Debit Card, Credit Card and ATM Card
Debit Card Overview
Debit Card is such an electronic plastic card that looks like Credit Card but is attached to your savings bank account. Usually, the debit cards are issued from banks so that customers can access funds any time any day without using physical paper or checkbook. Debit card main facility is anytime customer can withdraw money and can pay for buying products or services. When you spend for buying or withdrawing cash from a local booth all money will go from your deposit account or savings account. You may withdraw any amount of money from your savings account by using PIN [personal identification number] or signing for the purchase.
What I mentioned before, You can debit a card for purchasing products, paying for shopping, or spend any kind of national payment by using a transaction PIN number or sign on directly. You should remember debit cards can use only nationally, you can’t pay it internationally if you don’t get permission from the bank.
Some you need to know about factors debit cards
- Your debit history not affecting in the bank checking account
- You can only transact nationally but for international transactions, you need to take permission from the bank.
- The spending limit depends on your saving account funds
- Paying from the debit card will cut from the deposit account immediately
- You may also use a prepaid debit card where no bank account is needed to attach with a debit card.
- Debit cards do not offer any kind of reward or special discounts
ATM card and Debit Card Overview
ATM Card is only used for withdrawing money. But debit cards allow you to withdraw money or spending to purchase any of the products. ATM Card and Debit Card are almost similar, the only difference is ATM cards are not allowed to pay for purchasing products.
Credit Card Overview
Credit cards approved a certain amount of browning money from banks. You will get all facilities like a debit card but through the credit card, you will get extra facilities like a certain amount of debt. Before issuing a credit card banks will fix credit limits depending on the user’s profession, business, or other income. Your purchase amount through credit card will automatically add your bank balance so if you carry this loan month to month interest will increase as bank rules. Most banks allowed only 30 days to pay debt neither they charge interest for taking debt.
You can use it any of transection like purchase product payment, transaction certain amount of money, or international transactions.
Some Factors you need to know about Credit Card
- If you can pay timely it reduces the debt interest also increase credit score.
- If your credit score is low there is more possibility limit your card
- Any corner of the world allowed for purchase products or withdraw money
- Credit card offering rewards, purchasing discounts or reduce withdrawal fee
- Credit card more secure than a debit card
No special requirements are needed to get a debit card when you open a savings account in a bank may give a debit or ATM card instantly. There have some processes to take credit card like
- You have to be at least 21 years old
- Source of income and a certain amount of income
- Credit score or CIBIL must be high
- A savings account or checking account
These can be different from bank and country law. After all, a bank manager thinks you are eligible to take credit cards so he can be allowed you to give credit cards.To know more about debit card click here.
Difference between debit card and credit card
|Debit Card||Credit Card|
|The debit card is against on savings account||The credit is debt card, allowed to pay letter|
|You can’t use a debit card when your savings account is zero||You can get money at a certain level|
|Debit cards are not highly secured||Credit card highly secured|
|A debit card does not give money-back guarantee of any fraud||Credit cards provide a money-back guarantee also high security|
|Debit cards do not give rewards or special discounts against purchasing products||Credit cards give a special discount or purchasing discount or event discount|
|There have debit or credit score system||The credit card has a credit score system that affects of transection|
|Not possible to spend over against on your savings account||You may borrow a certain amount|