Most money transactions are done electronically,
People are offered to do all these transactions with credit or debit cards. However, the majority of the public is still not fully aware of the difference between these two payment cards and what opportunities each of them offers. An explanation over at http://snowdin.com
It may seem that there is no big difference between a credit card and a debit card, but in reality there is a very significant difference between the two. A debit card is a payment card that can be used to pay for purchases in stores, for example, to pay for bills on the Internet. A debit card can perform the same basic functions as a credit card – cashless payments in shops, on the internet, as well as cash withdrawals and cash deposits at ATMs. However, the main feature of this payment card is that a person can only pay with the amount of money in the bank account linked to the debit card. Once all the money in this checking account has been spent, it is no longer possible to buy anything with the debit card. In other words, a person can only spend money in the bank account he / she owns.
Conversely, a credit card can be used even if the money on the person’s account is fully spent – the balance of the account is 0. When concluding a credit card agreement, a person agrees with the bank that a credit limit is also set for this payment card. It works just like a cash loan – in a situation where one’s own money is spent, one can continue shopping, but that money will already be a credit that the credit card holder borrows from the bank. Of course, the loan amount must then also be repaid. Similarly, the loan is subject to interest, which is payable on the principal of the additional loan. However, most banks offer the option to repay the loan within 30 days, but do not charge interest on it. If the money is not fully refunded within one month, the bank will also calculate the amount of interest due.
Other advantages to a credit card,
for example, it can also be used when the card itself is not with you. A person can name the card number and the relevant details for billing purposes. Credit card allows you to book hotels, airline tickets. A credit card is a more reliable form of payment abroad – often a debit card is not enough to make a variety of payments or reservations abroad. However, over time, debit cards are modeled internationally so that they can be used in a similar way to credit cards. There are various discount programs available on both debit and credit cards – you can buy cheaper concert or theater tickets.
It is impossible to say that a credit card is better than a debit card because each person uses their payment card for different purposes. Those people who frequently travel abroad or just travel a lot should definitely buy a credit card that can help them settle abroad. As a result, special business credit cards are offered to various companies to give them privileges on such business trips. However, if a person wants to buy a credit card, it should be borne in mind that they also have to make annual payments. The more prestigious and better your credit card, the more expensive you have to pay each year. As a result, those people who only need a payment card to shop at a store, make bill payments, or make purchases over the Internet do not necessarily need a credit card. These features are also offered by a debit card, which is relatively cheaper than a credit card.
When choosing between a credit card and a debit card, everyone should understand what the card will do – if you need to go abroad on a regular basis, it is better to buy a credit card. If you just need to withdraw money from your account – then a debit card is enough. In addition, if a person has a credit card, they may inadvertently overdraw their funds. Because there is a credit limit on the credit card, it is easier for a person to spend money. However, if you use a debit card, you can never be overpaid.
When choosing between the two cards, you need to find out what benefits each one can bring. Each bank also has several types of payment cards, which definitely need to be compared and researched which one is most appropriate and beneficial for people. There are also different levels of credit cards that provide different privileges. Of course, this also changes the cost of using your credit card.