Sunday, July 26, 2020

What is the difference between Debit Card vs Credit Card

The difference between Debit Card and Credit Card

What is the difference between Debit Card and Credit Card

Debit Card vs Credit Card - Since November 2016, the problem of people not having cash had increased the most. Necessary goods had to be taken, but there was no cash in hand to buy goods. In order to avoid the cash problem, the government encouraged digital payment loudly and people also started adopting this new idea. The process of cashless payment started increasing everywhere. Many people got the benefit of this because now the problem of taking cash in the pocket has gone away and we can easily shop anywhere anytime through digital payment.

Debit Card vs Credit Card - The most important thing to make digital payment is to have an account in the bank. If a person does not have an account in the bank, then he cannot make digital payment because the money in this payment comes from the account created in the bank. When we open our account in the bank, the bank gives us a plastic card which we can use in any ATM machine. These cards are of 3 types ATM Card, Debit Card and Credit Card.

1. What is a ATM Card: ATM card is a card with the help of which you can withdraw money only from ATM machine, in this card you will not see any kind of logo (Master, Visa, Rupees). This card is linked to your bank, so you can withdraw as much money as you can in your account through this card. With this card you cannot borrow from the bank and you cannot use this card anywhere other than ATM machines.

2. What is a Debit Card: When we open our account in the bank, we get a Debit Card from the bank which remains connected to our account. This card is exactly like an ATM card in appearance, but in its front side you will see the logo of Rupees, Visa or Master. You can use this card at an ATM, but apart from this you can also make an online payment and purchase from it. This card is also linked to the bank, so you can withdraw as much money as you have in your account.

With the help of Debit Card, we can withdraw money from ATM machine as well as do online transactions and shopping, transfer money to our friends and relatives. Apart from this, when you go shopping in a mall or shops outside, you can still use your Debit Card to make payment there and for that you have to swipe your card and enter the PIN number only then your payment is successful. Whenever we use our Debit Card to buy something or do bank transactions, then the money is deducted from our account and at the same time a sms comes from the bank to our given number, how many now in our account Money left We can use Debit Card anywhere and anytime easily.

What is the type of Debit Card? : The Bank joins Debit Card service provider companies to provide Debit Card to its customers, which provide Debit Card to the bank like,


  • Visa Debit Card
  • Master Card Debit Card
  • RuPay Debit Card
  • Maestro Debit Card


3. What is a credit card? : Like Debit Card, Credit Card is not connected to any bank account, but you get this card from a financial institution or bank. Those who provide loans to people, that is, they lend money and in return, they also take some percentage interest rate at the time of payment from you. This card is also like a Debit card in appearance and this card also has the logo of RUPAY VISA and MASTER but you can use it only to some extent in ATM machines because this card is not linked to the bank account. Credit card is also accepted in the swap machine, so you can pay by swiping it. With this card, you borrow money from the bank and spend it in the form of a bill to the bank. If you do not return the money to the bank, then the bank charges you with interest. This card has a monthly pay limit. You cannot spend more than the limit.

There is a limit to use money from a credit card, ie the bank that offers you a credit card has already set the limit of money, such as there can be a limit of 100000 rupees for 1 month or in some credit cards. Money limit is also less like 20000, 50000 etc. Banks decide this limit by looking at your business and income etc. so that you can easily repay their loan.

You can spend money from credit card within the limit. At the end of the month (or when the bank gives you a date that on this date of every month you have to pay all the money that you have spent using credit card) if you did not repay that money on time then you spent Along with the money, penalty has to be filled.

What is the type of Credit Card? : Almost all banks provide credit card to their customers these days. The bank credit card service provider which wants to provide bank credit card facility connects with companies like,


  • Visa Credit Card
  • American Express Credit Card
  • British Airway Classic Credit Card
  • Carbon credit card

What is the difference between Debit Card vs Credit Card?

The first difference is that the Debit Card remains connected to your bank account and the Credit Card is not connected to any account. With Debit Card you can spend as much money as you want until your bank balance becomes zero and with Credit Card you can spend just as much money as you are given limit by the bank.

One thing you must have noticed is that everyone has a Debit Card, but not everyone has a Credit Card. This is because everyone gets a Debit Card by opening an account in a bank, but for a Credit Card, one has to apply in a separate bank. The bank approves your monthly salary or business, and only after checking all the other details to give a credit card.

After payment of credit card, after a month you get a monthly bill to fill the money in which the details of all the transactions done by you are present and you are given 3 options in how much money you have to pay to the bank. You can either pay full or pay 10% or you can pay any amount according to your own. But nothing like this happens in Debit Card. Whenever you are paying through Debit Card, the money is deducted from your account only. I hope you have understood what is ATM Card, Debit and Credit Card and what are the differences between these three.

0 Reviews: