Tailored to the elite
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The 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.
REVOLVING 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-bycase basis,
