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Debit Credit Cards |
Debit and credit cards have become
indispensable financial instruments with their own pros and cons.
There was a time was when a debit card and a credit card had very
distinct characteristics and it was quite easy to identify one from
the other. But with debit cards and credit cards increasingly sharing
qualities and characteristics, the line between these two finance
instruments are becoming blurred. In order for you to get the most
out of your decision to get a debit card, it will be necessary to
know what makes a debit card different from a credit card.
A debit card is the same as a credit card in that you can use the
card to pay for purchases without necessarily using actual cash.
Both are alternative methods of paying for purchases. But while
a credit card purchase is charged to your credit card account and
then billed to you later in the month for payment, a debit card
is almost the same as a paying with outright cash because in a debit
card purchase the amount is immediately withdrawn from your bank
account. A debit card is directly linked to your bank account. Simply
put any purchase you make with a debit card is similar to actually
taking out money from your bank account to pay for the items. Also,
any amount you withdraw from your debit card is like directly withdrawing
money from your bank account.
Debit cards are increasingly becoming popular because of its ease
of use as well as a great security measure (carrying a debit card
is as good as carrying cash). |
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