Black credit cards are some of the most exclusive credit cards that are on the market. They are intended as a high fee, but high service card which also gives off the aura of being in a members club. Although there’s not many of them, black debit cards are appearing as a new trend in Australia offering similar features. Let’s see how you could make one work for you.
Debit cards are generally not as marketed as extensively as credit cards and this means that there is generally not the range and breadth with debit cards as there is with credit cards. But what are black debit cards and how do they differ from their credit counterpart.
How are black debit cards are different?
Black credit cards offer a number of services for a relatively high annual fee. They are offered by all the main credit card providers but they were originally offered by American Express. They generally have higher credit limits, extensive insurance on purchases made with cards, access to concierge services and a very generous and flexible rewards program.
Designed to look like these premium credit cards, these types of debit cards have a black design and can offer extra features and benefits to their users. They are different from black credit cards, which are exclusive credit cards that require high income, spending and fees, and offer luxury perks and services. Black debit cards look similar to black credit cards, but do not have the same level of prestige or access.
Black debit cards are linked to your personal bank account, so you can only spend what you have. They do not charge interest or annual fees, unlike black credit cards, but they may have other fees or charges depending on the bank or provider you choose. Some black debit cards feature rewards programs, cashback offers, complimentary travel insurance or concierge services. Traditionally these have usually been associated with black credit cards.
Black debit cards are not as widely available as regular debit cards. You may need to meet certain eligibility criteria to apply for one, such as having a minimum balance in your account, being a loyal customer of a bank or a member of a club or organisation. Providers like Revolut may require you to pay a one-off or monthly fee to get a black debit card. To compare black debit cards in Australia you could check out the ANZ Access Black Debit Card(you have to select the black colour), the NAB Platinum Visa Debit Card and the Revolut Card.
Advantages of a black debit card
Black debit cards do not have the same level of service or benefits as black credit cards, but they still offer some advantages over regular debit cards.
Get the black status.
You’ll enjoy the appearance and status of having a black card, without paying the high annual fees or interest rates that come with black credit cards. Black debit cards are linked to your bank account, so you only spend what you have and avoid debt.
Worldwide access.
Black debit card work like regular debit cards and can be used anywhere Mastercard or Visa is accepted. This means you’ll get access to your money when you need it, wherever you need it. Keep in mind that foreign currency transaction fees may still apply.
Get debit card rewards.
Black debit cards also benefit from some features and rewards that are usually reserved for credit card holders like rewards points, complimentary insurances and other add-ons.
If you want the platinum status without the credit card bills, a black debit card could work for you. But like all things, there are some downsides.
Disadvantages of a black debit card
While they may look like their cousin in credit, black debit cards may also have some disadvantages compared to other standalone debit cards.
Higher fees.
You might get charged extra monthly account keeping fees or rewards admin fees with your black debit card. This will be to cover the costs and administration of your account.
Limited availability.
These types of cards aren’t widely available in Australia and might only be offered to those with larger than normal monthly deposits. Make sure you check the requirements of the account before opening it, just to make sure you’re eligible. The premium and metal cards from Revolut come with a monthly fee, which could eat into your savings.
Alternatives
If you are looking for a debit card that offers some of the features of a black credit card, you may want to consider comparing the following alternatives:
The Virgin Money Go Account
This debit card offers you the ability to earn Virgin Money Points that you can redeem for cashback or gift cards. This feature is similar to a black debit cards rewards earning feature. This account will also let you earn interest on your money and charges you $0 monthly fees.
Apply now at Virgin
The MyState Bank Glide Account
This debit card from MyState features no ongoing fees, including monthly fees, transaction fees and ATM withdrawals. If you deposit at least $20 a month and make 5 transactions you’ll earn up to 4.75% pa variable interest on your money too.
Apply now at MyState
Should you get a black debit card?
There are definitely pros and cons to getting a black credit card. and they have a superior level of service compared to other debit cards, They can provide access to exclusive perks, discounts and rewards programs that are not available to regular debit card holders but comes at a cost. You need to weigh up what works for you with the pros and cons of each card to help make an informed decision for your next account.
Questions & Answers for the Black debit cards