– Withdraw cash from ATMs– Make payments for various transactions
– Make payments for a wide variety of transactions– Provide unsecured credit– May be used for cash withdrawals, but costly
Spending limit
– Based on bank account balance– Spending or withdrawals are immediately debited
– Based on limit granted to cardholder– Transactions charged are first made against credit limit, to be repaid to the bank later– Transaction limits may exceed bank balance, but not credit limit on card
Typical fees
– Card replacement fees
– Annual fee– Interest on balance carried over– Cash advance fee– Supplementary card fee– Conversion fee for certain perks
Perks
– Limited
– Earn cashback, air miles and reward points– Enjoy cardmember benefits (discounts, vouchers, complimentary services such as travel insurance, etc.)