Choosing Between Debit and Prepaid Cards

Debit cards and prepaid cards share similar payment characteristics, making it challenging for many users to differentiate and use them.

Considering whether to opt for a debit card or a prepaid card?

To assist customers in understanding the distinctions and usage of debit and prepaid cards, the team at Mytour has curated an article: 'Choosing Between Debit and Prepaid Cards?''

The article not only focuses on analyzing the concepts and similarities/differences between debit and prepaid cards but also provides suggestions for using cards most effectively. Let's explore!

Considering whether to opt for a debit card or a prepaid card?
 

1. What is a Debit Card? What is a Prepaid Card?

+) Debit Card

A debit card is a type of card issued by a bank, commonly used for cash withdrawals, fund transfers, and payment for goods and services using the funds available in the customer's account. It is directly linked to the customer's payment account at the bank.

+) Prepaid Card

Prepaid cards, issued by banks, perform functions similar to debit cards but are not linked to the customer's bank account. Identifiable prepaid cards can be reloaded and used multiple times, while anonymous prepaid cards can only be loaded once and used until the balance is zero.

2. Choosing Between Debit and Prepaid Cards?

Before deciding to use a debit or prepaid card, you need to consider the following issues.

2.1. Card Payment Limits

Both debit and prepaid cards can be used to load funds and spend the available balance. However, a prepaid card allows spending until the balance is zero, while a debit card can only be used for payments until the balance reaches 50,000 VND (50,000 is the minimum balance required to maintain the card's functionality).

2.2. Payment Security Features

Prepaid cards, not directly linked to a bank account, pose fewer risks in case of card-related issues. However, the payment security of prepaid cards is relatively low, requiring caution to avoid unauthorized charges.

For debit cards, cardholders need to complete various security layers before usage. The risk of losing money or information when using a debit card is significantly lower compared to using a prepaid card.

2.3. Card Usage Fees

When using debit and prepaid cards, banks will charge certain fees. These fees vary depending on the bank's regulations. It's advisable to check the fee schedule for different types of cards from various banks before getting a card to gather the most useful information.

2.4. Shopping Benefits

Currently, banks often collaborate with partners to implement various promotional programs (gift cards, discount vouchers, reward points redemption, etc.) for customers paying with prepaid cards. (Here, debit cards are considered regular payment cards and do not enjoy as many benefits as prepaid cards ).

In Summary

Considering the essence, debit and prepaid cards operate similarly. Base your choice on your actual usage needs. Specifically.

If you prefer not to open a bank account but still want to use a payment card while saving transaction costs, opt for a prepaid card.

If you wish to easily manage all your bank accounts and have your transactions conducted quickly and conveniently, a debit card is the optimal choice for you. If your Vietcombank debit card is locked, refer to Mytour's guide on how to unlock Vietcombank debit card for assistance.