Annual renewal costs for international cards are 2.5 times more expensive than for national ones.
This type of charges represents a significant portion of the CFT (Total Financial Cost) to be monitored by customers. Learn the ranking of the most expensive renewal costs for national and international cards by type of brand and entity.
In addition to the compensatory interest rate charged by entities to finance purchases made, other costs associated with owning a card must also be considered. In this note the “renovation or maintenance expenses” in effect as of December 2010, for both national and international cards. It should be clarified that so far this year, many entities are already increasing these costs.
The average annual renewal cost of the national cards as of December 2010 charged by banking and non-banking entities amounted to $ 69, which compared to the existing one at December 2009 represents an increase of 12%. Considering only financial institutions, the average renewal cost rises to $ 95.
If we now segment by the main brands of cards, for the month of December’10 the average annual cost per renewal for Visa, Mastercard and Cabal is as follows:
|National Card||Average Renewal Cost|
On the other hand, if we consider the total universe of international cards, it can be seen that the average cost amounts to $ 15 8. However, considering only the banking entities it amounts to $ 242. It is clear that for international cards the annual cost per renewal is higher.
Paying installment for renewal
It should be clarified that many entities offer the possibility of paying the cost for renewal in installments and in general it is discounted the first year of use.
In order to keep their customers captive or increase their cardholder portfolio, entities are offering greater benefits for preferential cards, such as additional free of charge, points to travel, free admission to shows, free traveler assistance, between others. With which one has the possibility to try it for a year and then decide whether to continue with it.
On the other hand, most of the entities reimburse the payment of these costs if the clients maintain a certain level of annual expenditure ($ 10,000 or $ 20,000) or as long as they keep hiring some of the product packages they offer, so such as ensuring the use of the card and customer loyalty.
Stay tuned and spend a few minutes reading your account summary, where the entity will inform you if it will increase the renewal costs.