Choosing the right bank card

These days when you’re not paying with cash, you’re most likely paying with your bank card. And if you’ve already gone cashless, there’s a chance you could be paying with several cards quite interchangeably.

While the global pandemic has certainly made us step up our game in adopting cashless payments, it’s helped us realize along the way that there’s a card fit for every lifestyle. In parallel, you may also come to learn that there are occasions where it’s ultimately better to make a purchase with your bank card than with cash, and in the few scenarios where you may run out of cash, your card can help save your life… financially!

For example, with your debit card, you make purchases to buy things from a store. With your credit card, you most likely make purchases online or overseas. With a prepaid card, you load it up with funds and use it at your convenience both online and offline. Finally, a virtual card lives in your mobile app and can be used for online payments.

While some of these cards may interlink and seem like they more or less work the same way, they are still quite different. Read on to find out how to choose the right bank card that fits with your lifestyle purchases.

Debit card — your everyday card

The debit card is one of most widely used and recognised cards. It is simply your bank account in a card that fits into your pocket. Every time you make a purchase with your debit card, the amount automatically gets deducted from your bank account.

In fact, the moment you open a personal current account whether through your mobile banking app or by visiting a branch, you receive a debit card that you can use for both your online and offline purchases worldwide and to withdraw cash from ATMs.

When to use your debit card

Feel free to use your debit card anytime and anywhere because your money is basically with you at all times, so you no longer have to carry large amounts of cash with you everywhere you go.

You can pay with your debit card at any point-of-sale; restaurants, supermarkets, pharmacies, gas stations, furniture stores, and online retailers.

If you’re worried you’ll magically whip out your debit card for any occasion and spend all your funds, your mobile banking app is there to help you keep track of the money that goes out of your account at all times, so you don’t break the bank.

Credit card

A credit card works similarly to a debit, but it gives you more wiggle room to spend a little more. Realistically, a credit card allows you to borrow money instantly and at your own convenience from the bank. So, when you pay for something, you can pay the money back at the end of the billing cycle.

Just like a debit card, it comes with your name and 16 digit number on the front, with the expiration date and secret code on the back. The secret code is used for when you shop online. It’s pretty much like a confirmation code that the card belongs to you and it is you making the payment, and not someone else that is making purchases on your behalf.

There are also different credit cards that range from Infinite, Signature, Platinum, and Gold. Each one comes with its own spending limit, rewards, and perks. Your credit card’s spending limit is basically the maximum amount of funds that you can borrow.

This means that if you get a card with a 5,000 JOD limit, you’re only allowed to spend up to 5,000 JOD and not more. While you’re free to borrow money and purchase anything you want with it, you’ll also have to be mindful that you don’t max out your credit card.

By the end of each month, you’ll receive a bill in the form of a minimum payment that you’ll have to pay back by the due date. If you don’t pay back your credit card fees by the end of the month, you’ll be charged with an interest fee of 1.75%.

So, let’s say you spent 2,000 JOD on your card, you can choose to pay back the full amount at the end of the month or in small monthly installments. This way, you won’t feel the strain on your finances.

When to use your credit card

Credit cards are a handy piece of plastic. They’re perfect for when you don’t want to spend a big chunk of money in one go. For example, let’s say you have 1,000 JOD in your bank account and you need to buy something for 900 JOD. Instead of putting yourself in a situation where you’re short on cash for the month or you don’t want to dig into your savings, you can use your credit card instead by borrowing the amount you need and paying it back at the end of the month.

Prepaid card

A prepaid card may seem like a debit card at first because it almost functions the same way. Here’s the difference though - a prepaid card works like a top-up card where you load it with funds ahead of using it. Each time you need to top up, simply transfer money from your current account straight into your card.

A versatile way to use a prepaid card

Looking for a new way to budget your money with something that’s safer and more convenient than using cash? Then the prepaid card is your calling because unlike a debit card, there’s more limits to overspending when it comes to online and offline shopping. One great tip to make the most out of your prepaid card is to top it up monthly so you can resist the urge of overspending.

Travel often and on a strict budget? Then your prepaid card is perfectly versatile for your next adventure! It’ll force you to go strict on your budget and limit your spending on any small impulsive purchases that break the bank while you’re overseas.

Another perk and versatile function that comes with the prepaid card is that it can serve as an allowance card for children. For parents who want to start teaching kids on building responsibility habits, the prepaid card will come in handy instead of cash. Simply agree on a monthly allowance and transfer money to the card each month. Unlike the cash that goes out of your children’s pocket, a card will remain with them at all times so they’ll come to learn the value of it and money in general.

Virtual card

This is not a physical card, this is a card that lives virtually in your mobile banking app — here comes the virtual card! Many people aren’t too familiar with the virtual card; it’s one of those special cards that seems to be quite underrated.

Well, underrated no more.

What makes this card special? It acts like a credit card but works like a prepaid card and it is your ideal companion for your online purchases.

So, if you’re an avid online shopper, you can request a virtual card through your mobile banking app, as it is mainly used for online payments. They’re accepted by many online retailers that widely accept credit cards. While the virtual card’s currency is only in JOD, there’s no limit to how much you can spend with it.

When to use your virtual card

While prepaid cards are only used in-store, virtual cards are only used online and are great for online purchases as they provide you with additional security and control over your money.

Use your virtual card if you order food online, order a cab from an app, or shop from online retail stores around Jordan. It’s the perfect top-up virtual card that won’t incur any interest fees.

Which card will it be?

Just as there’s a bank account for every lifestyle, there’s a card for every purchase. While you’ll most certainly not need all the cards at your disposal, you’ll now have a better understanding of which is the right card for you according to your lifestyle purchases. Or if you have more than one card, you’ll now know which one to swipe according to what you purchase.