Types of cards

Posted: August 18th, 2013 | Author: | Money

Credit cards nowadays are tender, which can be regarded as equal to cash. There are certainly a convenient means of payment, but some people are still carrying cash, because it is not possible to pay with it everywhere. However, credit cards come in many different types and we should know everything about them or at least be aware of the differences between them.

mueritz / photo on flickr

mueritz / photo on flickr

The main type of credit cards are debit cards. These are added to the standard card-type accounts, current accounts, and you can either pay them or withdraw money from the ATM. Nowadays, with the majority of them we can pay via the Internet. Although the name is the word “card” is with its help we can spend only means at our disposal on the bill. We can achieve an overdraft, but only if the overdraft is for our account running.

An entirely different product is credit card. It is connected to your credit account from which we can apply only limit usage. In general, the credit card has 50 days to pay off some debt, only then we will accrue interest. Although you can pay by credit card and withdraw money from an ATM just like a debit it is an easy example of an ATM when it is treated as a loan and then there is no interest-free period. You should be careful when using it.

Another type of card is a prepaid card (pre-paid), which also is assigned to each account. It differs from the credit that to spend resources via pre-paid card must first be paid into the account. In addition, it operates just like a regular debit card. This is a great solution for children or to shop online for people whose main bank account and the card attached to it does not give that option.

Now rarely encountered types of payment card is a charge card. It is somewhat similar to a credit card and it is governed by similar rules, such as an ATM withdrawal is treated in a similar manner also is neither free nor the cheapest. The main difference is that charge cards linked to a kind of account. All transactions which are grouped achieved and once a month we have to regulate it under the bill, which we will receive.

The last type, are also quite rare virtual cards. We pay them only through the Internet and as now we can have the majority of cards on the market, this is the reason for their displacement. This card does not have to be made of plastic, can be in the form of paper, a small piece of cardboard or even physically exist. The most important parts are the numbers, data, and other similar information you enter on the form card payments on the Internet.

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