Credit, debit, and prepaid cards

We’ll be talking about the differences
  • 30 Mar, 2023
  • EasyWallet

Just focus and imagine life without payment cards—when you have to pay cash for every single transaction. Your efforts to imagine this fall through, don't they?

Cards quickly replaced cash in many ways. As a result, we got access to a bunch of novelties: online shopping, travels without the risk of losing money or the inconvenience of currency exchange, and much more. Payment cards help us spend and manage money more efficiently.

There are different types of cards for various purposes. Today, we will talk about credit, debit, and prepaid cards. They are issued by a number of companies, among which Visa and Mastercard are the best-known ones in Armenia. American Express, Discover, and UnionPay are also on the list of major card issuers.

We'll get to know the types of cards one by one to find out which works best for you. Let's get going!

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Credit cards

Spending when not sober is not allowed :)

Your credit card allows you to make non-cash payments for products and services. When you pay via a credit card, you use the money you were given as a loan. To put it bluntly, you borrow as much money as your credit limit allows. The latter is based on your credit history and income.

It's important to know that it is the bank that pays the amount to the store whenever there's a transaction. After that, you commit to paying the bank back over time by following the payment deadlines. When you delay the repayment of your so-called debt, interest rates add up to the money due; you'd better keep them away.

By the way, you can withdraw money from your credit card via ATMs but consider the relatively high commissions.

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Debit cards

A way to avoid unexpected expenses

With a debit card, you are using your own funds, including your salary that has been transferred to your bank account. As with credit cards, in this case, too, you can pay online or in physical stores. When paying via a debit card, you can generally spend only the balance available in your bank account. For example, if the product or service costs 10,000 AMD, the exact amount will be deducted from your bank account. But if the amount available is insufficient, the transaction won't be completed.

Unlike credit cards, your capability to pay via a debit card depends on your credit limit rather than your available balance. Still, debit cards can also have an overdraft, a loan allowing the cardholder to pay when the money due exceeds the available balance. Overdraft, however, can't replace a credit card; it usually comes in useful when there are unexpected expenses to be covered.

Besides allowing you to track your payments and transfers, a debit card also helps you take control of your spending. And when it comes to cash withdrawal, you pay lower commissions compared with a credit card.

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Prepaid cards

The newcomers :)

The main feature of a prepaid card is that you can acquire it and use it without a bank account. Thus, lots of people prefer this option over others. Before making transactions via a prepaid card, you need to refill it.

A gift card is a type of prepaid card that is only for single use and can't be refilled. It also can't be serviced in ATMs and can be used only in a limited number of points of sale.

Other prepaid cards incorporate the features of credit and debit cards. It's possible to refill them, cash out in various ways, and much more. In any case, this type of card is for smaller purchases.

Coming to security, these newcomers are relatively unsafe since they do not involve cardholder verification. Prepaid cards can be used anonymously; they do not require cardholder personal data or a signature. To recap, these cards have cash deposit and withdrawal limits that make them less preferable for everyday use.


Credit, debit, and prepaid cards can also come in digital versions only. In this case, your card is in your phone rather than your wallet if we are not talking about e-wallets. A digital card works exactly as a physical one and is a safe payment method.

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How to choose the right card

Your card choice depends on the purpose for which you plan to use it.

A credit card gives you flexibility. When you don't have enough money but do have emergency expenses, it helps you buy at the moment and pay later. However, you have to keep your eyes open and spend as much as you can actually afford. Unlike debit and prepaid cards, a credit card helps you build a credit card history.

A debit card is the safest and most popular type to avoid unexpected expenses. It is widespread in every corner of the globe.

While a prepaid card comes after other types of card in terms of security, it works without a bank account; this makes it a more or less available option.

We recommend that you weigh both the pros and cons of all card types before you make a choice.

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What can you do with easywallet

You can, of course, have more than one card—credit, debit, and prepaid—at the same time. This way, you have the flexibility to choose which card to use for which purpose. You'd better keep all your cards in one place, say, in your digital wallet called easywallet. Your financial life will get more organized as you will manage your money effectively.

Besides, you have some other advantages for attaching your card to your easywallet account. For instance, you can add any card, including American Express and Payoneer cards, and digital cards as well. In addition, there’s a simplified way to transfer money to card accounts via easywallet and EasyPay payment kiosks. You can make transfers by just entering the card number: no need to choose the bank anymore.


Hopefully, we were able to help you find the most suitable card. Whatever card you choose, make sure it's a reliable option for you and will ease your financial life.