Difference between Credit Card and Debit Card

1
DIFFERENCE BETWEEN CREDIT CARD AND DEBIT CARD
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2
Source of Funds
Credit Card Money is borrowed from a Bank
or Financial Institution. The customer has to pay
back the amount at a fixed rate of interest by a
specified date.
Debit Card Debit cards are linked to the
accounts of the customers and the funds they
spend using their card are directly deducted from
their own bank account.
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3
Line of Credit
Credit Card Carries a Line of Credit.
Debit Card No Credit.
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4
Interest
Credit Card Interest is applicable if
complete payments are not made within the due
date.
Debit Card No interest is applicable as
the funds are directly deducted from your account
itself.
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5
Limit
Credit Card Depends on the credit limit
assigned by the bank which can be
increased/decreased.
Debit Card Depends on the funds in your
account.
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6
Connected to
Credit Card Need not be connected to any
Bank Account.
Debit Card Connected to Current Account or
Savings Account.
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7
Fees
Credit Card May or may not be applicable,
depending on the card type.
Debit Card May or may not be applicable,
depending on the card type.
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8
Bills/Statements
Credit Card Statements are generated as
per monthly usage.
Debit Card Frequency depends on the
savings account.
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9
SUMMARY
It is clear that Credit cards and Debit cards may
look alike but have distinct characteristics and
features. Learn more about difference between
Credit Card and Debit Card at Its All About
Money.
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10
THANK YOU
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