Many people confuse different types of bank cards as they look quite similar. Join us to explore the common types of bank cards and how to distinguish them!
1 Common Types of Bank Cards
There are numerous types of bank cards nowadays, catering to the diverse needs of individuals and organizations. Here are some of the most common types of bank cards:
ATM Card
This is a domestic debit card, the most widely used type. It allows you to withdraw cash from your personal account at ATMs nationwide and offers multiple functions such as bill payment, printing, fund transfer, and checking account balance, among others.
ATM Card
Credit Card
Also known as a credit card, this type of card is issued by banks and financial companies, offering cardholders a set credit limit to spend now and pay later. The credit limit is determined by the cardholder’s credit score and spending history, and they can enjoy an interest-free period of up to 45-55 days, depending on the bank or card tier.
With a credit card, you can quickly withdraw cash worldwide and enjoy numerous attractive benefits and services when shopping, while also tracking your expenses through online services or text messages.
Additionally, to obtain this type of card, you need to demonstrate your financial capability to the bank and be aware that high-interest rates will apply if you fail to repay the borrowed amount on time.
Credit Card
Secured Card
A secured card is issued through collateral such as savings books, real estate, and other valuable documents.
Secured Card
Prepaid Card
Prepaid cards, also known as prepaid debit cards, allow cardholders to load a set amount of money onto the card without the need for a bank account. There are two basic types of prepaid cards: unidentified cards (which cannot be reloaded after the first use and have a maximum load limit of 5 million VND) and identified cards.
Prepaid Card by Vingroup
Debit Card
A debit card is issued by banks to customers upon request, allowing them to spend the money available in their account. Domestic debit cards include Napas cards, while international debit cards include Visa, Mastercard, and JCB. You can identify this type of card by looking for the word “Debit” on the card.
Debit Card
2 Features of Bank Cards
Classification by Function
Bank cards can be categorized into two main types: Debit Cards (or check cards) and Credit Cards. Each type includes domestic and international cards.
Bank Cards Classified by Function
Classification by Technical Nature
Based on their technical nature, bank cards can be divided into three types: Magnetic Stripe Cards, Chip Cards, and Contactless Cards.
Magnetic Stripe Cards: These cards feature a brown, silver, or black magnetic stripe that stores encoded information about the cardholder. The stripe is made of tiny magnetic particles, and due to their low cost, they are commonly used for debit cards (ATM, Napas).
Magnetic Stripe Card
Chip Cards: These cards have an embedded electronic chip that stores the cardholder’s information and operates independently. Due to their higher cost, chip cards are typically used for international debit and credit cards.
Chip Card by BIDV
Contactless Cards: These are non-contact cards made of a smart plastic material with an embedded chip and a hidden antenna that communicates with the card reader via radio waves.
Contactless Card
Classification by Geographical Scope
Based on geographical scope, bank cards can be categorized into domestic cards (issued by domestic financial institutions) and international cards (including international debit and credit cards issued by organizations such as Visa, Mastercard, and JCB).
Bank Cards Classified by Geographical Scope
Classification by Issuing Organization
Bank cards can be divided into two types based on the issuing organization: Commercial Banks and Non-Bank Financial Institutions (such as Home Credit, HD Saigon, and Fe Credit).
Bank Cards Classified by Issuing Organization
Classification by Card Limit
Depending on the card limit, there are two types: Gold Cards (with a high credit limit of over 50 million VND) and Standard Cards (with an average credit limit of 10-50 million VND).
Gold Card (left) and Standard Card (right)
Classification by Card Nature
Based on their nature, bank cards can be divided into two types: Prepaid Cards and Postpaid Cards. Credit cards that allow spending first and paying later are postpaid cards, and cardholders need to demonstrate their financial capability through savings or salary statements to obtain this type of card.
On the other hand, prepaid cards, such as Prepaid, Debit, and ATM cards, require funds to be available in the account to perform transactions and make purchases.
Bank Cards Classified by Nature
This article provides a comprehensive overview of common types of bank cards and how to distinguish them. We hope you found this information useful.
A Guide to Mastercards: Exploring the Difference from VISA and Where to Use Them
Have you ever wondered about the different types of Mastercards and how to use them while shopping online? At Green Machine, we’ll take a deep dive to uncover the ins and outs of Mastercards so you can shop with confidence.
What to do when entering the wrong ATM PIN three times leads to card lockout?
If the incorrect PIN is entered three times, the ATM card will be temporarily locked to protect the customer’s assets. At this point, the customer needs to go to a bank branch to unlock it.
The Ultimate Guide to Online Grocery Payment with Your ATM Card
Online shopping has become a part of our daily lives, and with it, the need for convenient and secure payment methods. If you’re like most people, you probably prefer to use your ATM card for online purchases. But, what if you’re new to online shopping and unsure how to use your ATM card to make payments? Well, worry no more! This step-by-step guide will take you through the process of paying with your ATM card on Bachhoaxanh.com, ensuring a smooth and secure transaction. It’s time to unlock the world of online shopping with confidence!
“Uncomplicating Credit Card Applications: Clear Terms and Easy Procedures”
If you’re considering getting a credit card to suit your needs, it’s essential to understand the simple and straightforward process of applying for one. Let’s explore the requirements and procedures so you can make an informed decision about choosing the right credit card.
