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Old 24.04.2020, 17:29
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Credit Card in a Swiss Bank - repayment

Hello, just wanted to clarify how a "credit card" in a Swiss bank is working.

The system here is very different to the UK.

It appears that the only way you can pay online is with the "credit card" and not the "debit card".

I see that the money that I spend on my "credit card" is getting deducted from my account anyway.

So, do I understand correctly that I don't need to do anything to pay off this "credit card", or I still need to call the bank once a month, to pay of this "credit card"?

Apologies, this is quite confusing.
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Old 24.04.2020, 17:35
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Re: Credit Card in a Swiss Bank - repayment

It usually comes out of your main account either by direct debit each month or you can also request it comes an an e-bill and then pay it manually.
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Old 24.04.2020, 17:51
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Re: Credit Card in a Swiss Bank - repayment

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Hello, just wanted to clarify how a "credit card" in a Swiss bank is working.

The system here is very different to the UK.

It appears that the only way you can pay online is with the "credit card" and not the "debit card".

I see that the money that I spend on my "credit card" is getting deducted from my account anyway.

So, do I understand correctly that I don't need to do anything to pay off this "credit card", or I still need to call the bank once a month, to pay of this "credit card"?

Apologies, this is quite confusing.
No, it's not. You use your credit card and get a statement at the end of the month with the amount you have to pay. Nothing should be leaving your bank account until then.

Are you sure those aren't debit card payments you've made elsewhere?
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Old 24.04.2020, 18:16
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Re: Credit Card in a Swiss Bank - repayment

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No, it's not. You use your credit card and get a statement at the end of the month with the amount you have to pay. Nothing should be leaving your bank account until then.

Are you sure those aren't debit card payments you've made elsewhere?
Are you also sure that you didn’t sign a direct debit authorisation to allow them to deduct the full amount from your account every month.
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Old 25.04.2020, 01:22
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Re: Credit Card in a Swiss Bank - repayment

You are right. The way many credit cards work in Switzerland is not the same as UK. The UK process works the way it does because of the consumer credit act, which allows for rolling credit. Not all other countries have lending legislation to allow the samd process.

Technically, the usual Swiss credit card is more accurately a charge card. (Think the original American Express process).

In the UK, a debit card spends the money "live" from your current account. In effect, it's plastic cash.

A UK credit card spends it against a credit limit, and then sends you a monthly bill, where you have the choice to pay in full (with no interest charge), pay a minimum and roll the rest (with montly interest), or any amount in between (with monthly interest). In effect, it's a rolling loan facility.

A UK charge card spends against a pre authorised limit, and then sends you a monthly bill for full payment. There's no option to roll the balance and pay interest. Usually, the balance is collected automatically by direct debit from your account. In effect, it timeshifts the amount you spent, for a short while.

Most Swiss cards act like the UK charge card process.

However, some Swiss credit cards also have elements of a prepaid card, where the amount you can spend is actually blocked or guaranteed against a specific deposit balance. In effect, it's a cash card drawing against a ring fenced pot of your money.

Kind regards


Ian
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Old 25.04.2020, 08:17
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Re: Credit Card in a Swiss Bank - repayment

Hm, strange. Both our cards work like the UK credit cards do.
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Old 25.04.2020, 09:18
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Re: Credit Card in a Swiss Bank - repayment

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Most Swiss cards act like the UK charge card process.
Depends on your status with your bank... my cards with UBS & PF work the same as credit cards else where: you get an invoice at the end of the month and you decide who much you wish to pay above the minimum.
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Old 25.04.2020, 10:57
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Re: Credit Card in a Swiss Bank - repayment

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Hm, strange. Both our cards work like the UK credit cards do.
Ditto.

I opt to pay monthly by DD, just as I did in the UK. I have a credit limit, just as I did in the UK. There's a minimum required payment each month, just as in the UK.

I have to pay a yearly fee for my card. Not like the UK. But the points I get more than make up for it, as does the additional insurance etc.

I can, if I choose, put money onto my card - for example if I need to make a purchase beyond my credit limit. I can't recall if this was possible in the UK. My kids who are students also have credit cards - but they have a zero credit limit, so they have to preload their CC account.
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Old 26.04.2020, 17:52
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Re: Credit Card in a Swiss Bank - repayment

After my cantonal bank essentially fired me over FATCA I moved to PF. I don’t think either the yellow debit card or TWINT work for “cardholder not present” purchases. I have 3 UK cards, JLewis, M&S (an old charge card) & a discontinued Costco AX, all of which I more or less abandoned in favour of Chase Sapphire Reserve (3x points in resto & travel, etc, no forex loading, good insurance cover). Hadn’t thought a Swiss cc competitive but the answer might have been different if I weren’t retired (on fixed income, as they say, with AVS being peanuts and QPP diminishing by the month and U.K. State Pension similarly ungenerous and at risk of abolition of the triple guarantee).
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Old 26.04.2020, 19:18
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Re: Credit Card in a Swiss Bank - repayment

Same here. UBS credit card works like in the UK, pay off in full or monthly instalments. Amex classic green card is my charge card I use for points and daily spending but have to pay off in full at end of month. Only difference with UK banking is the ridiculously stupid V-pay.
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