Digital credit cards came as a new form of consumption for users of Android and iPhone (iOS) phones. The solution became a real fever, especially among the younger audience. The facilities offered by Nubank, Credicard Zero, Agibank and pag!, Such as the absence of certain fees and the practical way to request the service, characterize this type of credit. At the same time, some similarities with the traditional card, such as appearance and form of use, can bring more security to those interested.
To understand more about the operation of this resource in Brazil, the dnetc prepared a list with five questions and answers. Remember that the digital card is different from the virtual one, which is online and does not have a physical version.
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1. How do digital credit cards work?
In many ways, digital credit cards work in the same way as traditional physical credit cards. In principle, the user uses the system with each purchase and then must pay the invoice by the due date. To settle the debt, there are two options: via the application of another bank where the customer has an account, or in person, in the lotteries of Caixa Econômica and other banks.
The possibility of changing the invoice through the online platform is a highlight of the service. With the function, the customer can have discounts when anticipating the payment of installments. Another common feature is the adjustment of the digital card limit by the holder himself, able to increase or decrease the margin as needed.
Those interested in the debit function can already find the modality available on some cards. At Nubank, the option is in the testing phase, while the pag! provides the mechanism among the types of cards offered by it.
Digital cards for facilitating operations via cell phone – Photo: Disclosure / pag!
2. Who can apply for a digital credit card?
The main requirements for placing the order are: being over 18, a valid CPF number and a cell phone with Google or Apple operating systems. Accounts can be opened over the Internet, and the credit card application usually requires documents such as an identity card, which can be identified from the mobile device’s camera.
After the request, the customer must wait for the registration approval. The approval time varies according to the company and is around 10 to 15 working days. Agibank points out that the card administered by the company can take up to 20 business days to arrive, according to the applicant’s location.
3. Even with a clean name, is it possible to not be approved to use them?
Yes. The card system performs an analysis that is not limited to credit analysis as the sole criterion. That way, if you don’t get a digital credit card at first, don’t worry: it doesn’t mean your name is negative. Find out how to consult your CPF at Serasa.
4. What kind of rewards do the cards offer?
One of the most common reasons for obtaining a credit card is the ease of postponing payment for the purchase to another date. The reward program offered by some credit providers can be advantageous for the customer, especially when using the points method. This measure also extends to digital versions of the cards.
Each operator has its own reward mode. Nubank, for example, has «Rewards». This organization allows the use of accumulated points to obtain a discount on part of the invoice, mainly with frequent expenses. It is hired separately and has a different cost, which is included in each invoice.
Nubank’s reward system offers facilities in partner services – Photo: Disclosure / Nubank
Most of the rewards offered to the customer are due to the partnerships that the cards have with other companies. Nubank is supported by services like Amazon.com, Netflix, Uber and Airbnb. Credicard Zero is associated with Pontofrio, Natura, Netshoes, Decolar.com, etc. In addition, another benefit is in the values of traditional financial transactions. Pag !, for example, allows free transfers to any bank in the country.
5. How do they operate in the banking system?
Concern about financial fraud and obscure operations can influence the resistance of some users to adhere to digital cards. However, contrary to what can be imagined, the service operates in the banking system in a regulated and transparent way. Most digital cards are licensed by MasterCard and their security technology protocols follow the standards required by the Central Bank. The requirement to send photos to open an account is made by the Central Bank, for example.
The offers made available by digital cards usually have banks or financial institutions behind them. Credicard Zero is linked to Itaú Unibanco and pag! belongs to Grupo Avista, a financial group with more than 20 years of experience in the market. The exception is Nubank, which started as a startup in São Paulo, but is already well positioned in the market.
The profit of companies offering digital credit cards generally involves purchases made by customers at merchants. With each transaction, a small percentage of the amount is redirected to them. Another business plan starts from charging interest below the market. When their users decide to finance their invoices, either partially or in full, companies tend to place rates below those practiced by the market. The action offers a differential for people linked to these credit institutions.
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