Credit card, debit card: french bank cards explained

If you are from the US or Latin America, be warned: in France, bank cards are quite different from what you may be used to in your country. Here, we explain how they work and what you should consider before getting one.

Credit cards vs. debit cards

It’s very easy for foreigners to be confused by the French term “Carte de crédit”. Mainly because it is used to refer to ‘bank cards’ in general, regardless of whether they are ‘credit cards’ or ‘debit cards’. Due to this poor choice of words, many people in France mistakenly think they own a credit card when in fact, they don’t.

In many countries, credit cards refer to what is known in the French banking system as ‘deferred debit cards’. With this type of card, you are not debited every time you buy something. Instead, the sum of all your purchases will be discounted from your account at the end of each month (or at any other date agreed upon with your bank). They’re also an easy way of splitting large purchases into small installments. In France, this type of card exists, but remains extremely rare.

In fact, most French people use debit cards, also known as ‘immediate debit cards’. With this type of card, your account is debited immediately after each purchase. So, beware: whenever your French banker offers ‘credit card services’, he is talking about ‘immediate debit cards’. If in doubt, ask for more details.

Overdrafts

You may be worried about using a debit card because of overdrafts. However, you should know that most banks offer an authorized overdraft (‘découvert autorisé’ in French) for free. Your balance can remain negative for any amount of time provided that you don’t exceed the authorized value.

Your authorized overdraft is generally calculated based on your income and customer history, but you shouldn’t be afraid of negotiating it with your banker.

Agios

Should you exceed your authorized overdraft at some point, your bank will immediately charge Agios.

Agios are a set of fees that cover the expenses of the bank to compensate for the account holder’s lack of liquidity. The modalities vary from one bank to another, but trust us: you don’t want to have to pay them. Some banks charge a flat fee per transaction (up to 10 euros, in some cases) while others charge interest that can approach up to 20%.

You may find yourself in a situation with no choice but to exceed your authorized overdraft. If that happens, don’t worry. Make sure to get your finances back in order quickly and call your bank. If you have always been a good customer, you should be able to negotiate at least a reduction of the fees, if not a cancellation.

Withdrawals

In France, most ATMs (Distributeurs de Billets, in French) are accessible 24 hours a day and 7 days a week. They generally belong to the banks and you will find them within their offices (or near them).

You may also be interested in how to open a bank account and how to make  bank transfers.

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