Credit Card and Debit Card – Difference
What is a debit card ?
The card is used in the ATM is known as a debit card. When it first appeared debit cards is easy to say, apart from credit cards. Debit cards do not have a credit card company logo, but usually only had the name of your bank, your account number and your name.
Today debit cards as credit cards, even with the same logos. Both types of cards can slide the box, which is used to make purchases on the Internet or to pay for the landfill gas at the pump.
When you use your debit card to make a purchase, is like using cash. The account that is attached to your debit card, in most cases your checking account is automatically debited when you use your debit card. The cost of purchase is deducted from the funds you have in that account.
In the case of a credit card to pay only 5% of your bill and carry forward the balance to pay next time. You do not have to be solved at once. This is known as revolving credit.
What is a credit card ?
On the other hand, when you use your credit card to make a purchase for someone who is using the money from another person, specifically the issuer of the credit card, usually a bank.
In fact, you agree to repay the borrowed money to make your purchase. In addition, you also pay interest on the money “loaned” to agree to the rate when applied to your credit card. This is known as the annual percentage rate (APR).
While the two cards can act and look, the levels of consumer protection that each type of card may differ.
Credit cards offer better protection !
Under federal law, if someone steals your credit card is only responsible for paying the first $ 50 of unauthorized charges. However, if you notify the credit card issuer before a thief is able to make any charges could be free from all liability. If the card is not available to purchase is made, and through the Internet, which is also exempt from liability for those charges.
Visa and MasterCard offer zero liability protection that will not pay any charges if someone uses your credit card to make unauthorized purchases.
The same protection is offered to debit card fraud with a few exceptions. For example,as per federal law your liability is limited to $ 50, the same as a credit card, but only if you notify the issuer within two business days after discovering the loss or theft of card. Your liability for debit card fraud can jump up to $ 500 if you do not report the loss or theft within two business days.
And if you are the type of person that gives a passing glance to your monthly bank statement, may be fully liable for fraudulent charges to debit cards if you wait 60 days or more since the time of his statement is mailed.
Visa , but only for transactions not involving the use of your PIN (personal identification number).
Additional protection to your credit or debit cards may be available through your homeowner or renter insurance. Check your policy or your agent for more information about coverage.
Also be alert that you should contact your card issuer by certified letter with return receipt, after having contacted them by phone to protect your rights as a consumer.
As for which card to use for what type of purchase, most experts agree that you must use your debit card for the same type of purchases they make as if you were using cash. Therefore it makes more sense to use your debit card your credit card at the supermarket or gas station (provided you have sufficient funds to cover these purchases of course).
