Which Really Works Best: Debit Card or Credit Card?

Presently, a plastic card does a great job in our society by providing you the best services it can provide, especially in terms of money matters. Indeed, it grants you the convenience it may offer so that you can have the exact satisfaction you could enjoy. Just like in the shopping malls or even through internet shopping, purchasing goods, or by simply paying bills wherein, you could be able to do it at your reasonable interest. Meanwhile, you are going to ask a friend, “hey! What card are you using?” and try to figure out the benefits you can get out of it, right? But the question is…

What is the difference between credit card and debit card?

Debit cards are so called the cash card that enables the holder to withdraw money or allows you to access you bank account using automated teller machine.

A card that resembles a credit card but which takes money directly from the bank account rather than borrowing money at a rate of interest and using personal identification number instead of a signature.

Is a cash substitute for consumers?

They look like credit card, but don’t provide credit. Amounts for purchases are debited immediately from the user’s bank balance.

A card issued by the bank and used for making purchases, and the purchase amount is deducted directly from your checking account.

A card that allows an individual to transfer funds instantly from bank accounts and can be used in ATM or at point-of-sale transactions.

While, credit cards are issued to be used as a system of payment in which the holder is entitled to buy goods and services based on the holder’s promise to pay these goods and services.

Credit cards at all intent, gives you the possibility to loan from your allocated limit at any time.

A credit card allows acquisition of goods and services that cannot be paid full when purchased.

Credit cards purchases normally become payable after thirty (30) days during which no finance charge is imposed. Afterward, the balance due maybe paid in full or paid down in monthly installments with principal plus interest.

So, what do you think works best? They maybe differ in some other ways but they are commonly the same in use. In some ways, both are beneficial when it comes to business transactions. It only matters on how you deal with them both.

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