It's a good time for Kazakhstan consumers and, in particular, Kazakhstan credit cardholders. The first cashback credit card appeared on the Kazakhstan credit card market (Blue from American Express by Kazkom). Cashback is a foreign word for Kazakhstan and when literally translated means "money back". The service is unknown to many of our customers, though in my opinion, the existence of cashback cards is a good indicator of development of the retail bank market. Out of interest, check how many cashback cards there are in Russia. In the western countries, cashback cards have long since taken a strong position in the market, wallets and hearts of their holders.
I must say - I too am a cashback cardholder. My friend showed it to me, she was preparing for a major purchase and issued the card specifically for this purchase, to get the maximum possible cashback. I immediately applied for the card. For me, as a consumer, a cashback credit card is better than cash. Because when you spend with cash, you don't normally get any cash back.
Cashback works differently in different countries - its amount usually ranges from 1% to 5%, cashback can be flat when you earn same rate on all spend (other than fees and cash withdrawals), and tiered, when you earn different rates at different merchants and/ or in different categories of merchants. For example, flat cashback is when you get 1% on all transactions (other than specified above), tiered - 1% at gas stations, 2% at restaurants, 3% in supermarkets, etc.
По моей карте начисляется однородный cashback - первые 3 месяца начисляются 5% (в качестве специального предложения), потом 1%. Специальное предложение очень удобно, потому что можно открыть карту, если планируешь крупную покупку. Получается своего рода скидка. Cashback выплачивается обычно в конце года (с момента открытия карты), каждый год в зависимости от суммы совершенных операций по карте. Конечно, если кредит по карте выплачивать вовремя.
I have a flat cashback card - I get 5% cashback in the first 3 months (as a promotional offer), then 1%. Special offer is very convenient because you can issue the card when you plan a big purchase. It works like a discount. Cashback is paid usually at the end of the year (from the date of card issue), each year, depending on the amount of transactions made with the card. Of course, only if you pay your card off on time.
First, the mechanism of cashback seems difficult, and it seems that it is impossible to save enough. Then you get into it. We spend anyway - to pay the bills, buy groceries, clothing, etc. The question is if you want to spend with cash or card which returns up to 5% back? The trick hence is to charge as many everyday expenses as possible to the card. You will find out that your cash spend is not so little. Cashback will grow, you will be checking lovingly its growing amount each time you check your card account transactions in the online bank. When the amount of cashback I accumulated turned into a three digit number (my card is in foreign currency), towards the end of the year, it was a nice feeling. Even nicer was to get this cashback when it was credited to my card. A gift of sorts (I issued the card for the spring holidays). It's nice that my bank returns me money.
And this is key for me. How many banks in Kazakhstan are ready to give something back to their customers? I think that any bank that appreciates their customers should, how should I put this, share. In the form of additional benefits and services on the card, discounts, promotions and cashback. For me, it is a factor when evaluating the bank which card I am a holder of. Especially in post crisis time, when you constantly think how you can save. Please note there is no contradiction here - the essence of a cashback card is not to spend more but spend smarter, i.e. charge as many everyday expenses as possible on the card, and make everyday purchases with it.
I wonder how many cardholders already have the card in Kazakhstan? If you're one of them, I hope you are lovingly growing your cashback ;) As they say abroad, every little helps.