Debit Cards VS Credit Cards

Basics of Money

Nowadays, a variety of options are available in almost every field, so we try to choose the best alternatives for ourselves. But when it comes to making a choice between a debit card or a credit card, we sometimes fail to make right decisions. So let’s get familiar with both the cards’ functions, various frauds related to them and some tips on how to use them.

Introduction & Functions


  •  It is linked to the bank account
  •  Funds are directly withdrawn from the bank account
  •  Only the amount present in the bank account can be withdrawn
  •  Most debit cards do not have a limit on withdrawals
  •  No interest charged since nothing is borrowed from the bank
  •  Enables easy withdraw or transfer of funds electronically
  •  Widely accepted as a payment mode


  •  It is linked to the issuing bank
  • Amount spent can be more than what is actually earned
  • Spending/credit limit is assigned every month
  • All the money spent has to be returned by the end of specific time period
  • Interest is charged for late deposition of money
  • Easy to carry and widely acceptable
  • Does not require maintaining an account balance

Both the cards have some unique functions but this plastic money holds certain amount of risk as well.

Debit Cards and Credit Cards Frauds

Many debit card frauds occur at an ATM through a technique called skimming where the fraudsters attach an electronic device to gain information about the card owner present on the magnetic strips of debit cards and then make a copy.

Frauds such as phishing, where emails from fake companies are sent to the card holders asking for their personal information like pins, card number, etc.

Another type of fraud- vishing i.e. phone frauds, happen a lot specially with the senior citizens where the fraudsters portray themselves as reputed companies/agencies and ask all the details of cards, be it debit or credit.

Tips on how to use


  • Always keep a check on your bank account balance
  • Keep receipts of transactions made by the account and tally them against your monthly statement
  • Update your passbook regularly so as to have a clear image of all the activities going on in the account
  • DO NOT share your Personal Identification Number (PIN) with anyone.


  •  Pay your balance off every month on time to avoid interest charges
  •  Sign up for transaction alerts so as to keep a check on fraudulent activities
  •  Go through the monthly transactions and check if there’s anything charged in a wrong way
  •  Try to pick a card that gives maximum rewards for your lifestyle.

Plastic money is the future of the country. It shall soon replace the entire cash transactions and make our daily tasks simpler. After reading the above content, hope it will become easier for you to analyse what is beneficial for you.

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