What Is A Debit Card And Credit Card?
Credit and debit cards, popularly known as plastic money have undoubtedly become the most popular cash alternative in the modern world. Be it a businessman or a salaried employee – most people nowadays carry at least one of these cards and use them for transactions like bill payments, grocery shopping, flight bookings, etc. However, there continues to be a raging debate on which should be preferred. While some prefer credit cards for their convenience, many believe that debit cards offer more security.
| Credit Card | Debit Card |
|---|---|
Credit cards allow the cardholders to
purchase goods and services on credit and
pay it back over time
|
In case of a debit card, the amount
is instantly deducted from your bank account
|
You have the option to convert
your credit card purchases into EMIs
|
No credit facility is available, as you pay
instantly from your own funds
|
Provides better security in case
of faulty transactions
|
Provides less security in case of
faulty transactions
|
Typically offered with joining
and annual fees
|
Typically issued free with your
savings account
|
The penalty is charged on
non-payment or late payment of your
credit card dues
|
Penalty charges are not applicable
in case of debit cards
|
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