Other kinds of cards

icScotland

There are many variations on charge and credit cards: Affinity cards Affinity cards are issued by a credit card company, but marketed by an organisation or group with a particular interest or affiliation. A small portion of each purchase amount is donated to the affinity group. Charitable foundations, universities, and sports clubs are all examples of groups that market affinity cards. Debit cards Debit cards deducts the cost of a purchase directly from your checking account. Because your account is debited the same day you make the purchase there is no credit or loan involved. Debit cards are linked to your current account. Reward cards Reward cards have loyalty or reward programmes associated with them. Common benefits include receiving cash back on purchases charged to the card, accumulating air miles for each pound spent with the card, or accumulating points towards a future discount on a particular purchase. Smart cards Smart cards are a new type of card imbedded with a microchip instead of a magnetic stripe. The chip stores information such as the account balance, credit limit, personal ID data, and the affinity groups or reward programmes you participate in. Smart cards are not widely available in the UK yet. Store cards Store cards are connected to a particular retailer. The card is accepted only in a particular store or chain of stores, unless a credit card company such as Visa or MasterCard endorses it. Stored value cards / electronic purse Stored value cards, or electronic purse, are emerging as a new type of payment card. Stored value cards replace cash with a plastic alternative for small payments such as buying a paper, paying a parking ticket or purchasing goods on the Internet. Stored value cards are not generally available in the UK yet.

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