Barclaycard

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Barclaycard
Type Subsidiary
Industry Credit Card
Founded 1966
Area served Worldwide
Products Credit Cards & Contactless Technology
Employees 10,300
Parent Barclays plc
Website www.barclaycard.com, www.barclaycard.co.uk

Barclaycard, part of Barclays Retail and Business Banking, is a global payment business. The Barclaycard was the first credit card introduced in the UK, coming into service in 1966. It enjoyed a monopoly until the introduction of the Access card in 1972. The 'Barclaycard' was not the first payment card to be issued in the United Kingdom though, Diners Club and American Express launched their charge cards in 1962 and 1963[1] respectively. At the time American Express was seen as Barclaycard's main competitor.

Barclaycard later became part of the Visa network but now offer MasterCard, Visa and American Express[2] versions. Barclaycard claims it is Europe's leading issuer of credit cards with 10.4 million customers in the UK and 10.8 million outside the UK.[3] Barclaycard's main offices are in Northampton, along with several floors at Barclays' corporate headquarters, One Churchill Place in Canary Wharf, London.

Barclaycard UK[edit]

Barclaycard has 10.4 million customers in the UK,[3] issuing one in five UK credit cards. It is currently the leading UK credit card issuer.

It is based at 1234 Pavilion Drive in Northampton in a specially designed building where it employs approximately 3,000 people. It is one of the main employers in Northampton. Barclaycard UK customer service representatives are based in India and the Philippines.[4]

Barclays were the only major British clearing bank not to issue cheque guarantee cards, instead allowing its customers to guarantee cheques with their Barclaycard (on the basis that if a customer was creditworthy for a Barclaycard they were also good for issuing cheques).[citation needed] This practice ended in 1985 with the introduction of relaxed lending rules and the introduction of the debit card Barclays Connect, however, it was still possible to guarantee Barclays Bank cheques using a Barclaycard well into the 1990s.

Timeline of Barclaycard UK[edit]

Original Barclaycard design (1966-1983)
  • 1962: Diners Club becomes the first major charge card company in Britain following the merger of Finders Services and Credit Card facilities.
  • 1963: American Express is launched in the UK
  • 1966: Barclaycard is launched
  • 1977: Barclaycard becomes a founding member of the international Visa system
  • 1986: Barclaycard launches first loyalty scheme
  • 1990: Barclaycard MasterCard launched
  • 1997: Barclaycard is the first UK credit company to allow bills to be paid over the Internet
  • 2008: Barclaycard purchases Goldfish, Discover Financial Services' UK credit card division.
  • 2011: Barclaycard, in partnership with Orange, launches Contactless mobile payments - the first in EU, second after Turkey in Europe
  • 2012 H1: Barclaycard remove their original Freedom rewards scheme[5]
  • 2012 (September): Barclaycard launch two brand new rewards scheme cards - Cashback Rewards & Freedom Rewards
  • 2014: Barclaycard issue cards on the American Express network in the United Kingdom for the first time [6]

The Barclaycard commercials[edit]

In the late 1980s and early 1990s, Rowan Atkinson starred in a series of Barclaycard adverts. The first advert involved Atkinson's character, spy Richard Latham, entering HQ to be told about his next mission. He is given a Barclaycard. The advert ends with Richard coming out of a sentry box with an oblivious sentry guard.

In the adverts following, Richard is accompanied by a protégé called Bough (played by Henry Naylor). Bough is the person who approves of Barclaycard and tells Richard of its benefits, much to Richard's disagreement. In the adverts, Richard burns the end of a rug, breaks a china tea pot for a wedding present (and disturbs the photo of the wedding), and, in one particularly well-known advert, confuses a head honcho from MI5 for a plumber at a crime scene. One ad gives Latham the immortal line: "Barclaycard? This man's in no state to go shopping!"

The other well-known thing about the advert is the theme tune. This advert was the basis for the film Johnny English, which also starred Rowan Atkinson (the name of his character was changed from Richard Latham to Johnny English).[citation needed]

In Autumn 2008 to promote contactless payment technology and a change in branding, Barclaycard released a campaign featuring a fantasy water slide. Conceived by creative agency Bartle Bogle Hegarty and shot in São Paulo, the TV advert feature a man (played by Robert Wilfort) leaving work via a slide and passing various contactless payment sites on his way home. The TV advert was directed by Peter Thwaites and set to The Bellamy Brothers' "Let Your Love Flow", which, due to the resultant popularity, re-entered the UK Singles Chart and peaked at No. 21.

A second advert was released in January 2010, featuring a man travelling to work on a roller coaster. It is set to Boston's "More Than a Feeling".

