What Are “Cards”? Understanding the Plastic Money in Your Wallet

 

What Are “Cards”? Understanding the Plastic Money in Your Wallet

In today’s world, cash is no longer king. Whether you’re buying a coffee, shopping online, or booking a flight, chances are—you’re using a card. But not all cards are the same. Some let you spend money you already have. Others let you borrow. Some are prepaid, others linked to your bank. And while they all look similar, they work in very different ways.

This guide breaks down the different types of “cards” you might have in your wallet—or might want to get. Understanding how each one works can help you make smarter choices, avoid hidden fees, and build a healthy relationship with money.

Let’s start by listing the main types of cards you’ll hear about:

1. Debit Card

What is it:
A debit card is a payment card directly linked to your bank account. When you use a debit card to make purchases or withdraw cash, the money is taken immediately from your available account balance.

How it works:

• When you make a payment, the amount is debited in real-time or within a few days from your account.

• You can use it both in physical stores via POS (Point of Sale) and online.

• It usually requires a PIN or, in some cases, uses contactless technology for quick payments under a certain limit.

Key details and features:

• You cannot spend more than what you have in your account (unless you have an overdraft authorized by your bank).

• It helps you control your spending because the money is yours, not a loan.

• In case of loss or theft, you must block it immediately to avoid unauthorized charges.

• Some banks offer debit cards with extra features like cashback or instant notifications.

• Using a debit card does not create debt, so no interest is charged.

Practical example:
If you have €500 in your account and buy shoes for €80, that €80 is immediately taken from your account, leaving you with €420 to spend.

2. Credit Card

What is it:
A credit card is a payment card that allows you to borrow money from a bank or financial institution to make purchases. Instead of using your own money immediately, you're spending the bank's money—then you pay them back later.

How it works:

• Every month, you receive a statement showing how much you spent.

• You can either pay the full amount (no interest charged) or a minimum amount and carry the rest as debt (which usually includes interest).

• There's a credit limit, meaning the maximum you can spend with that card.

• The bank expects you to repay what you borrow, usually with interest if you don’t pay the full balance by the due date.

Key details and hidden truths:

• Credit cards can help you build a credit score, which is essential for future loans or financial credibility.

• Interest rates (APR) can be very high—if you don’t pay off your balance, the debt can grow quickly.

• Many cards offer rewards: cashback, airline miles, points, discounts, etc.—but only if used responsibly.

• Missing payments can hurt your credit history and lead to fees or penalties.

• Some cards have annual fees; others are free.

• Some credit cards offer grace periods, meaning you don’t pay interest if you pay in full each month.

Practical example:
You have a credit card with a €1,000 limit. You buy a phone for €400. At the end of the month, you get a bill:

• If you pay €400 → no interest, balance = €0.

• If you pay only €50 → the rest (€350) is carried to next month with added interest.

3. Prepaid Card

What is it:
A prepaid card is a payment card that you load with money in advance. You can only spend what you’ve already loaded onto the card. It’s not linked to a bank account and doesn’t use credit.

How it works:

• You top up the card with a specific amount (e.g., €100).

• You can then use it for purchases or online payments up to that amount.

• Once the balance hits zero, the card stops working—unless you reload it.

• Some prepaid cards are single-use (disposable), while others are reloadable.

Key details and hidden truths:

• You can’t go into debt—great for budgeting or teaching kids about money.

• Useful for online shopping if you don’t want to expose your main bank account.

• Often used as gift cards, travel cards, or for people without a bank account.

• Some cards charge fees: activation, monthly maintenance, ATM withdrawals, etc.

• Prepaid cards don’t usually help build your credit history, since you're not borrowing.

Practical example:
You load €200 onto a prepaid card. You spend €50 at a store, then €40 online. Your remaining balance is €110. You can’t spend more than that unless you reload it.

4. Charge Card

What is it:
A charge card is a type of payment card that lets you make purchases like a credit card, but you must pay the full balance at the end of each billing cycle—no partial payments allowed.

How it works:

• Use it for everyday or large purchases.

• At the end of the month, you get a statement and must pay 100% of what you spent.

• There’s no interest, but you cannot carry debt into the next month.

• Most charge cards have no preset spending limit—but this doesn’t mean unlimited use. The actual limit adjusts based on your financial profile and past usage.

Why choose a charge card instead of a credit card?

• ✅ No interest charges if you pay on time (which is mandatory).

• ✅ High or flexible spending power, great for business or large purchases.

• ✅ Premium rewards and perks, especially with travel and business cards.

• ✅ Enforces financial discipline, since you must pay in full monthly.

• ✅ Can improve credit score if used responsibly (on-time payments, high spending volume).

• ❌ Unlike credit cards, you can’t skip or delay payments, so it’s not ideal for people who need flexibility or credit over time.

Can anyone apply for a charge card?

