What is the difference between a credit card and a debit card?
By jak2010
@jak2010 (1550)
Papua New Guinea
July 1, 2010 2:26am CST
I am thinking to obtain a debit card from my local bank for my coming overseas trip to Australia. However, I do not know the difference between the two, debit and credit card and which one is a better one to use or operate. I just to have some money in the card to use overseas to pay for food and accommodation and of course shopping.
9 responses
@sleepylittlerose (1648)
• United States
1 Jul 10
Check to see if your bank will offer a debit card with the VISA (credit card) logo. If they do then you can use this card as if it were a credit card, anywhere the logo is displayed. The money will be automatically deducted from your bank account so you will not receive a bill at at later date. When traveling it is better to use your debit card as a credit card so that you do not run the risk of having someone get your pin (personal identification number) and steal your card.
@sleepylittlerose (1648)
• United States
2 Jul 10
I always use my debit card as a credit card. Also, if you are concerned about them not checking your ID, you should write in the signature line CHECK ID FOR SIGNATURE. If you present the card and the clerk fails to check your id at that point you should contact the manager and complain. This is a strong way to help fight identity theft.
@ValBusan1 (55)
• South Korea
2 Jul 10
Sleepylittlerose that is great advice.
I am paranoid about security as my hubbies banl card was stolen and used at an ATM a long time ago. He was the type to eat his PIN notification but the bank were convinced he must have recorded it somewhere on the card (???). The police officer who took our report was Australian and he gave us lots of information about how thieves can 'read' cards anyhow.
The bank remained hostile and a few years later many scams (based on the technology used on us) became commonplace.
Anyhow, these days I use my debit card (here in Asia) and no-one ever checks it or the signature. Although fraud and theft are rare I hold out no hope of protection if it is stolen.
How do you all feel about having to put your secret number into the machine at the cashpoint, within full view of others. It is hard to deal with telling strangers to back off. :)
@metalsolid86 (431)
• United States
14 Jul 10
The difference between a debit card and a credit card is that a debit card is a card where you can only use what money you put in And you can use the atm but with some debit cards you can go overboard and get a fee. A credit card lets you spend a lot without having money but you still have to pay it with in a month or get fees.
@ddaguno (3107)
• Philippines
1 Jul 10
The funds from a credit card come from a bank. You borrow funds from the issuer of the card and just pay it when your bill comes. A debit card on the other hand is associated with your bank account and if you don't have funds on your account you will not be able to use the debit card.
@jennbart (1330)
• Philippines
1 Jul 10
A credit card does not have any stored money inside. You have to pay for the purchased good that you paid for when your bill gets mailed in cash.
A debit card however, already has money stored inside. usually you can use this in the atm for withdrawals. They take the price that you purchased off the total money stored inside the debit card so that you can purchase.
@prettypriya (112)
• India
4 Jul 10
Using credit card is wiser than using debit card. Since you can use the bank money for a month without any interest. But should make the payment correctly on time. Else they will charge more money for it.
@ValBusan1 (55)
• South Korea
1 Jul 10
While the people who have already responded have given you the technical details - I want to add that you should be sure a debit card will actually work in another country.
It may be the case that while it is ok (and even advisable) for daily transactions at home - keeps you in budget etx).... if it isn't accepted overseas then you may find yourself stuck.
If you can maybe it is worth getting them both and allocating some spending and expenses money from your hard cash BEFORE you travel. So if you estimate xx amount will be paid for by credit card you put that away for when the bill comes. Much less painful :)
Personally I dislike having to pay for things which I already ate/saw/enjoyed weeks or more ago.
@chookie1971 (2271)
• Australia
1 Jul 10
There is a big difference between debit and credit cards.
A credit card use the companies money. So there for you are spending money that is of the company that you applied to. For example, if you applied for a credit card at your bank, You will be using the banks money.
A debit card works the same way as credit card but with a difference. debit card uses your own money in your own account. For example, If you have $500 saved in your savings account and you have a debit card for that account, you would only be able to spend that $500 as it is your money.
So the difference is using the company's money or using your own money.
I do have a debit card and swear by it. I would never get a credit card at all.
@rhodzptc (1317)
• Philippines
20 Jul 10
Credit card from the word credit means you are borrowing money from others and to be specific you are borrowing money from your credit card company.
Debit card from the word debit meaning they will reduce or remove the amount of money that you already own. It works like an ATM card but the only difference is that Debit Card is issued by your bank because you have savings to them and when you use your Debit card they will automatically debit it from your account.
ATM cards are issued in purpose of payrolls from you employer.
