Difference between credit card and debit card
Introduction
Debit Card and Credit Card both are an alternate of Cash. You don’t need to carry a bundle of Cash in wallet now. A small piece of plastic Card known as Credit Card. Carry Credit Card or Debit card in your wallet that’s it. These cards will help you
Features of debit card vs credit card
Credit Card:
Not is a product of your existing Bank accounts. Credit card issuing authority is a different entity/department in the bank. Credit Card department takes care of all the transaction apart from your bank account. It would not be part of your bank account. It works like a Home loan / personal loan. Credit Card gets issued with certain terms conditions and conditions or eligibility. Based on your credit power/financial condition, It will be issued with a set of limitations. In credit card, you will get a certain amount for credit of 30 to 40 days it could differ card to card or country to country. If you will not able to pay in certain time they would charge you interest.
Debit Card:
Debit card connected with your Bank account. No needs to go bank for cash withdrawal, use your Debit Card in any ATM at nearby. It will pick/extract the required money from your account. Use of debit card for withdrawal, where you will use your own money. No interest will be charged for any transactions.
Credit card and Debit card difference
| Use of Credit Card | Use of Debit Card |
| No bank account mandatory to use Credit Card. Credit Card works if you don’t have money in bank account. Credit card will charge you money for all the purchases/withdrawal. The credit card has a specific limit of transaction per day or overall. For Credit card, you need to enter provided secure 4 digit pin. Also OTP mobile code required to validate transactions. | It would be issued only with your bank account. If you don’t have money in your bank account this card is just plastic, not a money card.No money no Cash. If you have money just whatever you want to do no interest will be charged for? It’s your own money. In the debit card, your bank may set limitation of withdrawal or purchases. It is only to avoiding fraud. For Credit card, you need to enter provide secure 4 digit pin. Sometime OTP also required to validate transactions. |
Major types of Credit / Debit card:
Visa, American Express, Discover Card and Master card are more popular worldwide. Apart from above popular brands, few countries using country specified Cards. Example Union pay (China), RuPay (India) and Solo (United Kingdom) etc.
What is Security emv chip debit card:
After huge popularity of Debit Card and Credit Cards. Now security becomes a big problem. Recently EMV chip-based cards have introduced. EMV is a short form of Europay, Mastercard, and Visa, these three companies set a specific standard. This is technology are managed by EMVCo, a group of 3 stars companies. As of now all the banks and Credit Card companies has shifted using EMV chip-based secure Cards. EMV chip-based cards seem more secure.
“Precautions is better then cure for electronic chips”
How to prevent frauds? here is the link to know about.
Conclusion:
Billions of Credit Cards and debit cards users around the world. Our team decided to write about this topic. Our team is always excited to share the best of our Yaatra (journey) for research. Hope you like this article.
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