What's the difference between a debit card and a credit card?

Question

What's the difference between a debit card and a credit card?

5 Answers

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Answer 1

Well, a Debit card is your banking card but can act as a Credit card too with certain banks, they are almost all the same now days.. But some Credit cards you got get a credit check done to see if you qualify but always do your homework before you get involved with that

Answer 2

When you use your debit card for credit or debit, the money comes straight from your bank account. When you use a regular credit card, you'll receive a monthly statement and bill to pay. One, the money comes from the bank and the other card is on a monthly payment basis,

Answer 3

A debit card is used to pay for items using funds that you already have desposited in your current account.

A credit card uses funds that have essentially been "credited" or loaned to your account, and must be paid off (usually paid at the end of each month, with the option of paying in instalments).

The amount is you spend is also subject to interest charges, which means you often end up paying back a percentage more than you were credited.

Credit card providers usually offer certain incentives to use their cards - such as money off, loyalty points, or insurance services.

Answer 4

Debit card is your card of particular bank in which you have amount of money. On the other hand credit cards are only given by certain banks and you have to pay a monthly statement and bill.

Answer 5

Credit and debit card both have same purpose but the cost associated with it is different.

When a purchase is made using debit card the transaction fees involved are capped by law. If any fee is charged at all for debit purchases it is charged to the purchaser.

Whereas in case of credit card the purchase is technically made in the form of loan, the merchant is charged a fee for the privilege of offering credit cards as a method of payment.