What Is Debit and Credit Card ?
A debit card also known as a bank card or check card is a plastic payment card that provides the cardholder electronic access to his or her bank account at a financial institution. Debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately.
The Credit Card has lately been a curious topic of discussion in our country. It sounds mysterious to many who can not understand well what it is and how it works exactly. It is just an alternative to paper money. Physically. Credit card is a layered piece of hard plastic with holograms and security features.
It also carries a strip of magnetic tape on the back. The tape is loaded with electronic data including the card holder’s details. The card is rectangular, looking rather like the familiar phone card. It is a small piece of documented plastic. This is why, it is popularly plastic money.
The payment method with a credit card is something like traditional area’s dealing. The bank issues a card in the name of the client that enables him to pay for goods and services within the limit stipulated.
There are two-types of cards- 1, Credit card and 2, Debit card.
By Credit card one can make a purchase from particular stores called merchants, the price of card which is payable at the end of month through the affiliating bank as per notification. Credit card is a card that allows you to borrow money in small amounts at local merchants. You use the card to make your basic transactions.
On the other hand, debit card is based on immediate payment system. Through it one has to insert card into the ATM (Automatic Teller Machine). This is why, a debit card is often called electronic purse. For debit card one has to have an account in a bank, . Debit cards offer the convenience of a credit but work in a different way. Debit cards draw money directly from your checking account when you make the purchase.
There are a good many advantages of cards, debit or credit. It is risk free and hazard free. A card can be attributed to a huge amount of money. Yet a credit card saves the risk of carrying ready cash.
Put simply, a Debit Card lets you spend your own money without carrying cash. That’s the main difference between a Debit Card and a Credit Card!
Of course, you can use most debit card to pay for purchases both at home and abroad, so you don’t need to carry foreign money to buy goods and services when travelling. (If you are planning a trip abroad, forget traveller’s cheques and apply for a Debit Card or Visa Passport instead!)