Barclaycard TV was launched in the Spring of 2013, the channel was built by Adjust Your Set[7] and designed to provide greater insights into Barclaycard services, marketing and products.

Barclaycard International[edit]

Barclaycard operates in over 60 countries and has 10.8 million customers outside the UK.[3]

Timeline of Barclaycard International[edit]

  • 1991: Barclaycard launches in Germany
  • 1997: Barclaycard launches its Dollar Card
  • 1998: Barclaycard launches in France
  • 1999: Barclaycard launches in Spain and Greece
  • 2001: Barclaycard launches in Botswana
  • 2002: Barclaycard launches in Italy
  • 2003: A collaborative credit card agreement with Standard Bank in South Africa is launched
  • 2004: Barclaycard launches in Ireland, Portugal and Egypt; acquires U.S. credit card issuer Juniper Financial Corporation
  • 2005: Barclaycard launches EnterCard in the Nordics, a Joint Venture with Swedbank
  • 2007: Irish portfolio is sold to Bank of Scotland (Ireland)
  • 2007: Barclaycard launches in India and Dubai

Acquisitions[edit]

Providian[edit]

In 2002 Barclaycard took over the UK wing of the American Company Providian National Bank, known as Monument, when it was sold off due to financial irregularities of its American parent company.[8] Providian's former base in Crawley (West Sussex) was fully part of the Barclaycard group, mainly catering for the very lower end of the credit card market.[citation needed] This targeting of the less affluent has created a lot of controversy as invariably the people targeted have existing financial problems.[citation needed] Barclaycard sold the Monument business and premises to Compucredit in 2007.[9]

Egg[edit]

In March 2011, Barclays announced that it would be buying the British credit card business arm of Egg from Citigroup for an undisclosed price. At the time of the announcement, Barclays claimed that the credit card assets consisted of 1.15 million accounts with approximately £2.3bn of gross receivables.[10] They intend to integrate those customers within their own credit card arm. At the time of the announcement, Citi said it was "committed to working with Barclays on a seamless transfer of the customer accounts, ensuring continuation of the high level of service to which customers are accustomed".[11] The deal was expected to be completed within the first half of 2011.

Barclaycard products[edit]

Contactless[edit]

Barclays and Barclaycard have been providing contactless debit and credit cards since 2007 and, since May 2011, contactless mobile phones,[12] as well as the terminals that accept contactless payments. Barclays and Barclaycard have issued over 11.4 million contactless-enabled cards.

Barclays and Barclaycard provide contactless terminals for around 50,000 outlets in the UK, including:

Mobile payments[edit]

On 20 May 2011, Barclaycard and Orange launched ‘Quick Tap’ - the UK’s first contactless mobile phone payments service, allowing customers to make contactless purchases on the high street with their mobile phone for the first time.[24] The launch means that, in addition to using contactless cards or chip and PIN, consumers can tap their mobile phone on a contactless reader at tills in over 50,000 stores to make purchases £20 and under.[25]

The service is available to Orange customers who use a ‘Quick Tap’ enabled handset. Barclaycard and Orange launched with a ‘Quick Tap’ enabled version of the Samsung Tocco Lite.[26]

Other elements of Barclaycard[edit]

In addition to Barclaycard UK and Barclaycard International, there is also Barclaycard Payment Acceptance (Merchant Acquiring) and Barclaycard Commercial (Corporate Issuing and Partnership Issuing). Until November 2008, Barclaycard Payment Acceptance was known as Barclaycard Business, previous to which it was known as Barclaycard Merchant Services (BMS). As a Merchant Acquirer, it enjoys around 38% of the UK Acquiring Business and offers a number of channels including internet payments (ePDQ) and small merchant bank-owned terminals (PDQ Terminals) normally provided by Ingenico (formally Fortronic).

It teamed up with London's Transport for London to combine a credit card with an Oyster card—called OnePulse—which was launched in the autumn of 2007.

Barclaycard Payment Acceptance[edit]

Barclaycard is a leading acquirer in the UK, with 1 in 3 transactions being processed through Barclaycard. It offers solutions for taking card payments in traditional face-to-face environments, as well as card non present environments such as online, or phone or mail order.

Barclaycard offers a range of terminals for taking payments, which can be customised to a merchant’s needs with various value added services – such as Dynamic Currency Conversion or Mobile Top Up. These value added services tend to be central to the Barclaycard proposition.

