Cash cards and debit cards explained

Depending on your age and the type of current account you have, you may be offered a cash card or a debit card by your bank or building society.

In general, a cash card will only allow you to make ATM (Automatic Teller Machine) withdrawals.

A debit card will usually offer the same facility, but also allow you to pay directly for goods and services in any place where your card's payment network (Visa, Maestro, etc.) is accepted.

If you've got a debit card, your card will have one of these logos on the front:

Mastercard        

Debit Mastercard is linked to your current account and allows payment for goods and services as well as cash withdrawals at ATMs. Contactless cards allow payments of up to £30 without the need to key in a PIN number.

Cash can be removed from any ATM around the world that shows the Mastercard symbol.

Maestro

Maestro debit cards are offered by some UK banks and building societies. They may allow you to make payments even if you don't have quite enough in your account.

Money may be taken from your account immediately or at a later date, so keep an eye on your current account balance to make sure all your payments have cleared.

Visa

Visa debit cards are probably the most commonly issued debit cards in the UK. They may allow you to make payments even if you don't have quite enough in your account.

Money may be taken from your account immediately or at a later date, so keep an eye on your current account balance to make sure all your payments have cleared.

Visa Electron

Visa Electron is a type of debit card that does not allow you to spend more than what is in your account. You must have the full amount of your payment in your current account in order for the payment to be successful. Unlike Maestro and Visa debit cards, the money is taken from your account immediately.

Because of this, Visa Electron is usually issued to holders of basic bank accounts or current accounts for teenagers.

You may be able to withdraw cash and pay for goods and services (debit cardholders only) when you travel abroad.

However, bear in mind that there may be charges for doing this:

• Conversion charges – your bank may charge you for converting your money to the local currency when you withdraw cash abroad or make a purchase.
• Transaction charges – your bank may charge you for handling the transaction when you withdraw cash abroad or make a purchase.
• If you withdraw cash, the local bank whose ATM you are using may also charge you a fee.