Card types

Overview

Credit Cards

Description

Allows users to make purchases or transactions and pay for them at a later date, usually at the end of the month, or in multiple monthly installments.

Advantages

Offers financial flexibility, allows for large purchases, and provides fraud protection.

Disadvantages

Purchases in installments may include a financing interest.

Examples

Visa, Mastercard, American Express, Discover, among others.

Debit Cards

Description

Deducts money directly from a bank account at the time of the transaction; does not allow for installment payments.

Advantages

No risk of accumulating debt; some banks offer rewards similar to credit cards.

Disadvantages

If used in case of theft or fraud, the money is deducted immediately; does not offer the same fraud protection as credit cards.

Examples

Visa Debit, Mastercard Debit, American Express Debit, among others.

Prepaid Cards

Description

Loaded with a specific amount before use and can be used up to the value of the available balance; does not allow for installment payments.

Advantages

Expense control, security, and no credit check required.

Disadvantages

Do not generate credit history and may have usage limitations.

Examples

Visa Prepaid, Mastercard Prepaid, American Express Prepaid, among others.