AOL co-founder launches online credit card company

RevolutionCard is a PIN-protected anonymous credit card

AOL co-founder Steve Case and other financial and technology industry leaders have launched a new online credit card company they say will transform the payment industry.

Case's investment company Revolution yesterday launched a new subsidiary, Revolution Money, an Internet-based payment company with a credit card that offers U.S. consumers added security while offering merchants lower fees, according to a statement.

Formerly called GratisCard, Revolution Money has launched its first two products: Revolution MoneyExchange, a free PayPal-like money transfer service for online transactions, and RevolutionCard, an offline, PIN-protected credit card that does not have the user's name or account number on it, to keep the user anonymous to avoid identity theft, the company said.

Revolution MoneyExchange, available by invitation only, will be offered to all consumers later this year, the company said. The credit card is available.

Revolution Money was formed by Case, former AOL vice chairman Ted Leonsis, who is Revolution Money chairman, former U.S. Treasury Secretary and former Harvard University President Larry Summers, former Charles Schwab CEO David Pottruck, and former MasterCard International President and CEO Russell Hogg. The company has partnered with four prime and sub-prime lenders: First Bank and Trust, Citi, CompuCredit and Union State Bank.

Unlike traditional credit-card companies that require merchants to pay an average of 1.9% of a consumer's total sale, Revolution Money is charging merchants a 0.5% fee, the company said.

A company spokeswoman said Revolution Money can reduce merchants' fees because the new system relies on Internet technology, which is more cost efficient than traditional credit-card systems.

"So we're saving money," she said, adding merchants will be able to pass on their savings to consumers in the form of immediate rewards and/or loyalty programs.

"Traditional, and even online, incumbents have been charging what adds up to billions of dollars of fees every year that ultimately comes out of consumers' pockets," said Case, chairman and CEO of Revolution, in the statement. "So we have built an innovative Web 2.0 company based on the latest technology to disrupt the decades-old system with the goal of offering the industry's most accessible, easy-to-use and secure payment system that puts money back where it belongs, in consumers' pockets."

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Linda Rosencrance

Computerworld
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
Use WhistleOut's technology to compare:
Mobile phone plans & deals
Mobile phone models
Mobile phone carriers
Broadband plans & deals
Broadband providers
Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?