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Both cards can be used in making purchases instead of using physical cash as payment. But when you make a purchase using a debit card, the payment will be drawn directly from your bank account. While in credit card, any usage will be deducted to your credit card limit and any outstanding balance has to be paid to the credit card issuer.
simple...Debit card holder uses his own money and credit card holder borrow money from bank.
Both debit cards and credit cards can be used instead of cash while making a purchase. However, debit cards draw money from your checking bank account, whereas credit cards can allow you to make the purchase from the credit line approved by your bank. At the end of the grace period, you need to clear the credit balance; otherwise institution charges you interest.
in terms of Credit card you are borrowing money from bank and you have to pay amount to bank with the specific period. and more over you have to pay interest to bank in case of delay payment. And for Debit card you are using your own money ,
A credit card is used to purchase goods or services on account. A liability is created when credit card is used for purchasing items payable to the issuing bank in due time.
A debit card is used to purchase goods or services in cash. No liability is created when debit card is used for purchasing items. There is only a transfer of cash from the buyer's bank account to the seller's.
In relation of the financial Institution / bank- debit card and credit card given to a customer for withdrawing money or payment of expenses of customer by swap machine. Implication of both are different where costumer having bank balance then Debit card can be use but credit card can be use without bank balance as a credit (short term loan/od etc). credit card create a liability to customer where debit card does not so.
Simple, debit card holder used own money at this movement and credit card holder borrow money for a limited period
A debit card, the money comes directly from your bank account. While a credit card, the purchase is charged to your line of credit and to be paid in due time.
Debit cards and credit cards work in similar ways. Both carry the logo of a major credit card company, such as Visa or MasterCard, and can be swiped at retailers to purchase goods and services. The key difference between the two cards is where the money is drawn from when a purchase is made. When a consumer uses a debit card, the money comes directly from his checking account. When he uses a credit card, the purchase is charged to a line of credit for which he is billed later.
Debit card is when money is deducted from your account where you have funds. Credit card is where your using the bank's money which is a liability which will have to be repaid later.
Both the Credit Card and Debit Card are plastic form of currency, The main difference between these is Debit Card always debit your account on every transaction until you have sufficient balance in your account, but Credit Card do not directly affect your account but lend you specified limit of money for transaction for specified time period to payoff with a defined surcharge.
