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Why do banks give cashback| credit card purchases?

Many of us think why these banks give huge offers and discounts on cards, what did they gain?

The company advertises on the newspaper, on social media, and on Tv. On Tv, it costs up to 20 to 25 lakhs, and even more depends on channel TRP and the program playing on it. Same as in papers, banners and flexors also cost more.

Example: HDFC bank, it advertises by Popular celebrities, it costs in crores.

Misreading of investing a huge amount of money they make a contract with mobile companies. Whenever the mobile company launches its new phone they set a deal like buying a phone of them using card offers discount.

Whenever a phone advertisement comes on TV bank’s logo and cashback should be highlighted.
So at a time advertisement of phone and time are done.
In this way, they become popular so the banks are interested in giving cashback and instant discounts.

Instant cashback and discounts are given more on credit cards rather than debit cards including on no-cost EMI.

Why do banks give credit cards by huge offers and cashback?

Example: The offers on ICICI bank and HDFC banks are more compared to other banks’ cards. To claim offers the users generally shift from other bank cards to ICICI bank and HDFC banks.
So in this way, they get users.

How did banks gain?

After habituating to credit cards with extending cash limit. The users generally buy expensive things which are more than their monthly salaries and some users buy in EMI schemes.

When the users don’t pay EMIs regularly the banks take double interest.
So credit cards are especially for those who are unable to pay in time. So that the banks can tax the double interest.


For Advertisement, it costs less price so they give instant cashback and offers on Credit cards.

Posted in Latest technology

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