Interest Debit Cards is the combination of the possibility of withdrawing funds with interest accrual that is the main advantage of such debit cards. In other words, the client receives not just an electronic plastic wallet for storing funds. He is given the opportunity to increase them moreover in some cases on fairly favorable terms. For example, the plastic of bank allows its owner to receive 8% per annum, with interest accrued every month, which is also very convenient. The popularity of debit cards is largely based on the possibility of obtaining interest on available funds as you can check onevanilla balance .
Cash back Debit Cards
The second extremely attractive and advantageous feature of many debit cards is the so-called cash back. This term refers to the return of part of the funds paid with a card to its owner. Providing such an opportunity to holders of debit plastic has become an important part of numerous advertising campaigns, which in the end have become very effective and beneficial for issuing banks. The number of debit cards issued by them increased dramatically and turned cash back into a massive phenomenon.
Benefits of cash back debit cards
Moreover, a large number of commercial companies operating in various fields of activity showed interest in a new method of increasing their own turnover. As a result, at present, the costs of performing operations related to cash back are in most cases shared between the issuer and the company participating in the action co-branded cards. At the same time, everyone wins:
- The client receives the goods at a discount, often very substantial in some cases –10% or more
- The bank gets an excellent opportunity to advertise the issued payment instrument
- Commercial organization increases turnover through additional sales.
By issuing debit cards, banks are trying in every way to interest customers. Therefore, the proposed rates can vary within very serious limits. Most often the following payments are collected from the client:
For the service: Usually the fee is taken once a year. Its size is very dependent on the specific conditions of the bank. In some cases, the client is exempted from payment upon fulfillment of a number of requirements, for example, the amount of the monthly turnover or the size of the account balance. In this case, the bank prefers to benefit from the use of customer funds, which is quite logical.
For various services: The most frequently activated SMS information service. Some issuers provide it for free. Often a client is offered various types of insurance free or at a discount, connection to online banking systems, etc.
For withdrawing: Card replenishment in most cases is free of charge, but withdrawal is accompanied by a commission, the amount of which depends on the method and amount.
It is difficult enough to list all the possible service programs that banks offer to customers, especially since new similar products appear almost every day. This is due to the high level of competition existing in the domestic banking services market, which, ultimately, is beneficial for consumers.