What's the difference between "credit card", "debit card" and "prepaid card"? Whether in the store or online, it is very convenient to use separately according to the situation! [January 2022]

　More and more stores support cashless payments, mainly convenience stores and large / medium-sized supermarkets. Depending on where you live, there are people who can live their daily lives without cash.

　In a word, even if it is "no cash payment", there are a variety of ways. From storefront and Web to traveling abroad, it is convenient to hold cards with international payment brands such as "Visa", "Mastercard" and "JCB".

　However, although it is a card with an international payment brand, there are roughly three kinds of "credit card", "debit card" and "prepaid card". What are the differences between them? Let's reconfirm.

　The debit cards and prepaid cards mentioned in this article are granted by international payment brands. Please understand.

　Credit cards, debit cards and prepaid cards can be used in international payment brand franchises (such as stores and websites) attached to the card (see below for exceptions). In other words, franchisees that do not support the settlement brand cannot be used.

　Because of this, which brand you choose is surprisingly important. In Japan, the following international settlement brands are being widely used.

　Card issuers sign contracts with any (or more) of these brands and grant their own cards. Depending on the card, you can also choose from multiple brands.

　From the point of view of "usable stores", each brand has an "advantage". In short, it is shown below.

　Many people who go abroad, or who have a lot of opportunities to use overseas EC (Web mail order) websites, are relieved to hold cards of the Visa brand or the Mastercard brand. In Japan, there is also an increasing trend for small franchisees to use only Visa cards and Mastercard.

　On the other hand, Japanese-born JCB-branded cards have certain advantages if they are used exclusively in Japan. As mentioned above, in areas with a large number of overseas Japanese tourists, the introduction rate is also very high.

　Although American Express and Diners Club have a small number of franchise stores compared with the above three brands, they are often used in stores of the JCB brand in cooperation with the holding company of the JCB brand in Japan. In addition, convenience stores and large supermarkets can also be used without problems.

Whether you can use American Express brand or Diners Club brand cards in JCB franchise stores depends on the contract of the franchise store. For the corresponding situation, please confirm with the sticker on the storefront.

　Generally speaking, when you use a credit card, debit card or prepaid card for settlement, you will be given "points" or "cash return" according to the settlement amount. Therefore, in the case of franchisees where both cash and credit cards can be paid, basically using cards to settle accounts compares "Trafigura".

(article 2) if there is no credit grant or cash return in a specific franchise store, the grant / restore ratio may be low. For details, please consult the card issuing company.

　A credit card is a card in which the issuing company can "pay later" to buy goods within the "quota of use" allocated by each individual. Just like the name "Credit", the quota is determined by "personal credit" and determined by the credit card company through "review".

　Due to censorship, compared with the other cards mentioned later, the issuing procedure is a bit cumbersome, but the biggest advantage is that there are no restrictions on franchisees (stores that can be used). In addition, there are also a specified number of "installment payments", a "revolver" that can fix the monthly price at a fixed amount, and so on. If you make a good plan to use it, you can shop even if you don't have enough money.

　In addition, if you have a cash (loan) function, you can borrow cash from foreign ATMs (loans 3). "the debt is a little. "I think the handling fee (interest rate) for one month's loan is much cheaper than the" handling fee "when using debit cards and prepaid cards to withdraw cash overseas, and it can be solved if it is used overseas, which is a great advantage.

　However, because it is a later payment, you should be careful not to overuse it. In particular, the above-mentioned installment and rebate payments require a handling charge for the balance, so please be careful not to use too much.

(except for some) the credit card caching function is optional in principle. When providing options, you need to apply separately (you can also apply after the new card is issued, but need to be reviewed separately)

　A debit card is a card that will be immediately deducted from the bank's deposit account (payment 4). Because the balance of the deposit account is the de facto usage limit, the biggest advantage is that it is easy to prevent overuse (Article 5). In foreign countries, as the main settlement means as famous as credit cards, it has been widely popularized.

　In its nature, the debit card principle is issued directly by the bank. If a bank holding a current account issues a debit card, it can accept the issue of the card through a simple procedure. Many banks have prepared debit cards integrated with cash cards. Depending on the bank, middle school and high school students can also issue, as well as dealing with overseas deposit withdrawals is also its charm.

　However, if the deposit balance is insufficient, it cannot be settled. In addition, from the point of view of preventing illegal use, there are also cases in which "daily" and "monthly" usage limits are set, please pay attention.

　In addition, depending on the franchise store, the use of debit cards may be restricted or prohibited, and in online payment, due to system reasons, there may be "double deductions" (using twice the amount of the payment) (details will be described later).

