Is it possible that overdrafts and salary cards are going to lose their popularity after credit cards return?

Aleksandr Drozd, Head of the JSB “Kyivska Rus” business with payment cards department.

I would not put direct correlation between renewal of crediting cards distribution and overdrafts. Despite the fact that both of these products are credit products they have different purposes and function. First of all overdraft is a short term credit and it should be fully repaid within the period agreed by the contract (usually it is one month). Credit card, on contrary, presupposes long term credit line for card account, and according to the conditions of agreement the debt is not repaid monthly but only at the end of the contract or is partially repaid (10-15% of credit amount) but than this money is available again. Secondly, overdraft interests are charged at the end of overdraft period (month) while credit line might have grace period (usually up to 2 month) and during this period credit interests are not allocated. Moreover, overdraft usually presupposes cash withdrawal while credit line is more often used for card payments for goods and services and usually banks “encourage” not to use credit cards for money withdrawal while setting high interests (up to 5% of the amount withdrawn) and so on. We only focused on the basic, most common differences, while still there are may others.