The different classification of transaction cards

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Earlier, there were only cash transactions. But now, things have changed. Cards have come up to take the place of cash transactions. Debit and credit cards are the most common type of cards. But prepaid cards have also come up. Cards can be categorized based on their issuance, usage and payment did by the caretaker. We have discussed the different classifications of cards. This will provide you a much better of the three different cards and help you to distinguish between them. For more information on prepaid debit cards, you can check onevanilla balance .

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Debit Cards

Debit Cards are those cards which are used for payment by providing the electronic access of the cardholder’s bank account to the cardholder. Banks generally issue these cards and these cards are linked to a person’s bank account. The most common purpose for which debit cards are used is withdrawing fast cash on daily or weekly. Sometimes they are also being used for purchasing goods & groceries. They could also be used domestically as well as internationally provided it is allowed by the bank for international use.

Debit cards are of mainly two types i.e. online debit card and offline debit card. In the case of an online debit card, they require an electronic authorization which reflects the transaction of a user in his/her account. In order to transact using these type of debit cards, PIN (Personal Identification Number) is required. In offline debit cards, there is a maximum limit every day. The limit depends on the current account of the customer. Their transactions generally take a couple of days to reflect on the customer’s transaction.

Credit Cards

Credit Cards are plastic cards which the bank issues and is approved by the higher authority of banks to pay the merchants for their goods and services. You can use credit cards while paying for purchased goods and also in e-commerce through the recurring transaction. Credit cards act to be so good irrespective of where you are, in the locals or on foreign land. These credit cards also come up with several days of interest-free credit that acts as a charm when you are running low on your bank balance.

Prepaid Cards

Banks issue prepaid cards while some non-banks can issue as well. But the cardholder needs to pay value in advance. The stored money can be issued as a smartcard, chip cards, internet wallets etc. Different prepaid companies have different limits for the maximum amount. The owners who issued it can use these cards. You can use these cards for withdrawing money from ATM, purchase goods and services from an e-commerce site. You could also transfer funds from one person to another domestically.


You can issue the cards depending upon your requirement and choice. If you apply for debit or credit cards, credit checks will be done by the bank. While in the case of prepaid cards, there are no bank checks. So, before you choose any one of the cards, make sure you learn every detail about the cards which you are about to apply for.

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