When choosing the right merchant services, it is important to consider not only the limit, interest rate, and grace period. You should choose what kind of card will be – magnetic or chip, with or without bonuses, regular or “gold.” The ways of its use and limitations for it will largely depend on this. Let’s have an in-depth look at the different types of credit cards you can opt for.
By Technical Device
From a technical point of view, almost all plastic cards are divided into magnetic and chip cards. For the former, all information about the card is stored on a special magnetic stripe. The latter has an electronic chip built into the card. The most common cards have both a strip and a chip.
Unlike a chip card,
a magnetic card is easier to manufacture and cheaper, but the security level of such cards is very low. The magnetic stripe can be easily copied by fraudsters using a special device. The chip card is much more reliable and is capable of storing more information about the account. For such a card, contactless payment is sometimes available. To use it, just bring the card to the reader.
By Payment System
Payment systems are global and local. Global systems provide their cards to banks in most countries in the world. Global systems cards are accepted for payment in any country where the system operates. Cards of these systems are accepted for payment both domestically and abroad. These payment systems also allow you to open an account in dollars or euros. The largest global payment systems are American Visa, MasterCard and American Express, Chinese UnionPay, and Japanese JCB.
By Bonus Programs
Banks offer
credit cards with bonus programs to draw attention to their services and give more opportunities to customers. Often, the bank issues credit cards in conjunction with various companies – such cards are called co-branded. By paying with such a card for the goods or services of the company, the holder receives additional benefits.
By Status Category
The status category of the card affects the level of security, quality of service, and benefits in use. Accordingly, the conditions for issuing these cards are different. According to this classification, cards are divided into:
- Electronic– These are bank cards with a basic set of services, usually made within one day. Such cards can only be used for withdrawing money and making non-cash payments; most often, they cannot be used on the Internet.
- Classic– The most common type of card. They are issued by all banks and payment systems. They are well protected, accepted everywhere, and can be used abroad.
- Status- There are four levels – Gold, Platinum, Premium, and Elite. Such cards have large limits, and additional services are provided for them.
