The credit card is the most used means of payment in world. In 2016, 66.5 million bank cards were outstanding for 10.6 billion transactions. However, not all bank cards offer the same services. Debit or debit payment card? Visa or MasterCard? Standard or high-end bank card? Here’s everything you need to know to choose the credit card that suits you best!
What are the different bank cards?
It is essential to distinguish the bank cards between them in order to control your means of payment according to your habits and your behavior.
A withdrawal card is not a payment card. Debit cards allow cardholders to perform, as the name suggests, withdrawals of money in cash machines (ATMs). This card is blocked, that is to say that the holder can notwithdraw an amount higher than that which is planned initially by week or by month.
This category of cards also allows the consultation of bank accounts, deposit operations and checkbook orders via a PLC belonging to the network of the bank where the client’s accounts are domiciled. Generally free, the withdrawal card is intended to facilitate the management of its budget (young or prohibited banking). However, it does not pay.
A credit card provides the same services as a debit card, but also adds the ability to pay for purchases at physical outlets or online. But within this category of credit cards ,you need to differentiate between payment cards Debit , the payment card deferred debit and charge cards to prior authorization or not.
Cards with systematic authorization
To debit the sum of the account in order to make a withdrawal of cash or to settle a purchase, it is necessary that the bank account is sufficiently provisioned. At the time of the transaction, the account is queried. If the supply is sufficient, the operation is approved. If it is not, the operation is blocked. This operation does not mean that the holder does not benefit from a credit limit. The binding threshold is previously notified in the account agreement.
Cards with immediate debit
The slightest transaction made with this type of card is directly passed on the bank account balance (more exactly the day after the transaction to the maximum). The advantage is that the holder of an immediate debit card quickly knows where the bank balance is. On the other hand, it can more easily fall into the red, resulting in payment incidents and overdrafts that the bank will not fail to charge.
Deferred Charge Cards
The amounts committed are not immediately deducted from the balance of the bank account. All payments made with the deferred debit card are withdrawn one (or twice) per month (or fortnight), at a date previously chosen by the holder. It therefore gives a sort of credit , reducing the risk of unauthorized bank overdrafts at the end of the month (hence the frequent denomination of this type of card as “credit card”, by abuse of language). Nevertheless, a deferred debit card requires the holder to keep an account of his expenses strict enough not to the date of fate unpleasant surprises are revealed!
An international card allows payments and withdrawals under the same conditions in the Euro zone. It is also used abroad in the Visa and MasterCard networks for commissions, withdrawals punctured by the bank with each transaction (withdrawal, payment) in foreign currency.
A credit card is a private card issued by a credit institution in partnership with a brand. In fact, it can only be used in the stores and sales outlets of said sign whose logo it bears. The credit card also acts as a loyalty card . It allows you to pay for purchases at the store’s stores and to enjoy certain benefits such as priority checkouts, coupons, promotions, etc.
When the customer uses this means of payment as a credit card, he actually has a revolving credit which is a reserve of money available and accessible at any time. The customer then refunds the money at rates higher than those of a conventional loan. The pot is renewed at the option of refunds, maintaining a certain amount of money (maximum 75,000 euros allocated for at least 3 months according to the current regulatory framework). If you looking for best credit card processing solution for your business then Small Biz processing is best choice for you.
A prepaid card is used to pay expenses for a previously capped amount . No overdraft or credit is possible. It operates like a conventional payment card with systematic authorization, except that it does not claim the opening of a bank account but an electronic money account.
The balance of a prepaid card can reach up to 1,000 euros, rechargeable amount in a bank branch or at a tobacconist. Beyond this, the anonymity of the holder falls because he must transmit an identity document and proof of address.
Mixed payment / credit cards
A mixed or co-branded card makes it possible to pay for purchases at all points of sale and withdrawals at ATMs. These credit cards can be issued by a bank or come from a partnership between a credit institution and a brand. With this dual functionality, some of these cards ask the customer to specify the nature of the transactions (debit or credit) and whether he wants to use the money from the account or draw on his revolving credit.
Bank Card: Mastercard or Visa
Two international networks trust the marketing of bank cards: Visa and MasterCard . What are the differences between the two networks? What are their respective offers? Explanations.