Types of Debit/Credit Card

[doubleback]

Everyone knows there are a variety of "types" of card, such as Visa, MasterCard, Maestro, Switch, etc. My question is: what's the difference?

[andy hughes]

The basic 'credit' cards are Visa, Mastercard, and so on, the 'debit' cards are Switch and Maestro. the simple difference is - Credit cards debit the amount paid from a pre-determined spending limit at an advised future date. The balance owed is advised to you by post. If you pay your invoice in full by the due date, you enjoy free credit, but if you fail to clear the whole balance, interest is charged on the whole balance until it is all paid. Debit cards are electronically connected to your bank account, and the money is deducted almost instantaneously as the transaction is made. It's a cash-free method of shopping. That's the basic difference between the two. Debit cards are easy to use because if you go past your cash limit, the transaction is refused. Credit cards need care, because it is easy to fail to pay, and to forget that the interest is calcuated on the whol balance - if you owe �100, and pay �99 by the due date, the interest is not charge on the remianing �1, but on the entire �100, until that �1 is paid off. Hope this is clear enough.

[calibrax]

Visa and Mastercard are effectively two different companies/organisations offering credit card services. Switch and Maestro - these are the same, but with different names... in fact, Switch is about to change it's name to Maestro.

[Michael H]

A most important fact regarding Debit Cards has not been mentioned. There are essentially two types. One type is the Debit card normally issued to basic bank account holders and those under 18, which are branded in the UK as SOLO and VISA ELECTRON. The other type are the ones issued to Current Account holders which are SWITCH/MAESTRO and VISA DELTA. Basically the difference between the two is that first type will be issued to just about anyone regardless of their credit history, every single transaction is verified by the issuing bank and NO over limit transactions will go through. The other type attached to Current accounts are only ever issued to those over 18, and considered creditworthy and responsible. This is because unlike SOLO or ELECTRON not ALL transactions have to be verified with the bank, ie: under the merchant's floor limit. This means that the card is open to abuse such as fraud and unauthorised borrowing,and therefore only issued under trust. SWITCH/MAESTRO and DELTA also have the additional facility of Cheque Guarantee, which again is another very useful function, but only available to over 18 and creditworthy.