It is very important that citizens know the rights and obligations that we acquire at the time we hire a debit or credit card.
The cards are payment instruments issued by a financial entity or a business that allows payments to be made without cash. Cards must meet certain standards:
- The name of the financial institution issuing the card, the logo of the interbank network must also be included on the front, in addition, the chip, the card number, the date of expiration and the name of the holder.
- A magnetic stripe, the place for signature, the verification or validation value code (CVV) and hologram will appear on the back.
The use of cards is very common at the time we are, either to make payments in shops or to withdraw cash at ATMs. It is very important that citizens know the rights and obligations that we acquire at the time we hire a debit or credit card.
Debit cards, like credit cards, are bank cards, that is, issued by a bank. But they have some important difference that we will show below:
Debit cards are used to use the funds deposited in the checking or savings account to which it is associated. Therefore, if you are a debit card holder, there must be an account with which it is associated. They can be used to make payments in shops and to withdraw money at offices and ATMs, as well as to check balances and account movements. In this type of cards the operation is instantly registered in the account. This is the main difference between debit and credit cards. For security reasons a daily limit is usually set, especially for the withdrawal of funds from ATMs.
Credit cards can be made payments or obtain funds, up to a certain limit, on credit. In exchange, the money must be returned within the deadlines. The use of this type of cards has the same consequences as having any other credit or financing modality, being obliged to return the money and pay the established interest. The limit of the available credit must be included in the card contract, and the return of the money that has been used must be done in the manner and within the expected deadlines, normally in the first days of each month.
Commissions and indebtedness
Bank commissions are the amounts that banks owe you as consideration for the services they provide, for example for granting a credit card. Commissions can be charged together, such as a single generic charge, flat rate, or separate charges, that is, an individualized charge for each service provided.
The fees or prices of bank commissions are free, banks can set the amount or price they deem appropriate. These commissions must respond to services actually provided or expenses incurred, they cannot charge a service that has not been requested or accepted.
Debit cards are much simpler than credit cards, so they have fewer commissions than credit cards, but beware, you can perform fewer transactions, since credit cards, in addition to being a means of payment, is also a financing formula and Therefore, its operation is more complex.
According to the National Statistics Institute, Spain is one of the countries of the European Union where it is easier to access banking services, 63% of households have a credit card, with households with reference persons over 65 years of age. those with the lowest proportion register. In my opinion, the excessive use of credit cards for the purchase of consumer goods can lead to economic problems and end up in household indebtedness, since it can lead to an expense above what is advisable.
The indebtedness is the percentage of net income that can be used to pay debts, with their interests, without compromising the viability and economic commitments and should not exceed 40% of the monthly net income. This percentage is the maximum recommended total debt, which includes, in addition to credit card installments, other debts, such as car loans. The remaining percentage, that is, 60% of the net income will be used to eat, pay bills, dress, among others.
Benefits of bank cards
The great advantage of using a debit card is the opportunity to move without carrying cash and in the case of credit cards you can take out money or pay without having to have cash in your checking account.
Security recommendations for card use
Bank cards also have their drawbacks, since, if they steal from us, they can have the balance of our account, as there is no consumption limit. In case of loss or theft, the entity must be notified immediately, at which point it is free from responsibility for the use that the holder has not made. It is important to know that to operate fraudulently, the card is not physically necessary, it is enough with its numbering, its expiration date and its CCV.
To avoid fraudulent use, do not write down the secret number next to the card, or take it in writing in your purse or wallet on paper, it should be memorized. The coincidence of easily obtainable data (date of birth, DNI, among others) with the secret number should be avoided, confidentiality measures must be taken when operating, both in establishments and at ATMs, if it is not used regularly we must check that still in our possession, check bank statements to detect suspicious movements. Have at hand the phone number provided by the entity to call in these cases and instead separate from the card.
In summary, bank cards provide us with access to certain services, at the moment we are in are essential, but we must remember to make good use with them, do not forget that credit cards are more expensive than debit cards and finally you take the aforementioned security measures so that they do not use it fraudulently.