Difference Between Debit Card and Credit Card


Fincrif India

Sep 25

04:49 AM

Due to the widespread use of debit and credit cards, banking transactions are now quick and convenient. When you make a purchase with a debit card, the bank deducts the appropriate amount from your associated account.

Due to the widespread use of debit and credit cards, banking transactions are now quick and convenient. When you make a purchase with a debit card, the bank deducts the appropriate amount from your associated account. With credit cards, the bank instead adds the transaction amount to your available credit and sends you a bill later, allowing you plenty of time to complete the payment. There are many notable distinctions between a debit card and a credit card, even if the two types of bank cards seem the same.

What is a Debit Card ? 

A debit card is a piece of plastic that enables immediate access to the money in your account. You often receive an ATM/debit card from your bank to use at ATMs. The card can be used to pay for items purchased online or in physical stores with equal ease. You receive a debit card from your bank when you open an account, and the card is connected to your account.

On the front of every debit card are the card's 16-digit unique number and expiration date. The signature strip and a three-digit CVV value are located on the back of the card.

What is a Credit Card ? 

A credit card resembles a debit card both physically and functionally. A CVV, expiration date, and signature strip are also included, along with a 16-digit card number. But if you use a credit card, you can temporarily (30–45 days) borrow money from your creditor (often a bank). During this time, the creditor covers the cost of any purchases you make. At the time of your scheduled credit payback, you must make a full or partial repayment to the creditor. Credit cards are not connected to your bank accounts, as opposed to debit cards. Another bank might be your creditor even though you have a bank account with one of them.

Debit Card vs Credit Card 

Now that we are aware of the distinctions between debit and credit cards, let's move on.

A transactional style

A debit card immediately removes money from your account when you use it. The use of a credit card is akin to borrowing because it enables you to conduct an operation on credit. Payout is handled by the bank that issued the card. In the future, the cardholder must pay back the money. The amount must be repaid with interest if repayment is postponed.

Fees and issuance

Debit and credit cards also differ in their issuance, which is another key factor. In most cases, when you open a savings account, debit cards are given out free of charge. Debit card maintenance fees, however, must be paid annually. Credit card issuance by banks often entails a membership charge. This means that in order to keep using the credit card, you must also pay a small annual charge.


When you create an account with the bank, you are immediately given a debit card as a gratis service. A credit card application must be made by you alone, nevertheless. In order to qualify you for the card, the bank will need you to provide identification and proof of address in addition to monthly transaction data. Prior to granting a credit card, it also performs a KYC procedure, examines your credit history, and verifies your source of income.

Obtaining money

Cash withdrawals can be made using debit or credit cards. Although there is typically a daily withdrawal cap, debit cards do not have any interest fees and have no set monthly withdrawal cap. You can use credit cards to withdraw money from ATMs as well, but you are limited in how much you can withdraw each month and incur interest charges.

Can Debit Cards be used as Credit Cards?

Since the two cards' functions differ, debit cards technically cannot be used in the same ways as credit cards. When making a payment using the former, money is immediately debited from your card; while, when using the latter, money is not taken out of your account until the credit repayment date. Your credit card bills can be paid off with your debit card, though.

How do debit cards and credit cards work?

Both debit and credit cards require you to enter your PIN (Personal Identification Number) in order to finish the transaction at retail locations. When making an online purchase with a credit card as opposed to a debit card, you must enter the whole 16-digit card number, expiration date, and CVV. In order to authenticate the transaction, you must additionally enter the OTP (One Time Password) that the bank or creditor gave to your registered mobile number. The credit or debit transaction will be finished once the PIN or OTP has been entered.


You may choose the credit card that best suits your needs once you understand the distinctions between debit and credit cards. With these cards, you can do anything without taking money out of your account, including visiting your favourite eateries and shops or making purchases online. In many circumstances, both cards may turn out to be quite beneficial. So contact your bank and submit applications for both.

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