Credit card

What is a credit card and how does it work?

A credit card combines a payment card, a line of credit, and various benefits and supplementary services, such as insurance. When you make credit card payments, you actually do not use your own money – you use the bank’s line of credit.

By using a credit card, you can benefit from an interest-free period (or grace period) of up to 45 days – no other consumer loan can match that. If you repay the whole outstanding balance within the relevant grace period, you will not pay any interest at all. You can also pay it back gradually; in such case, we will charge you interest based on your interest rate.

With various supplementary services, a credit card can be quite useful at home and away from home. For example, you can use free locksmith services, if you find yourself locked out of your house, or travel without worries with complimentary travel insurance with your card. You can also benefit from various discounts of as much as 50% at designated merchants or contribute to your supplementary pension insurance by simply using your card.

A credit card has Internet and POS payments written all over it. It can also be used for cash withdrawals, but you should actually limit those. There may be fees associated with ATM withdrawals when using some types of credit cards.

Moreover, a credit card is also great as a primary card for hotel reservations or car and boat rentals. Since the bank provides a line of credit with your credit card, it guarantees that you are a credible and creditworthy client.

Why is it useful to have a credit card?

  1. You will appreciate it at home and away from home with its wide range of supplementary services.
  2. It is a great help when you wish to keep your finances separate and keep track of your monthly household spending, for example.
  3. A credit card may also be of help, if you need to replace a home appliance. You can purchase it right away, without the need to deal with hire purchase arrangements.
  4. There is no other consumer loan you could use free of interest for up to 45 days.

What are the benefits of credit cards?

KB credit cards offer many different advantages and benefits, depending on the card type you choose. Here are some examples of benefits available with credit cards:

  • 1% contribution of credit card payments to supplementary pension insurance – up to CZK 500 a month
  • Discounts of as much as 50% in stores and online in more than 10,000 stores throughout the Czech Republic and Slovakia
  • Insurance for purchased goods and services (e.g. warranty extended by 1 year, online shopping insurance or low price guarantee)
  • Handbag insurance (incl. the handbag contents) for the event of burglary
  • Home Assistance (e.g. in the event of household emergencies – locksmith services, plumbing and painting) and Lifestyle Assistance (e.g. ticket or hotel reservations, home delivery services)
  • Payment protection insurance
  • Airport lounge access 
  • Grace period of up to 45 days – also for cash withdrawals
  • Automatic payment of the full balance during a grace period (available)
  • Low minimum monthly payments
  • Simple control and settings using Internet or mobile banking applications
  • Instant changes of credit card parameters (e.g. enable payments on the Internet or increase payment limit)

Is credit card a loan?

Yes, from a contractual perspective. However, if you repay your balance during a grace period, you will not pay any interest at all.

 

Where can I use a credit card?

A credit card may be used as any other payment card – i.e. to make payments in stores or on the Internet and to make cash withdrawals anywhere in the world. You can simply use it anywhere you see your card’s logo (Mastercard or Visa).

Moreover, you can make a hotel or car reservation with a credit card. Some car rental services or hotels do not accept debit card reservations.

Can a credit card be used for cash withdrawals?

Yes, it is possible to make cash withdrawals and transfer funds from a credit card to any current account. 

However, it is primarily intended for shopping. This is why cash withdrawals and transfers are usually subject to a fee.

One of the benefits of KB credit cards is also the fact that a grace period also applies to cash withdrawals and transfers. Some banks charge interest on these transactions from their date.

Are credit card payments secure?

Yes, credit card payments are absolutely secure. However, you should always be cautious and follow safety and security rules when using credit cards. In case of payments on the Internet, we advise you to use online stores that support the 3D Secure technology. These stores feature the following logos:

You may also encounter previous versions of the logos.

If your card is used without authorisation, the bank guarantees a refund.

Moreover, your own money is never at risk with a credit card, since you use a line of credit provided by the bank.

Can I also make large purchases with a credit card?

Yes. You can use a credit card to make large purchases and then spread the relevant payments over a longer period of time. In order to maximise the benefits of your credit card, we advise you to pay large purchases off in no more than ten instalments.

