How a debit card differs from a credit card: highlights

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

How is a debit card different from a credit card? The thing is that these two types of plastic are in great demand among the population. But not everyone sees the difference between them. Below we will look at the main features of debit and credit cards.

What to look for first? And how to arrange this or that plastic? Read all about it below.

Debit cards

Let's start with the simplest answer to the question - how is a debit card different from a credit card? To answer it, citizens must understand what debit plastic is. It's actually easier than it looks.

So, a debit card is a plastic linked to a customer's account. It allows you to make purchases only for the amounts that the citizen currently has.

In fact, a debit card is a kind of storehouse of funds. You will not be able to spend more than what is on your account. When opening such plastic, people open an account and replenish it.

Credit cards

Continuing to find out how a debit card differs from a credit card. ForThis will clarify what "credit card" means.

This card allows you to actually make purchases on credit. That is, a credit account is opened with a certain limit. The spent amounts will have to be closed over time by replenishing the card.

Features

And the main difference between a debit card and a credit card is the characteristics of the plastic.

In the first case, the card will only have a service life and a payment system. Most often people use "Visa" and "Mastercard". The functionality of the card depends on the payment system. Some debit plastic supports overdraft. These include salary cards.

In the case of credit cards, everything is different. They have:

• grace period;
• loan limit;
• validity period;
• interest rate.

Grace period is the period of use of credit funds without overpayment. The money limit indicates how much you can spend as much as possible. Everything is simple with the interest rate - this indicator characterizes the interest that a citizen will have to pay when repaying a loan.

Commission

Finding out what is the difference between a credit and debit card, we have already met the main points. But that's not all. The thing is that in the case of credit cards, a citizen faces a commission for some transactions. Namely:

• with monthly commission;
• fee for ATM withdrawals;
• for translation into one or anotheraccount.

If a person has a debit plastic, he will be able to use all the balance management services without any commissions without any problems. You can withdraw funds from ATMs and make money transfers. No additional money will be debited from the account.

Customer age

There is another rather interesting aspect of how a debit card differs from a credit card. What is this about? The studied plastics can be owned by people of different ages. Debit cards appear in citizens before credit cards.

Ideally, both plastics are issued after 18 years of age. But some debit cards are issued without problems from the age of 16. Credit cards are easier. Under current legislation, minors under no circumstances can take loans and borrowings. Therefore, they will not be given the appropriate plastic. The exception is cases of emancipation. But in Russia, this scenario is extremely rare.

With overdraft facility

Some people are interested in the difference between a Sberbank debit card and a credit card. We have already managed to get acquainted with the main nuances, but the named bank was one of the first to develop debit cards with an overdraft. They are somewhat reminiscent of credit cards, but such plastic has significant differences. These include:

• debt amount;
• loan term;
• possibility of renewal of limits.

Usually, overdraft debit cards have a credit term limited to 2 months, and the limitmuch less for loans. Overdraft is often supported on salary plastic.

Issuing a debit card

The difference between a debit and a credit card is that a citizen actually deposits funds on one plastic card and then spends it, and on the other, everything happens the other way around - first spending, then repaying the debt. Everything is easy and simple.

It is worth paying special attention to such a feature as the design of a particular plastic. The studied resources also differ in this operation.

Let's start with debit cards. They will need the following papers:

• passport;
• parental permission (under 18);
• legal representative ID (for children);
• application in prescribed form.

With the listed papers, a citizen must apply to any bank with which he wants to cooperate. Further, an agreement is signed with a financial institution, after which an account is opened. Ready! The plastic will be issued to the person in about 2 weeks. The exact processing time must be specified in each bank.

Credit card processing

All the points listed above apply to any bank cards in Russia. Including, for example, how a Tinkoff debit card differs from a credit card. Despite the absence of branches and remote service, the named bank is one of the most successful in the credit card market.

In order to get a credit card, howas a rule, it is necessary to contact the bank with a corresponding request. Most often, the applicant is required to:

• identity card;
• certificate of registration (preferably);
• documents confirming income (when applying for loans and loans for large amounts, such documentation may be requested);
• application in prescribed form.

"Tinkoff" manages only by filling out an online application on the Internet, where passport data and the required amount for the borrower are indicated. The main thing is that the applicant is an adult citizen, then after checking his credit history, he will be able to receive his card in a personal meeting with a courier or by mail.

About citizenship and cards

Speaking about how a debit card differs from a credit card, we need to remember one more requirement. It refers to the nationality of the customer.

So, debit cards can be opened by everyone. Credit cards are most often issued only to citizens of the Russian Federation. If a foreigner has a residence permit, then he is unlikely to be denied credit plastic.

Accordingly, when applying for one or another type of bank card, you will have to clarify what citizenship a person should have. Some financial institutions do not impose such restrictions when issuing credit cards. This is normal.

Common features

We managed to understand the difference between a debit card and a credit card. What common features do these products have? It's hard to believe, but despiteFor all these differences, these plastics also have common features. For example, they include:

• possibility to issue several units of the product in one bank;
• Internet banking and mobile banking;
• right to withdraw funds from ATMs;
• the ability to replenish accounts through terminals and ATMs;
• eligibility for bonus programs;
• cashback support;
• right to issue additional plastic;
• informing about spending and receipts on accounts;
• work with different currencies.

In other words, in general, the studied cards have the same list of allowed operations. But credit cards are often more expensive than debit plastic.

Results

The difference between a debit card and a credit card is that the first plastic is a kind of wallet. And credit cards are a means of quick cashless loans.

We figured out how to design this or that plastic. And the difference between a debit card and a credit card is also now clear. In fact, everything is much simpler than it seems.

Which is better to stop? If you do not want to "live in debt", you will have to give preference to debit plastic. For quick credit, it is recommended not to issue bank loans, but plastic cards.