Not really.
Charge cards are typically offered by premium financial institutions (e.g., American Express) and are often available only to:

• People with excellent credit scores

• High-income individuals or business owners

• Customers who can handle full monthly repayments

They may also require:

• Proof of income

• A strong credit history

• Acceptance of high annual fees (sometimes €100–€600+)

So, not everyone qualifies, and they’re less common than standard credit or debit cards.

5. Store Card (Retail Card)

What is it:
A store card (also called a retail card) is a type of credit card issued by a specific store or brand, like Zara, IKEA, Amazon, or a supermarket chain. It’s designed for purchases made only at that retailer or its partners.

How it works:

• You apply for the card directly from the store or through its banking partner.

• Once approved, you can use it to buy now, pay later at that specific store.

• It functions similarly to a credit card, with monthly statements, minimum payments, and interest if you don’t pay in full.

Why do people choose a store card?

• ✅ Exclusive discounts for cardholders (e.g., 10% off your first purchase).

• ✅ Loyalty rewards, like cashback, points, or coupons for future shopping.

• ✅ Promotional financing (e.g., 0% interest for 6 months on large purchases).

• ✅ Easy approval — often easier to get than regular credit cards, even with average credit.

• ✅ Encourages brand loyalty if you shop often at the same place.

Downsides and hidden truths:

• ❌ Can usually only be used at that store, not elsewhere.

• ❌ Higher interest rates than normal credit cards if you don’t pay on time.

• ❌ May encourage overspending due to easy financing and store promos.

• ❌ Often comes with low credit limits, so it can impact your credit utilization ratio (used vs available credit).

Practical example:
You get an H&M store card with a €500 limit. You buy €200 worth of clothes. You’ll get a monthly bill, and if you don’t pay it in full, interest will be added. You can’t use the card at Nike or Zara—only at H&M.

6. Virtual Card

What is it:

A virtual card is a digital version of a payment card (debit, credit, or prepaid) that exists only online—no physical plastic card is issued. It’s designed mainly for safe online shopping and digital payments.

How it works:

• You receive a 16-digit card number, expiration date, and CVV code, just like a normal card.

• It’s issued by a bank, fintech app, or digital wallet (like Revolut, Wise, Apple Pay, etc.).

• You can use it online just like any regular card.

• Some virtual cards are disposable (for one-time use) while others are reloadable or linked to your main account.

Why do people choose virtual cards?

• ✅ Maximum security – ideal for online purchases or subscriptions. If a site gets hacked, your real card or bank account stays safe.

• ✅ Can be locked, deleted, or replaced instantly through an app.

• ✅ Often free or included with digital banks and fintech services.

• ✅ Great for travel or risky websites, since some cards expire after one use.

• ✅ Perfect for budget control—you can set spending limits or freeze them.

Downsides and hidden truths:

• ❌ Not usable in physical stores, unless connected to a digital wallet like Apple Pay or Google Pay.

• ❌ May not work for some online services that require physical card verification.

• ❌ Not all banks or regions support virtual cards yet.

• ❌ May be less familiar to older merchants or customers.

Practical example:
You generate a virtual card in your Revolut app with a €100 limit. You use it to pay for a Netflix subscription. Later, if you're done, you can freeze or delete the card to prevent further charges or auto-renewals.

7. Travel Card / Forex Card

What is it:
A travel card (also called a forex card or currency card) is a type of prepaid card made specifically for people who travel abroad. It allows you to load foreign currencies in advance, so you can spend internationally without paying high exchange fees or worrying about fluctuating currency rates.

How it works:

1. You load your local currency (e.g., euros if you live in Italy) onto the card.

2. Then, using the card provider’s website or app, you convert that money into the foreign currency you need (e.g., Japanese yen).

3. You are shown a conversion rate at that moment, and the provider applies a fee or markup, either visible or hidden in the exchange rate.

4. Once the conversion is complete, your card holds the foreign currency and is ready to use abroad.

You can then spend the money at shops, hotels, and ATMs just like a debit card — often without paying international transaction fees.

Why people choose travel cards:

• They help avoid poor exchange rates and high fees charged by traditional credit or debit cards abroad.

• Safer than carrying cash, and easy to freeze or block via app if lost or stolen.

• Many allow you to load multiple currencies onto a single card (great for multi-country trips).

• Fixed exchange rate — so you know exactly how much you’re spending.

• Useful for budget control and expense tracking in real time.

Currency conversion: how it really works

When you convert your money into a foreign currency, the provider charges a fee in one of two ways:

1. Hidden in the exchange rate
Instead of giving you the real exchange rate (called the interbank rate), the provider gives you a slightly worse rate. For example:

• Real rate: 1 EUR = 165 JPY

• Given rate: 1 EUR = 160 JPY
  → You lose value in the conversion.

