How to deal when your retail store card switches banks?
Even if you are working with a store card with whom you have been working since a long time switches to a new bank that offer it attracting discounts, then don’t live with the illusion that it would be just perfect for you.
Rather stretch your awareness a little bit and look for better options that can provide you long term benefits.
How the stuff works?
Most of the store cards are backed by the banks which manages all the payments, and all financial transactions. Most retailers have an agreement with the bank for earnings and even sharing the losses that occur through the debit cards.
This obviously benefits the retailers and the issuing banks. But what about the cardholders?
The deal is renegotiated with the cardholders when it comes to change in the banks. Initially the new banks may show that they are fully adjustable to your accounts’ terms. But gradually you may face financial issues due to altogether different polices of the new bank.
Following are some of the changes that are generally caused by a new bank.
- You will be issued a new card carrying a different account number, and obviously a different expiration date.
How to tackle the change?
You should make list for all the merchants in case you are using a co-branded card to make payments. Register a co-branded store card for paying frequent bills as this can heighten up the reward value of the card. In case you forget to switch to a new account it can even lead to bad credit card report.
- Once the bank is changed you will have to adjust to new service terms. If your retailer doesn’t keeps a good control then probably you may or may not be able to enjoy various monthly perks.
How to tackle the change?
See all this depends upon bank to bank. Your new bank may provide better services than the previous one. Like your new bank may be more particular about the late payments if being made and your old bank was lenient for the same. So, it depends upon your comfort level with the banks’ terms and conditions.
- The new bank’s terms may sell off your account even without your consent because it is valid to do so as per a successor clause for credit card agreements.
How to tackle the change?
For this you can confirm the section that deals with dispute resolution agreements and find out the way to opt out of mandatory arbitration for disputes. You can even choose to opt for the mandatory arbitration agreement by writing a simple opt out letter to the bank.
- The new bank may have entirely different financing terms as compared to your previous banks. It may have more fees, reduced credit limit or higher interest rates.
How to tackle the change?
The bank may provide you with 45 days of notice period to accept all the changes made by them. If you seem to fit to the bank changes then certainly you can adapt to it else choose to opt out.
