Lifehack from a bank employee. Plastic cards. Part one.

The rapid development of modern technology gives us incredible opportunities that people could not even dream of. Technological change has affected many areas of our lives and not bypassed financial sector. Cashless payments are a quick and convenient way to pay without cash with the help of a plastic cards or bank account. Thanks to them, we make purchases anywhere in the world without leaving home, receive salaries, pay utility bills and make urgent payments, such as financial aid, payment of education or other services. I drew attention to the fact that many people do not understand the idea of using cards and prefer cash. After receiving the salary, they run to the nearest ATM and withdraw everything up to the last monetary unit.

So, how to use credit cards and not to be trapped?

In this article, I decided to acquaint you with the basic techniques of using cashless payments, and most importantly, to get rid of the fear of their use.

First, why do we acquire bank cards?

Many of us use the card exclusively abroad and it is considered inappropriate to use them in the country.

Why is it like that?

The reason is simple – cash is more familiar, easier to use and more, people are afraid of going to the bank, where they will have a huge amount of papers to sign. There are three types of cards – debit, deposit and credit cards.

When we use them and for what?

1) Debit card – for the use of your own funds. That is, you put, remove and use only your money. To get a debit card is easy and you need only one document – the identity card. The bank will help you with the choice of the type of card (MasterCard, Visa, American Express) depending on the location of its use (Europe, US, Asia).

Why people get a debit card?

At work, I noticed a trend – people order a debit card, put money on it, and then withdraw cash back. Later they express a deep dismay at the fact that the bank charged a small percentage of the cash withdrawal.

What is wrong here?

This circuit has no meaning for a logical reason. Cards are designed for cashless payment, and the bank is giving you a card counting on the thing that you’ll use it in the network for online purchases, payment of utilities and mobile operators. Moreover, some banks offer cards at ridiculous rates or even free of charge.

2) Deposit cards – with them all the more easier. This card is linked to your contribution. For example, you put money at the bank at an interest, and you are not able to pick up the monthly percentage. In this case, the credit institution provides you deposit card, which you with no additional fees will remove a percentage of your deposit.

3) Credit cards – the name speaks for itself. This is the same credit only on a plastic card. I want to point out a few advantages of using a credit card:

• The first advantage – they are easier to obtain than a conventional loan. You will need an identity card, proof of income (from work) and, depending on the bank’s internal procedures.

• Another big plus is such a thing as “Grace” period. This is the time during which you can pay your debt on the card without interest, that is a credit institution provides you the money without interest, usually for a period of 30, 40 or 45 days. It all depends on the conditions that you have to study it.

What are you looking for when choosing a bank?

Many people are of the opinion that the long queues are a good indicator for the credit institution, bank. It is the first mistake. Big queues are a sign of lack of professionalism from staff, which means that in this bank you will not be served quickly, and because of lack of time does not explain all the terms and conditions. A positive feature is the wide network of ATMs and branches. With their presence, you can easily withdraw cash or carry out urgent operations on the account anywhere in the country or town. Unfortunately, this principle often does not work in our country, and a large number of ATMs (cash machines) are not always talking about the level of service of the credit institution. But, if you do it in priority, the item can be useful. There are several important conditions – such as the share capital, membership in the deposit insurance fund and the interest rate. Therefore, the first two conditions will be sufficient for users of plastic cards.

Perhaps soon the predominant method of payment will be non-cash (non-cash). Therefore, it seems to me, we should do not be afraid to use new technology in daily life.

Source: Urban.az