Different Types of Bank Cards and their Uses
If you’re going to make a career out of online moneymaking, then you better know the different types of bank cards and their uses.
Knowing these types is absolutely important, whether you plan to establish an online business, work as a full-time affiliate marketer, or do anything that involves earning income from the Internet.
In making money transactions, be wise about your choice of bank cards.
Probably the most common among the types of bank cards are ATM cards. An ATM card has the basic functions of a bank card: they will allow you to deposit and withdraw money, transfer money between bank accounts, and even get a loan. ATM cards have certain sub-types:
- Ones that will require you to have a minimum maintaining balance
- Ones that will allow you to withdraw the entire sum of money without any additional charges
The interest rate of ATM cards varies depending on the bank you’ve chosen to be with.
Withdrawing cash from an ATM machine is very easy and will not cost you any extra charge. Also, if your online business requires you to travel from one place to another, having an ATM card is sufficient in that you can withdraw money from any compatible ATM machine with the local currency of the country you are in.
If you only need a bank account to receive money from clients and your buyers, an ATM card is what you need.
Applying for one is very easy, and you don’t even have to wait very long to get your application validated.
If you’re looking for bank cards that will allow you to not only receive money from clients and buyers but also make purchases in both offline and online enterprises, then a debit card is what you’re looking for.
Debit cards basically has the same functions of an ATM card – the only difference is that you can make buy products and services both offline and online just by using your debit card.
Usually, the transaction will require you to enter your PIN code or sign the receipt upon receiving your purchase.
When purchasing using a debit card, make sure that you don’t spend more than the amount of money in your bank account. Doing so can result in expensive penalties or rejection of your purchase.
Use a debit card if your business requires you to buy raw materials online. You should also apply for a debit card if you are in the online retail business, which requires you to transact with suppliers on a regular basis. You can tie your debit card with www.paypal.com or www.xoom.com, two of the major online financial platforms.
Among all the bank cards, you’ve probably heard the most about credit cards. Unlike debit cards and ATM cards, credit cards don’t require you to have a bank account. However, you can still make purchases even without the presence of a savings account.
If the amount of your purchases isn’t automatically deducted from your bank account, how will you pay for what you’ve bought? Basically, all your purchases are bought on credit. This means that you are practically borrowing the money you are using to buy products from the bank.
The bank is loaning you money with the use of your credit card. Credit cards allow you to spend before you save, which is precisely why owning one entails a lot of responsibility. A lot of people tend to go on a purchasing spree without having means to pay for them in the end. This results in credit card debt.
Credit cards apply for people who need initial financing for their online business. Bank cards like these allow you to buy domain and hosting for your business website, among other things that will get your business started.
You should carefully choose the type of credit card that suits your need the most. There are unsecured revolving credit cards that have a fixed credit limit, which is characterized by a fixed credit limit and an unsecured loan.
Secured credit cards, on the other hand, are awarded to first time credit card holders. This involves a certain amount of money that you should give to the bank as a form of a collateral and a credit limit more or less equivalent to the collateral money.
Prepaid Debit Cards
Debit cards work the same way credit cards do. As its name suggests, the difference is that you deposit a certain fixed and prepaid amount on prepaid debit cards before you can use them.
The payment for credit cards usually come after you have made your purchase; prepaid debit cards allow you to pay before you spend. If you’re on the way to rebuilding a positive credit rating, then prepaid debit cards are a good way to start.
Prepaid debit cards are also perfect for online moneymakers who need to purchase raw materials and product supplies by the bulk. The best part is that you don’t have to worry about expensive overdraft fees imposed by debit cards, since prepaid debit cards will stop functioning once the money runs out.
So there you have it, the four major types of bank cards that will prove useful in your efforts to make money online. Make sure you consider the strengths and weaknesses I just outlined. And, of course, remember to have fun making money from home!