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    Debit and Credit Cards

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    Mahesh Kumar
    Debit and credit cards serve different purposes. A debit card is directly linked to a bank account and withdraws funds immediately, while a credit card allows purchases without immediately paying and charges interest on unpaid balances. Debit cards offer advantages like not requiring creditworthiness and limiting spending to available funds, but also disadvantages like lower fraud protection than credit cards and the risk of overdraft fees.

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    © All Rights Reserved
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    Debit and Credit Cards

    Uploaded by

    Mahesh Kumar
    214 views7 pages
    Debit and credit cards serve different purposes. A debit card is directly linked to a bank account and withdraws funds immediately, while a credit card allows purchases without immediately paying and charges interest on unpaid balances. Debit cards offer advantages like not requiring creditworthiness and limiting spending to available funds, but also disadvantages like lower fraud protection than credit cards and the risk of overdraft fees.

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    DEBIT AND CREDIT CARDS

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    Debit and credit cards serve different purposes. A debit card is directly linked to a bank account and withdraws funds immediately, while a credit card allows purchases without immediately paying and charges interest on unpaid balances. Debit cards offer advantages like not requiring creditworthiness and limiting spending to available funds, but also disadvantages like lower fraud protection than credit cards and the risk of overdraft fees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    214 views7 pages

    Debit and Credit Cards

    Uploaded by

    Mahesh Kumar
    Debit and credit cards serve different purposes. A debit card is directly linked to a bank account and withdraws funds immediately, while a credit card allows purchases without immediately paying and charges interest on unpaid balances. Debit cards offer advantages like not requiring creditworthiness and limiting spending to available funds, but also disadvantages like lower fraud protection than credit cards and the risk of overdraft fees.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    DEBIT AND CREDIT CARDS

    A.AYESHA SIDDIQUA
    DEPT. OF B.COM BANKING
    DEBIT CARD

    Also known as Bank Card or Check Card.


    A debit card is a plastic card that provides an
    alternative payment method to cash when making
    purchases.
    It can be called an electronic cheque, as the funds are
    withdrawn directly from either the bank account, or
    from the remaining balance on the card.
    CREDIT CARD

    Credit cards allow you to 'buy goods now and pay


    later' - called 'buying on credit'.
    They aren't linked to your bank account.
    If you don't repay your bill in full by the date shown
    you're charged interest on the whole amount of the
    bill for that month.
    The rates of interest - indicated by the APR (annual
    percentage rate) - is very high.
    DEBIT or CREDIT..?

    A debit card uses the money you have and a credit


    card uses the money you don't have.
    "Debit cards" are linked directly to a checking
    account whereas Credit cards are not.
    The "debit" networks usually require that a Personal
    Identification Number(PIN).
    The "credit" networks require that purchases be
    made in person and often allow cards to be charged
    with only a signature, and/or picture ID.
    ADVANTAGES OF DEBIT CARDS

    A consumer who is not credit worthy and may find it


    difficult or impossible to obtain a credit card can
    more easily obtain a debit card.
    Use of a debit card is limited to the existing funds in
    the account to which it is linked.
    A debit card may be used to obtain cash from an
    ATM or a PIN-based transaction at no extra charge,
    other than a foreign ATM fee.
    DISADVANTAGES

    Many banks are now charging non-sufficient funds


    fees based upon pre-authorizations.
    Many merchants mistakenly believe that amounts
    owed can be "taken" from a customer's account after
    a debit card (or number) has been presented,
    without agreement as to date, payee name, amount
    and currency, thus causing penalty fees for
    overdrafts.
    DISADVANTAGES

    Debit cards offer lower levels of security protection


    than credit cards.
    Laws protect the consumer from fraud much less
    than with a credit card.

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