As we have told you before, Blackcatcard’s new additional cards are credit grade cards. It doesn’t mean you have access to credit funds or can do an overdraft. But then why do you need a credit grade card?
The answer is – to make your life a little easier. Have you ever wondered why some services, such as, for example, hotels and car rentals, ask you to make reservations and pay only with a credit card? Well, there are several reasons, and in this blog article, we are going to explain why. And no matter the reason – your Blackcatcard can always help you!
A guarantee for the company offering a service
To start with the topic, let's take the case of hotels, which is the example par excellence for this occasion. Most of them, if not all, require their potential clients to use a credit card to make a reservation, basically with the purpose of deducting directly from the card the charge for that reservation. For them, this method is a guarantee that the client has the means to pay for his stay at the hotel. On the other hand, clients may cancel their reservation at the last minute, which generates losses for the hotel. In order to reduce the impact of such a cancellation, they may charge a penalty, which, again, is deducted directly from the credit card. It should be noted that hotels also ask for a credit card as insurance in case guests cause any damage inside the reserved room or other hotel facilities, in which case they may charge a fee to cover such damage.
Of course, before making any charges, hotels ask their clients for a pre-authorization to make a discount for a minimal amount - one Euro, for example - on their credit line to guarantee that the credit card is valid and the reservation will be paid in full in the future. Usually, the amount of this initial charge is refunded to the clients, without actually generating any cost to them.
This also applies in the case the guest had additional services like spa treatments, room service, etc. Most 5-star hotels require to charge a deposit. They “freeze” the money on your account, and in case you didn’t have any additional fees – they just return the money back to you. In most cases, it’s not possible to do if you have a debit card.
And hotels are not the only ones that require a credit card. Usually car rental companies also require them as a guarantee in case of possible damage to the vehicle by the client or other unforeseen events. Or, for example, if you are a cruise lover, you may have seen that a credit card is essential since they provide a special ID card that is linked to that card. Using this ID card, everything you consume on the cruise is charged to your credit card; inside the cruise ships, debit cards do not work and they do not accept cash!
If you are a business owner or an SMM specialist, you might have faced another downside of a debit card. Several providers of online ads do not accept debit cards. But your credit grade Blackcatcard would work perfectly!
How can you make these types of payments and reservations with your Blackcatcard?
As we mentioned initially, Blackcatcard cards are not 100% credit cards, that is, they do not offer any type of credit product, such as revolving credit or overdrafts. However, in order to give our users the possibility to pay for every type of service or product, our cards do have the credit card grade, which is required by hotels, car rental companies, telephone or Internet plan companies, among others, to be able to offer a service to their clients.
Thanks to this feature, our Blackcatcard users can access all the services they want. In practice, the companies that offer them that service or product will be able to guarantee that our Blackcatcard client has a card that supports their future payment.
In this way, our users can rest assured that they will not acquire any debt or have any inconvenience due to charges that exceed their current real funds. Of course, for any other type of payment that does not require a credit card, the Blackcatcard is ideal as well, as it can be used in any virtual or physical store without any restriction. In fact, thanks to the loyalty program offered in our Fintech ecosystem by our partner FINTECH ASSETS OÜ, Blackcatcard users can receive bonuses for using their card, for example, cashback of 5% for purchases on Google Play Market, 2% on Amazon or 0.1% on all purchases made with the card*.
It should be noted that for individual clients the first Blackcatcard card, as well as an IBAN account, has no maintenance fees, is issued free of charge and have no shipping costs, regardless of the location in the world. Credit-grade cards are the additional cards, that are issued for a fee. You can find pricing details here.
*The bonus payment is a part of the loyalty program provided by FINTECH ASSETS OÜ. Detailed terms and conditions can be found here.
FAQ:
Do I have access to credit products with Blackcatcard?
No, in our online banking we do not offer credit products, such as revolving credits, loans, overdrafts, or any other type.
Can I book a hotel room, rent a car or pay for any other service that requires a credit card using the Blackcatcard?
Of course you can! One of the most important features of our cards is that they have a credit card grade. That is, without offering credit products, they are accepted by companies that regularly require a credit card.
