Debit vs Credit

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What is a debit card?

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A debit card is a payment card that deducts money directly from a consumer's checking account to pay for a purchase.

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Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services.

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What happens when you use a debit card?

Back

When you use a debit card, the money is taken directly from your bank account.

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What happens when you use a credit card?

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When you use a credit card, you are borrowing money that you will need to pay back later, usually with interest.

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What is a key feature of credit cards?

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Credit cards often come with a billing cycle, where you receive a statement of your purchases and must pay at least a minimum amount by a due date.

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What is a key feature of debit cards?

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Debit cards do not have a billing cycle; the money is withdrawn immediately from your account.

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What should you do if your debit card is lost or stolen?

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You should report it to your bank immediately to prevent unauthorized transactions.

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What should you do if your credit card is lost or stolen?

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You should report it to the credit card issuer immediately to prevent unauthorized charges.

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Can you use a debit card for online purchases?

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Yes, debit cards can be used for online purchases if they are linked to a checking account.

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Can you use a credit card for online purchases?

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Yes, credit cards are commonly used for online purchases.