How a credit card is different from a debit card
(NewDesignWorld Press Release Center) -- Do you have a Visa card or MasterCard in your wallet? Well, don’t jump into any conclusion that you own a credit card. The card you posses might be a debit card or a check card as well. Both credit and debit cards are completely different from each other. If you use your debit cards, then the amount of transaction is debited from your account immediately. You will not receive any statement that mentions about your dues or payment of interest charges like one receives after using the credit cards. The debit cards do not have a certain credit limit like the credit cards. The amount that you have in your account is your limit to use the debit card.
Both debit and credit cards can be used as Automatic Teller Machine cards or ATM cards. You can use these cards in any major networks of ATM all over the world, but there is a big difference between both these varieties. When you use a credit card to draw money from an ATM counter, it is like your bank is providing a loan to you. You have to pay fees for cash advance and transaction as well. Furthermore, there is a necessity to pay a rate of interest that your credit card company issues and this rate is higher than what you pay as interest while making normal purchases.
When you use debit cards in the ATM counters to draw money, then it is definitely not like getting a loan from the bank. You are drawing your own money that you already have in your account. If you use the ATM machine of your bank then you do not have to pay any transaction charges. However, ATM machines of other banks may charge a nominal amount if a certain limit of free transaction is over. The amount will be debited from your account electronically and you will receive cash instantly.
If you want to shop anything by using your debit card or credit card, then you can do so conveniently. Both these cards provide relieve from carrying liquid cash all the time. In case of credit cards, you will purchase an item and process the card for payment. The transaction will get over, but there won’t be any transfer of funds at that time. The merchant will receive payment from the credit card company within a time frame of 30 days and within the same period you will also receive your statement from the card provider. If you are not able to pay off the money within your specified period, then you will be charged with a certain amount as a fine.
When you use a debit card shop any item, then the amount is directly deducted from your account, which is different from the credit card transactions. It means you need to have sufficient balance in your account if you want to buy or use your debit card for financial transactions.
Resource Box: If you have any doubt about how a http://www.kreditkort-och-betalkort.se/ credit card transaction is different from that of a http://www.kreditkort-och-betalkort.se/ debit card, then visit our site to get details.
Discuss Bury
NDW PR Center is a Web 2.0 News release and distribution service
