Management Products Group , which is based in Boston.

You have to be a global wealth client with at least $100,000 in net assets to qualify for the card, which carries no annual fee. Bahnken said similar cards typically carry a $295 annual fee.

Cardholders will get free access to 500 luxury airline clubs worldwide, special fantasy vacations, and a program in which cardholders earn points for purchases that can be used to make charitable donations.

One point is earned for every dollar spent, but it takes 250,000 points to convert them to a $2,500 donation. Bank of America will match every donation up to that amount.

Other perks include travel discounts, free companion airline tickets, and concierge services. The card carries an interest rate equal to the prime rate plus 3.99 percentage points.

Keith Reed can be reached at reed@globe.com.