Types of Payment Cards: Choose the Right One
A snide remark at the checkout, a spicy read through Google reviews, or even a bitter departure to the competition — these could be the reactions of your customers when they realize that, even in 2025, you still only accept cash. For most people, paying by card is simply a given.
Debit vs. Credit Card
- Debit Card: Funds are drawn directly from your account. Ideal for everyday purchases and ATM withdrawals.
- Credit Card: You borrow funds from the bank and repay them later. Suitable for larger purchases or travel – usually includes insurance or cashback.
Virtual Card
- Single-use: Generated for a single transaction and then automatically canceled. Protects you from repeated misuse of card details.
- Permanent: Used for recurring payments (e.g., streaming subscriptions).
How to Pay by Card: 3 Main Methods
Online Payments
- Steps: Enter your card number, expiry date, and CVC code (3 digits on the back) in the payment gateway.
- Security Verification: The 3D Secure system requires payment confirmation via SMS or banking app.
- Advantage: Instant processing—goods are dispatched immediately after authorization.
In-store Payments
- Contactless: Tap your card on the terminal—payments up to CZK 500 don’t require a PIN.
- With PIN: Required for higher amounts or as an extra layer of security.
Mobile Wallets
- How it works: Add your card to a mobile device and pay by tapping your phone on the terminal.
- Security: Card details aren’t stored—an encrypted token is generated instead.
Payment Terminals
Payment terminals are devices that accept card payments—in brick-and-mortar stores, restaurants, or on the go. They come in various types, from countertop models for fixed locations to mobile solutions for flexible businesses.
Modern terminals combine speed, intuitive interfaces, and advanced security (data encryption, tokenization). With support for contactless payments, QR codes, and mobile wallets, they make transactions easier for both customers and merchants.
Countertop Terminal
For:
Restaurants, stores, hotels.
Features:
- Contactless payments, including Apple Pay/Google Pay.
- Transaction reversal in case of errors.
- Daily closing – automatic sync with accounting systems.
Mobile Terminal
For:
Tradespeople, food trucks, couriers.
Features:
- Accept payments on the go, e.g., via Bluetooth.
- Refunds (returning money to the card).
- Transaction reversal in case of errors.
Self-service Terminal
For:
Parking meters, kiosks, train stations, parking lots, gas stations
Features:
- QR payments.
- Refunds (returning money to the card).
- Integration with POS systems.
Public transport Terminals
For:
Public transport passengers
Features:
- Fast authorization (<1 second).
- Chip card support.
- Tokenization.
Security Rules: Protect Your Data
- Never share your CVC code – it’s only needed for online purchases.
- Block online payments when not needed – enable only when shopping.
- Monitor your statements – report suspicious transactions to the bank within 8 weeks.
- Use virtual cards for risky purchases on unfamiliar websites.
- Set limits – define max amounts for contactless payments and ATM withdrawals.
Paying by Card Abroad: What to Watch Out For
Exchange Rate Markups
- Example: When paying €100 abroad, your bank may charge up to 3% extra compared to the CNB mid-market rate.
- Solution: Choose an account with a favorable exchange rate or a multicurrency card.
Chargeback: How to Dispute Unauthorized Transactions
- When to request: If goods don’t arrive, the service isn’t delivered, or you receive a counterfeit.
- Process: Contact your bank within 120 days of the transaction and provide evidence (emails, photos).
- Note: Not applicable for bank transfers – only for card payments.
Card Insurance: Why Consider It
- Risk Coverage: Insurance typically includes theft, misuse, or damage to the card.
- Exclusions: Banks may not cover losses caused by negligence (e.g., PIN written on the card).
Tips for Smart Card Use
- Cashback: Some cards return up to 1% of every purchase.
- Discount programs: Use partner discounts linked to your bank.
- Public transport on card: In Prague, Brno, or Ostrava, load tickets directly onto your card. Learn more about transport terminals..
Paying by card offers speed and convenience, but also requires caution. With the right habits and awareness of security rules, you can minimize risks and enjoy the full benefits of modern payment solutions.
FAQs
Yes – PIN is not needed for contactless payments under CZK 500.
Look for a padlock icon next to the website URL and the prefix “https://”.
Immediately block it via your bank’s mobile app or call the hotline and follow step-by-step instructions.