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Debit or Credit?


UnionRail

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You can purchase pre-paid cards in many countries and load them with dollars or euros. These are administered by the likes of Mastercard and I would imagine this is a good way to make overseas payments.

Some card issuers are quite expensive bu the likes of Travelex say their Euro card in Europe is accepted at shops and ATM's. I am guessing that they would also work on-line. I think I migt get a dollar card also and see how it works out!.

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AFAIK Visa & Mastercard debit cards work exactly like credit cards, only you pay from your account when the bill comes through electronically - liek a cheque - in fact is it probably easiest to think of them as electronic cheques.

As far as the shop is concerned there is no difference between them and a credit card - they use teh same systems, they get eth $$'s at the same time.

And that's one of the main points about them - they are exactly the same as a credit card to use, but you have to have the money in your account first, not later on.

FWIW this is how the fist credit card I ever had worked 30 years ago - it was a VISA, and the money came straight out of my cheque account!

Preloaded cards also work exactly liek credit cards - except they have a limit to how much can be spent on them - which is the amount you pre-load them for. But this means you can give them as a gift - since het value travels with the card, and is not linked to an account.

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