Chances are you’ll want to have several different cards and squeeze the best out of each depending on the occasion. You will save money and gain security.
The best, one card of each type
The differences between the different types of payment cards are becoming more diffuse, but you should know them, so you can get the most out of them. Before moving on to the differences, let’s say How are they similar: they are used to pay in traditional stores and online stores, as well as to withdraw money from ATMs, where you can also do some other operation, and all this both in Spain and abroad.
What types of cards are there?
There are basically three types of cards.
Debit cards
Debit cards are a tool to dispose of funds deposited in current accounts, so they are always associated with an account. Both withdrawals at ATMs and purchases are charged immediately to the associated account and the limit for the withdrawal of funds in purchases is established by the available balance in the account.
Credit cards
The entity that issues them is granting you a credit, that is, money in advance, so you can use them up to the credit limit set. Every time an operation is carried out, it is recorded in a credit account, independent of your current account. You, like the other clients, you have an individual credit limit that you cannot exceed and that the issuing entity establishes according to your income and other solvency parameters. In the card contracts, different forms of payment of the arranged credit are established. The most common is the payment at the end of the month without interest, although it is possible to defer payment for a longer time by paying interest fixed in the contract.
prepaid cards
These cards are not linked to an account and its limit is adjusted to the balance that you load in them previously.
Finally, there are hybrid cards, which mix characteristics of the previous ones: for example, they are credit cards that allow you to withdraw money from ATMs with the same fees and requirements as a debit card, or prepaid cards to which an IBAN is added and they start to function as a debit card.
Subtypes for all tastes
In addition to the previous classification, others can be made based on other characteristics:
- Depending on the credit granted, one can speak of classic cards, gold or platinum.
- Depending on the forms of payment, a distinction is made between normal credit cards and purely revolving cards. In the former it is possible to choose between the payment at the end of the month without interest or deferred payment with interest. In the second there is only payment through monthly installments with interest, through revolving credit; We do not recommend these cards at all because they are very expensive and favor perpetual indebtedness and over-indebtedness.
- Depending on the issuer, we can distinguish between Bank cards, issued by banks; financial Cards, issued by non-bank or commercial entities, such as American Express or Diners Club and business Cards, issued by a business to purchase the products marketed by the company itself, for example, the El Corte Inglés card; the latter can only be used in the establishments of the issuing entity. In addition, there are affinity cards, which are issued under a brand different from that of the issuing entity, usually a commercial brand, with the aim of building loyalty to their customers by offering some kind of advantage to holders. As an example, among others, we have the Cepsa Wizink card or the Visa Repsol.
- Finally, depending on the support, we can distinguish between physical cards, the typical plastic ones, and virtual cards, specially designed to operate online, of which you only have a card number, an expiration date and a PIN.
Which card to choose?
Most likely it will come in handy have several cards and use each one for what it is best suited for. The secret is to choose good and free cards like the ones you can find in our comparator.
CHOOSE THE MOST SUITABLE CARDS FOR YOUR PROFILE
Las debit cards are the best option to get cash without paying commissions, choosing the ATMs well.
Las credit cards interest you for your usual purchases, with the advantage that some offer incentives for their use and many can be associated with your bank account even if they are issued by another bank or entity; You will not have, therefore, to settle for the one offered in yours. In addition, thanks to them you can withdraw credit without depending on the balance of your account, although it is an option that requires paying high interest and should be used wisely and only from time to time.
Prepaid cards are a good complement to other cards, since they provide additional advantages in some cases:
- Having only the balance that one decides to load on them, if you enter your data or leave it stored in applications, stores and online service providers (Amazon, Netflix, Uber, Cabify, etc.), you know that the possibilities of fraud are limited to that spending ceiling.
- They are also useful to provide a means of payment to children or others who do not have a checking account.
- Y on trips abroad, they serve both to avoid excessive fees for ATM withdrawals and currency exchange, and to limit damages for fraudulent use or data cloning, especially outside the euro zone where the risk is higher.