Bank Cards: Debit vs Credit


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The card is the method of payment you choose each time more the Spaniards not only for their day-to-day purchases but also to those made on the Internet. Proof of this is that the purchases with credit cards and debit cards in Spain have been exceeded for the first time to those made with cash, according to data from the Bank of Spain (BdE). And is that, during the first quarter of 2016 payments with TPV amounted to 27. 816 million euros compared to the 26. 603 extracted from the atms.

But it is not only the means of payment chosen to pay in Spain, a recent study by VISA reveals that 35% of spanish tourists think to use their debit or credit cards for most of your payments when they are traveling abroad.

But along with credit cards issued by banks, there are other types of plastics which are also used by the Spaniards as a payment instrument. "We tell you which are the most common!

Bank Cards: Debit vs credit

terms credit card and debit card generate sometimes some confusion among users. The tenure of a does not preclude the other, in fact are not alternatives but rather complementary. What are they and how do they differ?

Debit Card

payments with a debit card are loaded immediately in the current account associated to the card (except if the purchase has been on the Internet or abroad, in these cases, the payment may be reflected after a few days). To be able to use the debit card, it is imperative that the account associated with balance, that is to say that there is money. Otherwise the operation cannot be performed unless the bank to provide the customer with an anticipation of capital to deal with the payment. If so, the client will have a bank overdraft, that is to say, will be in red numbers and to return the bank to borrow money you must do so with the interests and commissions set forth.

Commissions

despite the fact that there are some entities that issue debit cards free of charge, there are others who charge an annual fee to their clients by the mere possession of it or ask for a second card associated to a same account.

Daily limit

most of the debit cards, for safety reasons, tend to have set a maximum limit of withdrawal of money on a daily basis. Once the amount stipulated, for example, 600 euros, you will not be able to withdraw cash until the next day. However, this limit may be extended by the holder of the card.

Credit Cards

Payments made with a credit card are not reflected at the time of purchase, but in the future. This instrument allows the user to make purchases despite not having money available in your checking account. The money is to be spent on credit, so that the user will have a debt with the entity.

The Entities, before granting a credit card to a person shall ensure that it is solvent. That is to say, that account with sufficient income to cope with the debt that you purchase with the card.

Types of Credit Cards

There are different types of credit cards. The entities can offer to their customers credit cards free of charge or require certain commissions only by its issuance.

With regard to the way for customers to return the money that has been spent on credit, will depend on the manner stipulated by the entity. You can set the user return the borrowed amount in a single payment on a particular day, for example, the 1 day of the following month.

Another way to return the money is to be paid in installments. That is to say, agree with the entity return every month the same amount of money until the end of the debt.
Business Cards

Many supermarkets, clothing stores and large surfaces provide users with their own credit cards, similar to those of the banks. In Spain many of these establishments reach agreements with a credit institution which is actually emitted the card although they can only be used to make purchases in these establecientes.

These cards have the goal of customer loyalty and make you make in the supermarket or store the majority of their purchases. The shape of the establishments to achieve this is to offer discounts, special promotions, providing the financiandole payment or shopping.

Phone "Affinity"

Another type of cards are known as "Affinity" or points. Would be the cards issued by gas stations, airlines, catering chains, cinemas or clothing stores. This type of instrument is used, for example, to accumulate points or a percentage of each purchase that can be used by the holder of the card to get discounts on future purchases.

Not to be confused with the credit cards issued by commercial surfaces, although they can also be of type affinity, can be used as a means of payment.

What card to choose?

In the market there are several types of cards. You can have multiple cards of each class and if used properly can allow to have up-to-date personal finance and get the most out of the monthly income and purchases.

However, it is necessary to know how much it costs to keep them and, in the case of the credit card, if the ca will charge interest on the money that has been prepared, by how much and in what conditions have to return it.

That is why, before hiring a card credit in general and in particular it is important to know which exist in the market and choose the one that provide the conditions that best suit the needs and economy of each person. Rastreator.com allows you to compare among a large number of credit cards.