Banking Awareness 27: Debit cards & Credit Cards.

Are you willing to know the detailed information about the Debit cards & Credit Cards? Here is the article which provides you the clean and clear information about the Debit cards & Credit Cards. So as we all knew that the meaning of Debit cards & Credit Cards. A Debit Card is a plastic payment card which is used instead of cash when making a purchase. It is as similar as a Credit card, but a bit different for a credit card is that the money is immediately transferred from the Cardholders bank account when performing a transaction.

A Brief Overview of Credit Cards and Debit Cards which typically look the same, such as 16 Digit Card Numbers, Expiration, Dates, and Personal Identification Number(Pin codes). 

Credit Cards:-

It is a card which is issued by the Financial Institutions, Which is generally a Bank that enables the cardholder to borrow funds from the Institution. Where the Cardholders agree to pay the Money back, with INterest, according to the terms and conditions of that particular institution.

This Credit Card will be issued in four Categories, they are:-

• Standard Cards:- These Cards will extend a line of credit to all the users.
• Rewards Cards:- These cards offer Cash bank, Travel Points, and many more benefits to the customers.
• Secured Credit Cards:- These cards require an Initial Cash Deposit which is held by the issuer as Collateral.
• Charge Cards:- These cards have no preset spending limit, but often do not allow unpaid balances to carry over from month to month.

Debit Cards:- 

It is a payment card which makes payment by deducting money directly from the customers checking amount, such as a loan from a bank. Debit cards offer the conveniences of credit cards and many other payment processes such as Visa (or) Master Card. 

These are the standard type of Debit Cards, such as:-

• Standard Debit Cards:- These cards draw on your bank account.
• EBT Cards:- EBT cards are also known as Electronic Benefits Transfer Cards. These cards are issued by State and federal agencies to follow the qualifiers to use their benefits to make purchases.
• Prepaid Debit Cards:- These Card gives people without access to a bank account (or) a way to make electronic purchases up to the amount that the Pre-loaded on the card.