Diners Club
Diners Club is an online banking and international payments company. Although the firm’s business model follows a card-based rewards programme, the transfer solution can also be used at trading brokers. This guide will explain how Diners Club works, including transaction times, login security and processing fees.
Brokers in United States with Diners Club
What is Diners Club?
The history of the firm began in 1950 in the US. Today, its credit cards are accepted in more than 200 countries while the brand is supported by nearly 40 million merchants. Diners Club International celebrated its 70th anniversary in 2020.
The company is owned by Discover Financial Services, a reputable firm listed on the New York Stock Exchange. Discover Financial Services also helped RuPay into the international payments market, with the firm launching the RuPay JCB Global Card. In addition, the brand has partnered with Vicom to produce a co-branded card. In 2009, Diners Club International sold the North American Diners Club franchise to the Bank of Montreal (BMO).
Outside of North America, the payment solution is not yet available in much of Africa, the Middle East, parts of Eastern Europe, as well as Malaysia, France, New Zealand, Thailand and Finland. And while Diners Club has widespread coverage in the US and India, amongst other nations, it is still in the early stages of expanding in the UK.
Importantly, an extensive range of benefits comes with card membership, including access to over 1,000 airport lounges. There is a lounge at Heathrow Terminal 5, JFK Terminal 4, Dubai Terminal 3, Chicago O’Hare International and the Sala VIP Diners in Ecuador. The airline, Qantas, also offers a credit card where flyers can earn points.
Discounts and offers are available for hotels, car rentals and more. Getting money off or a good deal on your flight or hotel booking is one of the main benefits of holding a credit card with the company. Customers can also register for ClubMiles, which provides rewards for air miles that can then be redeemed for shopping, amongst others.
Local Clubs
Diners Club is split into a series of local Clubs across the world, which are essentially the different countries that the firm operates in. Eligibility requirements for its credit cards and fees vary between the different Clubs. For example, in India, they have a Black card and a Privilege Card with HDFC Bank (who are partnered with the rewards company SmartBuy). Benefits associated with these particular cards include Zomato Gold, which is an online food ordering and restaurant guide.
In the US, there is the Diners Club Card Premier and the Card Elite. Customers earn one Club Rewards point for every eligible dollar charged – this rises to three with the Elite card at certain types of stores. Users can then redeem the points for various benefits and rewards, for example, frequent flyer miles and more with Air Canada Aeroplan.
Note, the consumer card application is unavailable in the US.
Transaction Times
Transaction times are often instant for deposits, which is important for traders looking to capitalize on sudden price movements. With eToro, deposits made using credit cards (or debit cards) such as Mastercard Diners Club, are instant and can be made in USD, GBP, EUR or AUD. Likewise, deposits made using the Mastercard credit card on XM are instant.
Withdrawals may take longer to process. At eToro, credit card withdrawals like Diners Club can take up to 10 business days. However, traders should generally receive their funds within a few days. On Deriv.com, the processing time is just one working day.
Pricing Review
Unlike the basic versions of many other credit cards, Diners Club cards aren’t typically free. In India, the annual membership fee is Rs. 10,000 (plus applicable taxes). This equates to around $133. The Privilege card has an annual fee of Rs. 2,500, the same vs a Regalia Credit Card. However, there are incentives – for those that spend Rs. 5L (equivalent to around $6,700) in 12 months, the renewal fee is waived the following year.
In India, the foreign currency markup is also set at 1.99% per month but this can vary between countries. Importantly, the foreign exchange rates on the payment network have historically been higher than other credit cards. Interest rate fees may also apply.
With the US Diners Club consumer credit cards, the main fees are:
- Premier – the annual fee is $95 (for the first credit card) with no foreign transaction fees (other fees may apply)
- Elite – the annual fee is $300 (for the first credit card) with no foreign transaction fees (other fees may apply)
Brokers often apply their own minimum and maximum deposits and withdrawals. eToro, for example, has a maximum single deposit of $40,000 while the minimum initial deposit depends on your country, though it typically exceeds $10. No deposit fee is imposed. The minimum withdrawal amount is $30 and a withdrawal fee of $5 applies. As Diners Club is a credit card, you cannot exceed the maximum credit amount that comes with your membership. You should also ensure that you pay the balance on time to avoid penalty charges.