In online or cardholder not present (CNP) environments, Barclaycard has two main solutions: ePDQ and Barclaycard SmartPay. As with the terminal offerings, these can be supplemented by additional products such as Fraud Reporter or pre-paid gift card e-vouchers. Barclaycard’s products give merchants the option to either host the payment pages on their own website or re-direct the payment to Barclaycard’s domain. Having a Barclaycard hosted payment page can help reduce a merchant’s scope for PCI DSS compliance, as the merchant is no longer liable for storing the card holder’s information. Barclaycard’s background in innovation is not limited to card issuing, and the acquiring business has been recognised for many of its industry firsts.

Barclaycard Payment Acceptance timeline[edit]

  • 2011 –Launch of Barclaycard Fraud Reporter, powered by Ethoca which gives real time notification of cardholder-confirmed fraud direct from issuing banks within hours of a transaction
  • 2011 – 1st acquirer to launch the UK’s first contactless mobile phone with Orange that can ‘tap and go’ to make payments
  • 2011 – Launch of Barclaycard’s new GPRS Mobile Terminal with colour screen and contactless
  • 2010 – Launch of Barclaycard SmartPay: making the complex simple by delivering next generation secure and flexible processing across multiple and domestic markets.
  • 2010 – Barclaycard launches its new countertop and portable terminals, with embedded contactless reader
  • 2010 – Launch of Barclaycard Prepaid
  • 2007 – 1st acquirer to market with a new range of contactless card processing terminals
  • 2007 – 1st Contactless card in the UK for Barclaycard OnePulse: a credit card, oyster card and contactless card in one.
  • 2005 – 1st acquirer to market with an iRetail EPOS solution for retail businesses to support the industry Chip & PIN programme
  • 2004 – 1st acquirer to market with a new range of card processing terminals to support the industry chip and PIN programme
  • 2004 – 1st UK acquirer to launch a Mobile Chip & PIN terminal using cellular radio communication
  • 2004 – Acquiring business 1st with VGIS implementation for Visa Purchasing Flexible Format Invoices (that can contain all information such as buyer's full name/address, buyer's cost centre and purchase order number)
  • 2004 – Acquiring business 1st to implement Travel & Entertainment VGIS invoices for Visa Corporate Cards - from Vanguard car rental. (Invoices include class of car, period of hire, incidental charges such as fuel, name and address of renter etc.)
  • 2003 – 1st acquirer in the world to perform a live Chip & PIN transaction to new global standard
  • 2003 – 1st acquirer to trial Chip & PIN terminals
  • 2002 - Introduction of ePDQ/Verified by Visa secure on-line payments
  • 2001 – 1st acquirer to launch PrePay – enabling retailers to accept mobile top up transactions through PDQ terminals. Launch of mobile PDQ terminals and portable PDQ terminals
  • 2000 - 1st acquirer to develop CardProve – a standalone counterfeit fraud checking device for retailers and businesses
  • 2000 - Launch of ‘En@ble’ – service to help UK retailers and businesses begin trading online within days
  • 1999 - Launch of the Corporate Travel & Entertainment card for medium and large businessess, recognising the different needs of this market sector
  • 1999 – 1st acquirer to market Portable PDQ solution using radio technology
  • 1999 - 1st acquirer to process credit card transactions for John Lewis and Marks and Spencer, where previously these retailers only offered debit card payment
  • 1998 - 1st British acquirer to launch an internet payment system (ePDQ), leading the way in online fraud prevention
  • 1998 – 1st acquirer to launch Mobile PDQ terminal using cellular radio communication
  • 1998 – 1st acquirer to launch service to capture and process card transactions via tone dialling telephones with Tonelink service
  • 1998 – 1st co-branded Barclays Card is developed by Barclaycard Business solely for BTI UK Hogg Robinson clients
  • 1997 – 1st acquirer in the world to perform live Chip transaction to new global standard
  • 1997 - 1st acquirer to enable credit card payments over the internet
  • 1994 - Barclaycard Business is the 1st issuer to develop a bespoke Purchasing Card program
  • 1992 - 1st acquirer to trial combined Cash Register PDQ terminal.
  • 1991 - 1st Corporate Card issuer to recognise the demand for and develop Gold and Silver variants
  • 1991 - 1st acquirer to launch Portable hand-held PDQ terminal using battery power and smart card for data storage media
  • 1989 - 1st acquirer to launch portable PDQ terminals using battery power and removable data storage media for transaction storage
  • 1987 - 1st acquirer to trial unattended stamp book bending in partnership with the Post Office using PIN verification called ‘PINPOINT’
  • 1986 - 1st acquirer to introduce PDQ (processes data quickly) terminals – used by UK businesses to process credit and debit card transactions
  • 1985 - 1st acquirer to trial unattended Petrol vending machines in partnership with Shell, Mobil, Texaco and BP using PIN verification called ‘PINPOINT’
  • 1985 - 1st acquirer to trial unattended train ticket vending machines in partnership with British Rail using PIN verification called ‘PINPOINT’.
  • 1983 - in response to rising levels of fraud, the acquiring business installed the first terminals (equal first with Amex) to automate authorisation requests (coupled with zero floor limits) at Jenners in Edinburgh.
  • 1983 – 1st acquirer to trial dispensing cash on Barclaybank cash machine cards at supermarkets and petrol stations (rather than banks). The service called 'Supercash' was the forerunner of the Purchase with Cashback facility.
  • 1982 – 1st acquirer to pilot a debit card use in BP, Shell and Esso filling stations in Norwich using Barclaybank cash machine cards.
  • 1969 – 1st bank to launch Commercial Cards via our Issuing Business (to compete with Amex and Diners).
  • 1966 – Acquiring business was established with the launch of Barclaycard credit cards

