What's the difference between credit and debit?

Question

....except the fact that on credit u sign and debit u use ur pin



cause i got a privacash 150$ for xmas and it says debit and my mom says i can use credit or debit so whats the diffence

Answer 1

credit is paid back at the end of the month or over time
debit is taken out of your account and won't allow you to debit more than you already have.

if you are talking about a check card

there is no difference.

although there is never a surcharge for credit
sometimes places charge a fee for using a debit card.

Answer 2

The only difference is debit cards are already paid for or have funds backing them up. Credit is borrowing money. When you use a debit card at a store it doesn't matter which one you use with like a prepaid gift card, except for you don't have to put a pin number in with credit.

Answer 3

All logical meanings have no meaning when it comes to the stupid debit card turned "credit" card......BECAUSE it is not really a credit card! It just means you can use it places where they take real credit cards.......so far as the "new" debit/credit card goes, there's not an ounce of difference! Whatever the amount, IT WILL BE DEDUCTED IMMEDIATELY OUT OF YOUR CHECKING ACCOUNT. There is no relation to the normal meaning of "credit" , meaning to "pay over time".........My sister swears there is a matter of a few hours difference as to when it makes it to your bank.......(some weird thing she experienced), she says the credit doesn't deduct until the next day, instead of immediately.........but so far as i'm concerned, it all means, if you ain't got it, don't spend it...(frankly it won't work anyway) ....so...sign it, or PIN it, it still comes out just as fast ---ACTUALLY, THE MAIN DIFFERENCE, IS NOW, IF YOU LOSE IT, SOMEONE CAN USE IT ALL OVER TOWN WITHOUT A PIN#----------BRILLIANT IMPROVEMENT!--I prefer the old name ATM card///////nobody could use it but you!

Answer 4

When you use debt, you are taking the money out right now and pay for what you wanted, no interest payment. It like a check only faster. Credit is same as credit card, charge now and pay later with interest. Another way to explain, Debit: you use your money that you have now at the bank to pay. Credit: You borrow money to pay for what you want and promise to pay the credit card back later.

Answer 5

If you are referring to accounting, then a debit is something that goes against your account. A credit is something in favor of your account. Example: If I have $200 in the bank and a check comes through for $100, then that was considered a debit. If I turn around and deposit $230 into my account, then that is considered a credit.

Answer 6

With debit you already have the cash to payback and with credit you are promising that you will get the money to pay back (usually over time as payments). Debit will be paid back in one payment.

Answer 7

Debit money coming in . Credit Money coming out

Answer 8

Debit you can use without interest and is drawn from your bank account.

Credit doesn't take from your bank account until the end of the month, and when it does, it takes about a 11% interest (depending on your credit rating)

<3
stranger.

Answer 9

I'm CHARGED $2 every time I use DEBIT (and tI use my plastic all the time)

Answer 10

A couple of letters.