Different Types of credit cards to Suit Your Needs
Credit cards can be classified according to several criteria: type, type of payment system and benefits.
Standard. The card contains a magnetic strip that stores information that allows access to a bank account through an ATM. This is the most common type of card. Chip. In addition to the magnetic stripe, they contain a microprocessor that allows storing 80 times more information than on it. These cards can process and store all bank account data. Provide the highest protection against fraudsters.
By payment system
There are two types of payment systems: international and local. International include: Visa, MasterCard, American Express and Diners Club. Local payment systems include: Sbercard (cards are accepted only at Sberbank branches and partner organizations), Union Card, NPS and others. The higher the status of the payment system, the more points its cards are accepted. As a rule, the type of payment system does not affect the additional payments of the cardholder.
Classic. Contains a standard type of service, which includes regular services and a line of credit. Issued to all clients by default. Gold. They have an increased credit limit, more comfortable conditions for servicing an account, special offers for payment for goods and services.
Platinum. Privileged cards that emphasize the high status of the holder. They include additional services, for example, in the form of round-the-clock support of a bank specialist, a concierge service (taxi call, reference information), additional insurance when traveling abroad, discounts when shopping in stores, etc. Co-branded. Connected with bonus programs (most often airlines or retailers) – every expense on the card brings you bonus points that can be spent to get a number of benefits.
What are the types of credit cards?
Before issuing a card, it is important to consider not only the limit, interest rate and grace period. It is important to choose what kind of card will be – magnetic or chip, with or without bonuses, regular or “gold”. The ways of its use and restrictions for it will largely depend on this. Next, you will learn about what types of credit cards exist depending on the technical device, payment system, bonuses and other classification parameters. We will explain what to look for when choosing a card for a particular purpose. Also in the article you will find out what types of credit cards are issued by large Russian banks. Credit cards can be divided into several types according to the following criteria: By technical device – chip, magnetic, magnetic-chip, virtual By payment system – international (Visa, MasterCard. American Express, UnionPay, JCB) and local (MIR) According to bonus programs – co-branded, with cashback (money, points, miles), by installments, charitable By status in the system – electronic, classic, gold, platinum, premium, elite
By technical device
From a technical point of view, almost all plastic cards are divided into magnetic and chip cards. For the former, all information about the card is stored on a special magnetic stripe. The latter have it on an electronic chip embedded in the card. In Russia, the most common cards have both a strip and a chip.
A magnetic card, unlike a chip card, is easier to manufacture and cheaper, but the security level of such cards is very low. The magnetic stripe can be easily copied by fraudsters using a special device. A chip card is much more reliable and capable of storing more account information. For such a card, contactless payment is sometimes available – to use it, just bring the card to the reader.
A credit card can exist without a plastic carrier – then it is called virtual. At the same time, it has the same basic details as the usual one – number, validity period and CVC code. Virtual cards are primarily intended for non-cash payments – to use it, you just need to enter the details into the payment form on the seller’s website and confirm the operation with an SMS code. But sometimes such cards can be supported by smartphone applications with NFC (Apple Pay and similar) bdv en linea – then they can be used offline.
By payment system
Payment systems are global and local. Worldwide frameworks give their cards to banks in many nations on the planet. Global systems cards are accepted for payment in any country where the system operates. Cards of these systems are accepted for payment both domestically and abroad. These payment systems also allow you to open an account in dollars or euros.
The biggest worldwide installment frameworks are American Visa, MasterCard and American Express, Chinese UnionPay and Japanese JCB. In Russia, MasterCard is very popular, and Visa is in second place. Most Russian banks issue credit cards in them. UnionPay and JCB are less common – mainly at banks operating in the Far East. Only one bank, Russian Standard, issues cards in the American Express system in Russia. They are prevalent mainly among wealthy clients.
Local payment systems operate within one country or one bank and rarely go beyond these limits. Their capabilities are limited in comparison with global systems. For example, they do not allow you to open an account in foreign currency. Examples of local systems in Russia are Pro100, Zolotaya Korona and MIR. The Pro100 has not functioned since 2016, and the Golden Crown is almost uncommon. In the MIR system, mainly debit cards are issued – only Rosselkhozbank, Zenit and some other banks have credit cards in it.
By bonus programs
To draw attention to their services and give more opportunities to customers, banks offer credit cards with bonus programs. Often, the bank issues credit cards in conjunction with various companies – such cards are called co-branded. By paying with such a card for the goods or services of the company, the holder receives additional benefits.
A card with bonuses from an airline allows you to accumulate miles to pay for tickets and hotel accommodation (for example, Aeroflot from Sberbank). A card from a large store gives discounts and bonuses in this store (for example, Crossroads from Alfa-Bank). A card issued in conjunction with a charitable foundation will allow you to deduct small contributions from each purchase to the foundation – usually the bank pays them out at its own expense (for example, Give life from Sberbank).
Many credit cards offer a cashback function on the card – returning part of the amount spent back to the card account. Such a card allows you to save up to 5-10% of the purchase, and for special offers from partner stores – up to half of the amount. Cashback can be combined with co-branding – for example, when shopping in a partner store, both a discount and a refund are valid. An example of a card with a cashback is Platinum from Russian Standard Bank.
Sometimes credit cards allow you to pay for various purchases in installments. In this case, the purchase price is repaid in installments without interest or at a minimum rate. The installment plan can operate in any stores or only with the bank’s partners. There are so-called installment cards that provide only this method of payment.
By status category
The status classification of the card influences the degree of safety, nature of administration and advantages being used. In like manner, the conditions for giving these cards are unique. As per this order, cards are separated into:
These are bank cards with a basic set of services, which are usually made within one day. Such cards can only be used for withdrawing money and making non-cash payments; most often, they cannot be used on the Internet.
The most common type of cards, they are issued by all banks and payment systems. They are well protected, accepted everywhere, and can be used abroad. To get a card, you need to provide the bank with all the necessary documents and obtain consent.
There are four levels – Gold, Platinum, Premium, and Elite. Such cards have large limits and additional services are provided for them. For example, personal service at the bank, the possibility of card insurance, discounts and additional offers when paying for goods and services. The higher the level of the card, the more privileges it has. At the same time, the service fees and requirements of the bank to the owner are growing.