Both Mastercard and Visa provide credit and debit cards, but they are often branded slightly differently. Knowing whether you have a credit or debit card is crucial to knowing how to spend on that card. As the names suggest, credit cards are designed for borrowing money from your card provider, whilst debit cards are there for you to access your own money. If you are unsure you can check with your bank or card provider. You should only ever use your debit card to withdraw money from a cash machine, as credit card providers charge for cash withdrawals.
Credit cards are ideal for in-store purchases, or online. If you're planning to use your credit card for big purchases, remember to clear your balance at the end of every month to avoid interest charges. The difference between a debit and a credit card is that with a debit card the money leaves your account quickly after the purchase. Whereas with a credit card you might have up to 56 days before you need to pay it off. This makes credit cards useful to use if you're making big purchases, or you need to manage your cash flow — for example until you are paid.
However, debit cards can push your current account into overdraft if you spend more than you have in your bank — potentially meaning you will have to pay overdraft charges. Crucially you should only ever use your debit card to withdraw money from a cash machine, as credit card providers charge for this. A credit card, meanwhile, is deal for in-store purchases, or online, but remember to clear your balance at the end of every month to avoid interest charges.
Where you can't pay off your credit card at the end of the interest free period you may be charged interest. You have to pay off a minimum amount even if you don't clear the entire balance. So both cards have their benefits and drawbacks, but if you use them carefully they can be a great way to manage your money. For more information about your debit card, check the debit card features and functions page.
An account number is personal to your account, meaning every personal, joint, business, saving etc. This is usually 8 digits long. Your sort code is personal to the bank your money is kept in, meaning if you have two accounts with the same banking provider, they might share a sort code.
In traditional banks, the sort-code is specific to the high street branch you bank with. We have got two sort codes depending on your account type. Your account number and sort-code are used to locate your account.
Say, a friend is paying you back an amount they owe you, or a family member is sending you a gift, or your employer is paying your wages into your account. This is when you allow a company, for example your electricity supplier, to automatically collect payments from your bank account on predetermined dates.
Putting a Direct Debit in place is a great way of ensuring you always pay your bills on time, and your sort code will be needed to do it. As the six digits are always separated into three pairs of numbers by hyphens, sort codes are pretty easy to spot.
You can:. Find out how to do this here. Over 3 million people are already using the Remitly mobile app to send money home to loved ones. Interested in learning more? Generally, a bank account number will only be relevant when used in conjunction with a sort code. Most banks also print the bank account number on the front or back of your bank card. However, this is not to be confused with the card number, which is the 16 digit number, usually placed in the middle of your bank card.
With features such as instant notifications, spending insights and saving goals, money management has never been easier. Apply in minutes from your phone. Giving out your account number and sort code is often necessary, for example, to receive payments from your employer, friends, family, customers or clients. The CVV number helps to protect you against fraud by proving to online merchants that you have the physical card with you.
Read more about protecting yourself and your money from financial fraud. What is Bacs? A guide to Bacs payments.
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