This post explains credit and debit cards, which are currently the most common payment method and an important part of the cyber or digital era. In this post, we’ll also see the comparison between a credit card and a Debit card in tabular form.
What is Debit Card ?
Debit Card is like a digitized version of the chequebook. Debit Card is linked to our bank account. Money is debited or withdrawn from the account as soon as the transaction occurs. when we choose a debit card for any personal transaction you must use your personal identification number or pin to approve the transaction.
What is Credit Card?
Credit Card is different from a debit card they offer a line of credit (loan) that is an interest-free loan if the monthly credit card bill is paid on time instead of being connected to a personal account. A credit card is connected to a bank or financial institution that issues a card. When you use a credit card issuer puts money towards the transaction. this is a loan you are expected to pay back in full unless charges are applied.
Difference Between Credit and Debit in Tabular Form
| BASIS | DEBIT CARD | CREDIT CARD |
| CONNECTIVITY | It directly deals with the personal account. | It deals with the bank. |
| INTEREST | No interest is charged. | Interest is charged on person by the bank when the a person does not pay credit card bill on time. |
| CASH LIMIT | The limit of cash is not fix it depend on a person account. | The limit is decided by the bank. |
| SECURITY | More Secure | Less Secure |
| BILL | Bill is not given | Bill is given to the account holder. |
| NATURE/TYPE | Account holder money is deducted from the account and the remaining money is secure for later use. | It is a type of digital loan. |