What Are Add-on Cards?

If you are a credit card holder, you can issue a supplementary card to your spouse or any blood relative above 18 years of age.

They could be your father, mother, brother, sister, wife / husband and children.

By default the add-on card has the same credit limit as assigned to the primary card. Any transaction done through the add-on is to be repayed by the primary card holder.

This is so, because the add-on card has been issued under the guarantee and eligibility of the primary card holder.

Limit the Credit

As mentioned above, both the parties share the same amount. That is, if you have a credit limit of Rs.30, 000, then your add-on member can spend any amount within that amount.

You, as a guarantor, can also preset the credit limit of the add-on card. If your credit limit is Rs.80,000, you can set the add-on card limit to Rs.40,000. Any transactions over this specified limit will be declined.

However, there is an exception to the rule! ICICI bank has a facility to raise the add-on card member's credit limit over that of the primary card holder. This facility is provided only if the add-on card member is earning as well.

Add-on Benefits

Every other benefit that you enjoy on your primary card is enjoyed by the add-on member too. For example, if your card gives you the privilege of cash back offer or discounts at certain places, free entry's or reward points, then the same is applicable to the add-on member.

The validity period is same as that of primary card. But it can be cancelled by the bank if you as a primary card holder consistently fail to repay. A chronic case of non-repayment could also lead to the cancellation of your primary card.

Card Count

The number of add-on cards issued differs from bank to bank. A minimum of one card is standard for all banks while the maximum can go upto five cards. For example, Standard Chartered bank issues a maximum of five add-on cards on your primary card whereas ICICI bank issues a maximum of two add-on cards.

Fee Structure

The annual fee for add-on cards differ from bank to bank and card to card. Certain banks charge an additional joining fee along with the annual fee.

In most banks the annual fee range anywhere between Rs.150 to Rs.1,000 plus service tax.

Incase of theft or loss of add-on card, a replacement will be provided for a nominal fee. For this, some banks charge Rs.100, whereas others charge Rs.200 plus service tax.

Before you Sign the Dotted Line…

Consider the following factors in mind:

• Read the fine print carefully! If you are unclear on any point, clarify with the bank authorities or your financial advisor.
• Double check to see there are no hidden costs. These costs don't surface until you complete a year as a card holder.
• Be honest about your financial status. You don't want to bite more than you can chew!
• Exercise caution and play your cards well, literally!

An add-on card must be used responsibly. So before you issue one to your family member, lay down some ground rules. Ultimately, you don't want to spend more than what you bargained for!

(With inputs from Vidya Monde, ICICI Branch Manager, Mumbai)