Difference Between Credit Card and Debit Card

Understanding the terminology of banking has always been a crook for the common man. There are many terms that we use in everyday life but we do not know their exact meaning. Such as saving account and current account and similar debit card and credit card. Most people make the mistake of considering these two as a single product. Because both have many similarities in appearance and way of working.

But from the eyes of the world of finance, there is a difference between ground and sky in both of them. By understanding the difference between these two, you can improve your financial world significantly and your money management will also be better. Also, you will be able to save some. Before knowing the difference between these two, we know what are the similarities between these two?

What is Debit Card

In terms of convenience, debit cards are exactly like credit cards but they are different due to their source of money. With a debit card, you withdraw money from your savings or current account only. It happens that as many rupees are debited from your account as the transaction you have done through the card. In this system, the query is generated from the account of the person to whom you pay the money and reaches your bank.

In such a situation, the bank deducts the amount you have paid from the debit card and credits the merchant’s account after deducting it from your account. If it happens that your account does not have the amount that you have paid through a debit card, the bank will decrypt your query and send a message to the merchant that there is not enough money in your account and your transaction is not complete. is.

What is Credit Card

Credit cards were born on the basis of the idea that if a person wants to borrow a very small amount, how can the bank provide it with more paperwork and the borrower does not have to go round the bank. Credit cards were born to provide this facility to their customers.

While you withdraw funds from your account through debit cards, through credit cards, the bank lends you the amount of money you have paid through your credit card for some time. According to your financial basis, the bank determines the limit of the amount to be paid by credit card and it can start from 5 thousand rupees. You also have to pay fixed interest on this amount.

What are the similarities between debit and credit cards?

  • Both are plastic cards of similar size and same color form, with lots of numbers on them.
  • Both are accepted at all paid locations and the method of using both is almost the same.
  • You get the services of both through some banking medium and the companies that manufacture these cards manufacture both types of cards, so the symbols recorded on them are more or less the same.
  • The biggest thing is that both of these make our financial transactions easy.
  • After knowing the similarities, we now try to understand the two in turn so that we can understand the difference easily.

Difference Between Credit Card and Debit Card

  • With a debit card, you withdraw money from your account only, whereas through a credit card you borrow that amount from the bank.
  • You do not have to pay any interest on the amount withdrawn from the debit card and you have to pay interest on the amount withdrawn from the credit card.
  • The online transaction limit of the debit card is the amount available in your account while the credit card limit is decided by your service provider bank.
  • Credit cards are used equally all over the world, so they are more useful during travel, while debit cards are accepted only in your country.
  • The service charge levied by a bank on a debit card is usually much less than a credit card.

Precautions to be kept while using credit and debit cards

Nowadays incidents of online fraud and card cloning have become common, due to which there is always a fear in the minds of people using credit and debit cards. If you keep the following precautions while using your card, then there is every possibility of avoiding such fraud-

  • Do not tell the series of numbers inscribed on your card and try not to lose sight of your eyes during use.
  • Don’t forget to tell your card password number to anyone, it is completely confidential and no bank asks its customer for his password in any way.
  • Do not use sites that do not start with HTTPS and start with HTTP.
  • Never store your card online on any site, because if your login is caught by the hacker, then the credentials of your card will also be handed over to him.
  • Keep changing the passwords of your cards at some time, in such a way that the possibility of online fraud is reduced.
  • After swapping your card and entering the password in any store, do not forget to take the receipt after the transaction is completed.
  • Avoid the use of cards at places with no watchman ATM machines or such ATM machines which are located in a lonely place. Hackers use similar ATM machines to clone cards.
  • If you keep these precautions then you will be able to enjoy your cashless transaction for a long time without any loss.


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