T
he banks’ interest in high-net-worth
individuals (HNWIs) is growing and
they are offering them credit and
debit cards more tailored to their desires
and needs. HNWIs are more demanding
and their lifestyle is more expensive than
regular customers. Global payment card
companies like Visa, MasterCard, and
American Express provide a wide range of
generous and luxurious perks tailored to the
particular lifestyle of this market segment.
“The ultra-high net-worth (UHNW) segment
is growing and is representing an incredible
opportunity in the region and particularly
in Lebanon. Based on our research, these
cardholders require a dedicated and bespoke
approach to the value proposition compared
to other retail segments,” said Mario
Makary, Country Manager for Lebanon and
Iraq at Visa. Additional benefits are also
offered by local banks to make their services
more competitive.
MONTHLY REPAYMENTS
When a repayment made on the basis of the
percentage of the credit used by holders of
revolving cards is below a certain amount,
cardholders must pay the fixed amount. The
fixed minimum repayment is most often
$50. Sometimes the minimum could reach
$75, $100 or even $400. Banque de Syrie
et du Liban (BSL) has set a fixed amount of
$100 on the Visa Infinite card while Lebanon
and Gulf Bank (LGB Bank) requires a fixed
payment of around $400 on its UAE Dirham
card (Signature).INTEREST AND COMMISSIONS
The monthly interest rates charged on
ATM withdrawals through revolving cards
range from 1.5 percent to 2.8 percent,
according to the InfoPro survey. According
to the survey, Fransabank charges the
lowest rate, while BLOM Bank charges
the highest rates. The monthly interestREVOLVING CARDS
Most of the banks set an upper spending limit
on cardholders that can range from $5,000
to $300,000 in the case of revolving cards,
according to a survey by InfoPro Research.
Unlike charge cards, holders of revolving
cards are required to only repay a portion of
their debit balance on a monthly basis. This
amount currently ranges from three percent
to 20 percent. Some banks do not set a ceiling
on spending on some cards, such as the
Porsche Club card (USD) from the Lebanon
and Gulf Bank (LGB Bank). The spending
limit of some cards is dealt with on a case-by-
case basis, such as the MedMiles Signature
Credit Card from Bankmed and the Visa
Infinite from the Lebanese Swiss Bank (LSB).
National Bank of Kuwait-Lebanon (NBK-
Lebanon) offers the highest spending limit,
which reaches $300,000 for cash-secured
cards. Bank of Beirut (BoB) has set a ceiling
of $100,000 on its Visa Business credit card.3PURZ!*SPJR[OPZHY[PJSL»ZLU[Y`PUº;HISLVM*VU[LU[Z»VUV\Y^LIZP[L30 LEBANON OPPORTUNITIES, AUGUST 2019
Tailored
to the elite
Banks are focusing in
on high net-worth individuals
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CREDIT CARDS