What are and how do bank cards work?

What are and how do bank cards work?

The bank cards are instruments that emit financial institutions for their clients. They consist of a rectangular plastic with rounded edges, their standard dimension is 85.60mm x 53.98mm. They usually have a design that is in accordance with the bank that issues it and on the front side it reflects the name of the user, as well as other relevant information such as the card number and expiration date. 

The bank cards allow their users to make payments through outlets and the web as well as withdraw cash at authorized ATMs, which can be very advantageous because it makes payments exact amounts and can manage their money without of handling cash. 

As the name implies, bank cards are issued by ... a bank. There are other financial entities that can issue their own cards, such as Fintech. But in the latter case, they would not be bank cards.

Types of bank cards

There are different types of bank cards so they are presented below: 
  • Debit card : it is associated with a bank account from which the consumption made by the user is debited. They allow the extraction of cash through authorized ATMs and make exact payments through the authorized points. Depending on the bank, its use can generate bonds that are exchanged according to the conditions of the entity.
  • Credit cards : credit cards are an instrument designed to finance its users with a specific interest. They are issued after evaluating the credit history and economic situation of the possible user. They are usually ideal for traveling abroad and depending on the issuer you will have benefits and discounts in venues such as restaurants, hotels and tourist centers, as well as ease of contracting travel and luggage insurance, among others.
  • Prepaid cards: they are issued by financial institutions in favor of users who do not necessarily have to have accounts or credit history, since the amount of consumption available on the card will depend on the deposits that it makes. They have a charge for emission and consumption and are usually very useful for passers-by in the country or people with bad financial records.
  • Commerce cards: they are issued by large commercial chains in the hands of a bank or not, and allow the user to finance purchases in their establishments in exchange for interest, since they work in a similar way to credit cards.

Advantages of bank cards

Having a bank card gives us the possibility of obtaining great benefits according to its advantages:
  • Credit cards allow you to cover expenses without having to have the money, taking into account that then additional amounts will have to be covered for interest.
  • debit card allows you to have the money at any time, depending on the available balance in your account. In addition, you can withdraw cash at ATMs at any time. You also avoid handling large sums of cash.
  • The bank cards allow membership of payments services, which facilitates the solvencias to the user.
  • You can check the consumptions made through online banking.
  • They provide support to the user since they can move freely with the security of having money through bank cards.

Concluding the idea a bit, we can say that any of the bank cards described in the article is an advance towards the comfort and order of our finances.

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