The difference between debit card, quasi-credit card and credit card

1. Debit card (deposit card)

Debit card is issued by the issuing bank Credit instruments issued to the public with functions such as transfer settlement, cash deposits and withdrawals, and shopping and consumption. Debit cards do not have the overdraft function, and the consumption characteristic is "pay first, consume later". In order to get a debit card, the cardholder must have an account with the card issuer and maintain a certain amount in deposits. When a cardholder pays with a debit card, the payment is transferred directly from their account at the card-issuing bank to the bank account of the merchant selling goods or providing services. Therefore, the funds in the debit card actually come from the cardholder's checking account or current account (ie, current deposit account), and the payment amount of the debit card cannot exceed the amount of the deposit. Debit card is a unique type of credit card in China. In Western countries, general transfer payment and other functions are mediated by checks, so debit cards are also called check cards.

2. Quasi-credit card

Quasi-credit card is also a credit card with "Chinese characteristics". It was created when my country's credit mechanism was not yet complete. The emergence and development of credit cards have laid a foundation that cannot be ignored for the popularity of credit cards. A quasi-credit card has some functions of both a credit card and a debit card. It generally requires a deposit or a guarantor. When using it, you deposit money first and then spend it. Interest is calculated on the deposit. When shopping and making purchases, you can use it within the limit approved by the card-issuing bank. Make a small overdraft, but the overdraft amount will accrue interest from the date of overdraft, and the outstanding balance must be paid off in one go. There is no interest-free repayment period and minimum repayment amount.

3. Credit card

A credit card is a credit card in the narrow sense that we often refer to. It is a payment card that provides consumer credit to cardholders. People can "buy first, settle and pay later" without having to deposit money at the card-issuing bank. Based on the customer's creditworthiness and other circumstances, the card issuer sets a "credit limit" for each credit card account. Generally, the card issuing bank 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.