What’s the difference between a debit and credit card

Written by: smm

on: 07/11/2022

We are using both debit and credit cards every day. But do we really understand the difference between the two? Let’s explore it together.

DEBIT CARD resembles a wallet:

– It’s tied to the customer’s current account.

– It allows you to make sale and purchase transactions for the amount of money equal to customer’s personal funds but not more than that.

– It works for payments made in online and offline stores, money transfers, and cash withdrawals.

– Some banks charge an interest on account balance. So, that type of card can serve as your deposit.

CREDIT CARD offers wider payment features:

– Just like with the debit card, you can use it to pay for your purchases in stores, withdraw cash and transfer money.

– It allows using either bank funds (loan) or personal and bank funds.

– You may also exceed the amount of personal funds you have when making purchases and return money to the bank later on.

– You can return loan funds without an interest but during grace period only.

So, what benefits do both types of cards offer?

💳 Debit Card

+ Easy to open and operate

+ Can be used as a deposit as well

+ No excessive expenses

💳 Credit Card

+ Is no different from the debit card as far as usage goes

+ Enables you to take out a loan instantaneously. This comes in handy when you need to urgently pay an amount of money that’s greater than what you currently have.

Which card to pick?

This depends on your goals. If you need a card for your salary, scholarship, pension or something similar, opt for the debit card. In contrast, if you want to always have access to credit money, a credit card is your best bet.

Need a card right now?

Open it in the SharPay app in a matter of minutes: https://sharpay.net