Pick'n Pay Go Banking recently launched a credit card which has no annual card charges, and MTN Banking, a joint venture company between MTN and Standard Bank, has launched a new payment card. Both cards are being issued in conjunction with MasterCard.
Pick'n Pay go banking
Company:
Pick'n Pay Go Banking.
Name of product:
Pick'n Pay Go Banking MasterCard credit card.
What it is:
A credit card which allows you to pay for goods and services and draw cash from ATMs without having money in your account.
How it works:
The credit card issuer sends you a bill each month listing your purchases and cash withdrawals. You can settle the total bill or you can pay a percentage of it but you will pay interest if you do not settle in full by the due date. If you buy on a budget account you can spread the repayments over a period ranging from three to 36 months.
Sometimes, the interest charged on budget account purchases is higher than that charged for straight purchases. The Go Banking credit card, offers an Extra Discount programme with savings of at least 10 percent on selected products at Pick'n Pay stores.
Who should use it:
Anybody can use a credit card but you need to be responsible about your spending if you buy on credit.
Who qualifies to receive the card:
The Pick'n Pay Go Banking card is available as either a Gold or Silver card. To qualify for a Gold Card you need to earn R150 000 or more a year. For the Silver card, you need to earn between R40 000 to R149 999.
You do not need to have a Pick'n Pay Go Banking account to obtain the credit card but you must provide proof of income and pass the creditworthiness checks.
You can obtain the credit card at selected Pick'n Pay stores.
Minimum payment amount:
Usually you must make a minimum payment of 10 percent of the total value of the goods, services and any cash withdrawals you made in the previous month.
The minimum payment on the Pick'n Pay Go Banking account is five percent of the total due on the account.
Costs:
Unlike other credit card issuers, Go Banking does not charge an annual fee on its credit card.
Also, there is no additional charge for the Go Banking Extra Discount programme.
Interest rates (a year) on debit balances:
Silver, Gold and budget account: 16 percent.
Interest rates (a year) on credit balances:
R1 to R1 4999: one percent; R5 000 to R14 999: 1.75 percent; R15 000 to R49 999: three percent; R50 000 and over: five percent.
MTN banking
Company:
MTN Banking
Name of product:
MTN Banking MasterCard.
What it is:
A debit card. With a debit card you can pay for goods and services and draw cash from ATM machines, but you must have money in your account.
How it works:
When MTN Banking launched its MobileMoney Account in September this year, accountholders were issued with the MobileMoney CashCard. But this card has limited functionality in that it only allows you to make deposits and withdrawals from Standard Bank ATMs.
Clients with MobileMoney Accounts can now swop their cash cards for MasterCard debit cards. The new card allows you to pay for purchases at any outlet that accepts MasterCard branded cards.
You can also withdraw cash from any ATM and can purchase theatre or movie tickets. The card, which is issued free of charge, is available from any Standard Bank branch or authorised MTN dealer.
Who should use it:
Anyone who already has an MTN Banking MobileMoney account or any person who wishes to open an MobileMoney account.
The MobileMoney bank account - which allows you to do transactions via your cellphone - is only available to consumers who use the MTN network either on contract or via its prepaid services.
The account allows you to do the full range of banking transactions from person to person payments (at any bank) to debit orders and the purchase of airtime top ups.
Costs:
Transaction fees apply when using the new MTN Banking debit card. Charges vary depending on the transaction. For instance, cash withdrawals from a Standard Bank ATM cost R5 and cash withdrawals from a Saswitch ATM cost R10. Purchases in shops and restaurants cost R1 each. You are not charged an annual card fee.
Interest paid on positive balances:
None.