How to identify Credit card and Debit card

Today, bank cards, whether credit or debit cards, have become the most widely used payment tools worldwide. There is no denying the reliability and fluidity that the economy has gained thanks to its implementation. The fact of paying with our card has become as daily an act as the fact of paying in cash. How to identify credit card and debit card

Everything and that currently most people already have one, many of them are not aware of the differences between the different types of cards. Neither its advantages, nor its disadvantages. So if you want to know all the differences and peculiarities between credit and debit cards, stay and discover them.

In this article, we’ll make your tedious research task easier, and we’ll show you the differences between the two. In this way, you will have a clear and concise perspective about this popular payment method and you will be able to distinguish which of them best suits your financial needs. So first we will start with defining the main differences between a debit card and a credit card.

Debit Cards vs Credit Cards

Advantages of Debit cards: How to identify credit card and debit card

• They are usually free. Your bank provides them automatically.
• You have total control of your expenses.
• The money comes directly from your bank account, there is no debt.
• There are no spending limits, you can buy according to the capacity of your pocket.

Disadvantages of Debit cards:

• Sometimes they are not accepted in some establishments.
• Anti-fraud security is lower than with credit cards.
• If your card is cloned, the bank may not be responsible for the money you have in your account.

Advantages of credit cards:

• They are accepted in all shops and establishments.
• Ideal for online purchases.
• They have a high security anti-fraud encryption.
• Very versatile to contract services or pay tax fees.

Disadvantages of credit cards:

• You can easily get into debt if you don’t control your expenses.
• Interest can be high when paying.
• To get one you must meet certain requirements.
• You cannot buy very expensive products, as they have a limit.

What is a Debit card? How to identify credit card and debit card

A debit card is an electronic means by which you have the possibility to buy without using cash. The money is withdrawn directly from your bank account and immediately transferred to the seller’s account. This is one of the most widely used payment methods today and, to facilitate the consumer’s purchase, most businesses already accept this type of payment. Many of them if you limit it to a set minimum.
This payment method greatly speeds up purchases, since it is not necessary to carry cash. Just take your bank debit card out of your pocket and  Purchase paid.

How can I get a Debit card?

Everything and that most banks have their own conditions, in most cases, requesting a debit card is completely free. You just need a related bank account. Normally, the same bank where you have your account will give you the possibility to request one in your name.

Is it worth having a Debit card?

There are many questions that flood us when deciding whether to hire a debit card. Do I gain something from taking one? Is it safe? Will it be of use to me?

In the first instance, let us tell you yes: it is an advantage to have a debit card. Why?
One of the main reasons is that it does not have commissions for the payment and if you choose to buy a product you do not have to go into debt for it. The money is withdrawn from your own account directly and not by bank loan, as is the case with credit cards. In this way, you fully control your expenses. You pay on the spot for everything you purchase as if it were with cash. That is why they are so useful.

On the other hand, in terms of security, debit cards do not present as high a protection as credit cards. Everything and it is unlikely, there are risks of cloning and the eventual flight of capital from your account. In other words, they can rob you by copying your card. Thing for which the bank is not usually responsible. For this reason we have to be careful with these types of cards. Fortunately, in recent years their security has improved a lot thanks to the protection mechanisms they have (pin number, coordinate cards, etc.)

What is a credit card? How to identify credit card and debit card

The main utility of a credit card is not very different from a debit card (paying for a product or buying a service) Mainly, it differs in the fact that the payment is not withdrawn directly from your account, but accumulates to pay it a specific day or in installments. We can say that each purchase we make with our card is a microcredit that our bank provides us.

It is a good option if we have to make a significant expense, as it will allow us to postpone payment, or even if for any unforeseen event we have run out of balance in our account. Many people use this type of card as a lifeline.

It is important to be aware that the money on the credit card is not really yours, but as its name says, it is a loan from your bank. In such a way, when the time comes you will have to pay it off (usually with an interest charge). Therefore, it is highly recommended to make responsible use of this type of payment.

Is it easy to get a credit card?

It is not at all. You don’t have to be a millionaire to get a credit card. Quite the opposite. Today it is common for all banks to offer you one when opening an account. Of course, depending on the bank, you must have certain requirements to be granted one. Among those requirements is financial solvency, you must demonstrate that you obtain a certain amount of annual income. In this way, the banking institution will make sure that you will be able to pay the expenses generated by the card.

Is it an advantage to have a credit card?

Like everything in life, having a credit card has its pros and cons. In this case, credit cards represent a very useful tool for purchases.

Although debit cards can be used in most countries, there are still places and banks that do not accept payments with these cards. So if you like to travel, or do it for work or business, it is recommended that you have a credit card if you want to save unforeseen events when making your payments.

In addition, credit cards have high security encryption (anti-fraud) that never hurts. In this way, if an undesirable someone steals your credit card, there are a large number of mechanisms to prevent that person from having access to your money.