About information for debit card & credit card

 The D/w Debit card & credit card

 Advantage & Disadvantage of credit card

What Is a Debit Card?

A debit card is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase. Debit cards eliminate the need to carry cash or physical checks to make purchases. In addition, debit cards, also called check cards, offer the convenience of credit cards and many of the same consumer protections when issued by major payment processors like Visa or Mastercard.

  

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchantfor goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges.^[1] The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.

Advantages of a Debit Card

• Easy to obtain. Once you open an account most institutions will issue you a debit card upon request.
• Convenience. Purchases can be made using a chip-enabled terminal or by swiping the card rather than filling out a paper check.
• Safety. You don't have to carry cash or a checkbook.
• Readily accepted. When out of town (or out of the country), debit cards are usually widely accepted (make sure to tell your financial institution you’re leaving your city; to not have an interruption in service).

Disadvantages of a Debit Card

• No grace period. Unlike a credit card, a debit card uses funds directly from your checking account. A credit card allows you to borrow funds on credit, leaving disposable cash in your account.
• Check book balancing. Balancing your account may be difficult unless you record every debit card transaction.
• Less protection. Most financial institutions will try and protect their customer from debit card fraud. However, a customer could potentially be liable for up to $500 on fraudulent debit card transactions compared with only $0 on credit cards. Be sure to check with your financial institution to learn the details.
• Fees. Using your debit card for ATM transactions may be costly if the ATM is not affiliated with your institution.
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