How does this card work since it is trying to compete with premium Amex and Diners cards? They do not have a limit and they let you carry a balance?

So does that mean that one can charge or cash advance tens of thousands of dollars per month... and pay only minimum payment to keep it good standing each month? Without a credit limit the balance can go into millions of dollars?

Interesting concept, isn't it?

[This message has been edited by MoreMiles (edited 03-18-2001).]

I don't know exactly about the World Card concept. But Amex and Diners, which Mastercard is competing with, are charge cards. This means, that you can not carry a balance with you (Exception Amex Blue).

Nope. Though the advertised hype of the WORLD MC is an "unlimited balance", the truth is that it works like an AMEX.....it is based on prior spending patterns.

The way the Citibank web site describes it, it's actually a hybrid. Below a certain (known) amount, authorization is essentially automatic and you can carry a balance. Above that, it acts like an Amex--authorizations are figured individually and you must pay off the extra balance every month.

Amex's unlimited credit works because an immediate payment is required after one billing cycle.

Mastercard is a revolving credit... now it's real interesting to see how can they creat a hybrid.

An unlimited revolving credit (at least that's what they advertised) is the formula for disaster.

I recently converted from the Citibank AAdvantage Visa to the AAdvantage World MasterCard. The materials that I had beforehand explained what silverpie described above - you still have an assigned revolving credit line (which in my case remained unchanged since I converted an existing account). They let you charge some amount over this each month, but that amount is due in full on the next statement, as well as the minimum payment on the revolving credit line. I called the credit department to find out just how much over the revolving limit they let you go, and I got the impression that it was about 25% over the revolving credit line. So, it's essentially a revolving credit line that lets you go over the credit limit by some amount with no "overlimit" fee.