What is the difference between a prepaid card, credit card and debit card?

Imagine a situation where you decide to get a bank card for certain purposes, for example, paying for purchases on the Internet. But at the same time you do not know what is the difference between a prepaid card, a credit card and a debit card. WestStein service specialists will help you sort out this issue, and also tell you why issuing a prepaid card in the above case is the best option.

Let’s start with the fact that bank cards have been familiar to us since the last century, since the days of the “trading boom” in the United States. But it was during the period of mass globalization and digitalization that they became the most convenient financial instrument. Today, many people prefer digital technologies, so a virtual prepaid card is a faithful and indispensable assistant for them. But why is the age of cash passing and digital wallets becoming so popular? The answer is simple, a person in all spheres of his life develops and optimizes all processes. He wants to secure not only existence, but also his savings. Using an extremely simple example, you can understand that a digital card is more convenient than cash, because it is difficult to steal it. And even if you have lost your gadget, then without a password or biometric data, an attacker will not be able to use your money.

So, let’s move on to the classification. In this article, three types will be presented and considered:

• credit cards;
• debit;
• prepaid cards.

Debit card: features and functionality

A debit card is one of the varieties of bank cards, which is tied to the main bank account, and the holder puts funds on it. It is used as an equivalent to paper savings, in addition, lending with bank money is not allowed on such cards. Interestingly, this card is the most common financial instrument in Europe.

There are also so-called overdraft cards – those that have a small credit limit. The client is given the opportunity to use the bank’s money, returning it without interest during the grace period. This option is improved and more welcomed by consumers.

Debit cards can also be digital, which does not change their functionality much: you can pay for purchases and services, including online, receive wages to your account, transfer money inside and outside the country, withdraw cash, etc.

Credit cards: client opportunities

Holders of such cards use the funds provided by issuing credit institution. The owner of the “plastic” as he spends, returns the funds to the bank with interest. The main difference of credit cards is that it is impossible to store your own funds on them, since there is no provision for a positive balance.

Of the advantages of such tools: the client does not report to the financial institution about where he spends money. In addition, card loans are considered a more profitable tool for both the bank and its client.

You can use a credit card in almost the same way as a debit card, the main difference is the presence of a commission for certain operations, as in the case of an overdraft.

Prepaid Mastercard: what is it for?

Let’s take a look at the WestStein prepaid card tool as an example. Such card is used by the owner to make purchases, make transfers and other manipulations related to spending money. Often, you can order a prepaid Mastercard after passing a short registration and verification. Another advantage of prepaid cards is that they are not tied to a main bank account, which is especially true for consumers who wish to remain anonymous when making purchases.

Literally every adult can open an online settlement account and receive such a card to realize all their expenses. In addition, this kind of card never involves a credit part, that is, you will never go “minus”. The card can also be virtual and connected to Google Pay and Apple Pay e-wallets. Thus, the account will always be with you in the gadget, which minimizes the risk of fraud or theft of funds.

Speaking about the WestStein service, it should be noted that there is a convenient and understandable mobile application in which you can track all transactions and receive receipts. This helps our clients optimize their costs and become more financially literate. In addition, we provide high-quality customer service in a format convenient for you (chat in instant messengers, telephony).

Also, our experts took care of safety. In addition to the PIN code, which is individually assigned to each card, the account is protected by the Mastercard 3D Secure system, that is, a two-level user authentication. Cooperation with us means comfort and safety, check it by yourself!