Casino Credit Card Makes Big Splash with Gamblers
The Arriva Card, a private-label credit card marketed to “prime” casino gamblers, announced earlier this week that it has signed up its first 1,000 cardholders and has seen $2.5 million in transactions in its first weeks of limited marketing. While the numbers are extremely modest by the standards of big credit card issuers, Arriva Card, Inc. says that its direct mail response rate is 1.36%, well above the industry standard of 0.3%, and that is targeting only the most credit-worthy customers.
In addition, the company says the average cash advance on an Arriva Card is nearly twice as large as those done on non-Arriva credit cards. While the appeal of using credit to fund gambling purchases is obvious, Arriva is understandably emphasizing a focus on good-credit customers and responsible gaming. Witness the statement from Todd Smith, vice president for card services at Global Cash Access, Inc., parent of Arriva Card, Inc.: “It’s very exciting to see how many experienced, responsible gaming customers with strong credit ratings have applied–and qualified–for an Arriva Card during the initial few weeks of our direct mail marketing effort. It really shows that savvy gaming customers know they don’t need to be penalized by traditional credit cards’ terms for cash advances and are eager to embrace an alternative that treats them better.” Smith’s specific reference to cash advances is appropriate because the Arriva Card’s main selling point is that it offers better terms for these advances–which are what gamblers use to access more cash on the casino floor–than could be achieved through traditional credit cards.
Arriva Card offers a grace period on cash advances, as well as a rewards program on cash advances. Most card companies offer no grace period on such advances, meaning cardholders begin paying interest immediately, and cash advance interest rates are usually significantly higher than rates on regular credit card purchases. Arriva Card says it is accepted at over 700 gambling destinations. The card is not associated with a network such as MasterCard, Visa, American Express or Discover, so it can not be used as a general credit card for typical credit card purchases.
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