Security
The brand is a reputable and established payment services firm, owned by a listed company on the New York Stock Exchange. With that said, as with any payment services provider, customers may be susceptible to fraud. This is why traders should take the necessary precautions.
Importantly, Diners Club is 3D Secure (3DS), which adds a layer of safety when making online purchases and deposits. It essentially means that you need to authorise payments by inputting a pin or password, usually sent to your phone by SMS. 2 Factor Authentication (2FA) is also used during the online login process, which is to protect the integrity of customers’ credit card accounts and personal information.
Diners Club includes all the usual security information and advice on their website for customers to view, such as how to keep your card details safe and how to reduce the risk of using an unsafe ATM.
Note, there haven’t been news headlines indicating that the payments platform has been subject to major hacks or security breaches, though at least one minor breach has been reported.
Pros of Diners Club for Traders
Benefits of trading with Diners Club include:
- Supported by many brokers – the first thing a trader needs to look at when they are choosing a suitable payment method is whether their broker accepts it. Fortunately, Diners Club cards are accepted by many top brokers.
- Fast deposits – deposits are often instant meaning you don’t have to wait for slow processing times – a key benefit for swing traders. Traders may also be able to use Apple Pay, Google Pay or Samsung Pay to fund accounts.
- Rewards – not only is Diners Club a convenient way of depositing money into your trading account, but you can also accumulate rewards like access to airport lounges, the locations of which can be found through the mobile app.
- Customer support – customer support options vary from country to country, however, there is usually a phone number and/or email address to use. So, whether you are in Qatar, Singapore, Peru, the UAE, Japan, Bulgaria, Ecuador, Argentina, Germany, Spain or South Africa, help is at hand. The brand also has Facebook, Twitter, LinkedIn, Instagram and YouTube accounts.
Cons of Diners Club for Traders
Downsides of investing with Diners Club include:
- Local restrictions – although the international payment network reaches many countries, there are still some regions where the company does not operate. Unfortunately, personal consumer card customers are not currently accepted in the UK, for example.
- Annual fee – the annual fees for its credit cards vary between countries, however, they are often upwards of $100. Remember, these are recurring fees so traders will need to account for this cost. This is a disadvantage vs some Amex and Visa cards.
How to Make Diners Club Deposits & Withdrawals
Use this guide to deposit and withdraw to your trading account:
- Sign up for a credit card – you will need to find your local Club where you can find information on fees plus qualifying criteria and eligibility requirements, for example, minimum income thresholds. Note some providers offer late payment fee waivers.
- Choose a broker – check your trading platform accepts Diners Club deposits and withdrawals. Also check any minimum and maximum deposit and withdrawal requirements.
- Head to the payment portal – you will need to enter your card details and the amount. You may also need to go through a verification process. Note the card number on some cards has 14 digits rather than 16 digits.
Remember to pay off your Diners Club balance before the bill payment date on your monthly statement (or e-statement) to ensure additional interest rates and penalty charges do not accumulate. A 24 hours telephone hotline is available if you have any issues.
Verdict
Diners Club is a reputable rewards-based card company that has been around for 70+ years. It can be used to deposit and withdraw money at various online brokers. Transactions are often instant and free, though you will need to cover the annual fee for the credit card and any additional charges.
FAQ
Diners Club: What Is It?
Diners Club is a rewards-based credit card network that started in the US but has expanded across the world. Its credit cards are accepted by various online trading brokers.
Where Is Diners Club Accepted?
Diners Club is accepted in many countries across the world, however, there are still some gaps in its coverage, including in Malaysia, France and New Zealand. The network is also strong in the US, though new consumer card applications are currently unavailable.
How Do I Get A Diners Club Card?
First, you need to identify your local Club and check the eligibility requirements. If you qualify, you should be able to apply from the local webpage.
Do Many Brokers Accept Diners Club Cards?
Are Deposits Quick Using Diners Club Cards?
Yes – as with many credit cards, deposits using Diners Club cards are often instant. Withdrawals can take longer, however, subject to your broker’s KYC requirements.