Credit Card and Debit Card is both useful for Bank users worldwide but have you ever wondered what are their major differences and similarities. This article seeks to unveil those things so sit tight, keep your data on and keep your eyes fixed on Tabloidstream official website and scroll down.
To start both cards have similarities in that they are both used for POS payments, withdrawal of funds, transfer of funds to others and payment of online products.
Additionally, the physically look the same in that their rectangular shape, plastic nature and the micro chip on them still remains the same.
Noteworthy are some of their clear differences which lies in their functionally and their areas on is limited on.
Debit card for example is a plastic and rectangular card used by bank users or customers to withdraw funds, transfer funds or carry out transactions within the total balance the customer has in his or her account. The customers cannot not carry out any transaction outside his or her bank account balance.
While the Credit Card unlike its counterpart is linked to a person Bank’s credit line and permits the customer to borrow money more than he or she has in his account balance and repay at a later time with charges applied.
For every customer, there is a credit limit to what he or she can borrow and use so once you exceed yours, the customer won’t be able to borrow again.
SO basically, the credit card can be used especially during emergency when the customer doesn’t have cash at the moment. He or she can borrow from his or her bank and cater for the damages or expenses. Afterwards, he is expected to refund the money back at a later time.
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2 thoughts on “Credit Card and Debit Card: What Are Their Differences”
Thanks for the info
Never knew the differences till now
thanks for the educating article