　In Japan, we have Visa brand, Mastercard brand and JCB brand debit cards. There are also cases where new debit card applications are accepted while opening a current deposit account. Please be sure to check it.

(IV) due to the settlement system, settlement will be established even if the cost is higher than the balance. In this case, please deposit the deficiency quickly (Article 5) when you bind lending services such as "overdraft service" and "card loan" in your deposit account, the loan will be executed automatically when the balance is insufficient. If you do not want an automatic loan, please consult the bank with the account

　Prepaid cards are cards that can be used within the range of balances that are deposited in advance (recharge). Because the top-up balance is the de facto usage limit, the biggest advantage is to prevent overuse (Article 6).

　Depending on the card, the prepaid card can be obtained in the following ways. There are also those that can be used without prior application (Article 7).

　Some prepaid cards do not limit the age of users. In other words, there are also cards that can be used by children younger than debit cards (under middle school students).

　There are also prepaid cards, which take advantage of the unlimited age of users to propose difficult ways to use credit and debit cards, such as "instead of giving children pocket money", "family members share the balance" and so on.

　The way you deposit a prepaid card varies from card to card. The main methods are as follows:

　However, because of its nature, like debit cards, there are restrictions or prohibition on the use of debit cards depending on the franchise store. In online payment, due to system reasons, sometimes there will be "double deductions" (using double deductions of the payment).

　In Japan, we have Visa brand, Mastercard brand and JCB brand prepaid cards. If you can buy it in a store or distribute it through a mobile app, you can start using it more quickly. Look for a prepaid card that suits you.

(No. 6) there are also prepaid cards that automatically recharge when the balance is insufficient. When using some functions (mainly using the recharge and withdrawal functions of bank accounts, etc.), there is also a prepaid card that needs to apply (I confirm).

　A virtual card is a non-physical card that is specifically used for online (Internet) transactions, such as websites and applications. The card number and security code (security code) used for settlement can be checked from applications and websites.

　In addition to the prepaid type, the virtual card also has credit type and debit type. However, the reservation system of railway tickets, etc., cannot be used to exchange reserved goods (tickets, etc.) with cards used in settlement.

　As mentioned above, some virtual cards can be registered on Google Pay or Apple Pay to support touch payments by international payment brands or touch payments by iD or QUICPay+. In addition, there is an optional service to issue prepaid cards with real cards.

(American Express 8) the number used to confirm the 3 digits of the card at hand (4 digits for American Express)

　Credit card settlement system may be a specification based on credit card. Therefore, debit and prepaid cards have the following restrictions:

　The following franchisees who swipe their cards in a different way than usual may set certain conditions when using debit cards or prepaid cards. Please consult the card issuing company for details.

　When a "refund" occurs, such as a return of goods, it takes time to complete compared to a credit card (usually about a week after cancellation, with a maximum of about 70 days). Whether or not to notify the refund after completion depends on the card issuing company.

　In online payment, as a method to confirm the validity of the card, there is also a double charging system for the same amount as the settlement amount. Using a debit card or prepaid card on a website or application that uses the system will temporarily deduct twice the amount of the payment from the account. Please note the balance of the account.

　In addition, for the amount of additional deduction, the franchisee (or clearing house) will refund the amount. As mentioned earlier, the refund process may take time, please note.

[restrictions on using prepaid cards without IC chips in physical stores]

　Some of the real types of prepaid cards are not equipped with IC chips. Prepaid cards without IC chips may not be available in some stores. Especially in European countries, many stores need to trade on IC chips, including no NFC contact.

　If you know in advance that IC chips will be used in must-have stores, it is recommended that you prepare a prepaid card with IC chips.

[when using a prepaid card with a fixed card name]

　Some prepaid cards are fixed, such as card holders "CARD HOLDER" and "PRIPAID MEMBER". In this case, please take the following measures.

[when using a prepaid card without a password]

　Some prepaid cards do not set the "PIN" to be used when swiping the card. Railway ticket vending machines and IC chips correspond to franchise stores and other stores that need to enter passwords, please take any of the following corresponding measures.

　When using a credit card, debit card, or prepaid card to make online payments, you may use an authentication system called 3D Security to confirm that the holder of the card is settling accounts. Recently, from the perspective of enhanced security, more and more websites and applications need to use 3D security cards.

　For credit or debit cards, most support 3D security. However, most of those who need to apply separately from the member website after issuing the card, please do not forget to apply.

　In the case of prepaid cards, many cards do not support 3D security. People who often use prepaid cards to make online payments must make sure that 3D secure cards are supported.

　Credit cards, debit cards and prepaid cards are very convenient to choose according to your lifestyle. It would be great if this article could be the "first step" in choice.

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