The credit card, as its name suggests, implies the use of credit funds as a result of payment of goods or services, which subsequently will be required by the client to return the bank within a specified time. To answer this question what card is the best for you, think about your objective and consider different features which your card envisage
Undoubtedly, each bank card is the bearer of information about the client of the bank, namely its owner. In this respect, all bank cards are divided into two types, which also envisage a way of payment:
- Magnetic cards, which have a special black magnetized band on the back that contains personal and bank information respectively. To make operations offline, you may insert the card either into terminal or the ATM.
- Smart cards or so-called chip. They have a small chip where the encrypted sign contain complete information about the client, the balance of funds stored on a bank account tied to this card, etc. Bankers claim that these cards are the future, and indeed, and they are really getting more and more popularity. Such card provide contactless payments and can be used in public transport with terminals for e-ticket.
Personal or Corporate
Credit cards can be either personal, which are executed for one particular person or corporate, when several bank cards are attached to one bank account registered at the organization, which are issued only to staff of such enterprise. Each co-worker may have an individual limit on the use of funds. A corporate card is a family type when the bank cards of all family members are tied to the general account.
Major World Payment Systems
However, the most significant gradation of bank cards is their separation is on the base on payment systems that serve them. In the world, there are three major payment systems that are most common in the modern banking system. This is VISA, EuroCard / MasterCard and American Express (AMEX). All of them have special terms for card serving and perks.
Classes of Bank Credit Cards
Each payment system divides cards into classes. For VISA cards, the main ones are Classic and Gold, EuroCard / MasterCard envisages Standard and Gold, and American Express has Mass and Gold. When a bank offers a card to a client, it pays attention to the insurance deposit or the amount of money that it holds in a bank. In different banks, these amounts may differ. While using a certain class of a bank card abroad, you can get a significant discount when renting a car, purchasing gasoline, booking a hotel, etc. In our country, these services are only beginning to emerge. It must be said that along the main classes of bank cards there are subclasses such as Platinum, Silver, or Basic etc.
And the most significant criterion for a credit card is, of course, a size of credit limit, terms of payment and length of grace period.