How does a credit card work?

Get the most out of your credit card. Read about credit card use!

What is a credit card?

A credit card is a type of payment card which the cardholder can use to buy items on credit granted by a credit card company. When you pay by credit card, the credit card company acts as a buffer between your money and the seller. The purchase sum is charged from the credit account linked to the card, not directly from your bank account as in debit card payments.

Besides being a payment instrument, many credit cards now provide protection for products and journeys you buy, or insure you and your family during travel.

How does a credit card work?

A credit card is often combined with a debit card, so you can use the same card to pay from your bank account (debit) or from your credit facility, as you choose. If you pay by debit, the payment is immediately charged from your bank account. If you pay by credit, the payment is charged through a bill sent later.

All purchases you make by credit each month are placed on a single invoice sent to you after the billing period. You get an average interest-free billing period of 35 days on purchases – if you pay your whole bill by the due date you won’t have to pay interest or other charges.

If you don’t want to pay your credit card bill in one go, you can pay it off in monthly instalments that you find suitable. Interest and an account service charge are added to any unpaid credit after the due date.

Paying with a credit card

You can use a credit card in the same way as a debit card to pay for your purchases – both in stores and online – always staying within your credit limit.

When paying with a combination card, i.e. a debit and credit card in one, you need to choose the credit side at a store’s payment terminal. This means that the payment will be charged to the credit facility instead of your bank account. When making online purchases, make sure that you enter the credit card details correctly. A combination card shows both a credit card number and a debit card number.

On OP’s combination cards, the credit card number is on the front of the card. The card’s security code (three-digit CVC number) is next to the signature field on the back of the card.

The debit card number is in the lower edge on the back of the card, immediately followed by the card’s three-digit security code, or CVC.

Read the instructions for secure online payments

How do you pay by credit card?

Within your credit limit, you can use a credit card to pay for purchases in stores and online in the same way as a debit card.

When using a combination card, with both a debit and credit facility, choose the credit option on the store’s payment terminal to have the payment charged from your credit facility rather than your bank account.

When making online purchases, be sure to enter the credit card details correctly. If your card was issued before 2023, you’ll find the credit number on the front and the three-digit CVC security code next to the signature field on the back. In the case of newer cards, both the credit number and CVC security code are on the back. Both the bank card (debit) number and CVC security code are on the back of payment cards.

Why is it worth paying with a credit card?

Minimum monthly payment

You can pay your whole credit card bill before the due date in a single payment, interest-free.

On the other hand, if you choose to pay off your credit in monthly instalments you find suitable, you must pay interest and an account service fee for the unpaid credit. The minimum payment is 3% of the debt. As the outstanding balance decreases, so will the minimum payment.

You can pay an additional instalment whenever you like, or pay off the entire amount of unpaid credit.

Example 1: If you pay a purchase of €599 using your card’s credit feature and repay it in instalments of €50/month, there will be a total of 14 instalments. For this period, you will pay a total cost of €84.53, which includes interest of €39.03 and account service charges of €45.50.

Example 2: If you pay a purchase of €599 using your card’s credit feature and repay it in six identical instalments, the instalment will be €105.50/month. For this period, you will pay a total cost of €32.69, which includes interest of €15.19 and account service charges of €17.50.

Transfer of credit to account

You can transfer money from your credit card to your bank account and e.g. pay bills from the account. You can use the op.fi or OP-mobile service to transfer money from your OP Classic, OP Gold, OP Platinum or OP Duo credit facility to your bank account. Please note that a service fee is charged for such transfers.