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Goldman Sachs In Discussion With Barclays For GM Credit Card Transfer

An unnamed individual close to the matter has told the Wall Street Journal and other news sources that GM is working on getting Barclays to replace Goldman Sachs as the company handling issuance of The General’s credit cards.

The Wall Street Journal report says the negotiations between the three parties could result in a new arrangement by this summer, with Barclays inheriting about $2 billion in GM credit card balances from Goldman Sachs.

The GM Rewards card.

Goldman Sachs has been backing out of the consumer credit card market since late in 2022, and is now apparently looking to divest both the GM credit card and the Apple credit card. Overall, the bank is said to be handling about $19 billion in credit card balances, including all of the different credit card services it offers.

Goldman announced it was dropping the GM card last November, citing runaway expenses as the reason for its retreat from the consumer credit market. At that point, American Express was viewed as the most likely company to take over from Goldman in managing the General Motors credit card rather than the eventual successor, Barclays.

The Goldman Sachs logo.

The credit card is aimed at car buyers, with a points system providing discounts on the buying of a new GM vehicle. The card is offered with the user’s choice of a Chevrolet, Cadillac, Buick or GMC motif, or a General Motors image instead. The non-expiring points add up at a rate of 5 percent on the first $5,000 of purchases in a given year and 2 percent thereafter. The rewards can be applied only to a GM new vehicle purchase.

In providing its reasons for divesting itself of the credit card last year, Goldman Sachs says dealerships show little interest in promoting or using the credit, despite its focus on vehicle buying. About 70 percent of card users targeted their purchases toward this goal, however, despite dealership disinterest.

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Comments

  1. Oh goody. I get to go through the transfer another time. Guess they should have sold it to Barclays (that has HORRIBLE customer service) to begin with.

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    1. If you really don’t like the card, find another. It is not like gm offers the only branded cc in town.

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      1. Its not the card its the service provider.

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    2. I wish AmExp would have gotten it assuming everything stayed as is. I have the 1990s version of 500×7 before it rolls off but this year GM kept it all intact thru May2024. I hope they extend it considering they have yet to get all the cars I was interested in with more production volumes. Goldman Saches has been the worst. Cant speak to Barclays. AmExp has been very good for my other card with them.

      Reply
      1. I also have the 500×7, haven’t heard anything about changes on June 1st of 24. Could you elaborate on what takes place on that date?

        Thanks

        Reply
  2. GM employees can not use their credit card points and their employee discount on the same purchase. They must choose one or the other.

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  3. I’ve cashed in well over 20k over the years. Works for me.

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  4. The article is not correct in saying “The rewards can be applied only to a GM new vehicle purchase.” They can be used for lots of things. For example, Gold and Platinum tier members can redeem points toward a certified pre-owned vehicle purchase at a participating GM dealership: Up to $500 for Gold members and $750 for Platinum members. Like Steve, I, too, have cashed in well over 17K over the years from my GM cards. And most recently I used them to buy custom Chevy all-weather floor liners and cargo liner for my 2023 Bolt EUV. I used over $4,600 in rewards to buy that Bolt. Mighty helpful, along with the $7,500 tax credit, GM’s $1,400 outlay to install the Level 2 charging circuit in my garage, plus an $1,100+ check from my power company for buying an EV. I also sold my 2003 Impala to an acquaintance for $3,500. Plus I get a $100 credit for using the GM card to pay six monthly electric bills per calendar year. Next up, I think I’ll use the awards to get a dash cam system.

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  5. We have used the card over 30 years probably and never had PIN’s. GSachs insisted on it. Mine went through quickly, Wife had to get one they approved and that took several phone calls over several days. I don’t want another horror show.

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  6. I never understood the reason for moving from Capital One.

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    1. Uh I was glad to go from Cap One but Sachs is worse with their primitive web site. Cap One let some idiot get a 2nd card in IN while I live in the NEast. Then they used it to go to BBuy and take out cash. I have never been in Indiana and they can easily see all my charges were in a NEast area. It was a multi month fiasco I HAD to clean up!

      Reply
  7. Goldman Sachs has a list of scandals on Wikipedia that would take you two days to read all the details. Now there is a Goldman Sachs fund donating money to the anti-Israel protesters but GS claims there’s no connection to the bank.

    Reply
  8. Goldman has been nothing but horrific to deal with. Capital One always took good care of me when I had an issue. All the stress, bother, time wasted with Goldman makes me want to cancel the card and never look back.

    Reply
  9. I had no issues when the card was with Capital One. I now have fraud charges on my Goldman Sachs. Their research came back with “They said you did it. Pay it.” No proof of purchase or anything. Andy the charge was put through on a card that was closed 2 days earlier due to fraud that THEY caught.

    Not to happy with Goldman Sachs right now. Really poor on fraud liability.

    Reply

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