The Migros Cumulus Credit Card Successors Compared

The Migros Cumulus Mastercard is the most widely held credit card in Switzerland. But from June 30, 2022, Migros will end its partnership with Cembra Money Bank, which issued the highly-popular credit card. Existing Migros Cumulus Mastercard credit cards can continue to be used right up until their expiry dates. After that, cardholders will automatically receive Cembra Money Bank’s new credit card. Alternatively, cardholders can also obtain the new card without having to wait until their Migros Cumulus Mastercard credit cards expire. 

On June 1, 2022, Migros Cumulus cardholders will be offered two different products: The Certo Mastercard issued by Cembra Money Bank, and the Migros Cumulus credit card, which runs on the Visa network and is issued by the Migros Bank. Both of these cards have no basic annual card fees, and are therefore advertised as free credit cards.

While Cembra Money Bank will continue to issue Mastercard credit cards, Migros has chosen to go with Visa. Both Mastercard and Visa are widely accepted in many countries around the world. The only real differences between the two new cards are their costs and benefits.

“Both the new card from Cembra Money Bank and the one from Migros bring with them small to mid-sized improvements over the Migros Cumulus Mastercard,” says moneyland.ch CEO Benjamin Manz. For purchases from foreign merchants, the new Migros Cumulus credit card is cheaper than its predecessor, the Migros Cumulus Mastercard. But for purchases from Swiss merchants, using the Certo Mastercard from Cembra Money Bank can be more favorable because you are rewarded with cash back. “So moving to a new credit card is worth it,” says Manz.

Cembra Money Bank banks on cash back

The Cembra Money bank is launching two versions of its new Certo credit card: the Certo Mastercard World and the Certo One Mastercard World. The standard World card targets customers who currently use the Migros Cumulus Mastercard. The Certo One Mastercard, on the other hand, is aimed at new customers. For both of these cards, the issuer largely adopted the fees and benefits of the Migros Cumulus Mastercard. That also applies to the foreign transaction fees for purchases from foreign merchants. The biggest change is the introduction of cash back rewards.

The Migros Cumulus Mastercard which is being phased out rewarded card users with one Migros Cumulus point (worth one centime in Migros purchases) for every 3 francs charged to the card by merchants other than Migros. In Migros stores, cardholders earned only the standard points applicable to all Cumulus loyalty program members, without any additional points for using the credit card.  

The new Certo World Mastercard from Cembra Money bank rewards cardholders with one percent cash back on purchases from Migros, SBB, and Coop, and 0.33 percent cash back on other purchases.

The Certo One Mastercard version for new customers has a more attractive cash back program. Customers can select three merchants of their choice, and get rewarded with one percent cash back for purchases from those three merchants. New applicants who sign up before December, 2022 also receive a 50-franc statement credit as a welcome bonus. Important: Even if you already have the Migros Cumulus Mastercard, you can still apply for the more favorable Certo One card instead of settling for the basic Certo World card.

Migros Cumulus credit card from Migros Bank: foreign transaction fees

Migros Bank carried many of the features of the Migros Cumulus Mastercard over to its new Migros Cumulus credit card. Like the old Cumulus Mastercard, the new Migros credit card rewards you with one Cumulus point per 3 francs of spending. But as a special introductory offer, people who apply for the card right now will earn one Cumulus point for every 1 franc of purchases during the first twelve months. When you use the card for purchases from Migros in combination with the Cumulus loyalty card (or the corresponding barcode) during the introductory period, you earn a total of two Cumulus points per 1 franc of spending.

Migros is differentiating its new card by using a foreign transaction fee which is lower than that of the old Cumulus Mastercard. The new Migros Cumulus credit card does not have any foreign transaction fee at all (the old Migros Cumulus Mastercard had a 1.5 percent foreign transaction fee).

“By issuing a card with no foreign transaction fee, Migros Bank is following the lead of up-and-coming neobanks,” says Manz. This is a notable advantage over the old Cumulus credit card and over most other Swiss credit cards, even if certain neobanks are still cheaper for travelers because of their more favorable exchange rates.  

In the samples taken by moneyland.ch in 2022, Migros Bank shows an average markup of around 2 percent on currency exchange rates for purchases in euros. That is not a particularly favorable rate. But because the new Migros Cumulus credit card does not have a foreign transaction fee, it is still cheaper than most other Swiss credit cards.    

Pay attention to cash withdrawal fees

The cash advance fee of the new Certo credit cards from Cembra Money Bank are the same as those of the old Cumulus Mastercard: 3.75 percent, with minimum fees of 5 francs per withdrawal at Swiss ATMs and 10 francs per withdrawal at foreign ATMs. The new Cumulus credit card from Migros Bank is slightly cheaper for cash withdrawals, with a 2.5 percent fee and minimum fees of 5 and 10 francs for withdrawals in Switzerland and abroad respectively. The new Migros Cumulus credit card also lets you make two cash withdrawals outside of Switzerland free of charge every year. “The fee-free foreign cash withdrawals included are a nice bonus,” says Manz. “But cardholders should avoid making more than two cash withdrawals at foreign ATMs per year, because even with the new Migros credit card, additional cash advances are still expensive.” You should use a debit card to get cash instead.

Like the old Migros Cumulus Mastercard, the new Cumulus credit card from Migros Bank lets you make cash withdrawals free of charge at the tills of Migros supermarkets. That is not possible with the Certo credit cards from Cembra Money Bank.

Who will take the lead?

Both Cembra Money Bank and Migros Bank will try to convert as many existing Migros Cumulus Mastercard users over to their new card. Migros Bank has a clear advantage for making purchases from foreign merchants, while Cembra Money Bank has more attractive rewards for spending. “But ultimately, the way both banks market their new credit card products will be a key factor in determining how many cardholders they attract,” says Manz. The strength of the Migros brand gives Migros Bank an advantage in this regard.

More on this topic:
Interactive Swiss credit card comparison
New Certo credit card
New Cumulus credit card