2. Transparent fee
Fintechs like Wise or Revolut often use the real market rate but charge a clear fee (like 0.5% to 2%), especially on weekends or for exotic currencies.

Example: real conversion calculation

Let’s say today the real market rate is 1 EUR = 165.00 JPY
You want to convert €500 into Japanese yen.

With a fintech (e.g., Wise):

• Exchange rate: 165

• Fee: 1% = €5

• You convert €495 → 495 × 165 = 81,675 JPY

With a traditional bank:

• Exchange rate: 160

• Fee: €5

• You convert €495 → 495 × 160 = 79,200 JPY

Difference: over 2,400 JPY lost due to worse rate

Downsides to be aware of:

• You must manually convert and preload each currency — if you go to Japan but forget to convert euros to yen, you may get rejected or pay high on-the-spot fees.

• Some cards charge ATM withdrawal fees, inactivity fees, or even refund fees for leftover money.

• Reloading while abroad can require internet access and app login.

• Not all currencies are supported — some cards only support major ones like USD, GBP, JPY.

Final thoughts:

A travel card is best if:

• You want cost control while traveling

• You travel frequently to multiple countries

• You prefer to lock in exchange rates in advance

But always check the fees and conversion conditions, and compare providers before choosing one.

8. Business Card

What is it:

A business card is a payment card (usually credit or charge) issued to a business owner or employee for company-related expenses. It's used to manage and track business purchases like travel, software, advertising, supplies, and more — separate from personal spending.

Business cards can be credit cards, charge cards, debit cards, or even prepaid cards, depending on the provider and the needs of the business.

How it works:

• The card is linked to a business account instead of a personal account.

• You (or your employees) use it for authorized business expenses only.

• Statements and spending reports help you track tax-deductible purchases, monitor employee use, and manage cash flow.

• For credit-based business cards, the company is typically liable for repayment, although in some cases the individual cardholder may also be responsible (this is called a personal guarantee).

Why businesses use them:

• To keep personal and business finances separate (important for accounting and taxes).

• To earn rewards or cashback on business-related spending (travel, software, fuel, etc.).

• To track employee spending — many cards allow for multiple users and set limits.

• To build business credit, which can help the company access better financing in the future.

• To manage recurring payments like SaaS tools or digital ads in one place.

Types of business cards:

• Business credit card – revolving credit line with interest and limits.

• Business charge card – no preset limit, but balance must be paid in full monthly.

• Prepaid business card – no credit, only lets you spend what’s preloaded.

• Virtual business card – digital version for secure online transactions.

• Corporate card – typically used by large companies, often with no personal guarantee.

Downsides and things to watch out for:

• Most business credit cards require a personal guarantee, especially for small businesses or freelancers — meaning you’re personally liable if the company can’t repay the balance.

• Annual fees can be high, especially for cards with strong benefits or travel rewards.

• If misused by employees, you may be responsible unless strict controls are in place.

• Applying for too many cards can hurt your business credit score or personal score if tied.

Practical example:

You're a freelance designer. You open a business credit card to pay for your Adobe subscription, domain name, and occasional client travel. At tax time, you can export your statement and see only work-related expenses, separated from personal ones — making your accounting clean and professional.

9. Gift Card

What is it:

A gift card is a prepaid payment card loaded with a specific amount of money, often used as a present or promotional item. Gift cards can be:

• Closed-loop – usable only at a specific store or brand (e.g., Starbucks, Zara).

• Open-loop – usable anywhere that accepts a major card network like Visa or Mastercard.

They are not linked to a personal bank account or identity, and are typically non-reloadable.

How it works:

• Someone buys a gift card (e.g., €25, $50, etc.).

• The recipient can use the card to make purchases until the balance reaches zero.

• Once the card is empty, it usually cannot be reused or recharged.

• Available as physical cards or digital e-gift codes delivered via email.

What are Visa and Mastercard?

Visa and Mastercard are payment networks, not banks.
They process transactions between merchants and banks across the world. When a gift card (or any card) is branded with Visa or Mastercard, it means:

• It’s part of that global payment network.

• It can be used anywhere that accepts Visa or Mastercard, whether online or in-store.

• Open-loop gift cards branded with Visa or Mastercard behave similarly to debit cards — but are prepaid and limited to the balance loaded.

Example: a Visa gift card loaded with €100 can be used in most stores across Europe that accept Visa — including online stores — until the funds are fully spent.

Types of gift cards:

• Closed-loop – usable at one retailer only (e.g., Sephora, IKEA, H&M).

• Open-loop (Visa, Mastercard, Amex) – usable at any merchant that accepts the network.

• Digital gift cards / e-gift cards – for online use, delivered instantly via email.

Why people use gift cards:

• To give money in a branded, thoughtful way — more personal than cash.

• For employee rewards, customer loyalty programs, or event prizes.

