Debit card, because there is the word "borrow", so some people think that debit card is a credit card, but it is not. A debit card is not a credit card. There are many differences between debit cards and credit cards. , let’s introduce debit cards and credit cards to you. The biggest difference between the two turns out to be the one mentioned below. Let’s learn about it together.

Debit cards are not credit cards.

Debit card refers to a bank card issued by the issuing bank to the cardholder. It has no credit limit and the cardholder deposits first and uses it later. Debit cards are divided into debit cards, special cards and stored-value cards according to different functions. Debit cards cannot be overdrawn.

The debit card has the functions of transferring money, depositing and withdrawing cash, and spending money.

Specialized cards are debit cards used in specific areas and for special purposes (purposes other than department stores, restaurants, and entertainment industries). They have the functions of transferring funds, depositing and withdrawing cash.

A stored-value card is a prepaid wallet-style debit card in which the bank transfers funds to the card for storage at the request of the cardholder and directly deducts funds from the card during transactions.

A credit card is a card that can be overdrafted in advance. It can be used for consumption without depositing money. It is a payment card that provides consumer credit to cardholders. The cardholder does not need to make a deposit at the card-issuing bank." Buy first, settle and pay later."

Credit cards are also called credit cards. Based on the customer's credit standing and the personal information submitted to the bank when applying, the card issuer sets a credit limit for each credit card user. Generally, the card issuer sends a bill to the cardholder once a month. Within a certain grace period after receiving the bill, the cardholder can choose to pay off the account without paying interest; or pay part of the bill, or only pay Minimum payment, plus interest later. This type of credit card is currently the most widely circulated payment card, and its core features are credit sales and revolving credit.

So, everyone understands that debit cards and credit cards are two different cards. The savings cards many people hold are debit cards. The biggest difference between a debit card and a credit card is that with a debit card, you deposit money first and then spend it, and you cannot overdraw, while with a credit card, you spend first and then pay back, and you can overdraft.