Debit & Credit Cards

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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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What is a Credit Card?

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A credit card is a payment card that allows consumers to borrow money from a bank to make purchases, which they pay back later.

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How does a Debit Card work?

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

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How does a Credit Card work?

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When you use a credit card, you are borrowing money from the credit card issuer, which you must pay back later, often with interest.

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What happens if you spend more than your balance with a Debit Card?

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You may incur hefty fees or your transaction may be declined.

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What is the risk of using a Credit Card?

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Using a credit card can lead to unnecessary debt if you do not pay off the balance in full each month.

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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 as long as they are linked to a checking account.

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Can you use a Credit Card for cash advances?

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Yes, credit cards can be used to withdraw cash, but this often comes with high fees and interest rates.

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What is the main difference between Debit and Credit Cards?

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The main difference is that debit cards withdraw money directly from your bank account, while credit cards allow you to borrow money.

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What is a PIN in relation to Debit Cards?

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A PIN (Personal Identification Number) is a security code used to authorize transactions with a debit card.