Debit cards VS Credit cards

Debit cards and Credit cards are the most common plastic payment card technology used in bank transactions, Automated Teller Machines (ATM), Point of sales (POS) terminals and online transactions.

Though both cards are very similar in all ramifications yet there are huge differences too between the cards and many folks sometimes find it difficult to differentiate them and often tend to mix them up.

We want to use this opportunity again to compare and contrast both cards so users out there will be able to easily differentiate them and know exactly how to use them and what they are used for even if both of them have mostly been used interchangeably in most cases.

We believe that the more you know the differences between those two cards, the better you appreciate using them for your daily transactions.

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If for instance, I decide to set a simple test for you right now and ask you to compare and contrast between debit cards and credit cards, what will your answers look like?

But since we are always here for you and we are the one posing the question, I think it will be better justified for us to still provide the answer in the best way in order to complement what we have started.

Without blowing much grammar, let’s take you through the similarities and differences between debit cards and credit cards

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Similarities

= =>Both Debit cards and Credit cards are payment cards used as a system of payments.

= =>Both of them are plastic cards with mostly same shapes and sizes measuring 85.60 X 53.98mm.

= =>Both can be used on ATMs, POS, online merchant sites for withdrawal and payments for goods and services.

= => they are mostly MasterCard or VISA cards.

= => Both can be issued by local bank or international bank.

= =>Both cards have similar features like card numbers which is mostly 16 digit numbers on the front of the cards together with expiration date (month/year), chips, magnetic stripes on the back together with 3 digit card security code or often called Card Verification Value (CVV).

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Differences

These mostly are the particular areas of interest between both cards, and we have their differences as;

= =>The word Debit is mostly inscribed on Debit cards to indicate they are debit cards and Credit cards have Credit  inscriptions.

= =>Debit card are easier to obtain or issued by your bank than Credit card, for with Credit card you must meet certain additional requirements for you to be Credit card wordy.

= =>With debit card, you cannot buy on credit, but with Credit card as the name suggests you can buy on credit and pay later.

= =>Debit card are mostly linked to individual bank account whereas Credit card are not often linked in such manner.

= =>Debit card appear more flexible to use and with lesser constraints than credit card, since you are shopping or paying directly with your cash so you are in charge of your spending and withdrawal without overhead cost or charges in most cases.

= =>Security wise, Debit card appear to offer lesser security on your account than credit card, because with you Debit card if your account is hacked by any means, your entire back account that is linked to the Debit card is at serious threat unlike the Credit card where you can have some form of insurance from your bank under same condition.

= =>Using Debit is less expensive than making use of Credit card. As with your Credit card, you always have overhead to balance in form of interest.

= =>Debit card has the disadvantage of you being unable to borrow with it when you are short on cash in your bank account, whereas it is more like an advantage with Credit card, even without cash in your account you can easily borrow and pay in much later time.

= =>In the world as a whole, Debit cards are more widespread and common than Credit cards.

= =>Debit card issued in one country can easily be used in another country more as you will use your credit card in the same instance and also, Debit card as the name suggest is easier to make withdrawal transactions across the globe than Credit card.

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With the above pieces, I believe I have been able to compare and contrast Debit cards and Credits cards in the best possible and more comprehensive way.

If you are happy with this piece, you can use the comment box below to either express yourself or add any other similarity or difference that you think I dint mentioned and also you can easily share this piece to your friends with the sharing buttons around the blog so they can also be informed.