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Debit Card Vs Credit Card

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tanmaysnv
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You can use your debit card to book and purchase anything. The only difference is that your debit card limit is based on checking account. Credit card limit is set by credit card comapany. Debit saves you the trouble of having to pay high interest and all that terrible stuff.
Post Sat May 15, 2010 8:37 am
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ed2009
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You use debit card if there's money available in that account and you use credit card if you dont have the money at all. lol

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Post Sat May 15, 2010 9:15 am
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littleroc02us
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quote:
Originally posted by ed2009
You use debit card if there's money available in that account and you use credit card if you dont have the money at all. lol


This may be the scariest post I've ever seen.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue May 18, 2010 3:57 pm
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david1987
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Debit card generally directly linked to your bank account & it allows you to buy goods means you could purchase goods according to your bank balance. it never allows you to spend more whereas the credit card allows you to purchase & pay later procedure.
Post Fri May 21, 2010 10:20 am
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jason_simpson
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Debit cards do not carry a line of credit. The purchases made with a debit card can not exceed the amount of money a person has in their bank account. This is the main difference between a credit and debit card.

Another major difference between credit and debit cards is the risk involved. Because they are attached to a bank account, loosing a debit card is very risky. A person does not need a pin number to use a debit card and therefore can easily drain a persons bank account, causing extreme problems.
Post Fri May 21, 2010 4:28 pm
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mjohnsoncpa
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A debit card is spending money that you have in your bank account. Where as a credit card is spending money you don't have and paying it back later at a slightly higher rate. A debit card is safer for some one is a spontaneous shopper, but if you are very disciplined spender then a credit card can save you money in the long run by building your credit.
Post Fri Jul 02, 2010 3:46 pm
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POS4Free
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Think of a debit card as a check and a credit card as loan.
Post Fri Jul 02, 2010 6:45 pm
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RioMao
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good information about Credit card vs debit card can be found now on so many resources ... for example8), in one of them says:

What's The Difference?

Every time you use a credit card, you actually are borrowing money that is made available to you by a bank or other financial institution. The institution pays the debt to the vendor and, in turn, you pay the money back to the institution. By signing up for a credit card, you agree to pay back the money that you borrowed, in addition to any interest drawn on the amount you borrowed.

Odds are, you have a debit card in your wallet or purse right now, since many ATM cards are programmed to have debit options. Issued by your bank, debit cards take funds directly from the money that you have in your bank account - acting much like a check, just faster. With a debit card, you don't have to carry cash or checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores, restaurants and retail stores. They provide instant access to your money and are accepted worldwide.

Debit cards are used much like credit cards, meaning that the store where you are shopping 'swipes' them and you are normally given the option of signing your receipt instead of using a required PIN number (you can enter your PIN number if you prefer). You also typically do not have to show a picture ID.

Which Is Better?

Maybe you still don't see much difference, besides where the money comes from and when you have to pay up. So which one is better to use? It depends upon how careful you are with your card and why you are using the card.

The features that make debit cards convenient - instant access to your money, lack of a required PIN number and not having to drag out your photo ID when you use it - make fraud that much easier. Unless reported quickly, theft of your debit card can quickly devastate your bank account. This is where you begin to see the difference.

Credit card companies are held to strict liability laws; the law limits consumer liability for credit card fraud to $50. For example, if you notice suspicious charges on your credit card statement such as double billing or an incorrect charge, the credit card company is obligated to investigate if you send in a written request within 60 days.

For debit card fraud, your liability is $50 if you notify the bank within two days of noticing the fraudulent charges. After two days, your liability increases to $500, and up to your entire account balance after 60 days. So, if you report the theft after two days, you can be held responsible for paying for purchases or charges that you didn't make. Although many banks have started to implement voluntary plans to limit customer liability to $50, there is no federal law regarding this issue. Cool
Post Sat Oct 16, 2010 12:17 pm
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jason_simpson
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The best thing about using credit cards is that the Credit Card holder enjoys customer protection in case of transactions involving frauds or disputes, for the money spent belongs to the bank which tries its level best to reclaim the amount spent.
Post Thu Oct 21, 2010 8:55 am
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littleroc02us
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My visa check card holds the same protection as a credit card according to Visa's website, the only difference is the bank will have to fight the fraud and then replenish your funds days later. With a credit card you will have to fight them and if your balance goes over your limit then you will have to wait for them to remove the over the limit fees.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Fri Oct 22, 2010 1:39 pm
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jameshyden01
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Money which you are spending from a debit card is the money that you have in your bank account. If so your credit card is money and you do not have to pay again after a little higher. debit card is safer for someone has a spontaneous shopper, but if you are a very disciplined spender, then a credit card can save you money in the long term by the construction loan.
Post Sun Oct 24, 2010 5:58 am
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financegenie
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Visa credit and debit card have different rules. The hotel industry prefers credit cards because the credit card company always pay them for the hotel charge. And then the credit card company comes after you to compensate for them.

With a debit card, Visa isn't as nearly involved. They're more like a middle man that doesn't pay anything. They just transfer your funds to the hotel. If you don't have the necessary funds, the hotel will have to come after you. Which they most likely won't.

So it's like the hotel will always get paid with a credit card but not always with a debit card.

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Post Wed Jan 12, 2011 6:19 am
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KatherineLee88
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quote:
Originally posted by Elmira Nancy
Debit cards require your pin number for identification purposes and takes a moment longer to process because of it. Also businesses are charged a fee for credit and not debit. Although debit is a little longer process, most businesses will pick it when you tell them it doesn't matter because of the fee consumers are not aware of.



Parts of this are incorrect.
I'm trying to think of the last time I used my pin when I used my debit.
Actually, I have never used my pin when I paid with my debit card.

It's also not entirely correct to say businesses are not charged a fee for debit. My aunt's business is - anything that is paid for with plastic results in an almost ~3% handling fee. This is charged by the service provider that translates the card swipe data into deducting/charging from the appropiate account.
Places like Walmart and other big stores assume a certain portion of their customers are using cards and build this fee into the products you buy. They wouldn't want to let us KNOW they do this because we wouldn't be too pleased with it.. .but I bet they are sure pleased when we whip out our cards for larger purchase then when I intended when we first walked through the door.
Post Wed Jan 12, 2011 4:17 pm
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coaster
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It's my understanding that the same merchant fee is charged to the merchant regardless of whether the customer uses credit or debit.
Post Wed Jan 12, 2011 4:54 pm
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