• To limit spending or give children a controlled spending option.

• As a secure way to pay online without exposing your bank or credit card.

Downsides and limitations:

• May have expiration dates depending on country laws and issuer policies.

• Some include monthly inactivity fees (mostly in the U.S. or on promotional cards).

• Usually cannot be reloaded or used for cash withdrawal.

• If lost and not registered, the balance cannot be recovered.

• Remaining small balances are often difficult to spend exactly, unless combined with another payment method.

Practical example:

You receive a €50 Zara gift card as a birthday present. You buy €40 worth of clothes and have €10 remaining to spend later. This card only works at Zara.
Alternatively, you receive a Mastercard gift card worth €50 — and you can use it anywhere that accepts Mastercard: at the supermarket, online stores, or for a taxi ride, until it runs out.

10. ATM Card

What is it:

An ATM card (Automated Teller Machine card) is a bank-issued card that allows you to access your bank account exclusively through ATMs. It is primarily used for withdrawing cash, checking your balance, depositing money, or transferring funds between accounts.

ATM cards are directly linked to your bank account (usually a checking or savings account), and do not provide credit or overdraft unless separately enabled.

How it works:

• The card contains a magnetic strip or EMV chip and is protected by a PIN (Personal Identification Number).

• You insert the card into an ATM, enter your PIN, and select a transaction (e.g., withdraw €100).

• The ATM communicates with your bank, verifies your balance, and immediately deducts the requested amount.

• Some ATM cards cannot be used in stores or online — they are strictly for ATM access.

In many countries, modern debit cards now include ATM functionality, but in others, pure ATM-only cards still exist and are issued for very limited banking access.

Differences vs. Debit Card:

Feature	ATM Card	Debit Card
Use at ATMs	✅ Yes	✅ Yes
Use in stores	❌ Often No	✅ Yes
Online payments	❌ No	✅ Yes
Card networks	May have no network logo	Usually Visa/Mastercard/Maestro
Overdraft access	❌ No (unless enabled)	✅ Sometimes

Why someone would use an ATM card:

• For basic, secure banking without the risk of overspending or fraud.

• For elderly individuals, minors, or users with no need for online purchases.

• To withdraw or deposit cash without going into the bank branch.

• Banks may issue ATM cards to new customers, students, or as limited-access options.

Extra Security: Why ATM Cards Are Useful for Protecting Large Balances

For people who keep large amounts of money in a bank account, an ATM card can be a very strategic and safe option:

• No online access = no online theft.
  If someone steals or clones your card, they cannot make online purchases or transfers.

• No Visa/Mastercard network = no retail transactions.
  Unlike debit or credit cards, an ATM card cannot be used on websites or at stores.

• Only usable with a physical ATM and PIN.
  Even if someone steals your ATM card, they must know your PIN, and they are limited to daily withdrawal caps (e.g., €300/day).

• Ideal for separating funds:
  Many wealthy individuals use a “vault” bank account connected only to an ATM card, while using a different debit/credit card for daily spending. This way, if one card is hacked, the primary capital remains untouched.

This makes ATM cards a powerful defensive tool for anyone who wants to keep large sums of money safe and offline.

Limitations and downsides:

• No shopping access — neither online nor at physical retailers.

• No recurring payments, subscriptions, or utility billing possible.

• May not work internationally unless part of a global ATM network (e.g., Cirrus, Plus).

• Using the card at an ATM outside your bank’s network might include additional fees.

Example:

You have a high-balance savings account at your bank in Italy. To keep it secure, you request an ATM-only card instead of a debit card. You cannot use it to shop or buy anything online — but you can visit your bank’s ATM, enter your PIN, and withdraw cash or check your balance whenever needed. Even if someone steals the card, they can't use it without the PIN and can't access the money online.

11. Contactless Card

What is it:

A contactless card is a payment card (usually a debit, credit, or prepaid card) that uses NFC (Near Field Communication) technology to make payments without inserting or swiping the card. You simply tap the card on the payment terminal, and the transaction is completed in seconds.

These cards usually show the contactless symbol (4 curved lines) printed on the front or back.

How it works:

• The card contains an embedded NFC chip.

• At checkout, you tap your card near a compatible POS terminal.

• The card wirelessly transmits your payment information.

• The terminal verifies the transaction (usually for amounts below a tap limit, e.g., €50).

• For larger purchases, or after a certain number of uses, you may be asked to insert the card and enter your PIN for added security.

Key Features:

• Speed: Transactions are completed within 1–2 seconds — no PIN or signature needed under the limit.

• Convenience: No need to insert the card or touch the terminal.

• Low friction: Perfect for places like coffee shops, public transport, or fast food chains.

• Tap limits: Most countries impose a maximum limit per tap (e.g., €50 or $100). For higher amounts, PIN authentication is required.

