In Japan, there are 3 types of bank cards, cash cards (キャッシュカード), debit cards (デビットカード) and credit cards (クレジットカード). VISA debit cards and VISA credit cards can be used globally, also known as international payment. Having an international payment card is very necessary in modern life when electronic payment transactions become popular. In this article, we will show you the difference between these two cards and hope it will be useful for you.

What is a Credit Card?

Credit card:

This card is also an international payment card like the Debit card. However, there is a big difference you need to know between Credit card and Debit card. Credit card allows you to pay later with an amount depending on your account limit. That is, even if you do not have money in your account, you can still use the card to pay and then you have to pay the money back in the next month. This is very convenient if you go abroad or have not yet transferred money to your account. The limit amount depends on your registration and the credit card issuer. In Japan the limit amount can be respectively 10, 50, 100, 200 man yen. However, it is quite difficult to apply for a Credit card if you do not have a stable income and a clean background.

In addition, credit cards will charge interest when you use them with rates ranging from 15% to 20% per year. Therefore, when using it, you should also pay attention to paying on time and regularly check your credit balance.

What is a Debit Card?

Debit Card

This is an international payment card, you can make payments or withdraw money in different countries or buy goods online on e-commerce sites that accept international payment cards provided by Visa, Master, JCB, etc. Debit card is a card that deducts money directly into your account every time you use it, meaning you need to have money in your account to be able to use a debit card. Using a debit card does not incur any fees or interest during use. However, there are some card providers that charge an annual maintenance fee. Therefore, when opening a new account, choose a debit card without maintenance fee (会費無料).

Differences between credit and debit cards:

Registration procedure:

Credit Card: You need a proof of funds and liquidity such as monthly income to be approved for a card.
Debit Card: It is extremely simple, you just need to go to the bank, fill in all the information required and register to receive a debit card a few days later.

Promotions:

Credit Card: Receive many promotions from the banks as they want to promote customer spending.
Debit Card: Few promotions or no promotions at all.

Scope:

Both are divided into domestic payment cards and international payment cards with different scopes such as: domestic payment cards are only for domestic payments while international payment cards are for international payments.

Popular international payment cards are named after the names of the international financial institutions such as Visa, Mastercard, JCB, etc.

How to apply for a card:

While living in Japan, you can apply for a card at the following locations:

7Bank: It has a call center in Philippines and a convenient money transfer service.
Yucho: Most foreigners in Japan have accounts.
Mitsubishi: One of the largest banks in Japan which has branches and ATM booths everywhere.
Mizuho: One of the largest banks.
Other local banks

Hoping the above article has provided you with useful information!