Debit Card or Credit Card

What is the difference between a debit card and a credit card?

It's the difference between "debit" and "credit." Debit means "subtract." When you use a debit card, you are subtracting your money from your own bank account. Debit cards allow you to spend only what is in your bank account. It is a quick transaction between the merchant and your personal bank account.

Credit is money made available to you by a bank or other financial institution, like a loan. The amount the issuer allows you to use is determined by your credit history, income, debts, and ability to pay. You may use the credit with the understanding that you will repay the amount, plus interest if you do not pay in full each month. You will receive a monthly statement detailing your charges and payment requirements.

What you should know about debit cards:

• Obtaining a debit card is often easier than obtaining a credit card.

• Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction.

• Using a debit card frees you from carrying cash or a checkbook.

• Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel.

• Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted.

• The debit card is a quick, "pay now" product, giving you no grace period.

• Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant.

• Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check.

Types of Debit Card

Do you have a debit card?

You may not realize that you have a debit card. Many banks are replacing their standard ATM cards with upgraded ATM cards with a debit feature. You may also receive in the mail what looks like a credit card when in fact it is a debit card.

"On-line" debit cards: These cards usually are enhanced ATM (automated teller machine) cards which work the same as they would in an ATM transaction. It is an immediate electronic transfer of money from your bank account to the merchant's bank account.

To access your account at a store terminal, you must punch in your personal identification number (PIN), as you would at an ATM. The system checks your account to see if it has enough money available to cover the transaction.

"Off-line" debit cards: These cards usually look like a credit card and resemble a credit card transaction. The merchant's terminal reads your card, identifies it as a debit rather than a credit card, and creates a debit against your bank account. However, instead of debiting your account immediately, it stores the debit for processing later -- usually within 2-3 days.

Most, but not all, transactions are verified to see if there are adequate funds. Instead, of using a PIN number, the customer must sign a receipt, as he or she would with a credit card.

The "on-line" and "off-line" distinction may not matter to you unless:

• your financial institution charges transaction or monthly fees.

• you prefer the security of a PIN-required transaction.

• you prefer that both options not be on one card.

Debit Card and Credit Card Fraud!

Credit card fraud is a kind of fraud where a merchant (business, service provider, seller, etc.) is "tricked" into releasing merchandise or rendering services, believing that a credit card account will provide payment for goods/services. The merchant later learns that they will not be paid, or the payment they received will be reclaimed by the card's issuing bank.

Typically, the fraudster causes a credit card of another person to be charged for a purchase.




Credit card fraud exposed - Never give credit card details over the phone - not to call centre staff. Last time I ever give my details on the phone. They will lie to get your info.