What is a payment card?
As the Law No. 1591 “On Payment Services” aptly states, a payment card is, first and foremost, a tool. A tool that allows its holder to dispose of funds as they wish. Compared to cash, a physical or virtual card has many more functions:
- payment for goods and services both in physical establishments and online services;
- cash withdrawals and card replenishment at ATMs and bank cash desks;
- access to additional credit funds in case of lack of own funds;
- making money transfers within and outside the country;
- protecting finances (password and two-factor authentication, controlling expenses and setting limits for online transactions).
You'll agree that making a one-click transfer is much easier and faster than sending a carrier pigeon with a bundle of cash under its wing. It seems like you're just a step away from choosing a card, so it's time to get to know the different types.
Types of payment cards
We've already mentioned one type of card in passing: the virtual card. In general, it differs from its physical counterpart only in that it has no material form, although it contains all the same functions and details. The only thing it loses out on is being tied to a smartphone - if your gadget turns off due to a lack of charge, you won't be able to buy even a lollipop, no matter how much money you have in your account.
To understand how to choose a bank card, you should pay attention to other aspects of the issue. In general, there are the following types of payment cards:
- credit card — a payment card that allows you to use the bank's funds. The bank sets a certain credit limit and a grace period, i.e., it provides a specific amount and time to repay the debt without paying interest. The cardholder often receives additional bonuses and incentives, such as loyalty programs, cashback, etc. This system is convenient because you can meet your needs even when your own funds are not enough;
- a debit card is a payment instrument linked directly to the account of its holder. This means that you can manage only your own funds, but you can also count on cashback and other bonuses;
- prepaid card is a type of debit card that differs from a debit card in that it is not linked to a bank account. You can only use the funds on the card, but be prepared for the fact that if you lose it, you will not be able to restore it. A good example of a prepaid card is the well-known gift or bonus cards in stores;
- a gift card is a prepaid card with a limited expiration date, intended for one-time use, as it cannot be replenished.
In the vast majority of banks, the name of the card is also the instruction manual. For example, the GlobusPlus credit card is designed to use your own funds and bank funds with a grace period of up to 62 days. And the GlobusPlus Light card will shed light on your financial freedom and allow you to use only honestly earned wealth.
Which payment card to choose?
The choice of a payment card primarily depends on your individual needs and habits, so you should analyze your relationship with money before applying for a new financial instrument:
- Why do you need a card? If you have moderate daily expenses, a regular debit card will suffice. If you're prone to spontaneous purchases, it's better to get a credit card so that sudden financial difficulties don't prevent you from buying the goods you want.
- Do you plan to withdraw cash? A credit card requires you to pay a small fee, while a debit card may not.
Do not forget to evaluate other conditions: service and transfer fees, cashback and bonus programs, etc.
At GlobusPlus, you can apply for bank cards for any need:
- GlobusPlus credit card;
- GlobusPlus Light debit card;
- GlobusPlus USD/EUR card for transactions in US dollars and euros, respectively.
Don't forget about virtual cards created to receive government assistance (ePidtrymka and eVidnovlennia) and cashback when buying Ukrainian goods (National Cashback).
Remember that choosing the right payment card will help you manage your finances effectively, save on fees and receive additional bonuses. Carefully analyze the offers and choose the product that best suits your requirements and lifestyle to always be in the black 🧡
