A debit card is one of the several payment methods we can use to purchase. For this reason we can easily gets confused about the similarities and the differences between this card and the credit one, two tools highly employed nowadays, both online and offline. Let’s find out how these two electronic devices differ and which can be more useful for managing your expenses and purchases.
Both cards are issued by a bank or a credit institution and they allow you to make your purchases without using cash. For this reason they can be useful for those who travel or prefer to avoid taking large sums of money with them. A debit card, as the name suggests, is related to a bank account from which the amount spent is immediately deducted. It is not possible to make purchases whose amount exceeds the balance available on the account at that precise moment. Furthermore, this type of card allows you to withdraw cash at ATMs, top up your phone and shopping online. The credit card, on the other hand, is a card that allows you to spend even higher amounts than the balance actually available on the account, because the charge occurs at a secondary time compared to the purchase. In particular, some credit cards allow the charge to be deducted in the middle of the following month, while others even allow a payment by installments. Due to the services offered, the credit cards have much higher annual fees than other types of cards.
A Credit card offers ancillary services, while a debit card represents the first choice for those approaching the world of cashless payments or for those who need an easy, safe and economical tool to manage their expenses without using cash. If you desire more information about the last mentioned tool, do not hesitate to contact us.