Security Aspects:

• Encrypted transmission: The data sent during a contactless payment is encrypted and dynamic, reducing the risk of cloning.

• Short range: NFC only works at very close distances (usually < 4 cm), making unauthorized reads difficult.

• Daily usage limits may be imposed by banks for safety.

• Fallback to chip & PIN helps prevent fraud if something unusual happens.

However, because no PIN is required for small purchases, repeated unauthorized taps could still be a concern if the card is lost or stolen, especially before you report it.

Why someone would choose a contactless card:

• To make faster, cleaner transactions, especially in high-traffic or hygiene-sensitive environments.

• To avoid handling cash or typing PINs in public.

• It’s ideal for people who make many small, everyday payments.

• Many banks issue them by default now — especially to young users and for travel purposes.

Common Misunderstandings:

• You can’t pay accidentally by just walking by a reader — the card has to be held very close.

• Contactless ≠ Apple Pay/Google Pay — those are mobile wallets. However, contactless cards use similar NFC technology.

Example:

You’re at a coffee shop in Tokyo and your total is ¥900 (~€6). Instead of inserting your debit card and entering a PIN, you just tap your contactless card on the terminal. Within 2 seconds, payment is accepted and you get your receipt — no PIN, no signature, no wait.

12. Chip and PIN Card

What is it:

A Chip and PIN card is a payment card (credit, debit, or prepaid) that uses a microchip for storing data and requires a PIN (Personal Identification Number) for authorizing transactions. It’s one of the most widely used and secure card types in the world, especially in Europe.

This type of card is part of the EMV standard (Europay, Mastercard, and Visa).

How it works:

• The card has a metallic chip embedded on the front.

• During a transaction, you insert the card into a chip reader (POS terminal or ATM).

• The machine reads encrypted data from the chip.

• You’re prompted to enter your 4-digit PIN to confirm the payment.

• Once verified, the funds are deducted or authorized based on your card type.

This process is much more secure than old magnetic stripe swiping, where no PIN was required.

Key Features:

• High security thanks to encryption and PIN verification.

• Offline verification possible in case the terminal has no internet — the chip holds enough data to approve the transaction locally.

• Less risk of cloning — unlike magnetic stripe cards, chip data can’t be easily copied.

Why someone would choose a Chip and PIN card:

• Required in many countries: Especially in Europe, where most merchants expect chip and PIN as default.

• Better fraud protection compared to swipe-only or signature cards.

• Safer for international travel: Many foreign ATMs and payment terminals require chip cards, especially outside the US.

• PIN adds a second layer of security in case the card is lost or stolen.

Differences vs. Contactless or Swipe Cards:

Feature	Chip & PIN Card	Swipe Card	Contactless Card
Data storage	Chip (EMV)	Magnetic Stripe	NFC (Near Field)
Authentication	PIN required	Signature or none	PIN only for large tx
Security level	High	Low	Medium-High
Usable offline	✅ Yes	✅ Yes	❌ No (needs network)

Secret Tip:

Not all Chip cards are equal. Some support Chip + Signature (common in the U.S.), others Chip + PIN (Europe). If you're traveling, check what your destination country supports — many self-service kiosks in Europe won’t accept Chip + Signature cards.

Example:

You’re shopping in Paris and buy a €120 pair of shoes. The terminal asks you to insert your card and enter your PIN. You input your code, the transaction is instantly approved, and you receive your receipt. No signatures, no swipe — just secure chip technology and PIN protection.

13. Co-branded Card

What is it:

A co-branded card is a payment card (usually a credit or sometimes debit card) issued through a partnership between a bank and a brand or company — such as an airline, retailer, hotel chain, or even a streaming service.

It carries the logo of both the bank/card issuer (like Visa, Mastercard, or Amex) and the partner brand (like Amazon, Emirates, IKEA, etc.).

How it works:

• You apply for the card through the bank or brand’s platform.

• You use the card just like any other credit/debit card — online, in-store, or while traveling.

• Every time you spend with it, you earn rewards, points, or discounts specifically tied to the brand.

• Some cards offer instant perks, like free shipping, lounge access, or cashback on purchases made with the partner brand.

Key Features:

• Reward system tied to the brand (e.g., frequent flyer miles, store points).

• Welcome bonuses when you spend a certain amount in the first few months.

• Brand-specific perks: e.g., priority boarding, special sales access, free upgrades.

• Global usage — accepted anywhere that accepts the card network (e.g., Visa).

Why someone would choose a co-branded card:

• To save money or earn benefits with a brand they already use often.

• To maximize loyalty — perfect for frequent flyers, big shoppers, or loyal customers.

• To enjoy exclusive access (e.g., special events, presales, or private offers).

• Some co-branded cards also come with travel insurance, concierge service, or no foreign transaction fees.

Who can apply:

• Most are available to the general public with a credit check.

