/cloudfront-eu-central-1.images.arcpublishing.com/larazon/GPQ4SGPB5NDBRE6SQOP2MMN744.jpg "Are discount cards or purchase refund cards better?")
One of the advantages that most credit cards offer, in addition to allowing us to divide purchases into monthly payments, is that they have additional offers to differentiate themselves from their competition. Among the most common advantages are discounts and returns on purchases. Often two advantages that are used synonymously, but have different characteristics, explains the card comparer HelpMyCash.com. Knowing the operation of the two types will help us choose the card with the advantage that we can take advantage of the most.
How is the return and discount of the cards different?
With discount cards we will get the discount at the time we make the purchase, that is, buying a product will be cheaper with the card. With a return card they will give us the money after the purchase has been cashed, generally they will pay it in the following monthly statement.
So, let’s imagine that we want to make a purchase of 100 euros with the card. With a 4% discount, when you buy we would pay 96 euros, saving us four euros. With a 4% refund, when you buy we would pay 100 euros and the bank would return the four euros later.
What are refund cards like?
Cards with refund on purchases are common in Spain. The most common is that the refund they offer is applied automatically in stores with whom the card has agreements, although some offer a refund on all purchases we make. The bonus generally ranges from between 2% and 5% per purchase.
For example, the WiZink Plus Credit Card, without annual commissions and without changing banks, it offers a 3% refund in stores such as Zara, Mercadona, Lidl, Primark, Just Eat or Vueling with a maximum of six euros per month and the ING Credit Card, without annual commissions, offers a 3% refund in Galp and Shell.
Returns may have maximum monthly limits. This reimbursement may be in three ways, depending on the entity: the first, that they enter the money in our account (the most beneficial formula for us, since we can use the money for any purpose); the second, to return the money to us on the card’s credit line, and, the third, through gift checks to be used in stores.
Of course, if we opt for return cards we must take two things into account. On the one hand, if the refund is applied when buying with deferred payment, we must count on the interest of fractioning a purchase is will eat the return we can get, so we only have to do it when we want to buy in installments and not only to obtain the discount. On the other hand, since they give us cash back, This will be subject to the payment of personal income tax, explains us HelpMyCash.com.
What are discount cards like?
Generally, we will be able to obtain discounts in stores or brands with whom the entity has prior agreements. Depending on the brand, we can find from discounts of 3% to 50% for sectors such as travel, clothing, cosmetics, food, hotels or shows, although such high percentages are usually for very specific products or services.
For example, the OpenCredit credit card, without commissions if the Open Payroll Account is contracted, it offers us a 15% discount at Women’Secret, Springfield or Cortefiel; 10% in Booking; 5% in the Casa del Libro or in Iberia and up to 50% in Diverclick.
Discounts they are not usually applied automatically As with returns, if not we must register for the promotion with a code provided by the bank, use a coupon in the store or buy online through the link provided by the bank. This implies that we must be aware of the promotions that our bank has to be able to enjoy them.
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