What is the difference between a credit card and a debit card plz tell me in detail - Accountancy -

Question

What is the difference between a credit card and a debit card?
plz tell me in detail
does credit card works same as a debit card but also has a
facitity that when our balance is zero it can also borrow from bank
otherwise both are same plz tell me fast

Komal Verma · Accepted Answer

Debit card basically implies ATM card However, now-a-days, debit
card is used for a much broader concept which includes online
transactions and cash withdrawal from ATMs The transactions made by
the debit card are backed by the amount of money deposited in one's
bank account This means that debit card can only be used when one
has sufficient money in their bank account Now-days, a few banks
have started providing overdraft facilities on the debit card to
some of their privileged customers This implies that such customers
can withdraw more than what they have in their bank accounts For
example, suppose that a trustworthy accountholder (having Rs 5,000
in his account) has been given an overdraft limit of Rs 10,000, so
he can make transactions worth Rs 15,000 The overdraft amount of Rs
5,000 is to be paid by the accountholder in due time along with
some interest In this sense, there is no difference between debit
card (with overdraft facility) and credit card It can also be said
this is one of the attempt which the banks have made to substitute
credit cards and also to minimise the risk involved in recovering
the outstanding amount from the credit card holders
On the other hand, credit card provides an individual to make
transactions irrespective of amount in his/her account Contrary to
the debit card, the amount spent through the credit card is to be
paid after the expiry of a specified period
One basic difference between the two cards is that while in case
of debit card transactions can be made only to the extent of money
available in the bank account, whereas, in case of credit card, no
such rule is applied The rate of interest charged by the banks on
the overdraft amount of debit card is generally lower than that of
the credit card

What is the difference between a credit card and a debit card? plz tell me in detail... does credit card works same as a debit card but also has a facitity that when our balance is zero it can also borrow from bank.............otherwise both are same ...plz tell me fast

What is the difference between a credit card and a debit card? plz tell me in detail...

does credit card works same as a debit card but also has a facitity that when our balance is zero it can also borrow from bank.............otherwise both are same ...plz tell me fast