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Difference Between A Debit Card And A Credit Card – What You Need to Know [Detailed Analysis]



Two major pillars of digital banking today are credit and debit cards. Today, everyone has either of them or, most times, both. These cards are very important and used in cycling money across daily needs. However, although similar, they are ultimately not the same.

Also, common knowledge is that a debit card draws money from your account while the credit charges are withdrawn to your credit line. Although they operate similarly, there is a distinction on where the card pulls money from. 

What is a debit card?

A debit card is an internet banking card that allows you to withdraw money directly from your bank account. As a result, when you make a purchase, the card debits funds from your bank account. Debit card transactions are also quick, as approval takes only seconds, thanks to technological advancements. However, depending on the other factors, it could take anywhere from a few hours to several days. It also only occasionally comes with interests.

Features of a Debit Card

  • A debit card is directly linked to your bank account.
  • It can also function as a credit card.
  • To complete the transactions, you will typically use your PIN or a generated One Time Password (OTP).
  • It is the most common and widely used card issued by your bank after you open a bank account.
  • There is always a Visa®, Mastercard®, or other financial service company logo on the card face.
  • The debit card number and expiration date are printed on the front of the card.
  • The customer service number (3-digit code), the signature bar, the card verification value, and some of the issuing bank logos are all found on the back of a debit card.

What is a credit card?

In reverse, a credit card is a debit card. Instead, it allows you to borrow money and charges your credit. On the other hand, credit cards typically work with a line of credit known as the card’s credit limit. This means that the maximum amount you can borrow is limited. 

When you use a credit card, the bank pays the dealer on your behalf, and you pay the bank later. Credit card payments are frequently associated with high-interest rates, implying that you will eventually pay more than you spent. In addition, interest accumulates when a balance is carried over from one month to the next. Credit bureau companies use credit scores to evaluate customers.

Features of a Credit Card

  • A credit card is a line of credit you can use to make purchases.
  • In most cases, you must sign for these purchases.
  • You will only pay interest on purchases if they are paid off within thirty days.
  • Credit purchases do not usually necessitate a pin entry at the time of purchase.

What is the difference between credit and debit cards?

The primary distinction between a credit card and a debit card is that one works with your account balance while the other works with your line of credit. A debit card limits you to the amount in your account, whereas a credit card allows you to go overboard. As a result, you can buy anything as long as it does not exceed your credit limit.

A debit card allows you to live within your means and does not charge interest or fees when you make purchases. On the other hand, credit cards are extremely useful in emergencies when unexpected expenses must be met. This is best used because credit card overspending can lead to serious debt.

Can I use a debit card as a credit card?

Yes, technically speaking. This is because a debit card can be used in place of a credit card when making a payment. Furthermore, the charges deducted would be deducted from your bank account. As a result, it must contain that exact amount or more.

However, you do not need the amount for credit cards because the amount will be added to your line of credit, which you can pay off later. This is why payment options typically include only the “pay with credit card” option rather than the ability to pay with credit or debit cards separately.

Is an ATM card the same as a credit card?

No, an ATM card is not the same as a credit card. This is because they are directly linked to your account and only allow fund withdrawals or payments when sufficient funds are in the account. As a result, you cannot conduct any transactions outside of that. Debit cards are ATM cards.


The information in this article was curated from online sources. NewsWireNGR or its editorial team cannot independently verify all details.

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Is an ATM card a credit card?

No, an ATM card is not a credit card. This is because they are linked directly to your account and only fund withdrawals or payments when you have enough funds. Therefore, outside that, you cannot carry out any transactions. ATM cards are debit cards.

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