The deal means that the customers holding credit cards with various institutions could avoid rates of up to 46.3 per cent, according to the Bank of Jamaica statistics, by switching to the CIBC Visa credit card.
Currently, credit card payments provide one of the highest returns on loans for commercial banks, with additional revenue stemming from charges for late payments. CIBC is now encouraging customers of other financial institutions with Visa credit card to switch from their current banking partner to capitalise on the waiving of interest rates on existing credit cards balances. Customers can also switch their balances to the CIBC credit card.
Associate Director of Card Services Jennifer Fuller noted that the offer comes at a great time for persons looking to travel for the summer.
“From here on, we know people are travelling for the summer, looking to outfit their kids for school after that; then we get into the busy holiday period.”
CIBC added that customers will also benefit from free balance transfer; a payment holiday for the first month after the balance transfer, a waiver of the first year’s annual fee and a welcome bonus of 5,000 reward points.
“Customers can redeem those points through the bank’s superior rewards programme which offers them more reward choices, more security and more savings,” CIBC stated.
The bank has reported that the new initiative is expected to support its strategy for card sales and usage growth as pivotal themes and to increase its market share through the acquisition of new clients.
“So this is the perfect time for us to put money back into the pockets of customers who choose a CIBC FirstCaribbean credit card. We’re excited to partner with Visa, the leading global payments network, to make available this market-leading offer,” CIBC said.