• Some premium versions require a minimum income or spending level.

• In some cases, loyalty program membership (e.g., frequent flyer ID) is required.

Common Examples:

• Amazon Visa Card – cashback on Amazon purchases and more.

• Emirates Skywards Mastercard – earn miles on every spend.

• IKEA Family Credit Card – special installment options and discounts at IKEA.

• Hilton Honors American Express – points on hotel stays and travel perks.

Differences vs. Regular Credit Cards:

Feature	Co-branded Card	Standard Credit Card
Brand rewards	✅ Yes (brand-specific)	❌ No
General rewards	❌ Less flexible	✅ Often cashback or points
Annual fee	✅ Often (but with perks)	✅/❌ Varies
Loyalty integration	✅ Built-in with partner	❌ Not brand-linked

Example:

You’re a frequent traveler who flies with Emirates. You get the Emirates Skywards Visa. For every €1 you spend, you earn Skywards Miles. After a few months of daily use, you’ve earned enough miles for a free flight upgrade, plus you enjoy airport lounge access and priority boarding — just for being a cardholder.

14. Fuel Card (also known as Fleet Card)

What is it:

A Fuel Card is a payment card used specifically for purchasing fuel, and in some cases, vehicle-related expenses such as maintenance, oil, or tolls. It’s often issued to businesses with company vehicles or to professional drivers, allowing them to track and control fuel expenses.

Unlike regular debit or credit cards, fuel cards are typically limited to fuel stations and auto service merchants, and can include custom controls and reporting tools.

How it works:

• A company or individual receives a fuel card tied to a specific network of fuel stations (like Shell, BP, Total, etc.).

• The driver uses the card at participating locations to pay for fuel.

• Each transaction is logged — with vehicle ID, driver ID, mileage, and fuel type — and sent to the account holder.

• Payments are billed weekly or monthly, with consolidated invoices and reports for easy expense tracking.

Key Features:

• Restricted use — only works at fuel stations, and sometimes for vehicle services.

• Pre-set limits — by volume, frequency, location, or even fuel type.

• Detailed reporting — for fleet management and tax accounting.

• Often comes with discounts per liter/gallon at partner stations.

• May offer PIN-based access for added security.

Why someone would choose a Fuel Card:

• Businesses use it to monitor employee fuel use, avoid cash handling, and control costs.

• Self-employed drivers and couriers benefit from fuel discounts and easy bookkeeping.

• It reduces misuse — the card can't be used at non-fuel merchants.

• Offers VAT-compliant invoices — useful for reclaiming tax.

Types of Users:

• Trucking companies

• Delivery services

• Taxi fleets or rideshare drivers

• Corporate sales teams

• Bus or coach services

• Freelancers or business travelers

Limitations:

• Usually not usable for other purchases (no groceries, electronics, etc.).

• May be locked to specific brands (e.g., BP only).

• Not accepted everywhere — only at partner fuel stations.

• Some cards have monthly service fees.

Example:

You own a small courier business in Germany. You give each driver a Shell Fuel Card. They use it only at Shell gas stations. Every transaction is logged with the car’s license plate and mileage. At the end of the month, you receive a single invoice showing all refueling activity — no need for manual receipts or expense reports.

15. Biometric Card

What is it:

A Biometric Card is a next-generation payment card that uses the cardholder’s biometric data, typically a fingerprint, for authentication instead of (or alongside) a PIN code.

This card has a built-in fingerprint sensor that scans your fingerprint directly on the card during a transaction. It’s used to authorize payments securely and quickly, enhancing both convenience and fraud protection.

How it works:

1. You enroll your fingerprint onto the card using a secure device (at home or in-branch).

2. When you tap or insert the card at a terminal, you place your finger on the sensor embedded in the card.

3. The card matches your fingerprint locally (the data never leaves the card).

4. If the fingerprint matches, the transaction is authorized — no need to enter a PIN.

Key Features:

• Built-in fingerprint reader on the card surface.

• PIN-less and contactless transactions — with biometric verification instead.

• Fingerprint data stored securely on the card, not in a central database.

• Chip and contactless enabled, so it works with modern POS terminals.

• Battery-free — it gets power from the payment terminal.

Why someone would choose a Biometric Card:

• Enhanced security — only your fingerprint can authorize the card.

• No need to remember a PIN, which can be forgotten or stolen.

• More secure than signature or PIN-only cards, especially in crowded places.

• Ideal for elderly users, or those with difficulty remembering passcodes.

• Reduces fraud from stolen or lost cards — it’s useless without your fingerprint.

Who can apply:

• Still limited in availability — offered by select banks or fintech companies in countries testing this tech.

• Some banks offer it only to premium clients or as part of innovation programs.

Limitations:

• Not yet supported by all payment terminals (especially older ones).

• If the fingerprint scanner is damaged, fallback PIN may still be needed.

