I never thought of getting a VISA or debit card, becuz wat the hell a 16 year old need it for ?
Ayia, pay cash more stylo !
Imagine go Paragon lawry eat, u take out ur fat wallet and pay in CA$H.
Somemore if all in $2 notes better ! The gal sure know u dig up all ur AngBao $$$ to pay for the expensive dinner. Sure touched touched
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expenses are high, i now paying adult fare for bus and mrt, then without daily allowance like when i was i sch, i keep using my cash like no other business.... so to control, might as well credit the 100+ allowance into the bank, wanna use then draw lor...
training for the future a card society , another way to control my spending
PS: i dun really like to use cards tooo, hate those untie and uncle, go NTUC also hav to use card to pay for water or anything below $5
Technically speaking, debit card and credit card are the same thing. The different is the way the bank manage and term of use.
Whether you use a debit card or credit card has no meaning to the merchant or the point of sale terminal, it the the bank that decide whether do take money away from your saving account or give you credit period.
Just pure marketing. Debit card is more like a secure loan while credit card is unsecure loan.
VISA or MasterCard is just a brand that licence to the bank. The bank are paying them every year JUST TO PUT THAT LOGO ON THE CARD. With this well known brand, any merchant in the world seeing a VISA or MAstercard logo will accept the card as a form of payment.
But end of the day the bank makes money, you spend money. Plastic cards are double edge sword, so use wisely.
Last edited by jimtong; 31st January 2007 at 01:52 AM.
Double edge sword indeed. To TS : Since you're 16 we're in the same age range then, I'm only 17. A debit card is pretty useful if you know how to use it, the places i eat at often has discounts for the debit cards i use therefore saving me a certain amount of money. But and again at times when we want to show off or just too eager to get something, we slot the card like nobodys business. So a card is yours to benefit if you can manage it well.
If you were born in a super duper filthy rich family, you would know what a credit card is at a very very young age.
i am not rich, i now facing financial crisis, no liquidity assest liao[/QUOTE]
All the more it's best to make sure you can control ur finances first before applying for any card now or in future.
I guess basically to sum it all up. If you don't have the money don't buy it. The card whether debit or credit can put you into big financial problems at the end of the day. You won't want to worry abt that at ur age.
Having the debit card is almost the same as using a nets card. Just that u sign for ur bills instead of keying in ur pin no. The best use for the debit card is when certain merchants do not accept NETS, e.g. Hotels..
Don't fall into the trap of applying the card and using it just because of peer pressure or to make you look good, you've got to make sure u can afford it.
Ask yourself these qns before applying.
1. Do I need it?
2. Can I afford it?
3. Is it practical?
Here's an advise. Study hard and work hard, when you really can afford it, then get one. Last thing u want is financial burden on urself and family.
If it's a credit card, the verification and money is handled by the credit card company. Basically, you are borrowing money from Visa/Mastercard/Amex. With a debit card, it's basically a direct bank debit. When you're talking about international payments, then remittance fees and delays come in.
Visa/Mastercard then look at your transaction and may approve it then and there, or send a request to the 'issuing' bank for verification of the credit.
The only different between a debit card and a credit card is back at the issuing bank. With the debit card you have to have the money in your account first - with the credit card the bank lends you the money. (And charges interest of course).
The debit card is much like a Sigapore NETs are or what we in Australia call an EFT card, only the 'clearing' of the transaction is done via a local consortium and tends not to work across international borders - and like the Visa/Mastercard debit card you must have the money first.
I can't walk into a Signapore shop hand them my Australian debit card and expect it to work though NETS. A NETS card isn't going to work in another country. But if I hand them my Visa Debit card, they can do that - as to the Merchant and the Singapore banks it's now a Visa Credit transaction.
There is a related system called Cirrus and Maestro which are basicly the 'Debit' card end of Visa/Mastercard with international connectivity like the Credit card clearing systems. It's probably run by Visa/Mastercard using the same back end as their credit clearing system. It's not as well accepted as Visa/Mastercard. I can't use my Cirrus card in a NETS terminal for example. (I've tried :-). But a ATM cash machine will process the Cirrus card fine.
One subtle point with Visa and international transactions, Visa reconcile all the international transactions in $USD. So for example you use your Singapore bank issued Visa in Australia - the Merchant sends the request to their bank in $AUS. The bank sends the request to Visa in $AUS (I think, it could be converted to $USD before being sent). Visa convert that to $USD and send the request to your bank, who converts it to $S before checking your balance.
You lose due to the double conversion that happens each time, as the $AUS to $USD conversion rate is applied THEN the $USD to $S conversion rate. The rates generally have a little percentage built in for the 'handler'.
I don't expect Mastercard to be any different.
Some credit terminals also notice what country you are from and offer to do the transaction in your own currency instead of the local currency. Feeding the figures through a spreadsheet after my last trip showed this to be a very bad idea. (For me, the customer). The local bank creams off something like 2.5% fee for the conversion (i.e. printing the value in your home currency instead of the local one), but the Visa clearing system still hits you for the double conversion on an international transaction anyway. You might as well keep the transaction in the local currency. One less conversion.
Banks are only slightly less criminal than casinos for separating people from their money. Casinos are at least honest about it :-)