See the difference: Compare credit cards with other cards

Physically, credit cards, debit cards, charge cards and loyalty cards are pretty much the same. But if one would compare credit cards with the other kinds of cards, the terms, modes of payment and rewards are not the same. For example: in the UK, during the late 80’s, a lot of cheques that were issued and processed were expensive, thus, the birth of the debit card. But, if a customer would compare credit cards with a debit card, incentive schemes like points, cashback or airmiles are not present. On the other hand, because debit cards do not have these characteristics, the payment for merchants to accept debit cards is generally a small and fixed amount, no matter how much the transaction was. And this means that a merchant would be more likely to compare credit cards with debit cards and accept the latter.

Merchants in the UK won the right to ask from customers different prices depending on how the transaction will be paid which was through the Credit cards (Price Discrimination) Offer 1990. But, few retailers in the UK see what the big deal is. They rarely compare credit cards with debit cards or charge a smaller amount when a purchase is paid with the use of a debit card than by a credit card. But ofcourse, there are some exceptions like, travel agents and budget airlines. Only a minority, like the Post Office and until 1999, John Lewis, accepted debit cards and not credit cards.  And almost all establishments in the United Kingdom, like street markets, accept debit and credit cards alike.

But why compare credit cards with charge cards? Charge cards are different from credit cards only in terms of payment, which is in full balance only. But there are also charge cards that allow users to pay for some purchases over time, like, American Express charge card. Customers can enroll in the Extended Payment Option to be able to pay for purchases over $200 over time, or in Sign & Travel to be able to pay for travel expenses over time. This feature in a charge card would make some UK residents compare credit cards and add a charge card to their  responsibilities and wallets.

To compare credit cards with loyalty cards however, is a different issue. A lot of loyalty cards in the market today are attracting lots of potential cardholders. For starters, if they would compare credit cards with loyalty cards, they would probably opt for the latter. Why? Well, if a customer would compare credit cards and their corresponding rewards, interest rates and benefits with loyalty cards, a loyalty card would have more to boast than a credit card. The AOL Loyalty credit card for example, has the benefits of many different types of credit cards rolled into one, plus, if the AOL card is used for everyday purchases, rewards points would mount up. And that would translate to months of free broadband internet access and saving money in the long run.