Consider them different on their advantages, uses and on different grounds. All these cards are used differently in the matter of payment. While some are directly linked to the cardholder’s savings bank account, some can help improve your credit score.
If you have a savings bank account, the bank must have issued you a debit card. This card is linked to your savings account. Debit cards are usually associated with credit networks such as Visa or MasterCard. These credit networks being printed on the cards means that payments can be made from that card in different countries and locations. However, using a debit card does not strengthen your credit score. You can withdraw money from ATM using your debit card.
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Many banks and non-banking financial institutions (NBFCs) issue credit cards. Other authorized companies can also issue credit cards. Through a credit card, cardholders can make payments against goods or services from POS terminals or e-commerce websites. A credit card helps to strengthen your credit score if you pay the bills on time. These credit cards can also be used abroad. Credit cards can also be used to withdraw money from ATMs, but charges are deducted depending on the amount of withdrawal.
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Many banks and companies issue prepaid cards. Prepaid card is issued against the amount paid in advance by the cardholder. This amount is stored in the prepaid card. This card can be used as a wallet. Prepaid card terms depend on the card issuer. These cards can be used to make ATM withdrawals and make purchases at POS terminals/e-commerce. You can also transfer funds from this card, but it depends on the given limit and conditions.
These cards are issued in a special overdraft account like a personal loan. These are similar to debit cards. Bank customers with overdraft accounts have to provide electronic cards for domestic digital transactions. The instructions regarding Debit Cards for all purposes like Security, Merchant Discount Rate (MDR) and AFA are applicable only on electronic cards.
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