Wednesday, May 2, 2018

Debit Card, Credit Card And VISA Prepaid Card - What Are They?

By Clara Nelson


It is easy to be confused between these three kinds of cards; debit card, credit card, and VISA prepaid card. There is a guide which will help you differentiate between the three. Debit Cards A debit card comes under debit card programs; this card is linked to your bank account. The money contained within a debit card is your own money. This money is not borrowed nor does it belong to another person. When you use your debit card to make purchases, you pay directly from your bank account; this saves you the time from going to the bank personally to withdraw cash, and is also faster and more convenient.

Debit card programs allow you to get perks on the use of your debit card. Let us take an example, you are at a gas station and you decide to pay by swiping your debit card. The amount deducted is equivalent to points, let's say US $10 is equivalent to 1 point Those points can be used to avail perks or awards.

A credit card allows you to use money given to you by the bank. The bank grants you use of a specific amount of money through your credit, which when used must be returned back to the bank on time; else a fee will be charged. Some banks apply charges when a credit card is used. On the other hand, a debit card lets you use your own money and lets you take advantages of perks offered by debit card programs.

Credit Cards Credit cards look just like debit cards, but there is one minor difference, the money which is within a debit card is your personal money or savings, whereas the money within a credit card is the amount of money which is given to you to be used by the bank.

What Are VISA Prepaid Cards? A VISA prepaid card is like a debit card in many ways, the card allows access to money as well, but the money belongs to the holder. Let us assume that you buy a gift card for a friend, but before you receive the gift card you have to pay for it.

You can free yourself from chains as well; these cards do not limit you to a certain method of usage. You can use them to do some online shopping, or to book yourself a nice trip, with a comfy hotel room, and some pretty cool tours as well. The perks of debit card programs just do not end!

A VISA prepaid card also allows you to use the card wherever you feel the need to use it. The card holds a certain amount which you load. Let's say you load US $1000 on the card; now you have that specific limit to avail however you like, but since the money is yours and it is already stored within the card, it makes the card a prepaid card.

One can avail many benefits by debit card programs as they offer many perks. It is important though to know the differences between a debit card, a credit card, and a VISA prepaid card.




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