There are three differences between credit cards and debit cards:
First of all, they have different functions:
1. Functions of credit card:
Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.
2. The function of debit card:
(1) Cash deposit and withdrawal. Debit cards mainly have the functions of local and foreign currency savings, time savings and current savings. Debit cards can be used to deposit and withdraw money at card-issuing bank outlets and self-service banks, or at ATMs in China and even around the world.
(2) Transfer and remittance. Cardholders can transfer or remit money to other accounts through bank outlets, online banking, self-service banking and other channels.
(3) Credit card consumption. Cardholders can use debit cards to spend money at merchants.
(4) collecting and paying. Debit cards can be used to pay salaries and pay various fees (such as communication fees, water fees, electricity fees, gas fees, etc.). ).
(5) Asset management. Wealth management products, open-end funds, insurance, personal foreign exchange transactions, precious metal transactions, etc. You can sign contracts, trade and settle accounts through debit cards.
(6) Other services. Many bank debit card services have expanded beyond financial services, such as providing airport VIP access and medical and health services for cardholders.
Second, the characteristics of the connection are different:
1, characteristics of credit cards:
(1) Cash deposit is not allowed, and it will be repaid after consumption. Enjoy the interest-free repayment period, which can be repaid in installments (minimum repayment amount). It is also allowed to join international credit card organizations such as VISA, Master Card and JCB.
(2) It is one of the fastest-growing financial businesses, and it can replace the traditional cash circulation in a certain range.
(3) It has both payment and credit functions. Cardholders can use it to buy goods or enjoy services, and they can also use credit cards to obtain certain loans from card issuers.
(4) It is a high-tech product integrating financial business and computer technology.
2. The characteristics of debit card:
(1) Ease of use and popularity: Debit card is one of the most commonly used payment tools in e-commerce because of its ease of use and wide popularity. More than 20 million outlets around the world accept signature debit cards from some international brands. Ease of use is one of the reasons why debit cards are becoming more and more popular. Debit card can not only save you the trouble of carrying cash, but also be convenient to use and pay quickly. The monthly statement can clearly show all transaction records.
(2) Safe and reliable: Debit cards have the same security as credit cards. If your debit card is lost or suspected of being stolen, you should report the loss to your bank immediately to prevent others from stealing and reduce losses. Remember: the issuing bank provides you with consumer protection, which does not mean that you can care about your debit card; Debit cards, like money in bank accounts, should be properly kept.
Third, the classification of the two is different:
1. Classification of credit cards: Credit cards are divided into credit cards and quasi-credit cards. Credit card refers to a credit card in which the cardholder has a certain credit limit and can spend first and then repay; Quasi-credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund according to the regulations, and when the balance of the reserve fund account is insufficient to pay, it can be overdrawn within the prescribed credit limit. Credit cards generally refer to credit cards.
2. Classification of debit cards: Debit cards are divided into transfer cards, special cards and stored-value cards according to different functions. Debit cards cannot be overdrawn. The transfer card has the functions of transfer, cash deposit and withdrawal and consumption. A special card is a debit card used for a specific purpose in a specific area, which has the functions of transferring money and depositing and withdrawing cash. Stored value card is a prepaid wallet debit card in which the bank transfers funds to the card for storage according to the cardholder's requirements, and directly deducts money from the card during the transaction.
Baidu encyclopedia-debit card
Baidu encyclopedia-credit card