Debit Cards and Credit Cards are almost same sort of thing with little Differences in method of Use, Issue ,Security etc. A Debit Card is connected to holder's bank account and all transactions from debit cards directly uses the account of holder. While, Credit Card is a Interest Free Loan System in which user credits the required amount from Bank for a specific period of time and returns without any Interest of Credit.
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| Credit Card Vs Debit Card |
Comparison Between Credit Card and Debit Card
- Source of Money
- Credit Card : Takes a Interest Free Credit/Loan of required amount from Bank.
- Debit Card : Connected to owner's Bank Account and all transactions access same account.
- PIN Requirement
- Credit Card : No such requirement of PIN, as used only for electronic transactions.
- Debit Card : Required while withdrawing money from ATM . Not needed while doing transactions online sometimes.
- Interest
- Credit Card : If user doesn't pays the bill within given limit , A interest is charged on the previous month bill and carries with cumulative unpaid bills. The Interest is usually very high.
- Debit Cards : No Such Issues.
- Frauds and Liability
- Credit Card : Consumers liability for credit card fraud is defined by the Issuer Authority [ $50 in US ] and the User doesn't needs to Pay the amount if he proves that the Transaction is done by someone-else in given period i.e Fraud Transaction.
- Debit Card : Consumers liability for credit card fraud is defined by the Issuer Authority [ $50 in US ] and Issuing Authority is not responsible for any kind of Frauds.
- Monthly Bills
- Credit Card : Monthly bills of all purchases done within the month.
- Debit Card : No Such Bills.
Advantages and Disadvantages
- Credit Cards are convenient for Internet based transactions while Debit Cards are feasible where physical form of money is required.
- Credit Card users a more secure and protected against frauds as compared to Debit Card users as the amount of Fraud is paid by Bank if happened.
- Debit Card users doesn't need to pay any sort of Annual Fees and Interests on Pending bills while credit cards user's have to deal with them