Credit card at home

  • Payment during a grace period – If you repay the full balance of your last billing by the 20th day of the month, you can benefit from a grace period and will not pay any interest.
  • Mandatory minimum payment – If you fail to pay your credit card off during a grace period, you have to pay at least the minimum payment each month (from the 21st to the 25th of each month) in the amount of 3% of your outstanding amount plus interest. You do not have to worry about the payment – we will automatically debit it from your current account.
  • Unscheduled payments – You can make a payment on your balance at any time – in any amount. Unscheduled payments will automatically increase the disposable balance of your credit card. However, it does not relieve you of the obligation to make the minimum payment – such payment will always be due.

The amount due for the purpose of a grace period and the minimum monthly payment (incl. their due dates) are shown in a credit card statement sent on the 5th of each month.

In the course of a grace period, you can pay your credit card off in two ways:

  • In your Internet banking or mobile app, click the “Grace period” button to make a payment right away.
  • Scan the QR code from your credit card statement and confirm the payment with the information that is prefilled.

If you wish to make an unscheduled payment, simply submit a payment order to a credit card account shown in your credit card statement.

If you wish to only make a minimum payment, you do not have to worry about anything – we will debit it from your current account. You only have to make sure that your current account balance is sufficient as of the 25th of each month.

A standing order is not really suitable, because you never know what your final monthly balance will be.

However, you can activate an automatic payment during a grace period. Therefore, you do not have to worry about anything – we will make a direct debit for you. Your credit card expenses will thus always be paid on time and free of interest. It is possible to activate an automatic payment during the credit card application process or at any time thereafter at KB branches. There may be some fees associated with this service for some types of credit cards.

All information regarding your transaction history, grace period, and repayment can be found in your credit card statement. Individual transactions are also shown in the transaction history in your Internet or mobile banking.

A grace period (interest free period) is a period, during which you can repay the full balance of your credit card free of interest. You can thus use the line of credit provided by your bank free of charge. The card balance must be repaid by the 20th of each month during the grace period. KB offers a grace period of up to 45 days.

If you fail to repay your credit card balance during a grace period, we will charge the so-called minimum monthly payment that amounts to 3% of the card balance (principal) plus accrued interest. This amount is usually settled automatically if you have an account in KB or on the basis of a direct debit mandate if you have an account in another bank. A minimum monthly payment is charged on the 25th of each month.

Yes, you can make an unscheduled payment at any time – in any amount. Unscheduled payments will automatically increase the disposable balance of your credit card. It may also affect the amount for a grace period or minimum payment – depending on the day it is received by the bank.

Yes, you can. The automatic payment service makes sure that your credit card is paid off during a grace period, so you do not have to worry about anything. It is possible to activate an automatic payment during the credit card application process or at any time thereafter at KB branches. There may be some fees associated with this service for some types of credit cards.

If you have an insurance claim, contact AXA Assistance (assistance company) at (+420) 272 10 10 33. 

If you have an insurance claim, contact AXA Assistance (assistance company) at (+420) 272 10 10 30.

If your card is lost or stolen or if you suspect fraudulent use of your card, contact the KB Card Customer Service at (+420) 955 512 230 right away (available 24/7).

If you are a KB client, you can simply apply for a credit card using your MojeBanka Internet banking or Mobilní banka app. If you are not a KB client yet, we will be happy to assist you at any KB branch. You must be at least 18 years of age and be a Czech citizen or have a permanent residence or residence permit in the Czech Republic. To process your application, you will need a valid ID card.

You can get two supplementary credit card with your primary credit card – one for yourself and one for someone else. If you are a KB client, you can simply take care of everything using your MojeBanka Internet banking or Mobilní banka app. If you are not a KB client yet, we will be happy to assist you at any KB branch. You must be at least 18 years of age and be a Czech citizen or have a permanent residence or residence permit in the Czech Republic. To process your application, you will need a valid ID card.

Did not find an answer?

KB Card Customer Service 
Tel.: +420 955 512 230
E-mail: klientska_linka@kb.cz

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