• Slightly more expensive to produce and issue than regular cards.

• Requires initial fingerprint registration.

Example:

You receive a biometric Visa card from your bank in France. You register your fingerprint using a provided reader. At a store, instead of entering a PIN for a €90 payment, you tap the card and place your thumb on the card sensor. In less than a second, the card confirms your identity, and the payment goes through — no PIN, no signature, no delay.

16. Metal Card

What is it:

A Metal Card is a premium payment card, typically made of metal alloys like stainless steel, titanium, or a metal-plastic composite. It functions like a regular credit or debit card, but is issued by banks or fintech companies to high-net-worth individuals, frequent travelers, or premium clients.

It’s not about metal for its own sake — the card symbolizes luxury, status, exclusivity, and higher-tier financial services.

How it works:

• Just like any credit or debit card — you tap, insert, or swipe it at payment terminals.

• Most metal cards are part of Visa Infinite, Mastercard World Elite, or American Express Platinum/Centurion programs.

• They offer elite perks, including:

  • Travel insurance

  • Airport lounge access

  • Concierge services

  • Luxury hotel upgrades

  • Higher spending limits

  • Personalized customer support

Key Features:

• Heavy weight and metallic feel — around 10 to 18 grams (vs 5g for plastic).

• Minimalist, sleek design — often with your name engraved or lasered.

• Priority status — at hotels, car rentals, events.

• High annual fees, but packed with luxury benefits.

• Concierge and lifestyle managers often included.

The “Secret” Inside:

• Psychological status marker: The weight and sound of placing a metal card on a counter signals exclusivity — it’s designed to impress.

• Invitation-only tiers: Some metal cards like the Amex Centurion (“Black Card”) can’t be applied for — you must be invited after years of high spending.

• Unlimited or high credit limits: Some cards have no preset limit, making them useful for luxury shopping or business class travel.

• Custom manufacturing: Some companies let you choose colors, finishes, and even have blacksmith-style design engraving.

Why someone would choose a Metal Card:

• Prestige and visual impact — it looks and feels different.

• Access to elite services — VIP lounges, upgrades, private event invites.

• Better protection — high travel coverage, refund insurance, extended warranties.

• Exclusive memberships — golf clubs, fine dining clubs, priority ticketing.

Who can apply:

• Some metal cards (like Revolut Metal or N26 Metal) are open to the public for a monthly fee.

• Others, like Amex Platinum, require a minimum income or credit score.

• The most exclusive (e.g., Amex Centurion) are invitation-only, and may require hundreds of thousands in annual spending.

Limitations:

• Very high annual fees: ranging from €200 to €2,500+ per year.

• Heavier weight: which some find inconvenient in slim wallets.

• Overkill for people who don’t travel or spend much — the perks may go unused.

• Some airport scanners or hotel keys may malfunction with heavy metal cards (rare, but real).

Example:

You're a frequent flyer and sign up for the American Express Platinum Metal Card. It costs €720/year, but includes:

• Unlimited airport lounge access (including Amex Centurion Lounges),

• €200 in annual travel credit,

• 5x points on flights,

• Free hotel room upgrades,

• Access to personal travel concierge.

When you place the metal card on a restaurant table, it makes a noticeable "clunk" sound. The staff instantly recognize it — you're treated differently.

17. Disposable Card

What is it:

A Disposable Card is a temporary, one-time-use virtual card that you generate specifically for a single online transaction. Once it is used (successfully or partially), the card deactivates automatically and becomes useless for any further payment.

It’s a highly secure tool to protect your main card/account and maintain full control over how much money can be charged — ideal for both personal and business use, especially when dealing with unknown suppliers, freelancers, or online shops.

How it works:

1. You log into your fintech app (e.g., Revolut, Wise, N26, Privacy.com).

2. You create a new virtual disposable card with:

   • Card number, expiration date, and CVV

   • A maximum charge limit (e.g., €3,000)

   • Optional expiration time (e.g., 10 minutes, 1 hour, 1 day)

3. You send the card details to the person/company you want to pay.

4. They enter the card into their payment processor (Stripe, PayPal, SumUp, etc.), exactly like a normal Visa/Mastercard.

5. When the charge goes through, the money is instantly deducted from your main account, and the card self-destructs.

6. The recipient receives the funds in their account as with any standard card payment.

How the receiver collects the money:

• The card works like any Visa or Mastercard.

• The recipient enters the card details into their system — this could be:

  • Stripe

  • PayPal

  • Shopify

  • Online invoice link

  • A secure checkout page

• Once the charge is processed, the money is sent to their merchant account.

• From there, it is transferred to their bank account, just like a normal business payment.

• No special action is needed on their side — they don’t know it’s a disposable card, and it works like any other.

Do disposable cards cut commissions for the receiver?

