“
Do you have a credit card?”
".
To this question, which is quite basic, many people will answer a “
yes
” in good faith.
In fact, the reality is a little more complex.
Because many French people use a debit card when they make their purchases.
France is even the country that pays the most with this type of card in Europe, as the statistics show us.
So, how do you tell a debit card from a credit card, and vice versa?
The question is far from trivial, especially if you have to carry out certain banking transactions abroad.
These differences are explained in European regulations.
“Debit cards are instant account debit cards.
We will take the money from the bearer's account to be able to make payments.
The credit card is for its part often associated with a reserve of money and the debit will not be made at the instant T
,” explains Laurent Bréchon-Cornery, director of Smart Mobility at Mastercard.
In other words, with the
debit card
, you spend the funds already present in your account.
When making a payment or withdrawal, the card is charged either immediately or within 24 to 48 hours.
With the
credit card
(sometimes called a deferred debit card), you use money that you may not have yet, which will be withdrawn later in the month.
The expenses are therefore not immediate.
The spending limit is based on the credit line granted.
Furthermore, certain loyalty programs can be associated with it, like American Express, which offers to accumulate points to obtain discounts on a range of products.
Be careful, there may be some subtleties in the vocabulary.
Because there is a third type of card:
revolving credit cards
, associated with consumer credit.
To know what you have, you must carefully look at your credit card.
A notice – often written in lower case, it can be said – indicates “credit” or “debit”.
This little annotation can change a lot of things.
In the Netherlands, for example, credit cards are shamed in some stores, including the famous Albert Heijn supermarket chain.
The philosophy: we prefer to pay with the money we have and not have “debt”.
Additionally, transaction fees can sometimes be higher for sellers.
In some cases, however, certain debit cards may also be prohibited, such as Visa or MasterCard, in favor of Maestro.
Vigilance is therefore required.
Be careful when renting a car
Conversely, credit cards are very often requested when renting a car.
“These cards are often linked to a larger reserve of money, which makes it possible to cover the rental and any deposits
,” explains Laurent Bréchon-Cornery.
Because at the time of car rental, the rental company takes a deposit, which must cover the insurance deductibles, possible damage not covered by insurance (such as accidents linked to excessive alcohol levels), but also possible fines, which could arise after the return of the vehicle.
The lessor then makes two payments: a first payment which covers the rental, collected the same day, then the deposit.
“We are talking here about doing a pre-authorization, which will help cover possible costs.
Payment is not made to banks: the money is reserved.”
And this is where a major difference between credit cards and debit cards comes into play.
“When we use a credit card, we will get money from a card limit.
In the case of a debit card, the money will be directly reserved in the holder's account.
The latter will see a debit appear on his account for the amount of the deposit
,” distinguishes Laurent Bréchon-Cornery, from Mastercard.
“With the credit card, there is little impact on the holder's account.
With debit, the holder must have the money at the time he makes his rental.”
Check your card carefully before leaving
The rental company can therefore refuse the reservation of a car if you pay with a debit card.
He will prefer the money that you do not yet have rather than the money that you already have, the latter may be more limited in its amount.
You should therefore take the time to check the general conditions on the car rental website, and do not hesitate to call to find out what type of cards can be used.
If in Europe, the debit card is generally accepted, this is not the same for certain countries such as South Africa or the United States.
Sixt, one of the main rental companies on the market, reminds us of this on its site.
“If you have successfully reserved your car in the United States with a debit card via our site or the reservation center, you will need to present additional documents at the agency, such as a plane ticket, passport, etc.
In addition, the amount of the deposit, instead of being blocked on the credit card, will be taken from your debit card to be reimbursed only after the end of the rental of the vehicle
. .
“That’s why, for your convenience, Sixt advises you to make your reservation with a credit card.”
A reflex therefore: call your bank, and why not ask for a credit card.
But be careful, the latter, in its operation, can constitute a formidable source of debt... Be careful there too.