Debit cards and credit cards are some of the tools that are irreplaceable in the modern world. However, not everyone knows how to pick the right card type for themselves.

To help you make a suitable decision for yourself, below are some important factors you should consider before applying for any bank card.


Before being able to choose a suitable card type for yourself, you need to clearly understand the concept of debit cards and credit cards, as well as the specific functions and benefits of each card type.

Debit cards

A debit card is linked to your bank account. As your debit card is linked to your bank account, you need to deposit money into your account to be able to use your debit card. You are only allowed to use your debit card within the available balance in your bank account. Debit cards can act as a replacement to physical cash as they allow you to pay via POS swipes, settle online payments, etc.

Credit cards


With a credit card, you can use the approved line of credit first and pay it back to your bank later. Depending on several factors such as your financial history, credibility, credit rating, etc., you will be given an appropriate credit limit on your credit card. A credit cardholder is entitled to use their credit limit and pay it back to the bank at the agreed time schedule.

In contrast with having to deposit money into your account balance to be able to use debit cards, the amount of money you can use with your credit card is the approved credit limit you get from your bank.


Choosing a type of card that fits your financial capability and spending habits helps to manage your financial situation smarter and easier.

1. Benefits of each card type

As each card type would have its own set of strengths and limitations, you need to carefully consider both before making a decision on a suitable card type.

The common strengths and benefits that both card types can bring to your life include:

– The safety of not having to carry large amounts of cash around

– Help to pay for things quickly and conveniently, even with small amounts

When it comes to debit cards, this card type will help you to be in control of your expenses as your expenses are paid for by your available account balance. However, as the amount of money you can use is your account balance, sometimes you can also find yourself in a passive position. On the other hand, credit cards will put you in more of a proactive and comfortable position when it comes to spending as you do not have to rely on your account balance. However, this freedom in spending can also make you lose control and lead to situations where you might not be able to afford the repayment for your credit limit.

2. Application procedures and financial capability

Each card type will have different application procedures and criteria for users. While the application procedures for debit cards are known to be simple and fast as you are only required to provide your personal ID or passport and valid visa, credit cards come with more complicated procedures as your approved credit limit depends on your credibility.

Also, you need to consider your income stability to be able to choose a suitable card type. With debit cards, you can use up to all of your income as long as it is deposited in your account without having to worry about interest or debt. With credit cards, you need to carefully evaluate your capability to pay for your credit limit, as well as fees associated with credit cards such as interest, annual fee, etc. If you do not have a stable monthly income, choosing a debit card will be more suitable for you as you would be less tempted to fall into debt.

3. Card usage needs and spending habits

To choose a suitable card type, it is also critical to consider your card usage needs and spending habits. If you are the type of people who wants the convenience of not having to depend on physical cash but do not want to have any outstanding debt, debit cards would be more suitable for you. If you are the type of person with a stable monthly income who likes travelling, shopping and usually has unexpected plans coming up during the month, credit cards can be a powerful enabler.  

The above factors are a few things that you should consider before applying for a bank card, whether it is a debit card or a credit card. You can also find out more about application procedures and outstanding features of  Timo Debit Card and Timo Mastercard if you are planning to open a bank card. While Timo Debit Card can be applied for within 2 minutes, Timo Mastercard can be applied for through different qualification criteria.


CVV/CVC stands for Card Verification Value or Card Verification Code. Simply put, CVV/CVC is an anti-fraud security feature printed on the signature panel on the back of your card and used to verify that you are in possession of your card. CVV and CVC have the same functions and are used for different types of cards.

Main functions of CVV/CVC

All financial institutions/banks issuing credit or debit cards would develop a system in which every card is provided with a unique CVV/CVC code. This code is required to complete any transaction carried out using the card. When your card expires, this CVV/CVC code will no longer be valid.

For Mastercard/Visa cardholders, CVV/CVC may have already became familiar as it would always be required for every online transaction. This is required to ensure the card and its holder’s safety.

Important notes to remember when using CVV/CVC for online payments

To ensure your card and account’s safety, below are some Do(s) and Don’t(s) to take into consideration upon making transactions via your card.

– Only pay online at well-reputed websites with trustworthy encryption technologies

– Use your private computer/laptop or your mobile phone device to make transactions

– Make sure your computer/device is equipped with a firewall/ virus-protection software

– Keep your receipts/invoices to cross check them with your billing statements

– Ignore the terms and conditions of use before paying on any website

– Use public devices to carry out online transactions

– Save accounts attached with your card details in your browsers

– Let someone take a photo or write down your card details

Find out more about other card safety guidelines here.

There are usually two ways to withdraw cash from an ATM card – you can either go to any branch of your bank and make an over the counter request for a withdrawal, or you can withdraw cash at an ATM machine.

Withdrawing cash in the past was more difficult, as people would have to find ATM machine that belonged to their bank to make a transaction. But since the evolution of payment providers like Smartlink, Napas, Banknet, Visa, Mastercard etc. and thanks to inter-bank connectivity, there’s more flexibility when withdrawing money from different banks’ ATM machines.

Although this evolution has brought a significant amount of convenience to people’s daily lives, there are still a large number of people who are resistant to withdrawing cash from different banks’ ATM machines. This is because there are a lot of factors to be mindful of when withdrawing from an ATM.

So what are the factors to keep in mind when withdrawing cash from another banks’ ATM machine?

  • Even though the inter-bank connection between ATMs is good, sometimes the payment providers may not be connected to all ATM machines.  Look for the symbol/logo of Smartlink, Napas, Banknet, Visa, Mastercard etc. on your card and for the corresponding payment service provider on the ATM machine you are withdrawing money from. For instance, if your ATM card is issued by NAPAS, it’s best to withdraw money from ATM machines that are linked to NAPAS for a smooth transaction.
  • Cash withdrawal fees from another banks’ ATM machines are usually higher than your card issuing  bank’s ATM machines (between 3,300 – 11,000VND/transaction for a local ATM card). However, there are banks that offer no cash withdrawal fee.
  • International banks’ cash withdrawal fees are approximately 10.000 VND to 33.000 VND when using an international Debit MasterCard/Visa Card. The fee is likely to be even higher if the transaction is made overseas at a bank ATM that is not your card issuing bank.  
  • At the end of your transaction, there should be a notification displayed on the the ATM screen. Cross check the details and confirm the transaction only if you are comfortable with the details.

Here’s why although it is more convenient to withdraw money from another banks’ ATM machines, a fair number of people still prefer to look for their issuing bank’s ATM machines to  save on withdrawal fees.