Credit Card Vs. Debit Card

A debit card is a card issued by a bank through which you can access the funds you have in your account without having to go to the bank or write a check in order to buy something. The way a debit card works is that you can either go to an ATM to withdraw the money from your account, or, when used as a form of payment, it transfers the money directly from your account to the business account where you’re making a purchase. With every debit card transaction, your bank balance goes down, unlike credit cards.

A credit card, on the other hand, is also an electronic card, with the difference that instead of using the money that is already in your account when you make a purchase, it gives you the option to borrow money from your credit card company instead of transferring the money directly from your account. When withdrawing money from your debit card in an ATM from the same bank your card is from, you don’t have to pay any fees. However, when you use your credit card to withdraw money from an ATM, it will be considered a cash advance and you will be subject to the cash advance fees imposed by your credit card issuer.