Choose the card that suits your needs
There are currently many payment cards on the market. Each card has specific features as well as advantages and disadvantages.
Here are the 3 main categories :
- Credit card
- Prepaid cards
- Debit cards
Differences between categories
Here is a summary table explaining the main differences between the different categories of cards: credit, prepaid and debit cards.
| Card type | Credit card | Prepaid card | Debit card |
|---|---|---|---|
| Is it linked to a bank account? | Yes | No, this is an online account in which you add the amount of your choice | Yes |
| Where does the money come from? | Your bank that lends you money | The money available in your online account | Money available in your bank account |
| Can you spend more money than you have? | Yes, the money lends you money that you pay back the following months | No, no overdraft allowed | No, but possibility of authorized overdraft |
| Why use this card? | Period of financial hardship or greater expense | Easy and controlled management of your money | Most used card, complete, any type of operation possible |
| Recommendations | Be careful to control your money, the borrowed money must be repaid with interest | Often used as a secondary card because less financial transaction possible | Check your expenses and your balance to avoid being overdrawn |
1. Credit cards
Credit cards are cards attached to revolving credit. They allow payments and withdrawals to be made .
Revolving credit is a consumer credit which consists of a reserve of available money which is renewed as and when it is used. The ceiling and the terms of reimbursement are established by contract.
With this type of card, your purchases or withdrawals are not debited from your account immediately but once a month , on the date set by contract and according to the conditions established (monthly payment, rate, repayment period, etc.).
These cards are often linked to one of the international systems such as Visa or Mastercard, but can also be linked to a brand or a network of stores.
There are several types of credit cards:
- Classic bank credit cards issued by your bank at your request
- Commercial brand credit card issued by major brands (FNAC, Darty, Printemps, etc.) and can be used in their chain of stores and in those of their partners. There are more and more of them.
- Non-bank credit card issued by a credit organization.
2. Prepaid cards
For example, if you load your card with $ 1000, you won't be able to spend more than $ 1000 until you add some extra money to it. You will therefore have no overdraft .
They can be used in the Visa or Mastercard networks depending on the card issuer and do not require the opening of a bank account since they are paid in advance.
It is therefore an electronic wallet whose operating mode resembles that of the debit card.
3. Debit cards
A debit card is a bank card that allows payments to be made at merchants and on the Internet, as well as cash withdrawals from ATMs.
There are several types of debit card, each with its own unique mode of operation.
| Card type | Debit from your account | Authorisation | Discovered |
|---|---|---|---|
| Immediate debit card with systematic authorization | Immediate debit of the amount paid or withdrawn from your bank account | Systematic checking of the balance before authorization | No overdraft possible |
| Immediate debit card without systematic authorization | Immediate debit of the amount paid or withdrawn from your bank account | Random check of the balance before authorization if payment of a small amount, otherwise systematic check from a certain amount, abroad and during a withdrawal | Discovered unlikely |
| Deferred debit card | Debit once a month from your bank account on a fixed date | No balance check when making payments or withdrawals. Checking the limit authorized in your contract | Possible overdraft risk |
