What's the difference between how credit cards and debit cards operate?

Question

thnx 4 answering

Answer 1

Debit take out staright away. You have to have the money or overdraft in place to get this. Or you would get overdrawn fees. Overdraft is much cheaper.

Credit give you about four or five weeks to pay from when you bought. Plus interest if it is applicable because you don't pay the full money every month. If you in full every month this is better for you because if you miss a payment they then waver the fees.

Answer 2

A merchant will pay lower fees on a PIN-based transaction because of the lower likelihood of repudiation. In other words, how are you going to claim that a charge was fraudulent if the person making the purchase knew a secret (your PIN number) that only you are supposed to know? That's pretty much the sum total of the difference between a PIN-based debit and a signature-based, credit-card-like transaction. Some merchants (Walgreens and Family Dollar come to mind) offer no-fee cash back on PIN-based sales, but usually no more than $30. The selection panel for the cash amount you want back usually appears right after you enter your PIN. Per-transaction fees for using your check card or withdrawing cash from an ATM are at the sole discretion of your bank. A typical credit union charges nothing for using a check card in either capacity, which is about as good a reason as any for joining a credit union. You had planned to do that pretty soon anyway, right?

Answer 3

Age:
Credit cards are for 18+
Some Debit Cards are for under 18s (Such as Bopo)

Function:
Credit cards are really mostly if you have a fixed income. With a credit card you can put money onto it and spend that money and also spend money you don't have to a certain maximum, if you don't pay the dept you will have to pay small instalments (like a mortgage) otherwise you may have some things repossessed (worst case scenario).

Debit cards on the other hand work similarly but you cannot use them if you have no money on them (thus under 18s are trusted with them, and credit checks are not needed).

Uses:
Credit Cards are for all round needs and can provide emergency cash.
Debit cards are mainly for purchasing off the Internet, thus having lower fees.

Hope that answered your question.

Answer 4

I think debit cards are usually tied to your bank account, so your money is directly, and instantly, taken out of your bank account to handle any purchase.

Your credit card is an account completely separate from your bank account. When you charge on your credit card, you just pay the bill later on after each billing cycle.

The danger of using your debit card in public too much, though, is that you'll be using your PIN number a lot in public places. You don't want that kind of information to fall into the wrong hands, so I generally prefer to use my credit card over my debit card.

Answer 5

Debit cards take the cash straight from your bank.
Credit cards allow you to choose how much to repay them after an interest-free period. They also can offer you perks for staying with them. They make their money out of high interest charges. If you are very good with your finances they can be useful, they can however be dangerous for the spendtrifts amongst. If in doubt don't get one.

Answer 6

Debit cards have the funds automatically withdrawn from your bank account where as credit cards are charge accounts that you must make payments on and your credit limit is based on your credit.

Answer 7

a debit card is linked to how much money u have to spare in your account, it will only take out to that amount, a credit is a lone, u pay interst on this and is not a good way to buy anything

Answer 8

All good answers

and there is also a catch - some credit cards offer a REALLY low
APR (Annual percentage rate) for interest - U N T I L

you miss a payment - and then 9.99% goes to 24% - W O W!!!

and you will be sorry -

Answer 9

I've trashed all my credit cards and am 100% cash and debit. Live debt free!!

Answer 10

in case of debit cards you have to have money in your account which is not the case with credit cards.