Why do people use prepaid debit cards

Credit card types: prepaid, online credit card, or debit card

Basically there are “real” and “fake” credit cards. One major difference - only the real ones really grant credit. The most important types are given here at a glance.

Looking for the right credit card? You will find what you are looking for with our free credit card calculator.

The favorite: debit card

More than half of Germans do not have a real credit card - but almost everyone has a girocard, formerly also known as an EC card. In other countries this type of card is also counted as a credit card, in Germany the so-called debit card bwz. Debit cards rarely found with Mastercard or Visa identification.

Usually with the logo of your house bank. With a debit credit card, the money is debited from your checking account as soon as you pay - so there is no interest-free loan, but at best an expensive loan due to the informal overdraft facility on your account. For notorious overdos, a very expensive form of the fake credit card. Even if this is free of charge.

The classic: charge credit card

With the Charge credit card, there is a monthly invoice that must be paid immediately or within a subsequent period. The customer therefore receives a credit from the purchase of goods to the due date of the invoice from his credit card company such as Mastercard, Visa or American Express. He pays no interest on this loan.

Variant two of the credit card charge is also becoming more and more fashionable: the so-called revolving credit. Depending on the bank or credit card contract, customers can repay part of the outstanding amount every month via the current account. As a rule, however, there is no fixed repayment rate.

The newcomer: Daily charge card

The daily charge card also has several features. It's a little bit of charge, a little bit of credit card debit. Billing takes place via a purely billing card account. This can only be managed in credit by topping up - usually via your current account. The customer practically decides for himself how high his card limit should be. For some customers, this is a decisive advantage when comparing the different credit cards.

As long as you have the credit, all transactions on the card account are debited immediately. If the credit is used up, the credit line kicks in. And when the monthly statement arrives, any debit is collected from the current account by direct debit. This does not result in high interest on arrears as with the revolving loan.

The Schufa-free: prepaid credit card

With the prepaid credit card, all payments are settled on a credit basis. What you want to pay must therefore be available in the prepaid card account beforehand. You can only use prepaid credit cards at acceptance points that are connected to an online reader.