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Pointing out the obvious perhaps, but with multiple IB accounts, you can do an internal transfer of whatever smaller amount you wish to the account with the debit card, then go shopping or to the ATM.
One does not need to withdraw - waiting for the amount hours or days and then transfer it
from the bank account to the credit card - way too long.
What I did not read from the announcement - can you get such a debit card (Mastercard)
worldwide or just US habitants only.
I also received the email.
This is a great smart move of IB and I like this additional service.
This will create customer retention (stickyness) based on depth of service as well as allow IB to tap into extra revenues.
The Masterard payment scheme (as is the Visa and some others) is a 4 party payment scheme,
as illustrated in the following diagram :
While IB might not be a principal member of the card scheme, they have teamed up with a party called an 'issuer',
an issuer is responsible for issuing a card and providing card services. IB in this case most likely has a co-branding
agreement. The arrow from Acquirer to Issuer with the Interchange fee, this is a remuneration, that flows from the
acquirer to the issuer (likely to be split with IB)
This move also allows IB to keep the funds longer in their perimeter, because you can move money 'just-in-time'
to where you need it.
I think in some jurisdiction this could become very popular, it allows you make big trading profits and transfer
the profits 'under-the-radar' and spend them on some luxury expenses... This is even better than buying bitcoins...
To be watched closely.