The Differences between Credit Cards and Debit Cards

Answer: There are four differences between credit cards and debit cards: different application methods, different functions, different classifications, and different conditions of use.

1. Different application methods: you can open a savings card account with your valid ID card. For credit cards, you generally need to fill in a credit card application and submit relevant supporting documents;

2. Different functions: savings cards The main function is to store funds, and can transfer, withdraw cash, pay fees, etc. A credit card can handle all the functions of a debit card, or some of the functions of a debit card. The main function of a credit card is to make purchases in advance and then settle with bank-related institutions;

3. Different categories: debit cards Cards can be divided into two types: magnetic stripe savings cards and chip savings cards. Credit cards are divided into two types: credit cards and quasi-credit cards. Credit cards are generally credit cards;

4. Different conditions of use: Debit cards cannot be overdrawn for consumption, and consumption can only be made after depositing. Credit cards do not require a balance to be used for consumption. This means that after consumption is made in advance, the bank will conduct an accounting of the entire month's output next month and then settle the payment.

Expand knowledge: Introduction to credit cards and debit cards

1. What is a credit card?

Credit cards are handled by national statutory commercial banks or related credit institutions. Items are credit certificates issued by citizens with qualified credit. Cardholders can go to relevant institutions or commercial service departments to make purchases, and then the relevant banking institutions will conduct an accounting and verification of the cardholder's consumption. After verification, the cardholder must settle the payment. The functions of credit cards: Accumulate personal credit; use the card to make purchases, making people’s lives more convenient; you can enjoy discounts when spending at the bank’s special merchants; you can use overdrafts without deposits; and you can provide daily business expenses and financial reimbursements, etc. Serve.

2. What is a savings card?

A savings card is a financial transaction card issued by a bank to provide financial services to depositors. It is a type of debit card. There are two types: magnetic stripe and chip. Its main function is to make deposits and withdrawals at networked ATM machines and bank counters, and to make purchases at networked POS. The main function of a savings card is savings deposits. We can use the savings card to achieve card consumption, cash withdrawals, transfers, and payment of bills such as utility bills. You cannot spend with overdraft, you can only spend as much as you have in your card. The interest on the savings card is calculated based on the current deposit interest rate and is settled once a quarter.