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Supplementary Card

Updated on October 4, 2023

A “Supplementary Card,” also known as an “Add-on Card” or “Secondary Card,” is an additional credit card that is issued to a family member or loved one by the primary cardholder. This card is linked to the same credit card account as the primary card but allows the supplementary cardholder to make purchases and transactions using the primary cardholder’s credit limit.

Features of Supplementary Card

Linked to Primary Card – A Supplementary Card is connected to the main cardholder’s credit card account, and all its transactions are listed on the main cardholder’s monthly statement.

Shared Credit Limit – The credit limit for the supplementary card is the same as that of the main cardholder. For example, if the main card’s limit is ₹50,000, the supplementary cardholder also has access to Rs.50,000.

Authorized User – A supplementary cardholder is allowed to make purchases with the card like the primary cardholder but isn’t accountable for repaying the credit card debt.

Convenience and Accessibility – Supplementary cards are given to family members for easy access to funds, making them useful, for example, for parents providing their children with emergency spending capabilities while they are away.

Monitoring Spending – All transactions made using the supplementary card are combined on the primary cardholder’s statement, facilitating oversight.

Controlled Spending – The main cardholder maintains control over the account, including the ability to set spending limits, oversee transactions, and potentially suspend or cancel the supplementary card.

Shared Rewards – If rewards or cashback are offered, the supplementary cardholder can also earn these perks on their transactions.

Joint Responsibility – While the supplementary cardholder isn’t directly responsible for repaying the credit card debt, it’s crucial for both parties to have a clear understanding of card usage and financial arrangements.

Potential Fees – Some credit card issuers may impose an extra charge for issuing a supplementary card, so it’s important to inquire about any potential fees beforehand.

Helpful for Budgeting – Supplementary cards can aid in family budgeting, permitting the primary cardholder to allocate funds for specific needs or unforeseen expenses.