Debit Card vs. Credit Card

Key Differences

By Debit Card, you can withdraw amount by using PIN (Personal Identification Number). You do not need to prove your identity by ID card or signature as in case of cash withdraw from bank counter. While in Credit Card in addition to security code, you have to put your signature on bill to prove your identity.

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You can use as such amount as available in your Debit Card account and sometimes you cannot use Debit Card for payment purpose. While you can use Credit Card as ATM as well as a mode of payment and can make the wide range of transactions specified by bank

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Having a nil balance in Debit Card account put no effect. However, crossing the Credit Card limits repeatedly and default in making payments on time can make a bad image and results in loss of trust.

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Using a Credit Card when using an ATM, to withdraw cash, is more expensive than Debit Card. You have to pay extra amount up to 3% of advance money. Debit Card are free from any service charges in most of the cases.

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Normally the transactions made by Debit Card are service free and there are no other charges. In case of Credit Card customer is liable to pay the borrowed amount along with service fee or interest charges.

Harlon Moss

Dec 10, 2014

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Most issuers do not verify employment record, credit, addresses or even legal residency. Credit Card brings many complexities with it like verification, guarantee of a third party and deposit of some kinds of securities.

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Debit Card allows you to make payment from your bank account and withdraw money from your account limited by your pre balance. While in Credit Card, either you withdraw money or make payment you actually borrow the money from bank and become creditor of the bank.

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Often banks do not grant any extra benefit to customers having Debit Card. However, to promote the culture of shopping through Credit Card various reward schemes are available to Credit Card holder.

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What is Debit Card?

Debit Card is one, where you have pre balance into your account. By Debit Card, you can use your bank account from anywhere, anytime. It is a kind of ATM card. You do not need to bother, to carry out the hard cash all time. It removes the difficulties associated with having writing the cheque and showing ID card. You can withdraw money, limited by your saving, or you can make purchases. When you use Debit Card for making purchases, this means you allow to vendor to transfer the buying amount, by swiping on an electronic machine, from your bank account to his account. Therefore, you make the shopping easily without actual delivery of cash.

What is Credit Card?

Credit Card is a kind of card, which give you option to borrow money for your purchases. When you use Credit Card for payment, in fact you are using a borrowed money provided by your bank. Moreover, it is your liability to return the money along with markup to bank according to bank stated time and conditions. Normally banks issues Credit Card to their permanent customers who keep up a regular account with the bank and are trustworthy. It has heavy interest rate and service charges with it.

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