Print 6 comment(s) - last by The Jedi.. on Jul 23 at 12:30 PM

Google will offer U.S. clients an AdWords Business credit card (above pictured is not actual AdWords credit card)  (Source:
Google's AdWords Business credit card aims to help small and medium-sized businesses in the U.S. fund ad campaigns that they may not have the cash for, but these business can only buy search advertising on Google

With Facebook rocking the online advertising world, and a partnership between Microsoft and Yahoo adding an extra edge, Google has to step its game up to stay competitive. Now, it's doing just that by offering the AdWords Business credit card to U.S. clients.

Google's AdWords Business credit card aims to help small and medium-sized businesses in the U.S. fund ad campaigns that they may not have the cash for, and Google wins by gaining extra revenue in the online ad market.

Google's new credit card is a MasterCard that will be issued through the World Financial Capital Bank, and will have a 8.99 percent annual percentage rate. This is an ongoing rate and not an introductory rate. It offers an "ample" credit line and no annual fee. Google will determine the minimum and maximum credit lines for each cardholder by consulting a financial partner.

Google will offer the AdWords Business credit card to select businesses in an invite-only beta test. Those who receive the credit card can buy search advertising, but only on Google.

"Obviously we have a robust balance sheet, so this is a way for us to use that balance sheet to help our customers," said Brent Callinicos, Google's Treasurer, in reference to Google's $39.1 billion in cash and marketable securities announced as of June 30. "It isn't a financial engineering project that we came up with and said this would be cool to do. It's a customer need."

While cash-strapped businesses can benefit from the extra help, Google is sure to benefit as well. Other companies like Amazon and Macy's have offered credit cards for years to increase company purchases as well as customer loyalty.

One credit card benefit that Google's is lacking, according to Reuters, is the potential to gain airline miles with purchases. But Google believes clients will be drawn to the card regardless of that missing feature.

"I think if you had the choice of an 18 percent credit card and miles versus an 8.99 percent credit card and no miles, it's a pretty easy choice," said Callinicos.

The AdWords Business credit card offer will be emailed to select businesses, but Google has not specified how many.

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The Wallet too
By cjohnson2136 on 7/21/2011 1:56:33 PM , Rating: 2
Now Google is moving from out of the computer to my wallet...hmmmmmm

RE: The Wallet too
By phatboye on 7/21/2011 3:13:44 PM , Rating: 1
Google isn't going to stop until they have a log of everything you do

RE: The Wallet too
By amanojaku on 7/21/2011 3:58:36 PM , Rating: 2
Between search and email, you trying to say it doesn't already? Oh, wait. That explains Google+...

On a serious note: we leave so much out there these days that I'm surprised people still complain about privacy. I like privacy, therefore I don't have a social networking account. DT is the site I'm most active on, and no one gives a crap about me, so I'm safe here. :) No, I don't think these companies have the right to log what you do, but you're a hypocrite if you have a FaceBook account while expecting privacy. Mark already said you ain't gettin' any.

By sprockkets on 7/21/2011 9:51:48 PM , Rating: 2
Why is this a "credit card"? This is a line of credit to buy advertising with Google, and Google only, with them having it managed by a bank with a "low" apr since it isn't like some card to purchase products.

I mean, did Reuters then you ever stop and think what a line of credit is vs. a credit card? Seriously.

Google Card
By gstanski on 7/22/2011 6:45:42 PM , Rating: 2
There is little doubt that Google's goal with this low-rate card is to induce AdWords advertisers to spend more, while collecting the associated finance charges will be a welcome additional source of revenue. While there is no denying that an 8.99 percent APR is a very low one, a card with a rewards program will still be a better option for advertisers who pay their balance off at the end of each month.

Beware the AdWords vicious cycle
By The Jedi on 7/23/2011 12:30:49 PM , Rating: 2
A line of credit like this can be nice if it is very carefully managed by the advertiser and not misused.

Today it is harder than ever for a business to make it, and Google AdWords really has to be approached by somebody with experience in order to make that investment worthwhile. When you get up into high rates like $2.50 a click, or $5.00 a click and so on, unless the clicker is going to buy your product or service, you could be throwing money away.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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