There are various cards that allow you to access money and pay for goods or services. Discover the features of these cards and where you can use them here.
debit cards
Use
To withdraw money from your account or pay for goods and services.
Where
At cash withdrawal machines (ATMs), in shops, or for online shopping.
Who
These can be used if you’re at least 11 years old.
Features
- Allow you to withdraw money from your bank account.
- Some shops allow you to get cashback. This means you can withdraw cash at the same time as buying items (you can only spend as much as you have in your account).
- Allow you to withdraw currency from an ATM when you are abroad.
- From the age of 18 you can apply for an overdraft, which allows you to withdraw money even if you don’t have enough in your account. Banks will check your credit history first and you may get charged interest or get bank charges if you go over the agreed limit.
- Some debit cards are contactless, so you can pay for goods up to £30 by touching the card on a reader.
credit cards
Use
To pay for goods or services even if there’s not enough money in your account.
Where
Shops, online or ATMs (you can withdraw cash).
Who
You have to be at least 18 years old to apply for this type of card and must pass credit scoring.
Features
- You can spend money that you don’t have, but you’ll pay interest if you don’t pay it all back within an agreed time.
- If you withdraw cash you’ll be charged interest and a handling fee.
- Interest rates can be high, so manage your credit card use carefully.
- Allow you to withdraw currency from an ATM when you are abroad.
- Late or missed payments can affect your credit rating.
store cards
Use
To pay for goods or services in a specific shop.
Where
In shops or online.
Who
People aged 18 or above who pass credit scoring when applying
Features
- You can spend money that you don’t have, but you’ll pay interest if you don’t pay it all back within an agreed time.
- Often high interest rates, so use store cards carefully.
- Operated by finance companies on behalf of the store.
- Late or missed payments can affect your credit rating.
charge cards
Use
To pay for goods or services even if there’s not enough money in your account.
Where
In shops or online.
Who
People aged 18 or above.
Features
- The balance needs to be paid at the end of each month.
- Non-payment can mean high charges or the card may be cancelled.
- You pay an annual fee for this card.
- Late or missed payments can affect your credit rating.
pre-payment bank cards
Use
To pre-load money onto a card to pay for goods or services.
Where
ATMs, shops or online.
Who
People aged 18 or above, but some cards are available for younger people (not offered by all banks).
Features
- You put the money ‘on’ to the card in advance, it cannot be used otherwise.
- You don’t always need a bank account.
- There’s generally a charge to apply for or use this service.
- Foreign currency cards can be used instead of taking cash or travellers cheques abroad.
smart cards
Use
To pre-load money onto a card to pay for certain goods or services.
Where
In specific places – e.g. for transport, food in school canteens, at Pay Points or for mobile phone top ups.
Who
Depends on the use e.g. a mobile phone ‘top up’ card needed for pay-as-you-go phones.
Features
- You put the money ‘on’ to the card in advance, it cannot be used otherwise.
- Re-charged at designated places only, sometimes online.
- No need for a bank account.
- Various services use these cards, e.g. mobile phones, transport, gas, electricity and even some schools and universities.
gift and voucher cards
Use
A card pre-loaded with a set monetary value, used instead of cash.
Where
In shops or online, but with specified retailers only.
Who
For use by anyone.
Features
- Sometimes pre 'loaded' with an amount or sold as a set amount.
- Some gift or voucher cards can be reloaded, but not all.
- No bank account necessary.
- Allows people to choose what they buy.
- Sometimes have a scratch panel with a voucher number.
- May have an expiry date.
- If a company closes before you use them, you won’t get your money back.