No — the receiver still pays their usual processing fees.
For example, Stripe or PayPal may still take 1.5% to 3%, just like with any regular card.
Disposable cards protect you, not reduce fees for them.

If you want to avoid third-party commissions, you need to use a bank transfer or crypto, but then you lose the benefits of chargeback, fraud protection, and easy card control.

What happens if the receiver charges less than the full amount?

• Example: You create a disposable card with a €3,000 limit.

• The receiver mistakenly enters €2,000 instead of the full amount.

• The €2,000 is deducted, and the card is instantly deactivated.

• The remaining €1,000 is never charged.

• That remaining balance stays in your account — you don’t lose it.

If you still want to send the €1,000, you need to create a new disposable card and repeat the process.

This is a security feature, not a bug: the card cannot be reused or corrected once used, even partially.

Why use a Disposable Card:

• You want to pay once, without risk of future charges.

• You want to control the amount to the cent.

• You’re dealing with a new or untrusted supplier.

• You want to avoid saving your card info in shady platforms.

• You’re sending a large one-time payment, safely.

Advantages:

• Protects your real account from misuse.

• Limits spending precisely — nothing more can be taken.

• Works with any platform that accepts Visa/Mastercard.

• Stops future billing, even if someone tries to resubmit.

Limitations:

• Not usable in physical shops.

• Can’t be used for subscriptions, hotel deposits, or recurring payments.

• Recipient must charge the amount before the expiry time.

• If the receiver makes a mistake, you need to generate a new card for the remaining balance.

 Example:

You owe a freelancer in Brazil €3,000. You open your Wise Business account and generate a disposable Visa card with a limit of €3,000. You send them the card details.

• They input the card into their Stripe invoice and accidentally charge €2,000.

• The charge goes through. The card self-destructs.

• Your main account is charged €2,000, the remaining €1,000 stays untouched.

• You now need to create a second disposable card to send the remaining €1,000.

18. Installment Card

What is it:

An Installment Card is a payment card or credit card feature that allows you to split a large purchase into smaller, fixed monthly payments (installments) over a predetermined period. Instead of paying the full amount upfront, you pay back gradually, often with interest or sometimes interest-free promotions.

How it works:

• When you make a purchase, you choose to pay in installments.

• The total cost is divided into equal monthly payments (e.g., 6, 12, or 24 months).

• Each month, a fixed amount is charged to your account.

• Interest may be charged depending on the terms; some issuers offer interest-free installments as a promotion.

• You receive monthly statements reflecting the installment amount due.

Why use an Installment Card:

• Makes expensive purchases more affordable by spreading payments over time.

• Helps with budgeting without paying full price immediately.

• Can be useful for managing cash flow for big expenses (electronics, travel, furniture).

• Some cards offer interest-free installment plans as a perk.

Risks and considerations:

• Interest and fees can increase the total cost if not interest-free.

• Missing payments may lead to penalties or loss of promotional rates.

• You are committed to paying monthly amounts regardless of other expenses.

• Overusing installments can lead to debt accumulation.

Who can get one:

• Offered by many credit card issuers or financial services as a feature.

• Requires approval based on creditworthiness.

• Available to consumers who want flexible payment options.

Example:

You buy a €1,200 laptop and choose to pay over 12 months. Your monthly statement shows a €100 installment payment each month. If the plan is interest-free, you pay exactly €1,200 total over a year; otherwise, interest adds a small cost.

19. Cashback Card

What is it:

A Cashback Card is a type of credit or debit card that rewards you by giving back a percentage of the money you spend as cash rewards. Essentially, you earn a small rebate on purchases, which is credited back to your account or paid out in other ways.

How it works:

• For every eligible purchase, you earn a fixed or variable cashback percentage (e.g., 1%, 2%, or more).

• Cashback rewards can be:

  • Credited to your statement to reduce your balance.

  • Deposited directly into your bank account.

  • Redeemed for gift cards, travel, or other rewards.

• Some cards offer higher cashback rates on specific categories like groceries, gas, or dining.

• Cashback usually applies only to purchases, not cash advances or balance transfers.

Why use a Cashback Card:

• Earn money back on everyday spending.

• Simple and automatic rewards without needing to track points.

• Some cards offer signup bonuses or promotional cashback rates.

• Can help offset costs if you pay your balance in full monthly.

Risks and considerations:

• Cashback rewards may come with annual fees or higher interest rates.

• Carrying a balance means interest could outweigh cashback benefits.

• Some cards have caps on cashback or limited categories.

• Beware of minimum redemption thresholds or expiry of rewards.

Who can get one:

• Available to most consumers, often requiring a credit check.

• Rewards cards usually target users with good to excellent credit.

• Many banks and card issuers offer cashback options.

Example:

You spend $1,000 on your cashback card with a 2% cashback rate. You earn $20 cashback credited to your account, effectively reducing your spending cost.