What’s the Difference Between Keycards, Debit Cards and Credit Cards?

Here’s everything you need to know.

So, you have a new casual job and you’re rolling in cash, but you need somewhere to put that money. Even more importantly: how do you access it?

Easy, you need to sort out a bank account. It’s best to head along with someone to help you like your mum, dad or an older brother or sister. Even with them there, chances are the bank will throw words around that even mumma doesn’t fully understand.

Imagine this: the bank has asked if you want a keycard, debit card or credit card. Whaaa?

Stress less fam, here’s where we jump in and break down the differences (you can check out the video below for the short version). 

Keycard

Also known as an EFTPOS card, a keycard runs on the homegrown EFTPOS system in Australia.

With this card, you can use it to tap and pay for things like food, morning coffee or the movies. You can also get cash out from ATMs across Australia. That money comes straight out of your bank account.

Keycards are limited in that you cannot use these cards overseas as well as being restricted from making over-the-phone and online payments. That’s bad news if you want some new clothes from THE ICONIC.

This is good news if you want to save money and not spend it online.

Debit Card

The debit card does everything the keycard can do and more.

Like a keycard, a debit card is linked to your everyday expenses account, so whenever you pay for something, the money is taken from the ‘available funds’ in that account.

Instead of using the EFTPOS system though, debit cards use other payment systems like VISA or Mastercard. This allows debit cards to have worldwide use instead of being limited to just Australia.

The other advantage of the debit card is that it can be used to make online purchases. Now you can sit at home and buy anything that catches your eye online.

Cha-ching baby.

Credit Card

A credit card is a way to borrow money from a bank, also known as getting ‘credit’ from them. This card has a set amount of funds you can borrow at any time and like all debts, will need to be repaid.

If you don’t pay that money back in time, the amount you owe will gain interest. Interest is simply the fee you pay to the bank for the loan. The longer you don’t repay, the bigger the interest gets.

In Australia you need to be at least 18 years old to sign up for a credit card and you will get hit with an annual fee ranging from $50 to $350.

“Your credit card statement is ready” Okay but I am not, soooo

— Sal (@sallyfates) April 6, 2021

The Student Edge take

There’s a lot to process here so don’t feel bad if some of that freaked you out.

Let’s rule out signing up for a credit card if you’re under 18. After all, you won’t be able to get one in your own name anyway.

If you’re over 18, sure you can get one, but again it’s better to spend the money you do have rather than the bank's money.

At the end of the day this is your money though, so speak with the bank, your parents or any other qualified finance professional to work out the best option for you.

Header image: LightFieldStudios via Getty Images