Payment card and store credit card

Verified 31 October 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Do you usually shop in the same shops? Maybe you can benefit from their private cards. They're payment and credit cards usable in the shops of these brands. These cards allow you to pay for your purchases cash or creditand to benefit fromloyalty benefits. We present the applicable rules.

One private card is a credit and debit card issued by a store to its customers.

This card allows you to pay for your purchases in the shops of the brand that gave it to you, and sometimes withdraw money from cash machines.

Purchase and withdrawal operations may be carried out at cash or credit.

The mention credit card must be indicated in legible characters on the front of the card.

Please note

the private card is typically used as a loyalty card and can allow you to take advantage of the benefits of traditional loyalty cards.

The private payment card is issued by retail outlets (supermarkets, department stores, online shops...), in partnership with a bank or a credit institution.

Each distributor has its own card model and its own conditions of issue.

Nevertheless, all signs must respect the same rules granting and managing private cards.

Solvency check

The brand that offers you a private card must examine your creditworthiness based on your income and expenses (other credits being repaid).

The bank or credit institution that is a partner of the brand must check the credit refund incidents file if you have not had payment incidents before.

Preliminary information

If the brand agrees to issue you the card, it must be inform before the contract is signed of conditions for granting the card, and in particular the conditions for using the credit.

The sign must give you a pre-contractual information sheet which presents the essential characteristics of credit and risks which you may incur in case of delay payment.

This should allow you to determine if the contract proposed credit is tailored to your needs and financial situation.

Signature of a contract

After informing you of the terms of use of the card and credit, the brand must give you a contract offer in writing.

The tender must specify the essential elements of the contract, in particular the following:

  • Nature of the credit linked to the use of the card (free credit, depreciable credit and/or revolving credit)
  • Interest rate used (variable or fixed)
  • Maximum amount of credit granted

You have a deadline of 15 calendar days to sign the offer and return it to the financial institution.

Once you sign the offer, the contract is not yet finalized.

For the contract to be finalized, the lender must confirm his decision to grant you the loan within 7 calendar daysand you waive your right of withdrawal

The terms of the contract are then fixed once and for all, regardless of the number of purchases you make with the card.

Please note

if the amount of the revolving credit is greater than €1,000, the lender must also offer you a depreciable credit.

Private Card Cost

The brand can also charge you for application fee at the time the card is issued, and sometimes cost of holding the card. These card fees may be charged periodically, monthly or annually.

Using the card for credit may result in billing of interest.

If you subscribe to a assurance borrower, the amount of insurance will also be added to the interest and application costs. Insurance is optional and you don't have to take it.

Withdrawal period

You have a deadline of 14 calendar days from the date of signature of the contract for retract.

To do this, it is sufficient to return the withdrawal note (attached to the contract offer), dated and signed, by registered letter with acknowledgement of receipt, to the lending institution.

You can also use this template.

Withdrawal of consumer credit

If you use your right of withdrawal, you lose your card.

You can use the right of withdrawal only once, at the time of the issuance of the card and not for each purchase.

The private payment card allows you to pay only for your purchases made in the chain's or network's stores.

It allows you to choose how you want to pay for your purchases, among the following options:

  • Cash payment, you pay in one go
  • Payment in installments free of charge, with a free credit
  • Settlement with a depreciable credit
  • Settlement with a revolving credit.

FYI  

cash payment should be the preferred method of payment when using credit cards.

Cash payment

When using the card, you can choose to pay for your purchases in cash.

In this case, the amount of the purchase will be charged in one go to your bank account, with an immediate debit or a deferred debit according to what is foreseen in your contract.

The operation of the card is then the same as that of a standard credit card.

Payment on credit

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Free credit or "many times free"

When using the card, you can choose to pay for your purchases in several times free of charge, via a free credit.

In this case, the amount of the purchase will be deducted in several monthly installments from your bank account.

The total monthly payments will correspond to the amount of the purchase.

Depreciable credit

When using the card, you can choose to pay for your purchases via a depreciable credit.

This is a credit with interest and charges (personal loan or earmarked credit).

If you opt for the depreciable credit, the amount of the purchase will be deducted in several monthly installments from your bank account.

The total monthly payments will be higher than the amount of the purchases, because there will be interest and, sometimes, the application fees and insurance costs if you have decided to insure yourself.

Revolving credit

You can choose to use a revolving credit.

You then use some or all of the reserve of money made available to you when you assign the card.

You will have to gradually repay this credit (interest and capital), to replenish your reserve as you go.

You can reuse this reserve as you see fit, within the limits of your contract.

FYI  

the interest rate on revolving credit is higher than that on depreciable credit.

The duration of the contract shall be laid down in the tender.

It is usually 1 year.

The brand can offer you each year to renew the contract, but it must first consult the file of incidents of repayment of credits.

In addition, the lender must check your creditworthiness every 3 years, as when granting the credit.

If you do not wish to renew your contract, you can request its termination at any time.

You must send a registered letter with acknowledgement of receipt to the brand or its financial partner.

You can use the following template:

Terminate a credit card agreement

You must attach your card with your mail.

The brand can also terminate the contract for a reason set out in the contract, for example when you have refund problems.

Regardless of the reason for termination of the contract, you will have to refund the amounts spent with the card.

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