Debit and Credit Card

What is a credit card and a debit card?

Most people often do confuse the debit card for a credit card, after all, they’re all being used on ATMs right?  Well, as much as I would have loved to agree with you on that, I can’t just help but beg to differ. Yes, there are several similarities between the two cards; nevertheless, there are still some pinpoint differences in the two of them, and these, we are going to be looking at today.


The very first etymological distinction is that the debit card was first issues in 1987 by Barclays a UK based bank. Then, they enabled users to settle at different stores. On the other hand, the first credit card was issued in 1950 by Diners club incorporated. They were used to settle restaurant bills at first.

Anyone having a bank account can afford to have a debit card with a simple one-time registration process. On the other hand, a credit card is offered only to those customers having a minimum credit score as for their income

In using a debit card, you can only spend less than or equal to the money you have in your bank account. On the other hand, the credit card enables you to settle even if you have less or no money in your bank account.

Whenever you buy anything using a debit card, the amount is deducted directly from your bank account instantly. However, when you you’re shopping using a credit card, the amount is billed as an outstanding balance, which has to be paid in 30 days.

Generally, debit card users have control of the funds being spent, as it depends on the money saved in the account. On the other hand, credit card users have a max limit for expenditure which is decided by the bank and not by the user spending.

Using debit card incurs no interest in settlement. You only have to settle a small service charge. However, credit card users are allowed a period to settle the credit card bill for that time; multiple interests will start getting charged.

Lastly, debit cards do not have any reward system for users, no specific rewards that can be redeemed for more chances to keep shoping. But credit card users often get reward points which they can redeem for extra discounts and new investments.

So, even though these two cards are often made on the same shape, with the same chip on them, used across Point-of-sale, Atm, and Online, they both differ in a more precise dimension, as discussed above.

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