Hundreds of millions of people use bank cards regularly and the keys to this success are their convenience and ease in carrying out all types of operations – including cash deposits, purchases and transfers. Therefore, when it comes to selecting one, it is important to understand the various types of bank cards and their characteristics.
Cards That Build Credit
These cards are instruments that allow you to finance specific operations, defer payments when making a purchase, or have money to cover your expenses within a certain time and credit limit. In the case of credit cards, the amount doesn’t need to be available at the time of purchase.
Charge cards offer credit limits that are often unlimited. The main difference between a charge card and a credit card is that any charges made with a charge card must be paid in full by the end of every month. However, not paying your full balance on a charge card will result in fees and penalties. A charge card will build your credit history, but a high credit score is usually needed to be approved for one.
REVOLVING OR DEFERRED PAYMENT CARDS
This payment method allows you to make cash withdrawals or postpone purchase payments when you use the card. Payment can either be in the form of a monthly instalment or an agreed-upon percentage of the outstanding debt. The credit is made available again as you pay. Since it’s a line of credit, the interest rate and fees will always be applied, and so there will always be a cost.
BUSINESS CREDIT CARDS
These are designed specifically for business use. Using them, business owners are able to easily separate personal transactions from business transactions. Even for a business credit card, the credit card issuer will consider your personal credit history, because the cardholder is still responsible for the credit card balance.
Cards That Do Not Build Credit
These are the most common type of bank cards, and the easiest to use. These cards are linked to a bank account and can be used for payments at physical and online locations as well as withdrawals at branches and ATMs. The amount of the transaction is automatically deducted from the available balance, so a transaction cannot be completed if the account has insufficient funds. Debit cards often have a daily withdrawal limit, especially when using an ATM, for security purposes.
This card is a convenient payment method for day-to-day expenses, shopping online, and withdrawing money from an ATM. The amount you wish to use to purchase goods and services can be loaded into the card, within the limits established by the bank. Since these cards do not allow spending more money than is available, one of their great advantages is that the user can control expenses. They can also be recharged as many times as necessary.
The Cutting Edge Payment Solution
In the advancing fintech industry, radar payments are changing the landscape for fintech and banks. A secure and scalable approach focusing on issuing and payment processing services they offer the best payment solutions in this innovative market.