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The Story Of Credit And Debit Cards
Nowadays using credit and debit cards has eased out the hassles of shopping. If you want to purchase something by using a credit card either in person or online you enter the store, pick the item you desire, punch the number of your credit card and return with the product. Using credit and debit cards is in reality a very neat and clean purchase procedure.
In case of credit cards, after your transact with the shopkeeper, the trader receives a sum from a credit card company who has issued your credit card. This happens within 30 days and in return, you are provided with a bill from the credit card company again within thirty days for which you are liable to pay.
Different credit card companies have variable terms and conditions. In case of credit cards, you are to pay the amount of the purchase to the credit card company after the transaction is over. However, when the matter comes to debit card, the scenario is completely different. Here the cash has to be there in the account before the purchase is made. If the cash is not there in the account, it takes no time for you to be a defaulter. If you want to use your debit card more, you have to load your account with more amount of money. The process is ongoing and it only stops when you decide to discontinue your amount of cash flow. Here lies the main difference between credit and debit cards.
The main advantage of a credit card is that you don’t have to worry about prior cash arrangement for it is usually “interest free” if you pay the amount within thirty days of the transaction. On the other hand, the main disadvantage with credit card facility is that when you make a big purchase and it becomes difficult for you to clear the amount of the purchase being made within the “interest free” period. Thus, risks of being in a pothole with high interests lurk.
In case of debit card the good news is that, the cash is there, so you can make the purchase. According to present day situation, both credit and debit cards have recognizable credit company logos, both the cards can be swiped with at the checkout counter and both of them can be utilized for online purchases.
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