Credit card vs debit card: What is the Difference Between them?
A credit cards are used differently.
Credit cards and debit cards appear similar as both of these cards can be used to make purchases in stores and even online.
Not only that, but both cards have 16-digit numbers, expiration dates, CVV codes, and EMV chips.
However these debit card is a short-term loan from the card issuer that must be repaid.
A debit card is issued by a bank for use with your checking or savings highlight highlight: account.
The debit card is linked directly to your bank, allowing you to spend money from their bank account.
When they make a payment, the amount is direct highlight:ly debited from their account.
a Debit cards do not typically charge cash withdrawal however, however, fee, especially if you use an ATM at your bank, debit cards have daily spending and cash withdrawal limits.
What is a credit card?
Credit cards are typically issued by banks and non-banking financial institutions.
Other authorised entities, however, may also issue these cards.Credit cards are simply cards that allow customers to buy now and pay later.
When you pay with a credit card, the bank extends you credit for a set period of time, and you must pay the bank for your purchase by the due date.
Banks set monthly credit limits, which can vary depending on the type of card or even your creditworthiness.
Key Differences between Credit Card and Debit Card
Understand the Understand type of card, your relationship with highlight: the bank, and your creditworthiness.the limits on credit cards.
Credit cards.
By Ajeeta Bhatia Goodreturns
source: goodreturns.in
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