Debit Cards vs Credit Cards | Similarities and Differences

Posted by

Debit Cards vs Credit cards

Friends! Debit cards and credit cards have many similarities with each other, but also have few differences between these two exclusive plastic cards. So, today we are going to learn what is a credit card and a debit card and also what are the similarities and differences between credit cards and debit cards in the following section. So, that you can decide which is better for you, a credit card or a debit card?

Let us learn what is a credit and a debit card, first of all.

What is a credit card?

Best credit cards

What’s a credit card is? Basically, a plastic card, assigned by the bank and other financial co. to give credence to their customer. Nowadays, the cashless transactions are becoming the new definition of credit cards. No one wants to stand in a long line for a single transaction. So, to overcome this problem, our digital database has prepared plastic cards; named Credit cards, to strengthen the relationship between the bank and the customer.

Yes, those plastic cards called as the credit card, are one of the superb financial aid facilitated by the banks to their consumers. By providing credit cards, banks and other financial co. gives credence to their customer in confidence to fulfill their desire like paying a bill without having any credit card balance up to their fix credit card limit.

READ MORE ABOUT CREDIT CARDS.

What is a debit card?

advantages and disadvantages of debit card

What’s a debit card is? Like credit cards, debit cards also a type of plastic cards that allows the cardholder to transfer their funds electronically from their saving bank account while making an online transaction or shopping online.

With the help of Debit card, customers can withdraw cash as well as purchases, the merchant can offer “Cashback” or “Cash Out” facilities to his customer. Currently, the use of the debit card is increasing more quickly in numbers of countries since debit cards are also used in the shopping online, cashless transaction, transferring money online, etc….

READ MORE ABOUT DEBIT CARDS.

Credit cards And Debit cards | Similarities

All Types of Debit Card

The following are the main similarities difference between credit cards and debit cards.

  • Both the cards are one of the types of plastic cards having same size and color on which many numerical numbers are printed.
  • The way of using these two cards is almost the same and both are accepted at all the places for payment. However, some exceptions are there on the debit cards.
  • Both of these services are available to you, through some banking channels and companies that make used to prepare significantly by printing codes and numbers on them to work them properly.

The biggest advantage of these two types of plastic cards is that both of these make our life comfortable via making our financial transactions more easier.

This is all about the similarities between these two types of plastic cards. Let us learn what are the difference between debit cards and credit cards in the following section, So that we can decide, which is better, a credit card or a debit card?

Debit cards vs Credit cards | Differences

Debit cards vs Credit cards

The following are the main difference between credit cards and debit cards. Learn them.

  • With the help of debit cards, you can withdraw money from your bank account by using an ATM or PoS machine, whereas you can borrow money from the bank or any financial co. with the help of credit cards.
  • You have to pay not a single extra charges on the amount withdrawn from the debit card but you have to pay extra charges for spent amount drawn from the credit card.
  • The debit card limit for the online transaction is the amount, available in your saving bank account whereas the credit card limit is fixed at a certain amount by your service provider bank.
  • Credit cards are equally used and also accepted all over the world, therefore, it is more useful during travel, while the debit cards are acceptable only in your country.
  • Usually, the service charge, charged by the bank on the debit cards is usually less than the credit card service charge.

Final words

Guys! This is all about what is credit cards and debit cards. All the similarities and differences between credit cards and debit cards mentioned in the above article are truthful and informative to all.

If you find any problem regarding this post or if any information is lacking, then please let us know, so that we can solve your problem as soon as possible.

And friends, do not forget to share this informative article to your near and dear one of the family members and friends circles. And follow us for getting more such types of articles…

Have a  good day!!!

debit cards and credit cards

Leave a Reply

Your email address will not be published. Required fields are marked *