What Is a credit card?
Credit cards allow a consumer to purchase goods and services by borrowing against an approved line of credit. It is a loan. Purchases made during the month are billed to the credit card holder, and you will pay the bill at a later date.
Should you be unable to pay the entire balance due, then the credit card company charges you interest.
If the payment is late, the credit card company may also charge late fees and revoke promotional interest rates.
Unlike an ATM or ATM/Debit cards, all charges, as well as any cash advances, are not automatically deducted from your checking account, unless specific arrangements are made through the bank.
Credit cards carry some additional protections that debit and ATM cards do not have. If a credit card is lost or stolen, under the Fair Credit Billing Act, the maximum liability is $50. If the missing card is reported before any fraudulent charges are made, there is no liability at all.
If the account holder fails to pay on time, the unpaid balance may start to accrue interest. Because credit cards are essentially unsecured loans — meaning that no collateral backs up the debt if the account holder defaults on what she owes — the interest rate charged to delinquent accounts is much higher than other types of loans, like mortgages. Not only will the balance and interest have to be paid off, but late payments could actually lower the account holder’s credit score.
What Is a Debit Card?
A debit card is a payment card that deducts money directly from a consumer’s checking account when it is used. Also called “check cards” or “bank cards,” they can be used to buy goods or services; or to get cash from an automated teller machine or a merchant who’ll let you add an extra amount onto a purchase.
Debit cards partner with major credit card brands, such as VISA, Mastercard and Discover, to allow you to use your debit card for payment anywhere those branded cards are accepted.
When using your debit card for an in-person purchase, you’ll swipe, insert or use contactless pay at the card terminal just like a credit card. You’ll then enter your personal identification number (PIN) into the machine, although some merchants allow you to use your debit card without a PIN. Your PIN is a security measure that verifies your identity.
What Is Mastercard?
Mastercard is one of four major U.S. processing networks, providing technology to facilitate electronic payments between consumers, businesses, and organizations.
In addition, Mastercard also offers payment products, like credit and debit cards that financial institutions can offer to consumers and businesses.
Many people only know Mastercard as a company with a recognizable credit- and debit-card logo. However, the payment network plays a major role in the credit and debit cards offered, how businesses can accept credit cards, and in completing transactions. Learn more about what the company is, how it works, and what it offers.
What is a VISA card?
A VISA card is an international payment card introduced by Visa International Service Association, a payment network based in the US, cooperating with financial institutions to issue different branded VISA cards. Currently, VISA cards are available in over 190 countries worldwide and are the most commonly used card type.
You can use VISA cards to do online shopping and transact at almost everywhere that accepts VISA around the world, including cash withdrawal, bank transfer and savings deposit. Also, VISA cardholders often enjoy more exclusive promotions and offers. Currently, HSBC has a variety of cards to suit every lifestyle.
Some of the VISA cards we want to introduce are: VISA debit card and VISA credit card. With different benefits for different kinds of cards, you should choose a card that best matches your financial lifestyle.