What is the Difference between Credit Card and Debit Card?

Here are the key differences between a Credit Card and a Debit Card. Let’s know the differences and precautions to use them.


Here we will discuss what are debit cards and credit cards, the difference between debit and credit cards, and how they work. Precautions and advantages and disadvantages of using them. Hope it will be useful for you.

What is a Credit Card?

A credit card is a card that is issued to spend money as a loan from the bank within a certain limit without depositing money in the bank. The money you spend with the credit card will be given to you as a loan by the bank. You will not need to deposit money in the account in advance.

Where you use a debit card, you can use a credit card. However, in some cases where you must use a credit card, you cannot use a debit card.


When you shop online with a credit card and withdraw money from an ATM, you don’t have to deposit the money in the bank at that time. This money will be given to you by your bank as a loan.

That is, if you do not have money in your account with a credit card, you can use the card to shop online and withdraw money from ATMs.

This creates a bill of how much you spend on the credit card each month. You have to pay the amount by the specified date. The bank will charge you interest and charges for the amount you do not repay, or use as a loan over time.


What is a Debit Card?

A debit card is a card the bank gives us to withdraw cash through ATMs and spend online. Physically a debit card and a credit card look the same. But they differ only because of the source of money.

When we deposit money in our bank, the bank credits the amount of this deposited money. Again when we withdraw or spend money from the account, the bank debits it. That’s why this card is called a debit card.

You spend money from your savings or current account with a debit card. When you use a debit card to shop online or at a shopping mall, money is withdrawn from your bank account.

Again if you withdraw money from an ATM, you are withdrawing the money deposited in your account.


If you don’t have a deposit or balance in your account, you won’t be able to make purchases using a debit card or withdraw cash from an ATM.

In simple words, you are debiting the money you have deposited in the bank, i.e. spending it through the debit card.

Difference between Debit and Credit Card

The main difference is that a debit card is used to spend and withdraw money that you already have in your account. Whereas, with a credit card bank lends you a certain amount of money which you can spend and pay them back with interest.

Let’s know the key differences between a debit card and a credit card.


Debit Card Vs. Credit Card

ParametersCredit CardDebit Card
DefinitionYou borrow money from the bank through a credit card.With a debit card, you only spend or withdraw money from your bank account.
LinksCredit cards are not linked to bank accounts.Debit cards are linked to your checking or savings account.
Charge and InterestCredit card transactions incur interest and charges as per the tenure and interest rate.There is a fixed annual charge for using a debit card. Besides, no interest has to be paid.
Spending LimitYou can spend up to the allowed limit without having a balance in your account.You can only spend how much you have in your linked bank account.
Withdrawal LimitBut with a credit card, you can spend as much as the bank will give you a spending limit.With a debit card, you can withdraw all the money you have in your bank account.
BenefitsWith a credit card, you will get some additional benefits, such as spending without depositing money, purchasing products online in installments, etc.Apart from ATM withdrawals and purchases, using a debit card does not offer many additional benefits.
Lost card liabilityMost banks offer 100% lost liability protection. So, you’ll not be liable for a lost card or unauthorized transactions.In most cases, the cardholder is liable for a lost card.

Precautions while using debit and credit card

Criminals have eyes on debit and credit cards. There is no substitute for awareness. You need to be careful while using credit and debit cards. Never share confidential debit and credit card information with anyone.

1. Do not disclose confidential card information

Debit and credit cards have some hidden information. Someone can use this information to spend money from your card or account. So keep this information secret.

  • Card Number – Card Number
  • Your name on the card – Name on Your Card
  • Card validity- Validity of Card
  • CVC Code – CVC Code
  • Mobile Number- Mobile Number connected to Card
  • OTP Code for Online Transaction – OTP Code for Online Transaction

2. Be careful with online transactions

When transacting anywhere online, you can be sure that your information is secure wherever you enter or enter your card information.

Before providing the information, check whether anyone other than your bank has access to the information from where you are entering your information.

3. Don’t share information over the phone, chat, or email

Also, never share your bank account or card confidential information with anyone in a phone call, chat or email.

4. Be careful shopping

Make sure that the amount of money you are paying for the product is withdrawn from the machine. Also, check whether the price is the same in the confirmation mail or SMS.

If the transaction is not completed due to network or other problems while paying at the Point of Sale (POS) machine, ensure that your card has not been charged for a previous incomplete transaction before retrying. If necessary, contact the bank to make sure.

If multiple payments occur for the same transaction, contact the bank immediately. Get in the habit of checking credit card bills. If any discrepancy is found, the bank should be contacted.


How to identify credit cards and debit cards?

Normally a credit card and a debit card look very similar to see. But you will see “Debit” somewhere on the front of a debit card.

Is a Credit Card Safer Than a Debit Card?

Most banks offer 100% lost liability and fraud protection. So you will have greater protection from fraudulent transactions than a debit card.

Which is better debit or credit card?

In some cases, a credit card is better than a debit card. Debit and credit cards have different uses. Both cards can be used in merchant outlets and online payment. But there are some transactions or websites which only allow credit cards.

Bottom Line

If you benefited in any way, please share with your friends from the below share link.

You can write your questions or opinions in the comments. Be well, Allah Hafez.

More about Credit and Debit Cards

  • How to Use ATM Card First Time

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *