Credit vs. Debit Card – Differences and Similarities

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Nowadays, having a payment card has become a standard. We use it every day in grocery and industrial stores, at petrol stations, even at car washes. Of course, also for cash withdrawals from ATMs and cash deposits in cash deposit machines.

However, only some bank customers are aware of the differences between a credit card and a debit card . These terms are often used interchangeably, also in a misleading sense. It is time to clarify this issue and indicate the similarities and differences between the two types of plastic money. Indicate the principles on which cards are issued and for what purposes they were invented.

Carrying cash is less safe than using a card
credit card shopping
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Studies conducted in modern society are quite clear. It is egypt whatsapp database and more convenient to carry a card than a thick bundle of banknotes. Plastic money is less conspicuous and more handy. In the event of theft, an unauthorized person without knowledge of the PIN code will not use the card. Of course, if we have previously blocked the possibility of making contactless transactions, which is a free option in most banks.

There is another solution for people who want to pay contactlessly . Namely, setting a daily limit for contactless payments. Similar limits can be set for daily card transactions using a PIN code and for ATM withdrawals. The liability of the holder of a stolen card is also small in an emergency. It is enough to block it so that in the worst case the bank will return most of the amount spent on the card.

Similarities and differences
Physically distinguishing credit cards from debit cards is becoming increasingly difficult. Many years ago, all credit cards were convex and debit cards were flat. Today, these differences have disappeared, and debit cards are also convex. Some banks also issue flat credit cards. However, a skilled observer will notice the differences in the names on the plastic. I mean, of course, the English inscription that immediately suggests the type of card, i.e. "Debit". It is most often placed under the graphic symbol of the payment organization that issued the card (VISA or MasterCard).

Debit card features
Estimates say that over 90% of cards held by Poles are popular debit cards. Which is understandable for obvious reasons. Banks issue this type of plastic to anyone opening a personal account without the need to present proof of income. It is enough to open a personal account to receive a debit card with a slight delay. However, such popularity has its advantages. Over the years, the functionalities of debit cards have been developed quite strongly to the point that they are almost as good as credit cards in this respect. And in terms of everyday use, they even surpass them.

You can pay with debit cards in all points of sale, withdraw cash from ATMs and from the store cash register (Cash Back), deposit funds in cash deposit machines, pay online, also in foreign stores.
When making a payment with a debit card, you use the funds in your bank account. Of course, if you have signed an agreement with your bank, you can also use the overdraft on the account up to the agreed amount.

Credit cards for the chosen ones
credit and debit payment cards
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Credit card restrictions have made them a more elite type of plastic money. Unfortunately, they are also more expensive to use and less popular. To get a credit card, you often don't even have to open a personal account in a given bank. However, you must provide proof of income in the amount required by the institution.