While debit cards allow you to pay for shopping, dining and other activities much like a credit cards, there are some differences between the two. Generally debit cards are much easier to apply, as long as you have a bank account, and they allow you to stay under budget by having payments for the purchases debited directly from your bank account when making a purchase.

In this article, we compare the two card types, summarize the features of debit cards, and share tips about what you can do with a debit card.

Differences between debit and credit cards

Here is a quick summary on the main differences between the two types of cards:
The following are the general comparison between Debit and Credit cards, so may not be applied for all the cases of 2 types of cards.

Debit cards

  • How they work: When using a debit card, payments for the purchases are debited from your account immediately, so you can only spend as much as you have in your bank account.
  • Screening: No credit screening
  • Minimum age: 15 years of age and above
  • Card issue fee: Usually free
  • Sign up fee: Usually free
  • Withdrawal timing: Funds are debited from your account at the time of purchase
  • Payment options: Lump-sum payments only
  • Spending limit: Within available account balance
  • Cashing function: Not included
  • Places you can use: Merchants
  • Theft insurance: Included in most all cases
  • Interest charged: No interest charged
  • Monthly bills: No
  • Foreign exchange rates/fees: Low
  • ATM withdrawals outside Japan: Possible, with low fees
  • Points: Most cards provide points or cashback
  • Validity: Around five years
  • Annual fees: Usually free, but some cards charge an annual fee

Credit cards

  • How they work: Credit cards are lines of credit, so the card issuer "loans" you the funds for payments for the purchases. You are expected to pay back this "loan" in full by a specified date, otherwise you will be charged interest.
  • Screening: Credit screening required
  • Minimum age: 18 years of age and above
  • Card issue fee: Usually free
  • Sign up fee: Usually free
  • Withdrawal timing: Funds are debited from your account at a later date
  • Payment options: Lump-sum payments, instalments, revolving payments, or bonus payments
  • Spending limit: Determined by card issuer based on card type and usage
  • Cashing function: Included
  • Places you can use: All member merchants
  • Theft insurance: Included in most all cases
  • Interest charged: If it is not a lump-sum payment, interest will be charged according to the balance. Usually, interest is high.
  • Monthly bills: Yes
  • Foreign exchange rates/fees: High
  • ATM withdrawals outside Japan: Possible, but fees are high and interest is typically charged from the moment you withdraw cash, as you are essentially taking out a loan.
  • Points: Most cards provide points or cashback
  • Validity: Around five years
  • Annual fees: Usually free, but some cards charge an annual fee

Sony Bank WALLET

Sony Bank WALLET

Sony Bank offers Sony Bank WALLET, a debit card that combines "Visa debit functionality" with "Sony Bank cash card" that can be used at merchants worldwide that accept Visa.

Sony Bank WALLET can be used at ATMs inside and outside Japan, and payments for purchases outside Japan are debited directly from your foreign currency savings account (in local currency) or converted to yen at a favorable exchange rate with low fees, so you don't have to exchange foreign currencies.

One of the most attractive features of Sony Bank WALLET is cashback on purchases made inside Japan, ranging from 0.5% to a maximum of 2.0%, depending on your level in Club S, Sony Bank's rewards program. While the high cashback rate is a bonus, it also means you don’t have to go through the hassle of accumulating and exchanging points!

You can apply for a Sony Bank WALLET without sign-up fees, or card issue fees. Foreign residents of Japan have to meet certain criteria in order to open Sony Bank account.

Share this article

Share