In today’s era, digital banking has made everything so easy that you can take advantage of many facilities like shopping, traveling, money transactions etc. sitting at home. To make these facilities more comfortable, banks provide their customers with debit cards, credit cards and ATM cards. With the help of these cards, you can easily do all financial transactions through digital banking.
But have you ever had a question that what are the cards we are using? What is the difference between them. If you do not know, then today we tell you in this article what is the difference between debit card and credit card.
What is Debit Card?
You must have used a debit card well, but do you know what a debit card is? Debit card facility is provided by the bank to the people having current or savings account.
This card is used by you to spend the amount available in your account. You can easily connect this card to online banking. Whenever you make an online payment, the money will be deducted directly from your account. Also, it can be used easily.
Advantages and disadvantages of debit card
With this ATM card, you do not need to carry cash with you.
With the help of this ATM, you can withdraw money according to your need from the available funds in your account anytime, anywhere.
This service is completely free, but you have to transact within the monthly limit. You are charged some fee by the bank for withdrawing after the monthly limit is exceeded.
If you withdraw from the ATM machine of the concerned bank, then five transactions are kept free at the time of withdrawal, apart from this, if you do 3 transactions in a month from the ATM of another bank, then you will have to pay about 23 for that. Which is automatically deducted by the bank at the time of your withdrawal.
That’s why you can do only 8 transactions in a month in a savings account for free.
If you have a current account, then there are more transactions in it, then more discount has been provided in its debit card, its debit card can do more transactions than the debit card of savings account.
What is Credit Card?
We told you what is a debit card and every bank customer can use it easily. But credit cards are a little different. It cannot be used easily as the card has a credit limit, which you can borrow as per your requirement. Also, the amount you have borrowed has to be repaid within a stipulated time frame.
After that again your amount is credited to your card again. Also, if you do not repay the amount by the stipulated time limit, the bank charges interest on you. You can avail many facilities with this card. You can do movie tickets, booking, shopping etc with online banking.
Advantages and Disadvantages of Credit cards
The biggest advantage of this credit card is that even if you do not have money in your account, you can still shop without any problem.
Through this credit card , you will be able to easily buy any products on EMI installments.
Cash can also be withdrawn in emergency situations through this card, but its fee is high. Therefore, this card should be used only in case of emergency to withdraw cash.
Apart from this, if you shop with this, you get more features and discounts, and also get cash back.
If there are many advantages of credit cards, then the disadvantages are also very high, if you are able to deposit money on time, then for this you are charged a lot of interest i.e. interest.
In this, if you withdraw cash from ATM, then you have to pay a lot of interest as compared to other loans.
Difference between Debit and Credit Card
In debit card you have to withdraw money from your savings account, on the contrary in credit card you borrow money from the bank.
You do not pay any interest for the amount withdrawn by this debit card, whereas in credit card you have to pay interest on the amount withdrawn.
The limit of your transaction amount in the debit card is the amount available in your account, while talking about the credit card, then this limit is decided by your service provider bank.
Debit cards are mainly accepted in your own country, but you can easily use credit cards in any country, so credit cards are considered more useful during travel.
The service charge levied by the bank on the debit card is very less as compared to the credit card.
No interest is charged on debit cards, only some charges are deducted for more transactions, in comparison to credit cards, a lot of charge is payable in the form of interest.
Ways to use
We have told you the difference between debit and credit cards. Now we tell you how and where you can use it. You can easily pay anywhere by linking your debit card directly to your account. You can do from shopping to net banking sitting at home. Also, you can easily withdraw cash using ATM.
On the other hand, if you use a credit card, your payment is deducted from the approved credit limit and not from your bank account, so this card is not easily accessible to everyone. For getting a credit card, the bank sets a rule, on the basis of which you can apply for getting the card.
What are Security Features?
Security features are common in both debit and credit cards. Whenever you make a payment, you will always be asked for OTP, notification or PIN number.
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