Here you can request the IKEA credit card free of charge
The Swedish furniture giant is now offering a free credit card for consumers in Switzerland.
1. Is the IKEA Family credit card only for families?
No. The card’s somewhat confusing name is based on the Ikea Family loyalty program from IKEA. This loyalty program is available to singles as well.
2. Does the IKEA Family credit card reward me for purchases?
Yes. You earn one IKEA point for every one Swiss franc you spend with the card. Every 500 IKEA points you earn is redeemed for a 5-franc IKEA gift card. So you earn the equivalent of one franc for every 100 Swiss francs spent.
Your accumulated points are shown on your monthly card statements. Gift cards you earn are sent to you (quarterly) along with your credit card statements. You can earn a maximum of 18 gift cards per quarter, each with a value of 5 francs. If points earned in one quarter exceed the maximum permissible gift card value, the balance of your points is carried over to the next quarter.
Important: The IKEA gift cards expire after 6 months! That is a disadvantage over other credit card reward programs. Cardholders must make sure to redeem IKEA vouchers before they expire.
Tip: You have to shop at merchants other than IKEA Switzerland to earn extra points. For purchases from IKEA, you come out better using a different rewards credit card to earn different rewards or cashback.
As with other Swiss credit cards, you do not earn rewards on cash advances, card fees, card interest charges and purchases from lotteries and casinos which are charged to the card.
3. Is there more than one version of the IKEA Family credit card?
Like the Migros Cumulus Mastercard, the IKEA Family credit card comes in two versions. The first version uses standard IKEA card art, and the second version can be issued with card art of your choice. You pay a one-time fee of 30 francs for the personalized version.
The IKEA credit card is only offered as a Mastercard. There is no Visa version.
4. Can I use the IKEA credit card for mobile payments?
Yes. The IKEA credit card from Cembra Money Bank is compatible with Apple Pay, Samsung pay, Garmin Pay, Fitbit Pay, and Swatch Pay.
5. Is the IKEA Family credit card free?
The IKEA credit card is a no-annual-fee credit card. If you make your credit card payments in full and on time, and only use the card for purchases from Swiss merchants, you do not pay any fees.
But there are incidental fees which you may pay if you: use the card to pay at casinos or to buy certain lottery tickets (more information here); make purchases from foreign merchants; make cash withdrawals; carry card balances over past the end of the month. As you can see, whether or not the IKEA Family credit cards is completely free or relatively expensive depends on how you use it.
6. How high are the annual card fees?
The IKEA Family credit card does not have an annual fee – neither for the first year nor for any additional years. Both the main card and a possible supplementary card have no annual fees.
7. How high are the foreign transaction fees?
When you make purchases from foreign merchants, you pay a foreign transaction fee equal to 1.5% of the transaction. On top of that, you also pay Cembra Money Bank’s markups on currency exchange rates.
The 1.5% foreign transaction fee also applies to purchases from foreign merchants which are charged in Swiss francs. You pay this fee when you shop at online stores operated by foreign merchants as well.
8. How much do cash withdrawals cost?
When you use the IKEA Family credit card to get cash advances at Swiss ATMs, you pay a fee equal to 3.75% of the transaction, with a minimum fee of 5 francs per withdrawal. Outside of Switzerland, you pay 3.75% with a minimum fee of 10 francs per withdrawal.
Most Swiss credit cards have high cash advance fees.
Tip: Do not use the IKEA Family credit card to get cash. Instead, withdraw money from your bank account using a debit card.
9. How high is the interest rate?
The effective annual interest rate for interest charged to you when you carry negative balances carried past the due date is 11.95%. That is just shy of the 12% legal limit for credit card interest in Switzerland. But a lower interest rate of 7.95% applies to purchases from IKEA.
As a special introductory offer, people who apply for the card before July 4, 2021 do not have to pay interest on purchases from IKEA for the first 3 months.
Important: Carrying balances on credit cards is generally not recommended because credit card interest rates are high. Make sure to pay your credit card bills in full by the due date whenever possible.
10. Are there any other fees?
Yes. These incidental fees apply in addition to those covered above:
- Replacement cards: 20 francs each.
- PIN inquiries: 20 francs each.
- Late-payment reminders: 30 francs each.
- Physical monthly credit card statements: 1.95 francs per statement.
- Bill payments via postal inpayment slip: 2.50 francs per payment.
11. Are there complimentary insurance benefits?
The card comes with complimentary travel insurance coverages and purchase protection. Numerous exclusions apply, including a specific exclusion for incidents resulting from COVID-19. With the exception of purchase protection, the insurances only apply when you travel. The insurances are underwritten by Chubb. As is typical for credit card insurance perks, coverage only applies if trips or goods are purchased using the IKEA Family credit card. These insurances come as complimentary benefits with the IKEA credit card, and are free of charge.
These complimentary insurance coverages come with the IKEA Family credit card:
- Emergency medical evacuation: Up to 50,000 Swiss francs towards medical transportation and repatriation.
- Search and rescue: Up to 60,000 Swiss francs towards search and rescue operations.
- Travel and luggage delays: Up to 300 Swiss francs towards unexpected costs arising from trip delays or cancellations, and up to 450 francs towards costs arising from luggage delays.
- Purchase protection: Up to 1000 francs towards the repair or replacement of goods in the event of accidental damage or theft within 90 days of purchase.
Important: The complimentary insurance coverages provided by this card are useful. But you do not get trip cancellation and interruption insurance which cover losses when you are forced to cancel or interrupt a trip. For this reason, the card does not replace a full travel insurance.
12. Which bank issues the IKEA Family credit card?
The card issuer is Cembra Money Bank, which specializes in loans and credit cards. Cembra Money Bank also issues the no-annual-fee Migros Cumulus Mastercard for Migros.
13. What terms and conditions apply to the IKEA credit card?
IKEA Family loyalty program membership is required. Membership is free of charge. You must also meet creditworthiness requirements to be approved for the credit card.
14. How does the IKEA credit card compare to other Swiss credit cards?
In terms of fees and charges, the IKEA credit card is similar to other Swiss no-annual-fee credit cards.
The IKEA Family credit card gives you rewards equal to 1 percent of your spending, which is more than you earn with the Migros Cumulus Mastercard or the Coop Supercard credit card. But most consumers in Switzerland will likely shop at Migros and Coop more often than at IKEA. Also, IKEA points can only be redeemed for IKEA vouchers, and these expire after 6 months.
The Cashback credit cards from Swisscard also have no annual fee, but have an advantage over loyalty points credit cards because you earn cash back as a statement credit which you can spend on anything.
An advantage of the IKEA Family credit card is that it comes with complimentary insurance benefits which are normally only found on paid credit cards. These insurances can save you money.
15. How does the IKEA Family credit card compare to cards from neobanks?
Cards from neobanks like Neon, Wise and Revolut have much more favorable currency exchange rates and foreign transaction fees. As such, they are a good choice for making purchases from foreign merchants.
But for shopping in Switzerland, using the IKEA Family or another no-annual-fee Swiss credit card is a better financial move. The reason for this is that you earn reward points which can save you money. At the same time, you do not pay any fees for local purchases. The no-annual-fee cards from neobanks, on the other hand, generally do not reward you for purchases.
More on this topic:
Here you can request the IKEA credit card free of charge
Compare Swiss credit cards with the interactive comparison
