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Q.

Diffrences between debit card and credit card.......,

Tags: debit card
Asked by Trisha, 15 Jul '10 10:53 pm
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Answers (5)

1.

The crucial difference between a credit card and a debit card is in the interest you pay - if you pay off your credit card bill promptly or take advantage of 0% introductory purchase cards you will not be charged any interest. However, if you use a credit card to make a purchase and don't pay the bill before the interest-free period runs out, you will be charged interest. Meanwhile, with a debit card, the money will be taken from your bank account immediately and you won't be charged interest on your purchases unless the transaction takes you into your overdraft. Taking cash out on a credit card is very expensive and interest is also normally charged from when you take it out even if you pay your bill in full. However you can take cash out of most ATMs with a debit card without charge, although some cash machines charge a fee for credit or debit card cash withdrawals.
Answered by Janis, 31 Jul '10 02:54 pm

 
  
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2.

Sai Ram. Credit card is issued based on the credit worthiness of the individual. You don't need an account with the bank to get a credit card. Credit Card gives you a grace period to pay the bill but carries high interest for delayed or partial payments. A debit card is a facility to help you withdraw funds from your own bank account by going to the ATM and it also allows you to pay for your purchases, thus minimising the carrying of cash.
Answered by Venkateswaraswamy Swarna, 31 Jul '10 01:59 pm

 
  
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3.

Debit card is a facility to withdraw your own deposited money in the bank.
Credit card as the name denotes, you make advance arrangement with a bank. They grant you a credit limit. Granting limit may depend on your credibility, or your securities deposited with them LIC policy, Share Certificates, Fixed deposit receipt. On the basis of these securities or on the basis of your credibility, even without securities, a limit is sanctioned. But no money is transferred in your account. Suppose you deosit security worth Rs.one lakh. They sanction you a limit of rs.75000. You will be authorised to withdrawn any amount upto 75000. Interest will be recovered from you only on the amount you withdraw from time to time. If you don't withdraw no interest is applied. When the limit is full, you will have to actually deposit the money with interest and vacate your limit; to re enjoy it.
Answered by Om Shrivastava, 15 Jul '10 11:17 pm

 
  
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4.

The main difference is the way the card works and where the money comes from. Debit cards can be used as either a debit card or credit card. Credit cards can only be used as a credit card. Debit cards do not carry a line of credit. The purchases made with a debit card can not exceed the amount of money a person has in their bank account. This is the main difference between a credit and debit card.

Another major difference between credit and debit cards is the risk involved. Because they are attached to a bank account, loosing a debit card is very risky. A person does not need a pin number to use a debit card and therefore can easily drain a persons bank account, causing extreme problems.

With a credit card the only problem is proving that someone else used the card. With a debit card the persons has to figure out how to get their money back and if any checks bounced they are responsible for those as well. The legal liability is much greater with a debit card than with a credit ca ...more
Answered by Pardeep kapoor, 15 Jul '10 11:35 pm

 
  
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5.

A DEBIT CARD one can use to draw money or to purchase ONLY UPTO CREIDIT BALANCE available in one's account on which the same is issued(subject, of course, to the daily withdrawal limits/purchase limit.
But credit card facility can be used even to overdraw the account (upto the credit limit sanctioned by the respective Bank) for which the Bank will charge interest at the rate fixed from the date of overdrawing in the accout
Answered by Divakaran Athrampatta, 15 Jul '10 11:20 pm

 
  
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