Spending on plastic cards overtook cash in 2004 and has continued growing ever since. Plastic cards allow us to pay for goods and services virtually anywhere in the world, easily and conveniently, and provide a more secure alternative to cash and cheques.
Debit Cards
When you use your debit card the money you spend is taken directly from your current account. As long as you have enough money in your account you can use your debit card to buy things in person, over the phone, by mail order and over the internet. It also enables you to withdraw money direct from your account, and may have a cheque guarantee and cash machine function.
Credit Cards
A credit card allows you to pay for goods and services with credit up to a limit agreed with your card issuer. You have to pay back what you borrow - the costs, terms and conditions will vary from card to card and interest is normally charged.
Charity/Affinity Cards
Some credit cards are issued on behalf of charities and other organisations like football clubs and universities. For this type of card the card issuer usually makes a donation to the charity or organisation when the card is issued or each time that the card is used — at no additional cost to you.
Charge Cards
These are similar to credit cards. They allow you to pay for goods and services on interest-free credit but whatever you borrow must be paid in full at the end of a specifi ed period, usually every month or you may incur fees.
Cardholders may be charged an annual fee.
Store Cards
Store cards are a type of credit card.
They can be used in fewer places, often only in the individual shop or chain that issued it. Interest rates on these cards tend to be higher than on standard credit cards and credit limits tend to be lower. However, many shops provide special offers to their cardholders.
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