Debit cards and credit cards are both financial tools that allow consumers to purchase items or withdraw cash. However, there are several key differences between these two types of cards.
A debit card allows customers to spend money by drawing on funds they have already deposited in the bank. Credit cards, on the other hand, allow consumers to borrow money up to a certain limit in order to purchase items or withdraw cash.
When a purchase is made, the credit card company charges interest on the amount borrowed until it is paid off.
Another difference between debit and credit cards is how they are used for withdrawals from an ATM machine. With a debit card, customers can only withdrawal up to their account balance. With a credit card, customers can withdrawal up to their available limit minus any outstanding balances.
Finally, another difference between debit and credit cards regards consumer protection in case of theft or fraud: when funds are stolen from a bank account using a debit card.
It may be difficult for the customer to get those funds back, when funds are stolen from a credit card account however, most issuers offer zero-liability policies which protect consumers against fraudulent charges.
Related Articles:
Payment Gateway For Websites
