What are the Credit Card and Debit Cards and What is the difference between them ?

This is the time of Cashless Payments where we use Credit Cards and Debit Cards to pay money . So, we must know about these cards if we want to make online payments . There are lot o peoples who always remain confused between credit and debit cards . What is the difference between Credit Card and a Debit Card ? and What are the Benefits of using these Cards ?



Both of these Cards are issued by Bank which are used according to the need. 
As we already know that this is the internet era where we can get and send money online easily with just few clicks. 
We do not need to wait for the time or long queues in order to send money to other peoples. 

All we need is mobile/laptop and internet connection . We can send any amount to anyone in the world with just few clicks within minutes.

At present everyone who has a bank account holds a debit card . The bank issue the card free of cost and just cuts an amount as a yearly fee . We can withdraw any amount from the ATM by using this debit card. 

This eases the pressure of the bank employees because the withdrawl process is automatically being done by the ATM machines.

So, lets learn about debit card first -

What is Debit Card ?

When a person open a bank account , the debit card is provided free of cost by the bank , for which you do not have to pay any money separately. The bank deducts an amount ( Rs.200 - Rs1000 ) from your account every year as debit card charges. 

The Debit Card is commonly known as ATM card which is directly linked with your bank account and when you need money then by using Debit Card, you can use to withdraw money through ATM machine. 

The debit card s not limited to withdrawing money only, you can shop online or offline by using your debit card.

Online Shopping is quite common these days and there are various shopping websites where you can buy products by making payments with debit cards.

You can also buy petrol , grocery products and many more by using debit card. 
For offline payments , swipe machine is required. 

One more important thing about debit card is whenever you make payment with debit card, you payment amount is immediately deducted from your account. The message of payment deduction delivered on your registered mobile no. That tells you how much money has been deducted and how much balance left in your account. 

Debit Card Types -

  • Mastercard
  • Maestro
  • Visa
  • Rupay


What is Credit Card ?

Unlike debit card, credit card is not issued at the time of opening of the account. You need to apply for it later. In order to get a credit card , there is a requirement of Rs.10000 to 15000 in your bank account. ( The amount differs from bank to bank ) 

In order to own a credit card, you have make a fixed deposit of Rs.20,000 to Rs.50,000 which gives you the interest as per the current rate. 

Credit Cards are not linked to your bank account. It does not matter how much money you have in your bank in order to shop from credit card. You can shop according to the limit of your credit card.

You will need to pay the used amount to the bank within the said period (approx. 50 days , 90 days ) . If the amount is not deposited in the bank within said period then the bank will charge daily interest on the amount that you have used . If you do not pay that amount then your FD will be seized .

Govt. employees can get credit card without any FD process. The only requirement is that you gets your salary through that bank.

Credit Card Types -


  • Golden
  • Platinum
  • Silver
  • Visa


What is the Difference Between Debit Card and Credit Card ?

Now you have an idea about these two cards and you may have been aware of the differences between the two , but still in this case, let me tell you the differences-


  • You do not have to deposited any extra fee in order to get a debit card wheres you need to make FD in order to get credit cards .

  • When you shop with debit card , the amount is immediately deducted from your bank account where as when you shop from credit card, the amount is not deducted from your bank account. You have to pay within 30-50 days to the bank.

  • With debit card , you are limited to pay according to the money in your bank account Where as in credit card the limit is set to the card only and you can buy according to that limit. No matter how much money you have in your bank account.

  • Withdrawal of money from the ATM does not cost any interest where as in credit card the withdrawal from ATM takes high interest.

  • Debit cards are commonly used for daily requirements where as credit cards are used for shopping. 





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