Credit or debit card? Better Visa or MasterCard? In the United States, we are not yet very accustomed to paying with plastic money, and therefore we still have certain doubts that in other countries would seem absurd.
Let’s start with the most basic issues: debit card and ATM are the same things, therefore synonyms.
The main (but not the only) difference between credit card and debit card is that with the former we can make purchases even if we do not have the money in the account because we pay the following month, while with the debit card we could only buy if at that moment we have money in the account. For the one with the first one you buy “on credit” and with the debit card “on debit”.
So better to have a credit card linked to MyCCPay that offers more freedom? Not necessarily, because with the credit card the costs are a bit higher: for withdrawals, for example, there is a commission; moreover, they are not always included for free in the current account, unlike the ATM which is now provided at no additional cost by all banks.
It all depends on our needs and our lifestyle: do we need a credit card or not? To answer this question, we need to understand what we can do with our credit card that the debit card will not allow us to do.
What can you do with a credit card and an ATM?
- Payments in shops: with both cards, you can pay in shops. The main difference is, as already mentioned, that with your credit card you don’t need to have in stock the money you need to pay, because the payment is made the following month (for example, when you know that your salary will be credited of the month). With a credit card, in fact, you can go red and spend more than you have in the bank at a given time. With the ATM, no: if you have the money you pay, if the money isn’t enough, the operation is refused.
- Online payments: In general, you can pay online with a credit card and a prepaid rechargeable card, but not with an ATM. Be careful, however, because on some websites you necessarily need a credit card, for example with many websites for hotel reservations, holidays, travel, etc. As for online security, it is better to always use credit cards to make purchases on the web, because they are easier to block in case of identity theft or cloning; instead for ATMs, the procedure to follow is more complex. A useful datum: at the end of March 2015 it will be possible to start paying online with the ATM, according to the Bancomat Consortium, although each bank will be able to decide whether or not to adhere to the proposal.
- Rent a car: if you want to rent a car abroad you need a credit card.
- Payment in installments: where allowed, with your credit card you can pay in multiple monthly installments for your purchases. In many countries in the world (North and South America above all), any purchase can be paid by credit card in installments, even for very low amounts. In Europe, the situation is more “controlled”, with the aim of protecting the customer (and not letting him get into excessive debt), but in certain cases household appliances and other goods can be paid in installments. Better to consult with your bank about it.
- Withdrawals of money: With both cards, you can withdraw, but here there is an advantage with the ATM: with credit cards, there is always a commission to withdraw (sometimes more than 2%) while with Debt withdrawals are free across the EU. Beware that with some banks, withdrawals are free only at ATMs of the same group. Consult with your bank before withdrawing from an ATM other than your own. For further information read our recent observatory.
- Cruise payments: Useful data given the proximity of the summer holidays. if you travel on a cruise, you will need a credit card and not an ATM. Not to buy tickets, but to pay for all the expenses you will do on the ship, such as drinks (not included in the price), purchases at the shops, consumption in bars and restaurants, excursions, spa and wellness center, cinema, etc. If you don’t have a credit card, you can buy some things in advance, such as drink packages, spa services, and excursions, or make a cash deposit before boarding, but inform your travel agency.
- Activation and payment of domestic utilities: To activate some domestic utilities, in particular, many ADSL offers, you often need a credit card or a debit on a current account. Obviously, if you have an ATM card it means that you have a checking account, but not necessarily the other way around. In fact, a person can have a credit card without having a current account, for example, if the card is not the holder but an additional one (often the owner is the parents). If, on the other hand, your home user plans to send the postal order, you have to pay in cash at a post office, bank or tobacconist, you cannot do it with the card.
- Creation of a Paypal account: would you like to have a Paypal account to manage your online payments safely, or to get paid by your customers on the web? You must have a credit card, the ATM is not needed. Alternatively, you can connect a rechargeable prepaid card or account card to your Paypal account. With this type of card (which combines a bit of the advantage and disadvantages of both) you can credit salaries, pay online and, in fact, create a PayPal account.
- Attention then to another important fact: credit cards are not offered at all. If you do not credit your salary or pension, or demonstrate a minimum stock, you will not be able to request one. In addition, some banks make you wait 6 months from the moment you open your bank account or, better still, from when you start crediting your salary, in order to apply for it.
[Watch] Difference Between Credit Card and Debit Card | Pro and Cons
Finally, if you have decided that you need a credit card, or you want to open a convenient checking account to ask for a good debit card, we recommend you use our free and independent online ones, which will allow you to choose the product that best suits your needs. your needs.