How do debit cards work?

Question

are they the same as credit cards?

Answer 1

What's the difference between a debit card and a credit card?

While a debit card looks like a credit card, it works more like cash or a personal check. You "pay now." With a credit card, you "pay later."

Debit means "subtract." When you use a debit card, you subtract money from your own checking or savings account. As with credit cards, you use it in stores for purchases. At check-out, the card reader electronically contacts your bank and subtracts the amount from your account. The money you have in your bank account limits how much you can spend. However, if you are not careful in watching your daily account balance, you can over withdraw your account. Some systems will allow you to use your debit card when you don't have enough money in your account to cover the purchase. This can result in hefty overdraft fees.

Using a credit card is somewhat like taking out a loan from a bank or other financial institution. You have to pay back the credit you used each month. If you pay back less than the full amount you owe each month, you pay interest on the amount you don't pay back. The credit card company sets the total amount you can charge based on your credit history, income, debts and ability to pay.

Some cards are dual-purpose credit/debit cards. Before you swipe the card through the reader, you select a "credit" or "debit" button on the reader. If you select "debit," you then enter your Personal Identification Number (PIN).

If you select "credit," you are given a credit receipt to sign. "Credit" charges will appear on your next charge account bill.

Answer 2

A debit card pays like cash straight out of your credit a/c. A credit card is buy now pay later in instalments or all in one go. If you pay in instalments you will incur interest.

Answer 3

A DEBIT CARD IS A DIRECT LINK TO YOUR BANK ACCOUNT. IT CSN BE USE TO MAKE PURCHASE OR WITHDRAW MONEY FROM AN ATM.

THE MONEY IOS TAKEN DIRECTLY FROM YOUR ACCOUNT SO THE MONEY ISN'T BORROWED.

TO HAVE A DEBIT CARD YOU NEED TO APPLY FOR A BANK ACCOUNT AND YOUR BANK WILL SEND YOU IT IN THE MAIL.

DEBIT CARDS AON'T OFFER YOU AS MUCH PROTECTION AS CREDIT CARD BUT IF YOU WANT TO STRAY FROM SPENDING MONEY YOU DON'T HAVE I WOULD GO FOR IT.

I RECCOMEND A CHASE BANK ACCOUNT.

WITH DEBIT CARDS THOUGH YOU REALLY NEED TO TRACK YOUR SPENDING AND BE AWARE OF WHERE YOUR MONEY IS GOING BECAUSE THE MONEY IS TAKEN DIRECTLY FROM YOUR CHECKING ACCOUNT.

THE FEES THEY CHARGE FOR CERTAIN THINGS VARIES FROM BANK TO BANK.