There are many varieties of plastic cards. A list based on one produced by the Association for…

There are many varieties of plastic cards. A list based on one produced by the Association for Payment Clearing Services (APACS) is listed below:

·         Affinity card. A credit card where the card issuer makes a donation to an organisation (often a charity) every time the card is used.

·         ATM card. A plastic card used in an ATM for cash withdrawals and other bank services.

·         Business card. Also known as a company or corporate card. A card that companies issue to staff to pay for business expenses like travel costs.

·         Charge card. A payment card that requires the cardholder to settle the account in full at the end of a specified period, such as American Express and Diners cards. Holders have to pay an annual fee for the card. (Compare this to a credit card.)

·         Cheque guarantee card. A card that guarantees settlement of cheques of up to a specific amount.

·         Credit card. A card enabling the holder to make purchases and to draw cash up to a prearranged limit. The credit granted in a period can be settled in full or in part by the end of a specified period. Many credit cards carry no annual fee. (Compare this to a charge card.)

·         Debit card. A card linked to a bank or building society account and used to pay for goods and services by debiting the holder's account. Debit cards are usually combined with other facilities such as ATM and cheque guarantee functions.

·         Electronic purse. Also known as a prepayment card. This card has a stored cash value which can be used to purchase goods and services – it is an alternative to cash. The card can be disposable or re-loadable. Examples include Mondex and VisaCash.

·          Loyalty card. Cards issued by retailers to promote customer loyalty. Holders earn cash back, vouchers or discounts. Examples include the Tesco Clubcard and the Boots Advantage card.

·         Payment card. A generic term for any plastic card (credit, debit, charge, etc.) which may be used on its own to pay for goods and services or to withdraw cash.

·          Purchasing card. A payment card issued to businesses, companies or government departments to make supplier and/or trade payments.

·         Smart card. A card that holds details on a computer chip instead of a traditional magnetic stripe. (This is expected to be the normal form of all credit and debit cards in the future.)

·          Shareholder card. A special form of store card issued to shareholders that operates like a credit card but gives the holder a discount off all purchases charged to the card. These cards can only be used in shops owned by the company that issued the card. An example is the Arcadia Group card.

·         Store card. Also known as a retailer card. A plastic payment card that can be used only in a specified retailer or group of retailers. An example is the John Lewis Partnership card.

·         Travel & entertainment card. A plastic payment card which operates similarly to a charge card.