Cash dollar/Rebates?

  • For most of the credit card in HK we got cash dollors/rebate for what we paid.
    Neat is a prepaid card, should able to give more rebate/points back to customer since there is no credit risk for neat?

  • Thanks for your suggestion. Actually the credit card companies mainly make money by the fact that people do not pay back their card in time and given the high interest they can make a lot of money by this. HK has high rewards compared to other markets, but also one of the highest interests, which is why the credit card companies can afford it. Moreover, the interchange fee - the fee that merchants pay whenever someone uses a card - is higher for credit cards than debit or prepaid cards.

    Given our current model we may not be able to do general cash back, but once we get more users we definitely plan to partner up with merchants that want to target our customer segment and we can then provide more loyalty points, offers and discounts to our users. What shops or services would you be most interested in getting offers or discounts from?

  • Thanks for explaining. I thought prepaid card is no difference from a credit card with zero credit limit.. Seems I'm wrong :)

    As I plan to give this card to my domestic helper. My biggest interest would be suparmarts like parknshop or wellcome, where usually I can get around 1~2% back when using a credit card. I don't want to give helper my credit card for obvious reason. That's why I decide to try neat.

  • @ming From what I heard, basically if you pay with a credit card at Wellcome, then Wellcome has to give back about 2% or more of the transaction to the bank. With debit cards, the merchant will only give to the bank something like 0.5% (rough figure), so obviously the bank (or Neat) can't give you 2% in cash rebates.

    From my personal experience, I noticed that I earn maybe 100 HKD in cash dollars per month (0.4%), but have to spend 500-900 HKD on finance charges and other fees. So the credit card is really not worth it and the cash dollars don't compensate for the lost money.

  • @Anton I know wellcome would pay more if I'm using credit card. But wellcome won't give any discount to me anyway even I'm paying with debit card or cash. So the bank charges doesn't mean anything to me.

    As Neat card paying through master channel, I hope neat can charge wellcome as other credit card and pay me 1% back :)

  • @ming we wish we could charge the shops whatever we wanted 😉
    But unfortunately it doesn't work like that. Basically there is a standard rate for all credit cards in HK (higher) and a standard rate for all debit/prepaid cards (lower). This is not negotiable and are set rates.

    It doesn't mean we could never give our users discounts or offers and we certainly realize that this is very important for HK market, but we'd need the merchant to pay for (most of) it and see it as their marketing costs.

    For example, if our users are high-spenders in travel category and we have strong data to back this up, we can talk to players in that industry and pick one to do an exclusive partnership with whereby the merchants gives our users discount. In return, we can promote this partnership and because our users get discount they're more likely to buy from them vs. a competitor.

    We are definitely planning on this and actually are already talking to some SMEs / startups. Once we get more users we'd also aim to work with more major retailers, but of course we need to be of a certain size to make the partnership worthwhile to them (so spread the word ;D).

  • Hmm I know it's not decided by Neat the percentage u charge.
    But why not giving out credit card with 0 credit instead of prepaid card...?

  • @iris_neat said in Cash dollar/Rebates?:

    we can talk to players in that industry and pick one to do an exclusive partnership with

    Yes please, do AirAsia or HKExpress when Neat has more users! I remember HKExpress had a promo with Uber, so I assume they are open to partnerships.

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