₦airaland Forum

Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 1,882,537 members, 3,806,718 topics. Date: Friday, 22 September 2017 at 03:46 AM

Differences Between Debit And Credit Cards - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Differences Between Debit And Credit Cards (33985 Views)

No Limit On Naira Debit, Credit Cards Utilization On E-channels – CBN / Precautionary Tips To Help Minimize Scam On Your Atm/debit/credit Cards / We Buy $$$ In The US And Credit Your Naira Account (1) (2) (3) (4)

(0) (1) (2) (3) (Reply) (Go Down)

Differences Between Debit And Credit Cards by mokoshalb(m): 9:35pm On Aug 22
Among the many electronic payment systems in vogue today the most popular form is card payments. There are two main types of cards, debit cards, and credit cards. Many people are still confused as to the difference or similarity between the two cards, however, it is actually not as mysterious as it seems.



To begin with, let us explain in as precise and concise a way as possible. Credit cards allow the holder to make purchases on credit, whereas the debit visa card holder needs to have the amount plus some transaction fee in his or her account to be able to make any payment using the debit card. As the name suggests the amount is debited from card holder's account immediately when the debit card is used. This is opposed to a credit card where the cardholder does not need to have the amount he or she is going to spend. As long as the amount is within the 'credit limit' of the card the transaction will be carried through and the holder will have to return the money to the card company in installments or in one single payment.

What is a Debit Card?

Debit cards offer the convenience of a credit but work in a different way. Debit cards draw money directly from your bank account when you make a purchase. They do this by placing a hold on the amount of the purchase. Then the merchant sends in the transaction to their bank and it is transferred to the merchant's account. It can take a few days for this to happen, and the hold may drop off before the transaction goes through. For this reason, it is important to keep a running balance of your checking account to make sure you do not accidentally overdraw your account. It is possible to do that with a debit card. You will have a PIN to use your debit card at stores or ATMs. However, you can also use your debit card without a PIN at most merchants, you will just sign the receipt like you would with a credit card.

Features of a Debit Card:

A debit card is tied directly to your bank account.
It can serve the purpose of a credit card also.
Generally, you will use your PIN or a generated One Time Password (OTP) to complete the transactions.
It is the general and most used card issued by your bank to you after opening a bank account.
They always have a Visa®, Mastercard® or other financial service company logo on the card face.
The front of a debit card includes the debit card number, the expiration date.
The back of a debit card includes the customer service number (3-digit code), The signature bar, the card verification value, and some of the issuing bank logos.


What is a Credit Card?

A credit card is a card that allows you to borrow money in small amounts at local merchants. You use the card to make your basic transactions. The credit card company then charges you interest on your purchases, though there is generally a grace period of approximately thirty days before interest is charged if you do not carry your balance over from month to month.

Features of a Credit Card:

A credit card is a line of credit you can access with your card.
Generally, you must sign on these purchases.
You will pay interest on the purchases made if not paid off in thirty days.
Credit purchases typically do not require a pin to be entered at the time of the transaction.


Protecting Your Debit and Credit Cards:

Both a credit and debit card have similar risks when it comes to theft. If your credit or debit card information has been compromised, you will need to contact your bank immediately. You should also take additional steps and monitor your credit report to make sure that your identity was not stolen, It is important to check your statements each month to make sure you can identify all charges. The banks limit the length of time that you can report a fraudulent charge on the account. The bank will freeze the account and issue you a new card when you report that the card has been stolen or you see an unauthorized transaction.

Source: Debit and Credit Cards
mynd44 lalasticlala seun

66 Likes 19 Shares

Re: Differences Between Debit And Credit Cards by eezeribe(m): 9:37pm On Aug 22
Credit cards that have made the average American deep in the rat race..
credit cards that have permanently screwed the left quadrant occupants in their quadrant...
credit cards,the enemy of the right quadrant occupants...

72 Likes 6 Shares

Re: Differences Between Debit And Credit Cards by Lexusgs430: 10:52pm On Aug 22
Credit card or Debt card ?

The true interpretation of credit card, is a debt card ........

67 Likes 8 Shares

Re: Differences Between Debit And Credit Cards by 9jvirgin(m): 11:20pm On Aug 22
I got a Capital One Credit Card with a considerable minimum balance because I wanted to build my credit portfolio to actualize a big purchase.

In reality, Credit Card is suicidal.

67 Likes 8 Shares

Re: Differences Between Debit And Credit Cards by billycayana(f): 11:20pm On Aug 22
Re: Differences Between Debit And Credit Cards by roqrules04(m): 11:21pm On Aug 22
I love Credit Card tongue tongue

5 Likes 4 Shares

Re: Differences Between Debit And Credit Cards by CheezyCharles(m): 11:21pm On Aug 22
Omoh nothing can heal any sickness like bank credit alert does!

51 Likes 6 Shares

Re: Differences Between Debit And Credit Cards by King4Roller: 11:21pm On Aug 22
What is the difference between credit alert and debit alert?

