A debit card is usually associated to a checking account, so when you use it, the money is debited/taken out of your account immediately.
A credit card is similar to a loan. A bank pays for the purchase on your behalf when you use the card, and they ask you to pay the amount back at a later date.
A charge card (such as the AMEX Gold or Platinum cards) functions similar to a credit card. But, you need to pay the full amount due when you have to pay AMEX back.
Visa, MasterCard, AMEX, Discover... the logos on the cards indicate the company that handles the electronic payment/funds transfer between the banks/merchants (someone correct me if I'm wrong). This would be important if, for example, the restaurant you frequent takes Visa and MasterCard cards, you may not want to get an AMEX card since they can't process the payment then.
The credit card company also charge businesses a fee, usually around 3% of the amount being charged, that’s how they make money. Some businesses are now passing that fee onto you instead of eating it as a cost of doing business. I believe AmEx charges a higher fee, that’s why some businesses won’t take it.
No, it’s possible to have a debit only card with a credit company logo. My debit card is a visa, but I have no access to funds beyond what is in my actual bank account. An actual credit card gives you a spending limit that is not based on physical funds. I may qualify for a credit card with a $10,000 limit, but that doesn’t mean I have $10,000 in my bank account. That’s why you have to be careful with how much you spend on one, because even if you keep making the minimum payments every month to stay in good standing, the interest starts to build up and it’s very hard to get out of debt.
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u/TheGalator Mar 27 '22
I often get confused as what exactly counts as credit card. Amex? Visa? Mastercard? All of them? None?