Until the introduction of the FTT, it was a market habit for banks to keep their annual credit card fees high, but to give their debit card cheap. In the past, the cost of a credit card could even double that of a debit card. However, since credit cards are usually issued in the more expensive embossed version (MasterCard Standard, Visa Classic), there is an even cheaper step from the debit card, the electronic debit card (Maestro, Visa Electron). This was subverted by the advent of the financial transaction tax and the reduction of the interchange fee. Based on this, it is worth banking differently today, just as it would have been crazy before!
Banks know that customers need a credit card. In fact, they also know that cheaper electronic cards have an even greater age, so you may have already discovered that the annual fees for debit cards have risen sharply, with the annual fees for cheaper electronic bank cards drastically increasing.
The combined effect of these is that an electronic bank card now costs as much as an embossed card.
Debit and credit card annual fee rates
In an earlier article we addressed the question of why you should choose an embossed debit card today instead of an electronic one. There is not much difference between the two nowadays, because in the past you have applied for embossing to make sure you do not travel abroad (eg in hotels, car hire) and to shop online with it. Nowadays, however, electronic cards are generally accepted on the Internet and the coverage of POS terminals used with electronic cards has increased significantly (in more advanced parts of the world), and even now the real challenge is not the coverage of contactless payment points, where Hungary is very well .
As you can see from the comparison above, credit cards are now better for your annual fees. While not all banks are more expensive to use a debit debit card than a credit card, and credit cards may incur a separate monthly account management fee (although you will find free account management), we have tried to give concrete examples to show that the old order has definitely reversed.
How do you consider your choices today?
- choose an electronic or embossed card as your debit card ?
- do you require a credit card or spend with your debit card?
- you pay extra on the credit card account management fee, but in return you get a refund for your purchases , which can be more than the monthly credit card management fee plus the annual fee, OR you stay with your debit card with a single account management fee, but miss the discounts?
- use an overdraft with your debit card, or do you buy interest-free from your special account behind your credit card?
The best strategy
Based on the questions above, everyone can individually choose the solution that suits them best. Our tip is:
- choose cheap electronic in your debit card while
- request a cheaper embossing from your credit card! So you have not one but two cards at many banks for the price of a single embossed debit card ,
- Moreover, you get a separate credit line, of which interest-free can spend the same place where the card is embossed using it
- and with a good credit card selection, you’ll even have extra discounts .
We recommend that you use a credit card comparator to choose a credit card that will give you a refund on your standard credit card purchases (which you always have to pay back in full for interest-free payment on time), and you can earn even more than your credit card charge.
It is also important to always withdraw cash only with your debit card, under all circumstances, never with your credit card!
This is how the Hungarian bank is the smartest bank today.