How do Visa cards and domestic ATM cards differ, and how are they used?
Reader Tuân Nguyễn (Quang Ninh) asks: I have both a Visa card and a regular ATM card, but I’m not sure how these two types of cards differ. Do I need to keep both, or is one enough?
Answer:
Banking Times would like to thank you for your question. Here is our advice:
First, it’s important to understand that “Visa” is not synonymous with a credit card. Visa is an international card brand. Cards bearing the Visa brand can be debit cards (Visa Debit), credit cards (Visa Credit), or prepaid cards (Visa Prepaid).
Meanwhile, the type of card that many people commonly refer to as a “regular ATM card” is usually a domestic debit card linked to a checking account at a bank.
What are the main differences?
The most noticeable difference is the scope of use.
Domestic cards are primarily used for payments, cash withdrawals, and domestic transactions. In contrast, Visa cards have a broader acceptance range; they can be used domestically and at Visa-accepting locations abroad, making them suitable for people who frequently travel, go on business trips, or shop and make payments on international websites.
If your Visa card is a Visa Debit card, the amount you spend is deducted directly from your checking account. Essentially, you can only spend up to the amount available in your account.
If it’s a Visa Credit card, the usage is different: the bank provides you with a credit limit to spend now and pay later. In this case, cardholders need to pay special attention to the statement date, payment due date, interest rates, and related fees.
Are Visa cards more expensive than domestic cards?
It cannot be stated that all Visa cards have higher fees, as the fees depend on the specific bank, card type, and card tier.
Users should check the fee schedule of the issuing bank, especially annual fees, cash withdrawal fees, foreign currency transaction fees, or other fees that may apply when using the card.
If you frequently make payments in foreign currency or use your card abroad, it’s even more important to thoroughly understand the associated fees before making a transaction.
Is it necessary to keep both types of cards?
This depends on your usage needs.
If you primarily receive your salary, make cash withdrawals, and make payments domestically, a domestic debit card may already meet most of your basic needs.
Conversely, if you frequently shop on international websites, travel for business or leisure abroad, or need to make payments at locations that accept international cards, having a Visa card as well will be more convenient.
You can also keep both if you use them frequently and find their benefits essential. However, if you rarely use one of the cards, you should check whether it incurs an annual fee or other maintenance fees before deciding to keep it.
In summary, no single type of card is better in every situation. Domestic cards are suitable for basic domestic transactions, while Visa cards offer the advantage of international payment coverage. The key is to identify your actual needs and review the bank’s fee schedule to avoid keeping unnecessary cards.