What is ‘slice super card’ – PrePaid Card or Credit Card – 3 curiosities

 What is ‘slice super card’ – PrePaid Card or Credit Card – 3 curiosities

          During the last couple of days, read lots of articles on the ‘slice super card’

          The main headline was the USD27/- or INR2,000/- credit limit to tap a 200 million users market.  

          Curious, I downloaded the ‘slice super card’ App from Google Play, and went through the signup process.

          A bit surprised, that I was offered a high limit i.e middle of 5 digits, within seconds.

          The signup process involved digitally signing 3 documents i.e

Document 01) Sanction Letter

Document 02) General Terms and Conditions

Document 03) Loan Agreement

 

          This was the first time I was receiving a Loan Agreement for a credit card!!

          Again curious, started checking the Reviews of ‘slice super card’ App on Google Play store.

          Few reviews caught my attention.

          The gist of the reviews are:

Gist 01) The repayment period is 3 days, from the billing date. Normally, the repayment period for credit cards is 15 days from the billing date.

Gist 02) Users getting a message on major Fintech apps while trying to make payment of the ‘slice super card’ Billed amount – This card is not supported.

The below screenshot on CRED App highlights the issue

 

 

Again curious, focussed on ‘slice super card’ Tag Line – “India’s best credit card challenger”

And, now it was clear that ‘slice super card’ is a prepaid card with a set limit and not a credit card

This is a new feature in India, and the majority of credit card users are not familiar with the fine print.

Credit cardholders expect a 15-day repayment period from the billing date. PrePaid Credit Cards offer a different repayment period. ‘slice super card’ offers a 3 day repayment period.

Another issue is that major fintech apps do not support payment to a Debit Card Bin. A PrePaid card is allotted a debit card bin, not a credit card bin. Hence, prepaid cardholders face an error while trying to remit the billed amount through the Credit Card repayment channel.

Read more about BIN  - What is a Bank Identification Number (BIN)? @ https://www.bigcommerce.com/ecommerce-answers/what-is-a-bank-identification-number-bin/

 A  typical error is – Does not support this card

This confuses the Prepaid cardholders as they are under the assumption that they are owners of a Credit Card, not a prepaid card.

Another challenge will be the reporting to Credit Bureaus

What will be the outstanding reporting?

The sanctioned credit limit or the outstanding as on a particular date.

If the reporting is the sanctioned credit limit, a new set of problems will crop up.   

Now, have to generate my Credit Score report and see how the ‘slice super card’ limit shows up.

Quote

The four-year-old startup told Tech Crunch Slice offers a prepaid card that comes with a pre-approved credit line.

Slice wants to give a card to professionals. The credit amount gets loaded into the card and the consumer can use it for any activity. While COVID-19 initially hit business, as consumption was down, things are looking up now, founder Rajan Bajaj said.

Unquote

Disclaimer: These are my personal views only. The bottom line is: “Safe ePayments – Nothing more, Nothing less”