References[edit]

  1. ^ http://news.bbc.co.uk/onthisday/hi/dates/stories/september/10/newsid_3031000/3031968.stm
  2. ^ http://www.barclaycard.co.uk/personal/customer/cashback/guide
  3. ^ a b c "General News UK: npower: Barclaycard Freedom Scheme Customers to Receive Boost from npower". © 2010 Newsdesk AB. 2010-03-15. Archived from the original on 2010-03-23. Retrieved 2014-01-10. 
  4. ^ Barclaycard outsources UK customer service operations to FirstSource
  5. ^ "A closer look at the Barclaycard Freedom scheme". Choose.net. 23 May 2012. Retrieved 24 September 2012. 
  6. ^ http://www.barclaycard.co.uk/personal/customer/cashback/guide
  7. ^ Your Set, Adjust. "Creators of Barclaycard TV". http://www.adjustyourset.com. 
  8. ^ Thu, 24 Jul 2003 (24 July 2003). "Barclays picks EHS for £5m Providian job | Archive". Marketing Week. Retrieved 24 September 2012. 
  9. ^ "Business | Barclays sells sub-prime business". BBC News. 5 April 2007. Retrieved 24 September 2012. 
  10. ^ Reuters (1 March 2011). "Barclays to buy Egg credit card | Business | guardian.co.uk". London: Guardian. Retrieved 24 September 2012. 
  11. ^ "BBC News - Egg credit cards bought by Barclays bank". Bbc.co.uk. 1 March 2011. Retrieved 24 September 2012. 
  12. ^ "Barclaycard launches "Quick Tap" mobile contactless payments : Banking Times: Daily Banking News". Banking Times. Retrieved 24 September 2012. 
  13. ^ a b "Co-operative gearing up for 2012 cashless society". Squidcard.com. 22 July 2010. Retrieved 24 September 2012. 
  14. ^ "Barclaycard Contactless system adds more retailers". Personal Finance Stuff. 7 June 2010. Retrieved 24 September 2012. 
  15. ^ "Greggs rollout contactless in-stores". Retail-systems.com. Retrieved 24 September 2012. 
  16. ^ "Contactless Payment at". Little Chef. Retrieved 24 September 2012. 
  17. ^ "London buses offer contactless card payment". BBC. 13 December 2012. Retrieved 13 December 2012. 
  18. ^ "M6 toll to go contactless". Finextra.com. 28 July 2011. Retrieved 24 September 2012. 
  19. ^ McDonald's, Barclaycard ready NFC awareness campaigns | SecureIDNews
  20. ^ a b "Contactless mobile payments arrive on high street". Retail Gazette. 20 May 2011. Retrieved 24 September 2012. 
  21. ^ Jenny Williams. "Slug and Lettuce rolls out contactless payments in 80 pubs". Computerweekly.com. Retrieved 24 September 2012. 
  22. ^ By:  Dan Balaban. "Starbucks Plans to Accept Contactless Payment in the UK | NFC Times – Near Field Communication and all contactless technology". Nfctimes.com. Retrieved 24 September 2012. 
  23. ^ [1][dead link]
  24. ^ "BBC News - Mobile wallet offered to UK shoppers". Bbc.co.uk. 20 May 2011. Retrieved 24 September 2012. 
  25. ^ Mark King (20 May 2011). "Contactless 'pay at the tills with a mobile' system introduced | Money | guardian.co.uk". London: Guardian. Retrieved 24 September 2012. 
  26. ^ Gareth Beavis . "Orange and Barclaycard launch NFC on the high street | News". TechRadar. Retrieved 24 September 2012. 

External links[edit]