Electronic money is increasingly replacing cash from circulation. Now it is difficult to find a store that would not accept plastic cards for payments. In addition, plastic cards are used everywhere in foreign travel. Therefore, the choice of payment cards should be approached with special attention.
What are plastic cards for?
With the help of payment cards, you can make settlements, send and receive various payments, as well as withdraw cash from ATMs. To get a plastic card, you should contact the bank. Further, the bank opens a card account for the client, to which the plastic card is linked. Considering the widespread use of cards, many of them are equipped with a special microcircuit - a chip. This increases the security of using the card and virtually eliminates the risk of counterfeiting.
There are several payment systems in the world that issue plastic cards. The main ones are Visa and MasterCard. The differences between them consist in the intermediate transfer of one currency to another. So, for VISA cards, funds are converted immediately into US dollars, and for MasterCard - into Euros. Therefore, in Europe it is more convenient to use MasterCard cards, and in the USA - Visa.
What are plastic cards
All bank plastic cards can be divided into 2 types: debit and credit. A debit card can only be used within the funds that are in the client's account. Credit cards work differently. The bank sets a credit limit for such a card. Simply put, this is the amount that the bank puts on the client's card as a loan. Over time, the credit limit may be increased. A credit card can be used both for payments and as a means of receiving cash from an ATM. It should be borne in mind that the percentage of the commission for withdrawing money from an ATM on a credit card may be higher than on a regular one.
When choosing a credit card, you must remember the following. For using the card, you need to make a monthly minimum payment on it, which is a certain percentage of the loan amount. In case of delay, additional interest and penalties are charged. However, many banks set a grace period for credit cards. So, if during this time the cardholder put back all the money spent, then the interest for using the loan is not charged.
The advantage of using a credit card is that the funds deposited on it to repay the loan can subsequently be used again at your discretion.
What else to consider when choosing a card
When choosing a card, it is also necessary to take into account the size of the commission for withdrawing cash from an ATM, the annual service fee, the speed of its blocking in case of loss, etc. When choosing a bank where you plan to issue a card, you need to take into account the convenience of the location of its ATMs, as well as their number. After all, an additional commission may be charged for withdrawing money from ATMs of another bank. Some banks may charge interest on card balances. In this case, such a card can be considered as a permanent deposit.
If the card is planned to be used abroad, then it is best to focus on multicurrency options. In this case, the bank can open several accounts for the client in different currencies, which will be linked to one card. Funds on such a card are automatically converted into the currency of the country of use and there is no need to carry several currency cards with you. However, servicing such a card can be more expensive than a regular one.
A wide variety of troubles can happen to a card abroad, from blocking it by an ATM to theft. In this case, you need to take a memo from the bank on how to act in such situations, as well as emergency phone numbers. Refusal to provide such information should alert the client.