6 Likes

Re: Differences Between Debit And Credit Cards by adebrave1(m): 11:21pm On Aug 22
Noted
Re: Differences Between Debit And Credit Cards by hardywaltz(m): 11:22pm On Aug 22
There is nothing like credit card in Nigeria
But hopefully with the introduction of BVN in a few years time maybe Nigeria may introduce the credit card option in the Banking industry duh with the exorbitant rates i doubt if anyone in his right senses will agree to take one.

27 Likes 4 Shares

Re: Differences Between Debit And Credit Cards by King4Roller: 11:22pm On Aug 22
roqrules04:
I love Credit Card tongue tongue
Are you sure you are normal?
kennygee:
Nigerians aren't mature yet for credit cards, we don't have the technology to pursue credit card fraud and credit card defaulters.

Make we just dey spend money wey dey our account jejely.
I dont think you are saying the truth.

5 Likes 1 Share

Re: Differences Between Debit And Credit Cards by King4Roller: 11:22pm On Aug 22
Hj
Re: Differences Between Debit And Credit Cards by kennygee(f): 11:23pm On Aug 22
Nigerians aren't mature yet for credit cards, we don't have the technology to pursue credit card fraud and credit card defaulters.

Make we just dey spend money wey dey our account jejely.

26 Likes 2 Shares

Re: Differences Between Debit And Credit Cards by Joseunlimited(f): 11:23pm On Aug 22
At end of everything na money u go use am Kolet cheesy

11 Likes

Re: Differences Between Debit And Credit Cards by angelbulksms: 11:23pm On Aug 22
eezeribe:
Credit cards that have made the average American deep in the rat race..
credit cards that have permanently screwed the left quadrant occupants in their quadrant...
credit cards,the enemy of the right quadrant occupants...

You be sharp guy

Send bulk sms to Ghana, South Africa, UK, US and other countries. Check my signature
Re: Differences Between Debit And Credit Cards by dhebz2pon(m): 11:23pm On Aug 22
Noted
Re: Differences Between Debit And Credit Cards by Felimore: 11:23pm On Aug 22
Noted
Re: Differences Between Debit And Credit Cards by Nanjerian: 11:23pm On Aug 22
Yes,credit and debit card epp us

1 Like

Re: Differences Between Debit And Credit Cards by handsomebanana(m): 11:23pm On Aug 22
.nice one


Av seen a lot of people refer to dia ATM card as 'CREDit card ' in oda 2 sound tûsh.


Always leaves me in tears after lafin LYK a mad man

38 Likes 4 Shares

Re: Differences Between Debit And Credit Cards by Souljeezy(m): 11:24pm On Aug 22
anybody still new to this?

1 Like

Re: Differences Between Debit And Credit Cards by mokoshalb(m): 11:24pm On Aug 22
grin
Re: Differences Between Debit And Credit Cards by Abudu2000(m): 11:24pm On Aug 22
All the cc topup and carders oya drop ur likes

21 Likes 1 Share

Re: Differences Between Debit And Credit Cards by ameeeen(m): 11:24pm On Aug 22
I'm coming

1 Like

Re: Differences Between Debit And Credit Cards by opichika(m): 11:25pm On Aug 22
see me see wahala,....na my money una come divide into credit and debit....this oyibo people dey tire me oooo

1 Like

Re: Differences Between Debit And Credit Cards by OlaJnr: 11:26pm On Aug 22
Only the keyboard warriors understands the meaning of credit cards... tongue

15 Likes 1 Share

Re: Differences Between Debit And Credit Cards by pol23: 11:26pm On Aug 22
Many bank offers Credit card in Nigeria..
I know of Diamond Bank to exclusive customers only.
Traveling with Diamond Bank exclusive credit card gives you A class treatment ....
Free Logistics to help with your luggage at the airport... you be walking like a boss.
Bussiness class lounges free access...
I tasted the benefit once.... till today I still dey try make money make I come go open exclusive account with them....
but their online banking can be worrisome.

21 Likes

Re: Differences Between Debit And Credit Cards by kobijacobs(m): 11:26pm On Aug 22
billycayana:
I'm as confused as u are
Re: Differences Between Debit And Credit Cards by ajohkeh(f): 11:27pm On Aug 22
I think I need credit card

1 Like

Re: Differences Between Debit And Credit Cards by ggoldmine: 11:28pm On Aug 22
CheezyCharles:
Omoh nothing can heal any sickness like bank credit alert does!


What is this one saying? angry

7 Likes

Re: Differences Between Debit And Credit Cards by kobijacobs(m): 11:28pm On Aug 22
Leetunechi:
Please I don't mean to disturb you but am dating a girl of 38 yrs and am just 25 ....she keep on asking if i will marry her....i dont just know what to do and she love me more than any woman should love a man ...now she said she want to give me a child should I accept to give her a child ??,

fvck boy....calling a granny "girl"....may sense fall on u

25 Likes 3 Shares

(0) (1) (2) (3) (Reply)

UBA Security Collects Bribe At The ATM From Customer, Fight Ensues (Video) / Importation Business As Plan 'B'. The Nitty Gritty. / What Bank Pays The Best Interest Rate For Savings Account In Nigeria?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (0) (1) (2) (3) (4) (5) (6) (7) (8) (9)

Nairaland - Copyright © 2005 - 2017 Oluwaseun Osewa. All rights reserved. See How To Advertise. 83
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.