It’s quite likely these three have already left you wandering – what on Earth is the difference between them? How do they work and which one do I actually need? If these questions keep coming around, you are in luck! We are about to answer them once and for all.
Before getting started, let’s first point out that any of these cards can be issued by any card scheme, be it Mastercard or VISA, or even by third-party financial institution like LeuPay. Nonetheless, it doesn’t change in any way how they work and how they are used.
It’s very easy to make a difference between a credit and any other card. Essentially, the credit card is short-term loan in the form of a card. Card holders have a certain credit limit and are expected to pay interest (often higher than regular loans) for the amounts utilized. Depending on the issuer, credit cards have a grace period of about 30 days, to pay an instalment for the money borrowed. If instalments are being paid on time, no interests are charged and the card holder only pays the annual service fees.
Credit cards are a great option if you’re in an urgent need of extra money or want to convert a purchase into lighter instalments. You can use credit cards in stores, online or even for cash withdrawals which, you should keep in mind, is often heavily charged.
This is the most popular payment card in the world. Unlike credit cards, debit cards are linked to a bank account and grant access to the deposited money. Some banks offer overdrafts to their debit cards, meaning that customers can spend more than their actual balance, which of course is charged with interest.
Debit cards often come for free, but most banks tend to add service fees. With LeuPay, the first two cards come free (and can be issued to different card holders) and have no service fees. Additionally, users have full control over their cards and can lock them, set spending limits or restrict specific transactions like online payments.
Similar to prepaid mobile services, prepaid payment cards must be topped up in advance in order to be used. A typical example are gift cards. Prepaid cards grow on popularity worldwide as they are safer than cash and can be used for online purchases. Even customers with bad credit history can get them and benefit from all conveniences they offer.
Now, it should be easier for you to pick the right type of card for you. In case you want a free contactless debit card, or why not two, and a free money account, then you definitely want to check LeuPay out.
Sign up now and order your free VISA cards.