Co-badged card
Do you know what a co-badged card is? You might already have one in your wallet. If, when paying in a shop, the card reader asks you to choose between two payment circuits (for example, Bancomat and Visa), then you're using a co-badged card.
What is a co-badged card?
A co-badged card is a payment card linked to two circuits - typically one domestic (such as Bancomat) and one international (like Visa). You can use it in shops that accept either circuit, for online purchases, and to withdraw cash from ATMs (also known as 'Bancomat' machines in Italy).
If the two circuits offer different functions - one as a debit and the other as a credit circuit - the card is known as a multi-functional card. It's like having two cards in one: you can use it as a debit card (for instance, on the Bancomat circuit) or as a credit card. With debit payments, the amount is debited directly from your current account; with credit payments, the money is deducted later.
What does a co-badged card look like? The physical card is a standard plastic card with a microchip and magnetic stripe. On the front, you'll typically find the cardholder's name, the expiry date, and the card number - known as the PAN. Usually, only the PAN for the international circuit is printed on the card, making it easier to use for online purchases or to key in manually on a card reader if needed. On the reverse side, there is space for the cardholder's signature and some security elements, such as the CVV2 or CVC2 code.
The PAN: Primary Account Number
The PAN is a unique sequence of digits that identifies the card—whether physical or virtual. This number indicates the payment circuit (such as Bancomat or Visa), the card issuer (typically your bank), and the cardholder. It is used to authorise payments and withdrawals: when you use your card, the POS or ATM reads the PAN and sends it to the issuer's authorisation system, which checks the card's validity and approves the transaction.
Paying with a co-badged card
Usually, you'll need to enter your PIN to make a payment. However, for smaller amounts, this might not be required if your card supports contactless payments. A contactless card allows you to pay simply by holding it near a compatible reader .
You can also make contactless payments using your smartphone or smartwatch with a POS, provided you've linked the card to a digital payment app. In that case, your card is stored in the device's digital wallet.
As mentioned earlier, if the retailer's card reader supports both circuits, you may be asked to choose one. For contactless payments, the reader may automatically select a circuit – this could depend on the amount or the reader's technical settings. Regardless, the merchant must respect your preference if the choice is technically possible.
Bear in mind that each payment circuit may have different rules - such as daily and monthly spending limits, transaction caps, or contactless thresholds. Always consult your card's information sheeet to understand these conditions.
The costs of a co-badged card
What does a co-badged card cost? Typical charges include:
- an annual fee;
- ATM withdrawal fees;
- currency conversion fees for transactions in foreign currencies.
Co-badged cards often carry higher costs than standard debit cards, as they offer more services. However, they may be more economical than holding two separate cards – one for debit and one for credit. For this reason, a co-badged card can be a practical choice if you value the flexibility to pay using either circuit.
Risks
As with any card, a co-badged card comes with certain risks - such as card cloning, loss or theft, and overspending.
Cloning occurs when a fraudster copies the card's data (especially the PAN) to use it illegally. To mitigate this risk, consider activating real-time alerts for transactions and regularly reviewing your account activity.
If your card is lost or stolen, contact the card issuer immediately to block it - most offer a toll-free number or a dedicated service. You should also report the incident to the police. To prevent such risks, never leave your card unattended and avoid storing your PIN with the card, especially in written form.
Like all cards, a co-badged card can lead to overspending, particularly when used on a credit circuit.
Why can cards lead to spending more than cash?
Because we often perceive digital payments differently from using cash - this is a known (le 'behavioural trap'. Psychologists refer to this as 'mental accounting', where we treat money differently depending on the method of payment. It can lead to impulsive purchases, partly because we don't physically see the money leaving our wallet, which reduces what experts call the 'pain of paying'.
When shopping online, always verify the security of the website. Some web browsers display a padlock icon in the address bar (before 'https') - indicating a secure connection. But be cautious: scammers can sometimes replicate this icon on fake sites.
Finally, when shopping in person, it's good practice to check your receipt to ensure the amount matches what you intended to pay.
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