What's types of cards are available and how are they different, why were they launched and where can I get them? Just some of the questions answered in this article.

With the rapid changes in commerce and people's growing reluctance to use cash, Visa launched the 'Electron' card, and Switch (now Maestro) launched 'Solo'.

Solo - www.solocard.co.uk
VisaElectron - www.visa.com
Switch / Maestro - www.switch.co.uk

Frequently Asked Questions

What's the difference between Solo / Electron and conventional debit cards such as Switch and Visa Delta?

There are 2 main differences:

• When you use a debit or credit card, the retailer's PDQ terminal (credit card machine) obtains authorisation from your bank for the amount of the transaction. Certain retailers that do large volumes have a floor limit (such as petrol stations and supermarkets). Any transaction below the floor limit does not require authorisation, meaning people with Visa Delta and Switch cards are sometimes able to spend money that they don't have, or go overdrawn further than their bank would like them to. You may also notice that Solo and Electron cards do not have raised digits on them, the card number is instead printed on the card - this prevents them from being used in the old manual paper-based machines where a roller runs over the card and imprints the card number on a sales voucher.
• Secondly, Solo and Electron cards are 'customer present' cards only, although this is changing. You will struggle to use an Electron or Solo card to pay for goods on the internet or over the phone.

Why were Electon and Solo launched?

They are aimed at higher risk customers, and for those under the age of 18 that cannot go overdrawn. Banks don't like you withdrawing cash from your account, it's expensive for them to maintain the cash machines. Your bank also earns money every time you use a debit card as the retailers pay a fee every time it's used.

Why won't my bank give me a debit card?

It's very unusual for banks not to issue debit cards. Try going in to a branch and asking for one. They may not give you a Visa Delta or Switch card, as they represent a higher risk to the bank and can often be used to guarantee cheques.

Where can I get a debit card from?

Visa and Switch Maestro are not card issuers, nor are they a bank. Banks and card issuers join Visa as they have agreements with the merchant banks that authorise card transactions. Visa for instance are not able to issue you a card directly. Click here for a list of banks that offer debit cards.

What's the difference between a Debit Card, Credit Card and Charge Card?

• A debit card takes the amount of the transaction from your bank account on the day of purchase.
• A credit card is effectively a borrowing facility. You are given a credit limit and can borrow up to that amount by spending on your card. It is however often an expensive way to borrow money. If you pay your card off in full each month then you will not (or should not) incur any finance charges.
• A charge card must be repaid in full each month. Barclays launched the first charge card carrying the VISA symbol, and soon launched Barclaycard. Today's most famous charge card brand is American Express, although they now offer a range of credit cards too. Charge cards often carry an annual fee.